The Lawson Distribution Solution

Lawson Distribution SolutionLawson: Inside Your IndustryBalancing Supply and Demand:The Fine Art of Supply Chain PlanningThe distribution industry often operates at high speed and requires a high levelof 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 networkaccording to the distributor’s supply model.For distribution companies to be profitable, they must master the balancing actof having just enough product in just the right place at just the right time. Thereality is that most distributors carry more inventory than they need. This allowsdistributors to consistently meet demand and provide immediate delivery. Yet atthe same time, high stock levels tie up valuable working capital. The balancingact involves gaining a greater availability of capital while optimizing stock buildand maintaining or even improving product availability.The Lawson solution provides tools and process support that allow you toaccurately manage and predict demand for your products at all points in yournetwork. As you move toward optimized product availability, you’ll be able tooffer better customer service and reduce overall cost by improving responsetimes, reducing overstock and product obsolescence, and enhancing deploymentof product to the right location.

Lawson Distribution SolutionHolding on to Your Customers: Managing Sales andService RelationshipsDistributors need to be experts in their specific fields and strive for excellentcustomer service by providing sector knowledge, extensive product availability,even the ability to procure goods they don’t typically carry. The challenge is, asalways, to fill an order the first time, every time.The M3 Distribution solution enables improved sales and service relationshipsby using a variety of integrated sales channels, such as electronic EDI/XML, telesales,over-the-counter sales or field sales. Comprehensive pricing and inventoryavailability and promising are examples of just some of the automatic supportprovided for this process.M3 Distribution also enables the automation of procurement procedures,allowing buyers to optimize purchase requirements while providing importantinformation regarding vendor performance and analysis.The Challenge of Supply Chain ExecutionMeeting the challenge of supply chain execution means organizing operationsto optimize efficiency. Distributors receive many daily deliveries, each of whichmay contain a large quantity of goods. Because of the volume of incoming goods,distributors need system support that can automatically propose follow-upactions and suggest the most appropriate location for storing items.For outbound goods, distributors must also be able to optimize and managedeliveries using flexible picking and packing methods, and methods to help prioritizeand sequence loads.M3 Distribution offers businesses an efficient solution to help expedite keyorders, routinely manage warehouse processes and resources, and aid cost–effectiveand on-time delivery. Additional revenue streams can be managed with avariety of value-added services such as kitting, servicing or assembly, to name afew.

Lawson Distribution SolutionLawson Applications:Addressing Your ChallengesLawson: Provider of Industry-Focused SolutionsLawson software solutions for wholesalers and distributors have been developedto meet the specific challenges that characterize the industry: covering supplychain planning, sales and service, and supply chain execution. Among specificwholesale and distribution segments, challenges will also vary greatly. Lawson hasbroad-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 RequirementsThe strength of the Lawson application portfolio is that our solution can beconfigured to meet the challenges specific to each segment. As an example ofthese varying challenges: in the food service industry, distributors are requiredto handle repetitive, high order and delivery volumes. This requires a high focuson supply chain execution. An automotive parts distributor, on the other hand,will likely need to manage huge assortments of parts and face greater challengesmanaging product and lifecycle information.Many Branches, One SolutionThe Lawson solution is also configured to meet the challenges of the distributionmarket’s multi-branch structure. From the supplier to the customer, the Lawsonsolution takes into account the variable needs of a typical branch network. Thiscan range from fast-moving distribution centers to smaller branch hubs, or simplesatellite outlets. As a web-based Java solution, Lawson enterprise software offersinformation visibility throughout the network, with scalable solutions accordingto each environment.Lawson for the Distribution IndustryLawson has drawn on its industry-based expertise in creating a focused enterprisesoftware solution that offers you unique value, efficiency, durability, andsimplicity. Lawson M3 Distribution is the result of our ongoing efforts to simplifythe process of deploying, maintaining, and using our applications. Here are someof the real benefits available from choosing Lawson:

Lawson Distribution Solution• A wealth of knowledge and expertise gained from successful implementationsfor some 400 customers in wholesale and distribution, as well as the valuableexperience gained from serving and supporting these customers.• An integrated solution for your whole company that offers supply chainvisibility and control of your trading relationships and helps you be competitivein selling, sourcing and shipping.• A simpler solution that offers a broad range of industry functionality throughour QuickStep program. This affords distributors the option of implementingcore 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 shortensthe implementation process by offering a solution that can grow with you andthat includes comprehensive after-sales support.• Benchmarking services that can help you identify your top-level objectivesand 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 thatallow you to manage adjustments to your configured solution.Lawson M3 Distribution integrates all of these features into a single, simplerenterprise solution, and provides you with the data consistency to run yourbusiness successfully.Our customers agree when we say:Simpler is better.

Lawson Distribution SolutionLawson M3 Distribution: Working with You in YourIndustry.Although distribution is a complex business, it can typically be described in fivebasic activities, performed in a continuous cycle:• Plan• Buy• old Hold• Sell• AnalyzeEach of the business activities are shown in the appended diagram. These offerspecific challenges that may differ depending on the segment and where in theorganization this activity is being performed.Lawson has built a function-rich solution for the distribution industry that isbased 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 PlanningPlanBuy• Strategic sourcing• Procurement• Purchase Costing• Supplier RelationshipAnalysis andSupport• Multi-channel sales• Comprehensive priving• Value added services• Customer Relationship Mgmt• Inter Company tradingSellHold• Warehouse Management• Inventory Management• Multi-site Distribution• Product Information Mgmt• Financial ManagementPlanFor the distribution industry, planning relates directly to how businesses predictand manage the flow of products and services within their supply chain. Goodplanning can have huge effects on both customer service levels and the amountof capital tied up in investments.The challenge that many distribution companies face is that they must be ableto plan using large amounts of information across their organizationalnetwork.

Lawson Distribution SolutionKey functions in planning are:• Demand PlanningFacilitates accurate forecasting with tools that help you meet your marketneeds, determine resources and anticipate inventory levels.– Forecasting considering seasonality and trends– Integrated sales budgeting– Collaborative demand planning– Advanced third-party demand solutions• Supply Chain PlanningAdvanced functionality that helps you validate and optimize your demandplan according to strategic goals such as profitability or customer servicetargets.• Inventory PlanningEnables 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 PlanningEnables creation of proposals considering demand, receipts, and current stocklevels.– Distribution Requirement Planning– Advanced multi-site plannerBuyHaving planned what is required, the buying process comprises a series ofactivities that help ensure supplies of product at the optimal price.Key functions in buying are:• SourcingEnables you to process and evaluate supply alternatives so that you can definecommercial agreements with suppliers, and provides greater visibility andcontrol over the entire sourcing process.– Request for quotation– Purchase agreement– Spend analysis• Purchase CostingHelps you understand true product level cost of purchase considering manyadditional factors such as financial duties or transportation cost.

Lawson Distribution Solution• Purchase Order ProcessingProvides 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 SchedulesUsed in repetitive delivery environments with close supplier relationships.Enables setting up delivery schedules that replace individual purchase ordersand can be published or sent to suppliers with optional frequency.Enables web publication of schedules for easy access and updating.• Supplier PerformanceCaptures detailed statistics about purchase items, vendor performance,product quality, as well as timeliness of delivery.– Purchase statistics– Supplier statistics– Item statisticsHoldHolding inventory is an expensive activity both in terms of inventory cost andresources. As customers demand high availability or short lead times, distributorshave historically been forced to hold large inventory stocks.Distributors need tools that give a consistent view of all inventories and efficientlysupport all of the activities associated with storing goods.Key functions in holding are:• Warehouse ManagementLawson M3 provides a scalable solution according to your specific warehousingneeds that is able to handle a variety of inventory types: from basic toshelf-life or serialized items. Helps efficiently manage routine processes andvolumes from inbound receipt, to location replenishment, to outbounddispatch. 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

Lawson Distribution Solution• Inventory ManagementProvides tools to ensure that inventory remains accurate and appropriatelylocated.– Flexible physical inventory methods, such as cyclic, periodic, or zero-point– Quick physical inventory– Shelf-life toolbox– Inventory reclassification• Multi-Site DistributionProvides tools that enable organizations with multiple sites to function as asingle 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 ManagementOffers the ability to classify and profile products, for information accuracy andprocess 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 managementSellThis is of course a crucial set of activities for the distributor. While relationshipmanagement in procurement is based on cultivating advantageous relationshipswith suppliers, relationship management in sales has everything to do with providingbetter service to the customer. Ultimately, this is the greatest competitivedifference that a wholesaler and distributor can offer in this margin-drivenindustry.Key functions in selling are:• Multi-Channel SalesProvides integrated web-based functionality, giving customers and partners asingle point of access to products and services, supported through a varietyof sales channels.– EDI/XML– Field sales– Over–the-counter sales– Telesales– Web sales– MI VMI MI sales– Contact management10

Lawson Distribution Solution• Customer Order ManagementEnables efficient management of various order types in a flexible but consistentmanner.– Quotation management– Customer order processing– Back-order management– Project management• Comprehensive PricingEnables effective management of the variety of rules and conditions commonto distribution.– Sales price lists– Sales price model– Discount management– Sales rebate and commission– Sales agreement and call-off– Sales promotion management11

Lawson Distribution Solution• Value-Added ServicesLawson M3 Distribution provides integrated functionality to manage valueaddedservices 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 ManagementEnables efficient management of customer marketing intelligence, opportunityinformation, and sales force automation. Offers an information platform forall sales planning, marketing and customer-facing activities.– Contact management– Opportunity management– Activity management– Campaign management– Remote sales and service• Delivery and TransportationAllows efficient management of complex delivery and transportationrequirements.– Delivery toolbox– roactive Proactive roactive transport planning– Reactive transport planning– Third-party integration– Delivery documentation• Intercompany TradingProvides simple sales and logistical processes while automating the relevantfinancial transactions.– Multi-unit coordination12

Lawson Distribution SolutionUp and Running with Lawson M3 DistributionThe Lawson Step-by-Step SolutionLawson M3 Distribution offers a modular, flexible and open approach to implementationthat is based on the understanding that many distribution companiesmay not be ready to implement a full-suite, enterprise-wide system right away.Called StepWise, the methodology involves the gradual phasing in of LawsonM3 Distribution, so that you can add functionality when you need it.StepWise offers the following benefits:• Process EfficiencyAn industry sector approach means existing data can be reused. Energy isfocused on what is unique for the customer, allowing for a rapid and efficientimplementation.• Phased ImprovementRather than being a quick fix, improvements are intelligently phased in.• Fulfilled ImplementationMeasures agreed during presales/sales are methodically followed up.• Dialog ApproachContinuous dialog between the customer and the implementation team safeguardscustomer satisfaction.• Better BusinessBy integrating Lawson technical sophistication and business knowledge, tacticaland strategic benefits emerge.Along with StepWise, Lawson also offers a variety of implementation modelsdepending on customer need:• StepChangeThe implementation methodology used with new Lawson customers that areconverting to Lawson M3 Distribution from other enterprise software solutions.• Stepping UpThe implementation methodology for existing Lawson customers that areupgrading from earlier Lawson application versions to the latest Java-basedapplications.• QuickStepThe implementation methodology for customers that wish to implement astandardized out-of-the-box solution.• ValueStepUsed by customers wishing to extend the breadth of their chosen solutionwith other Lawson applications, such as Mobile Sales, Service & Marketing, orAutomated Document Capture.14

Lawson Distribution SolutionServices and SupportYour Solution, Your WayThe value and quality of Lawson M3 Distribution is ensured by the powerfultools included in the solution that enable you to configure the system accordingto your needs. The foundation for our service and support is the stability andsimplicity of the system itself. We have created a solution that will not requireextensive maintenance and follow-up.As a modern open system, it provides tools that give you access to data andself service. You can change the user interface, integrate internally or externallywith other systems, and even create new business objects or modify existingones. Simply choose the functionality you want and create your own solutionwithout any modification to the standard components.Improved Quality AssuranceLawson M3 Distribution offers unparalleled quality assurance made possiblethrough a rigorous and thorough testing process. This has been implemented toensure increased reliability and greater robustness. Again, this results in less internaland external maintenance and lower cost.15

Lawson Distribution SolutionTechnologyIntegrated, Configurable, Platform NeutralBest-of-breed point solutions are costly, and the resources required to maintainand integrate them with an existing environment to support end-to-end businessprocesses are prohibitive. As a result, the chances of achieving return on investmentare slim. That’s why Lawson delivers a full-suite solution that contains allthe typical functionality you need for your organization.Java TechnologyBuilt with Java, Lawson state-of-the-art solutions provide you with low cost ofownership, high scalability, and platform independence. Business components canbe configured and reconfigured to continuously meet your changing businessneeds and help you keep your operations competitive. As your business expands,our Java-based technology provides you with practically unlimited scalability.Workplace ManagementLawson Workplace Management is a set of applications and tools that providesend users with a personalized user experience when interacting with businesssystems and collaboration tools such as Lawson M3 Distribution. Its genericweb-based user interface provides a consistent way of working and a commonlook and feel across all Lawson M3 Distribution functionality. Customized userinterfaces for specific user roles can be created, while content integration capabilitiesenable the creation of full-scale enterprise portals.Value Chain CollaborationLawson Value Chain Collaboration enables the collaboration between allparticipants in the value chain, using various tools and technologies such as EDI,XML, web-services, and APIs. It is the engine needed for secure communicationwith partners, suppliers and customers.16

Lawson Distribution SolutionAbout LawsonIn 2006, Lawson Software and Intentia merged to form the new Lawson. We deliversoftware 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, BusinessIntelligence, Asset Management and industry-specific solutions help customers streamlineprocesses and enhance their business performance. And by radically simplifyingthe process of deploying and using our applications, we help customers reduce costswhile increasing their flexibility.Why Lawson? Because simpler is better.17

Lawson Distribution SolutionWhy 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

Lawson Distribution Solution19

DIS-06-084-1-enHeadquarters:LawsonUSA380 St. Peter StreetSt. Paul, MN 55102-1302Tel +1 651-767-7000InternationalHeadquarters:LawsonSwedenVendevägen 89Box 596SE-182 15 DanderydTel +46 8 5552 5000www.lawson.com