The complete solution > to optimizing

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1 asset optimization > value chain planning > production optimization > supply-side optimization > demand-side optimization AspenTech s Supply Chain Solution for the Meat Industry The complete solution > to optimizing The meat industry is experiencing unprecedented change in their internal and external supply chains. Vertical integration, case ready goods, value added products and heightened food safety are just a few of the pressures on already tight margins. To win in today's market, progressive meat packers and processors have to manage their supply chains better than traditional best practices. Traditional information technology, such as Enterprise Resource Planning (ERP) and Distribution Requirements Planning (DRP), have fallen short in their attempt to dramatically improve supply chain performance in the meat industry. AspenTech is here to help with our Supply Chain Solution for the meat industry, the leading Advanced Planning and Scheduling (APS) application built to address the uniqueness of the meat industry. The AspenTech's Supply Chain Solution for the meat industry helps meat packers and processors: ACHIEVE COMPETITIVE ADVANTAGE by leveraging the supply chain as a strategic tool to build market share and deliver on promises to customers. CREATE BUSINESS VALUE worth tens or even hundreds of millions of dollars through increased efficiency, lower inventory, optimal use of global resources, and improved customer service and responsiveness. INCREASE AGILITY through deep integration with manufacturing, enterprise and trading partner systems.

2 Supply Chain Solutions > that meet the demands of your global enterprise With AspenTech's the integrated Supply Chain Solution, meat packers and processors can spot trends sooner, quickly determine which options and opportunities to act on and mobilize resources with the most profitable plans. INCREASE THE VALUE FROM YOUR ERP SYSTEM Implementing an ERP system is not enough. You need to optimize performance across the enterprise, creating value-added products and services. AspenTech's Supply Chain Solution for the meat industry is the logical next step. It adds dramatic business value by enhancing ERP with global optimization and robust decision support that drives the enterprise toward optimal performance. STRATEGIC PLANNING: CHART YOUR COURSE TO HIGHER PROFITS Operations and finance live in different worlds with different goals, different measurements, different opinions on what is practical, what is possible and what is profitable. Millions of dollars are trapped in the balance. For a modern enterprise to achieve its true potential, operations and finance - and everyone else involved - have to be on the same page. Strategic planning with the AspenTech Supply Chain Solution brings operations and finance together - driving your supply chain toward common goals and objectives. You find realistic strategic planning alternatives quickly, backed by financial analysis and a deep understanding of supply chain dynamics. Operating targets are set within the capabilities and constraints of the business. You uncover the best supply chain options based on your financial goals and customer service objectives Set strategic direction at the enterprise level model the strategic operations of your company and link production and logistics tradeoffs directly to financial statements drive global operations toward optimal financial targets and metrics like earnings per share (EPS) and return on assets (ROA) evaluate different product and market strategies, different operating strategies, and different production and distribution strategies; then translate these scenarios into the language of business via pro forma financial reports capitalize on merger and acquisition opportunities compare strategic alternatives with confidence, and identify the best path forward based on the dynamics of your supply chain and the economic trade-offs monitor the progress of a strategic plan, evaluate scenarios and make adjustments, and achieve a real advantage over your competitors 2

3 Procurement planning and demand management > optimize enterprise resources to meet demand AspenTech's supply chain products can be used in conjunction with both ERP and legacy supply chain solutions. AspenTech has integrated its solution with many third party company products in order to provide a flexible and comprehensive solution for their clients. Our Supply Chain Solutions help: drive supply chain logistics toward optimal financial targets - from material procurement to production scheduling and distribution improve visibility of supply chain activities and determine the impact of changes across the extended supply chain make and deliver the right products at the right time - profitably reduce production, distribution, and inventory costs while improving customer service INCREASE PROFITABILITY, REDUCE CYCLE TIMES AND MEET CUSTOMER SERVICE REQUIREMENTS Many meat companies have improved performance by streamlining operations at the local level, without considering the impact of their efforts on the rest of the supply chain. This produces locally optimal solutions that leave millions of dollars unclaimed. By optimizing the entire supply chain concurrently, AspenTech delivers greater profits than traditional planning methods and makes re-planning intelligent and fast. You optimize capacity, raw material supply, inventory, and distribution simultaneously, and synchronize production with demand. This coordinates procurement, manufacturing, distribution and logistics, and generates consistent operating plans within a global view of the business. SYNCHRONIZE OPERATIONS AND UNCOVER HIDDEN OPPORTUNITIES AspenTech's Supply Chain Planning solutions enable you to: maximize supply chain productivity and responsiveness by optimizing the entire supply chain network from raw material source to the end customer increase forecast accuracy predict and manage demand more effectively by integrating the forecasting process with production and distribution planning guard against uncertainty by developing re-stocking and safety stock plans that consider the tradeoff between pre-build and expediting costs eliminate guesswork, hedging and buffers by performing production, distribution and logistics planning in a single, integrated system improve collaboration between traditionally disparate functions across the enterprise evaluate and negotiate carrier bids based on an understanding of global enterprise requirements and the optimal lane assignments for your business 3

4 React quickly and globally > to local bottlenecks and disruptions Businesses spend a lot of effort deciding what products to produce...where to produce them... and how to move them to the customer. Upsets and disruptions in supply, manufacturing and distribution can create havoc across the supply chain. The AspenTech Supply Chain Solution for the meat industry helps planners generate solutions to these complex problems and evaluate short-term and long-range impact. Companies can optimize the global enterprise and quickly re-plan as conditions change. ADAPTABLE TO CHANGE In today's competitive and fast-moving market, you cannot settle for a software package based on a static and generic set of requirements. You need a flexible tool that can adapt quickly to change. The AspenTech Supply Chain Solution for the meat industry is a flexible modeling environment that is easy to modify to accommodate new business rules and operating constraints, without requiring costly software modifications. OPERATIONS PLANNING: INTELLIGENT, PROFIT-BASED MANUFACTURING AND DISTRIBUTION PLANS Planning with AspenTech's Supply Chain Solution for the meat industry will synchronize manufacturing with the enterprise-wide supply chain, and ensure sufficient production capacity, raw materials, warehouse and distribution capacity, and personnel are available to meet demand. AspenTech's planning solutions enable you to: significantly improve sales and operations planning by quickly evaluating demand plans and production alternatives to determine the best mix of products to meet business objectives direct optimization according to your business rules, objectives and constraints perform what if analysis that enables you to weigh alternate plans against a base scenario and instantly solve complex, multi-level supply chain problems generate optimal capacity plans that provide targets for production scheduling operations determine the timing and volume of raw material purchases that affect planning decisions (signal to purchase) evaluate campaign size and frequency and the costs associated with changeover operations 4

5 Integrated and > optimal planning AspenTech's planning solutions go beyond traditional MRP, DRP and S&OP by integrating the processes and using mathematical optimization to solve capacity and inventory problems. The result is not just a feasible plan, but an optimal plan, which can have a significant impact on your bottom line. The meat industry has unique, complex requirements that make supply chain planning with conventional tools marginally effective. AspenTech's Supply Chain Solution for the meat industry was architected with your industry's requirements in mind: CARCASS DISAGGREGATION OPTIMIZATION. Optimize the production of raw materials to meet customer demand with respect to cut logic, yield, grade, price and profit. GROUND MEAT BLENDING. Optimize the blending of materials to meet ground product specifications and requirements with less give-away from high margin products. LIVESTOCK PLANNING. Generate livestock requirements by species, grade and weight and by plant to satisfy your optimized production plan. OPERATIONS SCHEDULING: PROACTIVE AND RESPONSIVE Operations scheduling is a challenging and time-consuming function that involves tremendous attention to detail, complex sequencing rules and lots of data. Using conventional techniques, the schedule creation process can take many hours to determine a feasible solution. Upsets and disruptions on the plant floor and last minute order changes can render schedules useless. The scheduler needs a better way to handle the data gathering, analysis, and computational activities in order to focus on improving schedules to increase profits and customer service. AUTOMATED, COST-BASED MANUFACTURING SCHEDULING Scheduling production with AspenTech's Supply Chain Solution for the meat industry automates the schedule creation process and drives schedules toward the optimal production target determined in the planning process. You get the tools to schedule the sequence, timing, and volumes of manufacturing activities more efficiently and profitably. You can respond to changes quickly and determine the impact of changes on schedules, inventory balances and equipment loading. The solution determines whether a sequence of activities is within production and business constraints. It creates schedules across multiple stages of production and links production activities and inventory to customer and pre-build orders. The scheduler reduces the time spent on routine calculations and work-arounds and has more time to explore alternatives and what-if scenarios that make improvements. 5

6 Seemless integration > optimal targets The AspenTech scheduling solution generates the most cost-efficient production schedule while adhering to your business rules, operating constraints and customer order priorities. You eliminate much of the work required to create and maintain feasible schedules. AspenTech manufacturing scheduling solutions give you: an accurate view of the schedule with forward projections and visibility of orders the power to manipulate the schedule and view the impact of changes instantly on-demand re-scheduling and roll-forward logic that uses your scheduling rules, business guidelines and customer priorities to keep schedules current the ability to quickly compare the financial and operational impact of alternate schedules and modifications The AspenTech operations planning and scheduling solutions offer unmatched power and flexibility to help your organization balance the tradeoffs between customer demand and production efficiency. Seamless integration between planning and scheduling activities means greater resource productivity, lower costs, and production schedules that drive toward optimal targets. Make reliable and > profitable delivery commitments ASPEN CAPABLE-TO-PROMISE (CTP) Accepting orders and making reliable delivery commitments is more difficult than ever. Customer requirements are more diverse, complex and demanding. Your delivery commitments must be feasible, reliable, and profitable. Yet, making these commitments involves a tremendous amount of insight into production and distribution capacities and constraints and customer information. Aspen Capable-to-Promise functionality enables you to quote firm shipment dates instantly and automatically, and know the cost and revenues associated with taking an order. Most solutions make commitments against unallocated finished good inventory. The AspenTech solution performs real-time queries that check existing and planned inventory, raw material supply and availability, planned production and distribution, available and planned capacity, and the overall flexibility of the supply chain. With AspenTech, you can: automate the order commitment process, including dynamic re-scheduling of manufacturing and logistics in response to critical customer orders incorporate your business rules and customer priorities within the order commitment process automatically select the best manufacturing and/or distribution site for the order assess all inventories, including work-in-process and finished goods automatically consider alternate grades, routing, and material sources evaluate the impact on existing production and distribution plans and schedules and the cost of changing them. participate in collaborative forecasting and planning with suppliers and customers and develop vendor managed inventory programs 6

7 Aspen Capable-to-Promise functionality can be embedded in your order management Capable-to-Promise helps you to: make fast reliable order commitments based on a global view of capacity, costs and constraints achieve competitive advantage by responding to customer order inquiries faster than the competition and with more knowledge of your capability to deliver profitably ASPEN AVAILABLE-TO-PROMISE (ATP) Conventional ATP solutions have proven to be ineffective for the meat industry. Most ATP solutions do not take into consideration inputs such as product aging, carcass disaggregation logic, product substitution and product value considerations. The AspenTech Supply Chain Solution for the meat industry takes into account these considerations for a meaningful view of your product availability. We offer multiple views of ATP including: OPTIMIZED AVAILABLE-TO-PROMISE. Promise available inventory based on optimized schedule that maximizes profit. DYNAMIC CAPABLE-TO-PROMISE. Complementary to Aspen ATP, Aspen CTP considers not only 'what is available', but what the enterprise is capable of promising based on available capacity, processing rules, logistics and other considerations. MANUFACTURING MONITORING AND CONTROL: TRACK YOUR PRODUCTION AND PROCESS In today's business environment, you need to make the right products, on spec, on time, while complying with safety and environmental requirements and minimizing raw material and energy costs. To accomplish this meat packers and processors need up-todate, accessible information about production and processes as they occur. With our solution, you can quickly identify specific lots or lot characteristics, greatly assisting in the unfortunate event of a recall. Additional customers include: Food & Beverage - ConAgra, IBP, Hormel Foods, Heinz, Mueller, Philip Morris, General Mills, Quaker Oats, Miller Brewing, J.R. Simplot, Kraft Foods, AC Humko, Borden Consumer Packaged Goods - 3M, Bridgestone/Firestone, Goodyear, Procter & Gamble, Wedgwood, Johns Manville Life Sciences -Aventis, Eli Lilly, Monsanto, Novartis, Pharmacia AspenTech supply chain manufacturing solutions combine powerful information management tools, a full range of control, optimization and inferential model tools, a production management environment, and easy-to use graphical user interfaces - all working together to link manufacturing performance with your planning and scheduling systems across the time horizon: past, present and future. With AspenTech's supply chain manufacturing solutions, meat companies can: execute production plans faster achieve higher levels of product consistency track material and process order information in real-time from beginning to end report on historical production batches and operating parameters TO LEARN MORE ABOUT ASPENTECH S SUPPLY CHAIN SOLUTION FOR THE MEAT INDUSTRY, PLEASE CALL YOUR NEAREST ASPENTECH SALES OFFICE OR VISIT 7

8 About AspenTech Aspen Technology, Inc. is a leading supplier of enterprise software to the process industries, enabling its customers to increase their margins and optimize their business performance. AspenTech's engineering solutions, incorporating Hyprotech's technologies, help companies design and improve their plants and processes, maximizing returns throughout their operational life.aspentech's supply chain manufacturing solutions allow companies to run their plants and supply chain more profitably, from customer demand through to the delivery of the finished product. Over 1,200 leading companies rely on AspenTech's software every day to drive improvements across their most important engineering and operational processes. AspenTech's customers include: Air Liquide, AstraZeneca, Bayer, BASF, BP, ChevronTexaco, Dow Chemical, DuPont, ExxonMobil, GlaxoSmithKline, Lyondell Equistar, Merck, Mitsubishi Chemical, Shell and Unilever. For more information, visit worldwide headquarters Aspen Technology, Inc. Ten Canal Park Cambridge MA USA [phone] [fax] [ ] [email protected] houston office Aspen Technology, Inc Eldridge Parkway Houston TX USA [phone] [fax] [ ] [email protected] europe / middle east / africa headquarters AspenTech Europe SA/NV Avenue Reine Astrid La Hulpe BELGIUM [phone] [fax] [ ] [email protected] asia / pacific headquarters AspenTech PTE. Ltd. 371 Beach Road #23-00 Keypoint SINGAPORE Central HONG KONG [phone] [fax] [ ] [email protected] japan office AspenTech Japan Co., Ltd. Kojimachi Shimura Bldg. 1-5 Kojimachi 4-chome, Chiyoda-ku Tokyo JAPAN [phone] [fax] [ ] [email protected] Copyright AspenTech, Aspen Available-to-Promise, Aspen Capable-to-Promise and the aspen leaf logo are trademarks or registered trademarks of Aspen Technology, Inc., Cambridge, Massachusetts USA. All rights reserved. All other brand and product names are trademarks or registered trademarks of their respective companies. BSB /02