Flextronics Supplier Portal Program Overview

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Flextronics Supplier Portal Program Overview

• Last Updated Aug 2008
• All information in this document is Flextronics
  Confidential
• and is covered by relevant Non-Disclosure
  Agreements

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Flextronics Supplier Portal (FSP) Vision
What is it?
Flextronics Supplier Portal (FSP) is a next
generation supply chain collaboration solution.
Flextronics plans to use FSP to manage all
supplier communications, transactions and
processes beginning with Procurement Automation
(Forecast and Purchase Orders).

• Flextronics Supplier Portal (FSP)
• Key Business Processes
• Purchase Orders
• Forecast Transmission
• Forecast Collaboration
• ASN
• SMI (2008 In Progress , Pull signal and
  Inventory Balance)
• Invoice Management (TBD)
• Supplier Ratings and Metrics (TBD)

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Why FSP?

• FSP is a centralized, web-based application that
  manages and supports collaborative supply chain
  processes between Flextronics and its supplier
  base. FSP enables Flextronics and suppliers to
• Automate transmission of transactions including
  
• Forecast
• Purchase orders
• Purchase order changes
• Order cancellations
• ASN Advance Shipment Notice
• Forecast Response/collaboration
• SMI Pull Signal
• Inventory Balance
• Accept and send supplier responses and shipment
  notices via multiple formats including
• An online Web Portal
• EDI
• Reduce non-value-added purchasing costs
• Provide complete history of POs (including PO
  changes) on the web
• Increase supply chain data integrity,
  availability and visibility
• Provide electronic records of communication
  between suppliers and Flextronics
• Automatic data upload into Baan
• Improve operational efficiency

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FSP Solution Overview
FSP (SAP SNC 5.0)

• FSP is a web-enabled applications suite to manage
  all supplier communications, transactions and
  processes beginning with Procurement Automation
  on SAP SNC 5.0 platform.
• Increases buyer / supplier performance
• Reduces purchasing transaction cost
• Increases supply chain data integrity,
  availability and visibility
• Improves operational efficiency

User Interaction
Web-Based User Interface
Business Processes
Supplier Managed Inventory
Purchase Order Process
Forecast Process
Kanban Process
Delivery Control Monitor
Supply Network Inventory

• Modules, Capabilities and Features
• PO Collaboration Web-based collaboration tool
  that manages the full Purchase Order lifecycle
• Purchase Order Suppliers and buyers manage
  POs on 3 different levels (Header, Item and
  Schedule Lines) via Web or EDI
• Integrated ASN Suppliers sends Advanced
  Shipping Notifications to confirm the delivery
  via Web or EDI
• Dynamic Replenishment Web-based collaboration
  tool that manages the Forecast process
• Demand Monitor Detect and adjust the suppliers
  plan based on the forecast process, where the
  ever changing customer forecast/plans are
  compared with the suppliers data
• Exception Management ERP based exception
  reports that enables buyers to manage POs by
  exceptions
• Supplier Response Exception Report Alerts PO
  response exceptions on Date, Quantity, Price and
  MPN to buyers
• Supplier Non-Response Report Alerts delinquent
  supplier PO responses to buyers for proactive
  material shortage management
• Exchange Infrastructure (XI / PI) EAI/B2B
  middleware which enables integration among
  various applications and supply chain partners

Responsive Replenishment
Contract Mfg. Purchasing
Release Process
XI Integration XML Message Exchange
Flextronics ERP (BaaN)
Purchase Orders
ASN
Goods Receipt
Forecast
Supplier Response Exception Rpt
Supplier Non-Response Rpt
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What is SAP ICH?

• SAP Inventory Collaboration Hub (ICH) is an
  web-based application that manages and supports
  collaborative supply chain processes between
  multiple business partners.

• Process Support
• Enable inventory, component requirement
  visibility
• Automates purchase order, ASN, Forecast, planning
  communication
• Supports complex data level integration to
  providing a simple web entry interface
• Developed for High Tech
• Provides BOM level communication
• Provides detailed purchase order status info,
  with tight integrations and proactive alerting
• Integrates sub-contractors into your purchase
  process
• N-Tier Visibility
• Flexibility
• Developed with APO in mind
• Designed to work with R/3 systems
• Stand-alone application
• Adoption
• ICH - Current Version 5.0
• Over 100 Total SAP Customers

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FSP Key Features
Forecast Process Enables Forecast transmission
and accepts commits from suppliers via Web/EDI

• PO Process
• Enables New/Reschedule/Cancel transmission and
  accepts responses from suppliers via Web/EDI
• Goods Receipt visibilities.

ASN Maintenance Supplier creation and
publishing of ASN, including packaging and label
printing
Alert Monitoring of exception situations
available out-of-the-box on WebUI, and as emails,
fax, SMS, etc. Key Performance Indicators (KPIs)
to support supplier rating and performance
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Transactions Flow (Flextronics ?? Suppliers)
Flextronics
Send Forecasts (830) Send New PO (850) Send PO
Change (860) Send SMI Pull Signal (862)
Run MRP
Process ASN (856) Receive goods
Planner
Buyer
Receiving
BaaN
BaaN
BaaN
EDI / Web
EDI / Web
Suppliers
Send Forecast Commit (830R) Send New PO
Acknowledgement (855) Send PO Change
Acknowledgement (865) Send Inventory Balance (846)
Send ASN (856) Send goods
Supplier
Supplier
FSP
FSP
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Order Method and Transactions

• CRP (Continuous Replenishment Program)
  Reduced Lead Time program. Lead Time must be less
  than or equal to 2 weeks in Baan to be
  categorized as CRP
• FLT (Full Lead Time) Lead Time loaded in Baan
  is equal to Manufacturer Lead Time plus Transit
  Time. Fully automates MRP PO placement
• SMI (Supplier Managed Inventory) A program
  where inventory is managed by supplier until
  Flextronics uses it

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Supplier Benefits

• Supplier Benefits
• Automatic transmission of Forecasts, New POs, PO
  Changes and PO Cancellations (web or EDI)
• Ability to upload PO Acknowledgements, Forecast
  Commits and ASNs
• Suppliers manage by exception with custom email
  alerting. Suppliers do no need to visit the
  website on a daily basis
• Provides an electronic record of communication
  between suppliers and Flextronics
• Improved data integrity between suppliers and
  Flextronics
• Immediate transmission of all supplier
  acknowledgments to Flextronics ERP or to buyers
  for approval
• Delivers Forecasts and Purchase Orders to
  suppliers faster
• Additional System Benefits
• Significantly improved system performance
• Very low requirement to access the FSP system.
  Suppliers only need a web browser, minimum
  Internet Explorer Release 6.0
• More options and capabilities including multiple
  languages

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FSP Business Benefits Results

• Overall Business Benefits
• Increased buyer / supplier performance
• Manage more with less
• Focus on strategic vs. tactical procurement
  activities
• Reduced purchasing transaction cost
• Reduce and remove non-value-add purchasing
  activities
• Manage by exceptions
• Increased supply chain data integrity,
  availability and visibility
• Ensure transparency of information across supply
  chain partners
• Maximize data quality and accuracy
• Improved operational efficiency
• Streamline integrated supply chain processes
• Minimize order cycle time
• Maximize inventory turns

• Where Are We Now?
• Global Coverage
• 39 sites (Americas, EMEA and Asia) are now live
  on FSP
• Balance 1 site to be migrated from Flexpass to
  FSP.
• 3 more sites are planned for fiscal year end 2008
• Accelerated Supplier Adoption
• 120 suppliers first went live at 2 Flextronics
  manufacturing sites in February, 2007.
• of Supplier Locations 6,000
• of Supplier Business Partners 2,500
• of Supplier Users 4,500
• Managing ever increasing supply chain
  transactions (as end of April 08)
• Weekly Transaction Volume 60,000
• And rapidly growing..

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How to Get Started

• Contact Flextronics Buyers or FSP Coordinators
• Go to http//www.flextronics.com ? Partners ?
  Flextronics Supplier Portal
• Obtain FSP On-Line training site username and
  password from the buyer or FSP Coordinators
• Take the FSP On-Line Training Course
• Complete, sign and return the FSP Communication
  Agreement
• Receive FSP username and password via email
• Go Live on using FSP