eSuppply Chain Management

©2001i2Technologies,Inc.CONFIDENTIALeSupplyChainManagement:TheCornerstoneofyourE-BusinessStrategyePharmaSummitApril17,2001©2001i2Technologies,Inc.CONFIDENTIALSlide2AgendaWhoisi2Technologies?TheInternetandyoursupplychainComponentsofabest-in-classsupplychaineSCM:Thefoundationofyoure-businessstrategySuccessfullyimplementingeSCM©2001i2Technologies,Inc.CONFIDENTIALSlide3i2’sMissionUnderstandingtheValuePotentialistheFirstStepini2’sValueDeliveryProcess©2001i2Technologies,Inc.CONFIDENTIALSlide4Foundedin1988,withabout6000employeesin65officesaroundtheworldRecognizedleaderinSupplyChainManagement&e-Business,accordingtoBenchmarkingPartners,Gartner,AMR,GigaDesignatedbyBenchmarkingPartners“best-in-class”inSCM3yearsrunning$1.1Brevenuein2000;profitablesinceinception90%annualgrowthrate57%overallSCMmarketsharein2000;70%oftop10pharmacompaniesareSCMcustomersCustomercommitment1,000customerswith9000implementations55%ofannualrevenuefromexistingclientsLeaderinR&D-investover23%ofrevenueannually(industryaverageis12%)0200400600800100012009697989900Revenue($000,000)i2TechnologiesataGlance©2001i2Technologies,Inc.CONFIDENTIALSlide5GartnerGroupSCPMagicQuadrantSource:GartnerResearch,2000©2001i2Technologies,Inc.CONFIDENTIALSlide6AgendaWhoisi2Technologies?TheInternetandyoursupplychainComponentsofabest-in-classsupplychaineSCM:Thefoundationofyoure-businessstrategySuccessfullyimplementingeSCM©2001i2Technologies,Inc.CONFIDENTIALSlide7PurchasingManufacturingDistributionCustomerService&SalesFewchange-oversStableschedulesLongrunlengthsLowCOGSFewvendorsRegulatedenvironmentLowinvent-oriesLowtrans-portationHighinventoriesHighservicelevelsRegionalstocksFunctionalsiloswithconflictinggoalschallengesupplychainflexibilityandresponsivenessSourceMakeDeliverSell©2001i2Technologies,Inc.CONFIDENTIALSlide8SophisticatedsupplychaintechnologiescandriveoperationalefficienciesthatERPcannotdeliver19601970198019902000DepartmentEnterpriseExtendedEnterpriseMarketplaceFinMgmt,MRPERPAPSSFASCMCRMeProcMeta-MarketplaceGL,AP,AROE,IMMarketplaceIntegrationM2M©2001i2Technologies,Inc.CONFIDENTIALSlide9Value$WebsitePresenceeCommerceBuying&SellingeBusinessBuying&Selling,InformationSharingRedeployingcurrentbusinesspracticesIntelligenteBusinessSynchronizedend-to-endbusinessprocesses,spanningmultipleenterprisesOptimizedbusinessprocessesWheremostPharmaceuticalandHealthcarecompaniesaretodayEvolutionoftheInternetforBusiness©2001i2Technologies,Inc.CONFIDENTIALSlide10WholesalersSuppliersManufacturersTheTraditionalPharmaceuticalSupplyChainRetailersCareProvidersPatientsInformationGoods©2001i2Technologies,Inc.CONFIDENTIALSlide11TheInternet-EnabledSupplyChain:ConnectedandCollaborativeInformationGoodsRetailersPatientsWholesalersManufacturersSuppliersCustomerExchangesLogisticsExchangesLogisticsProvidersSupplierExchangesContractManufacturersVirtualManufacturersCareProviders©2001i2Technologies,Inc.CONFIDENTIALB2BconnectivityandcollaborationwilltransformthetraditionalsupplychainCyberMarketTraditionalTradingPartnersEnterpriseDepartmentalProductivityExternalTransactionsCollaborativeInteractionDomainApps1995HighercustomerexpectationsandincreasedpressureonmarginsComplextradingnetworkswithnewinternetchannelsDynamicbusinessrelationshipsPartneringwithcompetitors,suppliersandcustomerstodevelopanddeliverproductsEliminatingintermediariesConnectionParadigmBusinessParadigmE-Commerce1995-2000C-Commerce2000-2005©2001i2Technologies,Inc.CONFIDENTIALSlide13AgendaWhoisi2Technologies?TheInternetandyoursupplychainComponentsofabest-in-classsupplychaineSCM:Thefoundationofyoure-businessstrategySuccessfullyimplementingeSCM©2001i2Technologies,Inc.CONFIDENTIALSlide14SCMisthe“tiethatbinds”yourbusinessprocessestogetherWholesalersPhysiciansDistributionCentersTransportationMarketplacesSuppliersSupplierMarketplacesManufacturingPlantsCareProvidersRetailersLogisticsProviders©2001i2Technologies,Inc.CONFIDENTIALSlide15SCMshouldbeacriticalcomponentofyour(e)businessstrategyAflexiblesupplychainprovidesthevelocitytoIncreasemarketsharebyimprovedcustomersatisfactionandloyaltyDerivecompetitiveadvantagefromdifferentiatedresponsetocustomersAbest-in-classsupplychaingeneratesvalueforyourbottomlineIncreasedrevenuethroughfewerstockoutsHigherprofitthroughincreasedthroughputandbetterproductmixReducedinventoryandobsolescenceReducedwarehousing,transportationandreturnscosts©2001i2Technologies,Inc.CONFIDENTIALSlide16SupplyChainManagement=Planning+ExecutionSupplyChainManagementisplanningDesignofthesupplychainAnticipationofdemandPlanningofproductionandlogisticstomeetdemandSupplyChainManagementisexecutionMakingaccurateandreliabledeliverypromisestocustomersFulfillingonthosepromiseswhilemaximizingprofitsEnd-to-endvisibilitytoenhancesupplychainvelocitySupplyChainManagementStrategicPlanningDemandPlanningSupplyPlanningFulfillment©2001i2Technologies,Inc.CONFIDENTIALSlide17SupplyChainManagementStrategicPlanningDemandPlanningSupplyPlanningFulfillmentStrategicPlanningSupplyChainPerformanceSupplyChainDesignWhat’stherigh