The Lawson Distribution Solution. Delivering Value to the Distribution Industry

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1 The Lawson Distribution Solution Delivering Value to the Distribution Industry

2 Delivering Value to the Distribution Industry Lawson is a global provider of software and service solutions. We help customers enhance their business performance and flexibility while reducing costs. Lawson M3 Distribution is an integrated, enterprise-wide business suite that has been specifically configured to support distribution companies and enable them to grow.

3 Lawson: Inside Your Industry Balancing Supply and Demand: The Fine Art of Supply Chain Planning The distribution industry often operates at high speed and requires a high level of agility. Distribution companies manage large numbers of stock-keeping units (SKUs), availability needs are often very high, and demand is instant or next-day, often requiring special sourcing. Stocking can be at various points in a network according to the distributor s supply model. For distribution companies to be profitable, they must master the balancing act of having just enough product in just the right place at just the right time. The reality is that most distributors carry more inventory than they need. This allows distributors to consistently meet demand and provide immediate delivery. Yet at the same time, high stock levels tie up valuable working capital. The balancing act involves gaining a greater availability of capital while optimizing stock build and maintaining or even improving product availability. The Lawson solution provides tools and process support that allow you to accurately manage and predict demand for your products at all points in your network. As you move toward optimized product availability, you ll be able to offer better customer service and reduce overall cost by improving response times, reducing overstock and product obsolescence, and enhancing deployment of product to the right location.

4 Holding on to Your Customers: Managing Sales and Service Relationships Distributors need to be experts in their specific fields and strive for excellent customer service by providing sector knowledge, extensive product availability, even the ability to procure goods they don t typically carry. The challenge is, as always, to fill an order the first time, every time. The M3 Distribution solution enables improved sales and service relationships by using a variety of integrated sales channels, such as electronic EDI/XML, telesales, over-the-counter sales or field sales. Comprehensive pricing and inventory availability and promising are examples of just some of the automatic support provided for this process. M3 Distribution also enables the automation of procurement procedures, allowing buyers to optimize purchase requirements while providing important information regarding vendor performance and analysis. The Challenge of Supply Chain Execution Meeting the challenge of supply chain execution means organizing operations to optimize efficiency. Distributors receive many daily deliveries, each of which may contain a large quantity of goods. Because of the volume of incoming goods, distributors need system support that can automatically propose follow-up actions and suggest the most appropriate location for storing items. For outbound goods, distributors must also be able to optimize and manage deliveries using flexible picking and packing methods, and methods to help prioritize and sequence loads. M3 Distribution offers businesses an efficient solution to help expedite key orders, routinely manage warehouse processes and resources, and aid cost effective and on-time delivery. Additional revenue streams can be managed with a variety of value-added services such as kitting, servicing or assembly, to name a few.

5 Lawson Applications: Addressing Your Challenges Lawson: Provider of Industry-Focused Solutions Lawson software solutions for wholesalers and distributors have been developed to meet the specific challenges that characterize the industry: covering supply chain planning, sales and service, and supply chain execution. Among specific wholesale and distribution segments, challenges will also vary greatly. Lawson has broad-based experience that includes many segments such as: Spare parts and equipment; Building and construction materials; Electrical and electronics supply; lumbing, Plumbing, heating and ventilation supply; Industrial supply; ousehold Household and lifestyle goods; harmaceutical Pharmaceutical and medical goods; Food and beverage; Furniture and office supplies. Different Segments, Different Requirements The strength of the Lawson application portfolio is that our solution can be configured to meet the challenges specific to each segment. As an example of these varying challenges: in the food service industry, distributors are required to handle repetitive, high order and delivery volumes. This requires a high focus on supply chain execution. An automotive parts distributor, on the other hand, will likely need to manage huge assortments of parts and face greater challenges managing product and lifecycle information. Many Branches, One Solution The Lawson solution is also configured to meet the challenges of the distribution market s multi-branch structure. From the supplier to the customer, the Lawson solution takes into account the variable needs of a typical branch network. This can range from fast-moving distribution centers to smaller branch hubs, or simple satellite outlets. As a web-based Java solution, Lawson enterprise software offers information visibility throughout the network, with scalable solutions according to each environment. Lawson for the Distribution Industry Lawson has drawn on its industry-based expertise in creating a focused enterprise software solution that offers you unique value, efficiency, durability, and simplicity. Lawson M3 Distribution is the result of our ongoing efforts to simplify the process of deploying, maintaining, and using our applications. Here are some of the real benefits available from choosing Lawson:

6 A wealth of knowledge and expertise gained from successful implementations for some 400 customers in wholesale and distribution, as well as the valuable experience gained from serving and supporting these customers. An integrated solution for your whole company that offers supply chain visibility and control of your trading relationships and helps you be competitive in selling, sourcing and shipping. A simpler solution that offers a broad range of industry functionality through our QuickStep program. This affords distributors the option of implementing core functionality as the basis for an ongoing program of improvement. A simpler user interface that is easier to use and requires less training. A simpler, low-risk, incremental implementation methodology that shortens the implementation process by offering a solution that can grow with you and that includes comprehensive after-sales support. Benchmarking services that can help you identify your top-level objectives and link them with actual business processes and activities. osted Hosted migration solutions to minimize risk and ensure quality. Leading technology based on a stable Java platform with integrated tools that allow you to manage adjustments to your configured solution. Lawson M3 Distribution integrates all of these features into a single, simpler enterprise solution, and provides you with the data consistency to run your business successfully. Our customers agree when we say: Simpler is better.

7 Lawson M3 Distribution: Working with You in Your Industry. Although distribution is a complex business, it can typically be described in five basic activities, performed in a continuous cycle: Plan Buy old Hold Sell Analyze Each of the business activities are shown in the appended diagram. These offer specific challenges that may differ depending on the segment and where in the organization this activity is being performed. Lawson has built a function-rich solution for the distribution industry that is based on a real understanding of the challenges found in the distribution cycle. You will find our key functionalities described below under each activity. Solutions to support Distribution business Demand Mgmt Supply chain planning Inventory Planning Transport Planning Plan Buy Strategic sourcing Procurement Purchase Costing Supplier Relationship Analysis and Support Multi-channel sales Comprehensive priving Value added services Customer Relationship Mgmt Inter Company trading Sell Hold Warehouse Management Inventory Management Multi-site Distribution Product Information Mgmt Financial Management Plan For the distribution industry, planning relates directly to how businesses predict and manage the flow of products and services within their supply chain. Good planning can have huge effects on both customer service levels and the amount of capital tied up in investments. The challenge that many distribution companies face is that they must be able to plan using large amounts of information across their organizational network.

8 Key functions in planning are: Demand Planning Facilitates accurate forecasting with tools that help you meet your market needs, determine resources and anticipate inventory levels. Forecasting considering seasonality and trends Integrated sales budgeting Collaborative demand planning Advanced third-party demand solutions Supply Chain Planning Advanced functionality that helps you validate and optimize your demand plan according to strategic goals such as profitability or customer service targets. Inventory Planning Enables profiling of inventory according to demand, usage and type. Planning rules and methods Safety stock and location strategies Inventory deployment and supply model Inventory classification Distribution Requirement Planning Enables creation of proposals considering demand, receipts, and current stock levels. Distribution Requirement Planning Advanced multi-site planner Buy Having planned what is required, the buying process comprises a series of activities that help ensure supplies of product at the optimal price. Key functions in buying are: Sourcing Enables you to process and evaluate supply alternatives so that you can define commercial agreements with suppliers, and provides greater visibility and control over the entire sourcing process. Request for quotation Purchase agreement Spend analysis Purchase Costing Helps you understand true product level cost of purchase considering many additional factors such as financial duties or transportation cost.

9 Purchase Order Processing Provides functionality that guides you through the procurement process, covering the many possible steps from purchase request to supplier payment. This includes update and monitoring of purchase activity. Purchase requisition Purchase pricing Purchase order processing Purchase monitoring Purchase confirmation Purchase Delivery Schedules Used in repetitive delivery environments with close supplier relationships. Enables setting up delivery schedules that replace individual purchase orders and can be published or sent to suppliers with optional frequency. Enables web publication of schedules for easy access and updating. Supplier Performance Captures detailed statistics about purchase items, vendor performance, product quality, as well as timeliness of delivery. Purchase statistics Supplier statistics Item statistics Hold Holding inventory is an expensive activity both in terms of inventory cost and resources. As customers demand high availability or short lead times, distributors have historically been forced to hold large inventory stocks. Distributors need tools that give a consistent view of all inventories and efficiently support all of the activities associated with storing goods. Key functions in holding are: Warehouse Management Lawson M3 provides a scalable solution according to your specific warehousing needs that is able to handle a variety of inventory types: from basic to shelf-life or serialized items. Helps efficiently manage routine processes and volumes from inbound receipt, to location replenishment, to outbound dispatch. Can fully support the use of remote devices such as Radio Frequency (RF) throughout warehouse operations. Flexible goods receipt methods System-directed put-away Cross docking Allocation control Flexible pick and pack methods Resource management Returnable container management Automatic location replenishment Delivery management Advanced WMS interface

10 Inventory Management Provides tools to ensure that inventory remains accurate and appropriately located. Flexible physical inventory methods, such as cyclic, periodic, or zero-point Quick physical inventory Shelf-life toolbox Inventory reclassification Multi-Site Distribution Provides tools that enable organizations with multiple sites to function as a single unit, planning and managing logistics within the same software environment. The system offers: Multi-site replenishment Consolidated planning and execution functions Supply network tracking Product Data Management Offers the ability to classify and profile products, for information accuracy and process control. Master data management roduct Product roduct classification roduct Product roduct kit roduct Product roduct structure and bill of material Service bill of material roduct Product roduct configuration roduct Product roduct attribute management Sell This is of course a crucial set of activities for the distributor. While relationship management in procurement is based on cultivating advantageous relationships with suppliers, relationship management in sales has everything to do with providing better service to the customer. Ultimately, this is the greatest competitive difference that a wholesaler and distributor can offer in this margin-driven industry. Key functions in selling are: Multi-Channel Sales Provides integrated web-based functionality, giving customers and partners a single point of access to products and services, supported through a variety of sales channels. EDI/XML Field sales Over the-counter sales Telesales Web sales MI VMI MI sales Contact management 10

11 Customer Order Management Enables efficient management of various order types in a flexible but consistent manner. Quotation management Customer order processing Back-order management Project management Comprehensive Pricing Enables effective management of the variety of rules and conditions common to distribution. Sales price lists Sales price model Discount management Sales rebate and commission Sales agreement and call-off Sales promotion management 11

12 Value-Added Services Lawson M3 Distribution provides integrated functionality to manage valueadded services such as: Kit handling Light assembly Short-term hire/rental Long-term leasing and rental acking Packing acking and labeling Field and depot/in-house service Maintenance and repair Returns, exchange and warranty endor-managed Vendor-managed endor-managed inventory Web/collaboration tools, trading networks Customer Relationship Management Enables efficient management of customer marketing intelligence, opportunity information, and sales force automation. Offers an information platform for all sales planning, marketing and customer-facing activities. Contact management Opportunity management Activity management Campaign management Remote sales and service Delivery and Transportation Allows efficient management of complex delivery and transportation requirements. Delivery toolbox roactive Proactive roactive transport planning Reactive transport planning Third-party integration Delivery documentation Intercompany Trading Provides simple sales and logistical processes while automating the relevant financial transactions. Multi-unit coordination 12

13 Analyze You feel confident that the fundamentals of your business are supported: buying, holding and selling products. But to compete effectively in today s market, you also require a system that offers outstanding, integrated management support processes that enable you to analyze and optimize business performance. Key functions in analyzing are: Financial Management Handles all aspects of financial accounting, budgeting, reporting, consolidation and transaction processing with the appropriate internal control for international, cross-company, multi-currency and multi-lingual needs. General ledger Accounts receivable Accounts payable Credit and risk management Budgeting Cost accounting Cash-flow management Tax management Fixed assets Enterprise Performance Management Powerful application suite that extracts and consolidates data generated by dispersed systems and uses pre-built information models to speed up both design and delivery time of key performance measurements. Enables more rapid execution of business process improvements and speedier identification of new business opportunities. Standard operational reporting Business performance warehouse solution Business measurement models covering major process areas Opportunity Analyzer 13

14 Up and Running with Lawson M3 Distribution The Lawson Step-by-Step Solution Lawson M3 Distribution offers a modular, flexible and open approach to implementation that is based on the understanding that many distribution companies may not be ready to implement a full-suite, enterprise-wide system right away. Called StepWise, the methodology involves the gradual phasing in of Lawson M3 Distribution, so that you can add functionality when you need it. StepWise offers the following benefits: Process Efficiency An industry sector approach means existing data can be reused. Energy is focused on what is unique for the customer, allowing for a rapid and efficient implementation. Phased Improvement Rather than being a quick fix, improvements are intelligently phased in. Fulfilled Implementation Measures agreed during presales/sales are methodically followed up. Dialog Approach Continuous dialog between the customer and the implementation team safeguards customer satisfaction. Better Business By integrating Lawson technical sophistication and business knowledge, tactical and strategic benefits emerge. Along with StepWise, Lawson also offers a variety of implementation models depending on customer need: StepChange The implementation methodology used with new Lawson customers that are converting to Lawson M3 Distribution from other enterprise software solutions. Stepping Up The implementation methodology for existing Lawson customers that are upgrading from earlier Lawson application versions to the latest Java-based applications. QuickStep The implementation methodology for customers that wish to implement a standardized out-of-the-box solution. ValueStep Used by customers wishing to extend the breadth of their chosen solution with other Lawson applications, such as Mobile Sales, Service & Marketing, or Automated Document Capture. 14

15 Services and Support Your Solution, Your Way The value and quality of Lawson M3 Distribution is ensured by the powerful tools included in the solution that enable you to configure the system according to your needs. The foundation for our service and support is the stability and simplicity of the system itself. We have created a solution that will not require extensive maintenance and follow-up. As a modern open system, it provides tools that give you access to data and self service. You can change the user interface, integrate internally or externally with other systems, and even create new business objects or modify existing ones. Simply choose the functionality you want and create your own solution without any modification to the standard components. Improved Quality Assurance Lawson M3 Distribution offers unparalleled quality assurance made possible through a rigorous and thorough testing process. This has been implemented to ensure increased reliability and greater robustness. Again, this results in less internal and external maintenance and lower cost. 15

16 Technology Integrated, Configurable, Platform Neutral Best-of-breed point solutions are costly, and the resources required to maintain and integrate them with an existing environment to support end-to-end business processes are prohibitive. As a result, the chances of achieving return on investment are slim. That s why Lawson delivers a full-suite solution that contains all the typical functionality you need for your organization. Java Technology Built with Java, Lawson state-of-the-art solutions provide you with low cost of ownership, high scalability, and platform independence. Business components can be configured and reconfigured to continuously meet your changing business needs and help you keep your operations competitive. As your business expands, our Java-based technology provides you with practically unlimited scalability. Workplace Management Lawson Workplace Management is a set of applications and tools that provides end users with a personalized user experience when interacting with business systems and collaboration tools such as Lawson M3 Distribution. Its generic web-based user interface provides a consistent way of working and a common look and feel across all Lawson M3 Distribution functionality. Customized user interfaces for specific user roles can be created, while content integration capabilities enable the creation of full-scale enterprise portals. Value Chain Collaboration Lawson Value Chain Collaboration enables the collaboration between all participants in the value chain, using various tools and technologies such as EDI, XML, web-services, and APIs. It is the engine needed for secure communication with partners, suppliers and customers. 16

17 About Lawson In 2006, Lawson Software and Intentia merged to form the new Lawson. We deliver software and implementation services to 4,000 customers in the manufacturing, distribution and services industries across 40 countries. Our Financials, Human Capital Management, Supply Chain Management, Business Intelligence, Asset Management and industry-specific solutions help customers streamline processes and enhance their business performance. And by radically simplifying the process of deploying and using our applications, we help customers reduce costs while increasing their flexibility. Why Lawson? Because simpler is better. 17

18 Why Lawson? A full suite of applications specifically for the Distribution Industry. Flexible implementation options for a safe and secure journey. A strong, leading software vendor investing for the long term. Lawson: Because simpler is better. 18

19 19

20 DIS en Headquarters: Lawson USA 380 St. Peter Street St. Paul, MN Tel International Headquarters: Lawson Sweden Vendevägen 89 Box 596 SE Danderyd Tel

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