CNHi Supplier Collaboration Network CSCN October, 2014 Contains confidential proprietary and trade secrets information of CNH Industrial. Any use of this work without express written consent is strictly prohibited. CSCN – General Information CSCN is a web portal connecting multiple modules for supplier collaboration and communication worldwide; CSCN wants to be a single entry point worldwide for suppliers to communicate a range of different information from the different CNH Industrial plants throughout the world Originally developed in 1997 and constantly under revision to add new functionalities and enhancements • Continuously adapting for best practices and business requirements Scope • Global: APAC, EMEA, LATAM, NAFTA • Functional areas: Purchasing, Accounts Payable, Delivery Schedules/Supplier Requirements, Whole Goods Orders, Engineering Specifications, Bulletin Board System, Tranportation Management, Packaging Guidelines, News Items and Plan For Every Part (PFEP) Information 10-Oct-14 CSCN - Global overview AVAILABILITY English, Italian, Dutch, French, German, Polish, Portuguese, Spanish, Chinese. English language accounts for 70% of the usage. Italian with 14%. Dynamic news feed on the homepage. REGISTERED USERS (2014) 5440 suppliers registered on CSCN in 39 countries. 13167 supplier user ID’s and 3386 internal users. Manage an average of 4300 supplier logins and 1000 internal logins daily. BENEFITS (COSTS and EFFICIENCY) Process standardization: eliminate non-standard processes with suppliers (fax, emails…) Improve data accuracy and information flows. Enhanced supplier collaboration capabilities. Reduce expenses (storage, postage, paper….) and phone calls. 10-Oct-14 3 CSCN Modules 10-Oct-14 XX/XX 4 CNH Industrial complexity is simplified within one consistent view for both Suppliers and Internal Users Interfaced with CNH purchasing systems Interfaced with16 different manufacturing systems worldwide • MF releases are linked with supplier information on the purchasign system for integrity checks • Receipt information centralised same information for Plants, CSCN, Finance • • • • • • Varying capabilities (Advance Ship Notices, Promises) Parts business / wholegoods and manufacturing Different processes (ship date vs. due on dock dates, cumulative vs. discrete orders) Different release cycles (Monthly, weekly, full, partial) Non standard qualifiers (unit of measure, ship codes) Varied business practices in receiving and expediting 3 different ways of logistic processes (simple PUR, extended PUR, PUR on basis of preadvice); interfaced with OTM transport management system, interfaced with container management system IFAST Newer applications avoid interfaces and duplication of data by using webservices reading and writing directly into SAP : • Accounts Payable • Purchased Wholegoods (Revenue Cycle NA and EU) EDI capabilities • CSCN is the backup of all EDI related communication • CSCN is the creator of EDI related flows to the Supplier 10-Oct-14 5 Benefits of the Delivery Schedules Application Management by exception through user dashboard alerts Improved schedule accuracy with daily updates of plant requirements vs. weekly or monthly Improved exception management when supplier shipments are out of tolerance Reduced premium freight by providing ASN visibility of in-transit materials More effective inventory management through improved inbound visibility Improved shipment performance through better communications and supplier discipline On-line supplier metrics available to suppliers and CNH Industrial personnel Accurate delivery performance statistics for all plants Reduced logistics management costs by automating the load scheduling processes. 10-Oct-14 6