Presentation given at the 2016 Supply Chain Insights Global Summit - 7-9 SEP 2016 at The Phoenician in Scottsdale, AZ Driving Supply Chain Improvements Using a Tailored Supply Chain Strategy • Mourad Tamoud – SVP of Global Supply Chain – China , Schneider Electric Being global requires a careful definition to drive improvement. For Schneider electric the journey started with the definition of supply chain models starting at the customer. In this presentation, Mourad Tamoud, SVP of Schneider Electric shares his insights on driving this journey in the emerging market of China. To see the video go to http://supplychaininsightsglobalsummit.com/2016-summit-presentations/

1. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030
Mourad Tamoud
Schneider Electric
Senior Vice President, Global
Supply Chain – China

2. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030
Driving Global Supply Chain
Improvements Using a Tailored
Supply Chain Strategy
Mourad Tamoud
Schneider Electric
SVP, Global Supply Chain - China

3. Schneider Electric Introduction
Global Supply Chain Overview
Tailored Supply Chain 1.0
Tailored Supply Chain 2.0
Tailored Supply Chain 2.0 in China
Today’s Agenda

4. Schneider Electric
Introduction

5. ~ 5%
of revenues devoted to R&D
~160K+
people in 100+ countries
Schneider Electric, the Global Specialist in
Energy Management and Automation
€26.6Bn
FY 2015 revenues

6. ...with Balanced Geographies
FY 2015 Revenues
Asia Pacific Rest of the world
27% 26% 29% 18%North America Western Europe

7. ...with Diversified End Markets
21%14% 45% 20%
Datacenter & Networks Building Infrastructure Industry
FY 2015 Revenues

8. …and accelerated 3Xinvestment to Innovation
800
1200
400
M€
600
1000
200
0
1400
2000 2015
~5%of sales devoted to R&D
20,000Patents active or
in application worldwide
20,000+
R&D & Solution Engineers
• 10,000+ Solution Engineers
• ~5,000 Software Engineers
--- R&D Spend over 15 Years ---

9. Aster Capital Fund
Demand response,
software breakthrough
Funding
start-ups
for Intelligent Buildings,
Renewables, Homes,
Smart Electricity, Green Grid
& Data Centers
Leading
Global Projects
Standards &
Protocols
Supporting
Interoperability
Best-in-class
Public & Private Organisations
and start-ups
Partnering
with 50+
...working with a strong ecosystem of partners

10. Easy access to information
Awards and Recognitions
Superior transparency
A guarantee of compliance
...striving for Sustainability for our customers and planet

11. Global
Supply Chain
Overview

12. Confidential Property of Schneider Electric December 2014 (including Delixi and Invensys, w/o CST)
Our Global Supply Chain: A vast worldwide set up resulting
from growth & acquisitions
90,000 employees (Total industrial headcount incl. Purchasing, Manufacturing and Logistics)
Purchasing
• 45,000 suppliers
• €12B purchases
Manufacturing
• 212 factories
• 44 countries
Logistics
• 103 distribution
centers
• 130,000 order lines / day
• 500,000 references
Orders

13. 13
Customer satisfaction #1 priority
Market driven and tailored to customer
buying behavior
Competitive advantage in the market
World-class competencies and talent
Dynamic improvement process
Sustainability
Within the framework of the safety of our employees and
the protection of the environment, our supply chain’s
strategic objectives are in order of priority:
1. To obtain service level and offer quality that meet or
exceed customers’ expectations
2. To obtain competitive products landed costs and drive
high level of productivity
3. To develop agility and to limit risks
4. To optimize capital employed
While using the best of breed of IT technology
Supply Chain Vision Strategic Objectives

14. Confidential Property of Schneider Electric
• Perfect storm coming in supply chain talent with
significant anticipated shortages
• Remove organizational barriers
• Success relies on collaboration between
different sites, functions, and partners
• Shocks are transmitted faster and
further than ever before
• Increasing concerns about risk and
resilience of global supply networks
• Population and higher incomes
strain scarce resources
• Supply chain sustainability is
part of brand management
• Be bold, go beyond focus on cost, be
creative to help drive growth
• Regionalization of supply chains to
support growth markets
• End-to-end supply chain segmentation
• Build digital dream teams
• Customer transparency and
collaboration.
• Analytical capabilities on top
of solid foundations
The Main Supply Chain Trends 2015-2020
Supply Chain as
a Growth
Enabler
Digitization
& Innovation
Risk
& Resilience
Supply Chain
Talent &
Knowledge
Integration
Sustainable
Supply Networks

15. Confidential Property of Schneider Electric
Footprint &
Lean
Simplification
Footprint &
Lean
Tailored Supply
Chain
Simplification
Footprint &
Lean
Tailored Supply Chain
We have made several breakthroughs towards Customer Centricity and Cash Efficiency while
delivering improved performance on Productivity
Tailored Supply
Chain
Simplification
Footprint &
Lean
Tailored Supply
Chain 2.0
2005-2008 2009-2011 2012-2014 2015-2020
Supply Chain Transformation is embedded in the company programs

16. Create more
opportunities for
our customers and
for ourselves
Digitize for
our customers,
for efficiency
and simplicity
Innovate to make
our customers’ lives
simpler
and better
Our customers
get great service
because great people
work at Schneider
Simplifying our
work makes
the difference
to customers

17. A Look Back at
Tailored
Supply Chain 1.0

18. Confidential Property of Schneider Electric
Tailored Supply Chain 1.0: 2011 - 2014
“Provide our Customers what they value while leveraging scale and efficiency”

19. Talent transformation supports the tailored supply chain journey
> Assessment of ~100 leaders in 4
transformation domains
> Strong collaboration between Supply
Chan leaders and HR (e.g., Edison
annual selection, culture of learning)
LEADERSHIP
A measured progress: Talent Health Index
> Measuring sustainability
> Supply Chain Edison program to
leverage expert talents to develop
organization
> Global Supply Chain Academy
learning curriculum
> Talent health management (e.g.,
pipeline, diversity, exposure)
> Integrated and globalized Supply
Chain functions to enable synergies of
scale
> Created Center’s of Excellence in core
supply chain skills
> Acquired external talent to close
competency gaps
TALENT
DEVELOPMENT
A recognized commitment
> 2015 SCM World’s ‘Talent
Breakthrough of the Year’ award
winner
ORGANIZATIONAL
CAPABILITIES

20. Schneider Electric – 2015 Investor Day – Group Strategy
• Customer Net Satisfaction on delivery
improved by 13 points, and customer
dissatisfaction decreased by 28%
• Increased on-time delivery by 3pts, up
to 95.5%
• Logistics network optimized to match
customer needs
• Main process capabilities deployed to
improve customers’ delivery experience
Customer Satisfaction Cash Efficiency
• Reduced average inventory cash
consumption by 0,5 Bn€, 12 days
coverage
• Improved inventory health by +34%
(reduction of obsolete, excess and
missing inventories)
• Capex controlled at optimal level
Cost Efficiency
• 1 B € industrial productivity
• Leverage Schneider Production
System
• Rebalanced global network of
manufacturing and distribution center
sites
• Ramped-up “lean with suppliers”,
“should cost” and “e-auctions”
• Sales and Inventory Operation Planning (SIOP) deployed and starting to extend capability of co-planning with
key customers and suppliers
• Key talents hired reducing competency gaps
• New organizational structure in place, aligned to Country execution and Business strategic inputs
• Digitization (Customer capabilities, Kinaxis SIOP tool, Transport Control Tower,…) will accelerate the
implementation of Tailored Supply Chain
Our Transformation Results: 2011 - 2014

21. Tailored Supply
Chain 2.0
supports our
Company’s
2020 Vision

22. 22
Tailored Supply Chain 2.0
is designed to do more in each
supply chain model…
• Develop new initiatives to drastically improve speed and
responsiveness throughout the supply chain:
– Make our end to end customer lead-time a
competitive advantage
– Improve time to market and new product
introduction
– Create “special care units” for small enterprises
• Deploy our strategy of best of breed digital tools.
• Enhance the supply chain transformation with focus on SIOP
maturity, network optimization, footprint transformation,
and next wave of new customer capabilities.
• Grow competencies focused on customer centricity and
continue to attract the best talent
For Our Customers

23. 23
FROM
Tailored Supply Chain 1.0
We have been building the foundational
elements of our tailored supply chain
TO
Tailored Supply Chain 2.0
We are now tailoring our supply chain
value propositions to the five customer
dominant buying behaviors
COLLABORATIVE: Value reliability and trustworthiness
LEAN: Are price sensitive and will look to our
competitors quickly. They want efficiency and reliability.
AGILE: Are demanding, unpredictable and expect speed
PROJECT: Are time sensitive to project schedules. Big
projects and big budgets with longer time horizons.
FULLY FLEXIBLE: Crisis environments where speed
and innovation are a premium. Business crisis and
humanitarian crisis that are unplannable events. Speed
is a primary focus

24. Tailored Supply Chain 2.0 is supported by 9 Transformations
Orders
130,000 order
lines/day
500,000
references
Logistics
103 distribution
centers
Order
11 Customer Segments
with different
Buying Behaviors
- COLLABORATIVE
- LEAN
- AGILE
- PROJECTS
- FULLY FLEXIBLE
9 Key Transformations
End to End Customer Lead Times
Time to Market
Special Care Units
SIOP and Kinaxis
Customer Process Capabilities
Network Optimization & Transportation
ETO Supply Chain Management
Field Services Supply Chain
Supply Base Management
Electrical Distributors
IT Distributors
Consumer Retailers
Consumers
Small and Med installers –
EcoXperts
Panel builders
Repetitive OEM
System Integrators, Large installers,
Non repetitive OEM, EPC
Utilities
Other End Users
Web Giants
Standard
Products
Make
To
Stock
Make
To
Configure
To
Order
Make
To
Stock
Plan - Source - Make - Deliver
SIOP
SIOP
SIOP
SIOP
Equipments
Spare parts
Make
To
Stock
To
To
Plan - Source - Make - Deliver
SIOP
SIOPEquipment
Systems
Spare parts
-Customer order
FULLY FLEXIBLE
LEAN
AGILE
COLLABORATIVE
PROJECTS
-Equipment
-Systems
Make
To Stock
Make
To Order
Configure
To Order
Track &
Trace
Precision
Delivery
Direct
Shipment
Merge in
Transit
Order
Grouping
On Site
Delivery/
Storage
……
5 Supply Chain Models
Engineer
To Order
Manufacturing
232 factories
44 countries
Purchasing
45,000 suppliers
ϵ128 purchases
Customer Process
Capabilities
Network Optimization
and Transportation
“Provide our Customers with what they value while leveraging scale and efficiency”

25. Page 25Confidential Property of Schneider Electric |
Customer Process Capabilities (CPC) 2.0
• Focused collaboration with Lines of Business & Front Offices to drive
adoption of existing capabilities, whilst also developing future capabilities
• Secure Customer “Buy-in” and input to existing and future Capabilities
through customer panels and focus groups with specific focus on priority
segments (Proximity, Strategic, Targeted) offering segmented Lead
Times.
• Digital delivery action plan by country / cluster level on a quarterly basis
focusing on Detractor / Passive customer visits to ensure maximum End
to End Coverage
• Drive Competitive lead time and End-to-End analysis utilizing OneMM
Main Actions
Service Level OTDC = 95.8 % (Target 2016)
Dissatisfaction on delivery 13.0 % (Target 2016)
NSS on delivery 32.5% (Target 2016)
Key Indicators
In collaboration with the Lines of Business and Front Office(s)
deliver differentiated delivery capabilities by customer buying
behaviour, by customer segment & Geography.
Objectives / Vision
Digitize Customer Delivery
Experience
Delivery Capabilities
13.5%
24.8%
40.0%
2011 20172015
Drive Customer Delivery
Experience Improvements
Develop & Deploy Supply
Chain Capabilities

26. Page 26Confidential Property of Schneider Electric |
Customer Satisfaction on Delivery Improvement Process
Step 2: Visit selected
Customers & gain a
thorough understanding of
their dissatisfaction
- 3 weeks
Step1: From quarterly survey select
Detractor & Passive customers to visit
- 1 week
Step 3: Identify route causes
contributing to customer pain points
and develop a systemic action to fix,
culminating in a country action plan,
then implement within the quarter
- 2 months
Step 4: Close the loop with
customer(s) and ensure the
results of these actions
translate into improvement
in the next quarterly
customer survey
Country
Customer
Council
Starting by Customer Satisfaction survey results …
The key success factors:
• VP Logistics leads the action plan in close collaboration with
Country president
• Intimacy of logistic organization with the business
• Passion to quickly solve dissatisfied customers issues

27. Page 27Confidential Property of Schneider Electric |
Customer Visits – Current Practices
We welcome
customers
Objective: Move customer from
detractor & passive to
promoters
Who: GSC, CCC, CSQ, Sales
Ritual: From the quarterly
customer survey run the 4 steps:
1 Select both detractor & passive
customers
2 Meet and understand in depth
customer pain points
3 Route Cause Analysis and
select systemic actions &
implement within the quarter the
action plan
4 Close the loop with the
customers’ and validate their
change of mind
We visit Customers We meet Customers at
Marketing events
Objective: Grow customer
centricity & listen
Who: Country Mgt, GSC , CCC,
Sales
Ritual: Each Thursday welcome
the customers to Venaria DC in
order to:
- Present GSC, CCC
organizations
- Visit warehouse, CCC
- Promote delivery capabilities &
Commercial Logistic Offer(s)
- Introduce Logistics services
So far 9 events welcoming 160
customers with very positive
feedback
Practice: Italy TOP 11 countries Practice: China
Objective: Promote our
products and Services
(Support, delivery …)
Who: Marketing, Sales, GSC,
CCC
Ritual: Attend key commercial
event and present the 15 global
capabilities and the 7 local
capabilities focusing on customer
value proposition;
This event in China hosted
460 Distributors with 100 sales
Persons . The customer
Feedback is very good.
This Event is done on yearly
basis

28. Page 28Confidential Property of Schneider Electric |
Commercial Logistics Offer
The key process to increase agility and responsiveness and get competitive advantage
 CLO formalizes relationships with our customers, framing their
desired end to end order to delivery experience
 CLO defines lead time offer and logistic capabilities to be
implemented by customer segment
 Output is the best possible trade-off between Product offer,
Lead Time & capabilities, inventories and costs
Roles
Product Offer
(Broadness of catalogue)
Lead Time offer & Capabilities
CostsInventories
● Within a collaborative and regular
process, it engages all Stakeholders from
Logistics, Supply Chain Planning, Sales
and Finance.
● In geographies, the process owner is
the CPC / CLO manager within the
Logistics organization
● Country president & Business VPs
sponsor and support the process. They
validate the final CLO, and ensure the
proper communication to the customers

29. Page 29
15 Capabilities & Customer Segment – Global (Subject to Localization)
Capability applicable to this customer segment
OEM Non-Repetitive
OEM
Panel
Builder
System
Integrator
Distributor -
Project
Distributor
- Diffused
Retail
Distributor
DIY End-
User
Commercial Logistics Offer
Product Life Cycle
Fast Track
Digital Order & Delivery Status
Track & Trace
Customer Dashboard
Staging Order
Complete Order
Promotion
Kitting
Plant to Customer
Last Minute Change
On-Site Delivery
Order Grouping
Precision Delivery
Some capabilities can be charged (Fast Track, Kitting,..)
Some capabilities can have different service level depending customers (last minute change for CTO for VIP customers

30. Confidential Property of Schneider Electric
Digital Delivery Experience in GSC
What’s coming
next on
My Schneider ?
72.9%
of order lines are placed
digitally by Customers
Digitization at
Order Entry in Q1
Q1’16 Vs Q4’15
MySE 21.8% -0.8
EDI 51.3% -2.3
Track & Trace in Q1
 Track & Trace
deployment in NZ,
Colombia
 Staging order in
India, Brazil, Chile
 Order Modification :
Deployment in several
countries & new feature
(simulation button)
P&A : display Stock
Available for Russia &
India
* DCE Source / GSC Emea
Digitization dashboard : Q1 2016
Forwarders
connected
77
Number of lines
delivered
32.0 Millions
27,4 MillionsNumber of lines
with Track
& Trace
85.6% of lines delivered
Out of 490+ carriers
Delivery
Functionalities
Number of
Front-Offices
Connected
Deployed up to
MySE Coverage
24
65
68.5%
(accessible
scope)
Customer activities In
few key countries, the
activity with MySE increased
by 10% over Q1 :
China 3268 visit / day
India 974 visit / day
Russia 1533 visit / day
UK 1170 visit / day
Australia 678 visit / day
Top Functionalities
Price & Availability ,
Order Entry,
Order & Delivery Status, T&T

31. We focus our transformation on 3 Major dimensions to drive our Strategy & Success for our
Customers
Page 31Confidential Property of Schneider Electric |
Network Optimization & Transport

32. TSC 2.0 Key Initiative Update
Network Optimization & Transport
• Create a Customer Aligned Logistics Footprint with Delivery
Capabilities that drive optimal Customer Satisfaction, quality, service
and cost to serve leveraging Network & Transportation Modeling
Objectives / Vision
• Network modeling completed in Brazil, China, Pacific, Europe, India,
NAM & SELA. Global Model & refreshes in China and Pacific.
• Refine strategy/next steps using model outputs NAM/Europe.
• Drive the Global transport transformation with regions.
• Align and accelerate productivity with the regions from low hanging
fruits focusing on Air & Express.
• Launch loading factor improvement optimization program.
• Implement digitization for customers on transport with LLP/LTP.
Main Actions
% Air/Sea deployed
with global partners
> 99% YTD May > 95%
Air / Sea ratio (with ITB) 7.8% YTD May 8.8%
Regions DS Modeled 7DS initial, 2 refreshed, Global model in-flight
Key Indicators
Network Modelling and Optimization Customer Aligned Logistics Digitization
• 5 Supply chains incorporating
Services: Collaborative, Lean, Agile,
Project & Fully Flexible (Crisis)
• EAN & Master Data to improve
Delivery Complaint Rate and drive next
level of Distribution Centre Optimization
• Industrialized GSC Customer
Research Survey, rolling out in select
Countries in EMEA, EAJ. .
• Digital Delivery customer experience
• Adopt Supplier Visibility tools to
support Transport Control Tower
• Global Messaging Platform
• Digitized trade tools deployment
• Lead Transport Provider (LTP)/
Transport Management System
(TMS) deployed in targeted sites.
• Lead Logistic Provider(LLP) air and
ocean
• Modeling deployed in all regions,
working now on global model
• DC Transformation initiatives under
way to optimize use of footprint.
• Transport Supplier Reduction
targeted to 300
• Brokers Reduction Targeted to 120
• Freight Audit Payment either in place
of process of implementation
• Drive sustainable productivity

33. Tailored Supply
Chain 2.0
deployment in
China

34. Schneider China Supply Chain Digitization journey
Page 34Confidential Property of Schneider Electric |
NCP
Supply Chain Transformation
+ more
Downstream SC
• Kinaxis (SIOP)
• One MM tool (MM)
• Track & Trace
• LIME
Upstream SC
• E-Reverse Auction
• Vfast (Supplier forecast)
• Vendor Web Portal (PO)
Logistics
• Llamasoft (Network
Modeling)
• OTM (Transportation)
Manufacturing
• MES (E- Order, E-SIM &
Andon, E-Kanban&Pull, E-
WI, Quality control)

35. Implement Best of Breed Digital tools
> Extract customer insights through our data lake
> Extract the value of our best of breed Tools in supply chain optimization
> Setup Data Analytics incubation team to Innovate and create competitive advantage
Digital Journey within our Tailored Supply Chain 2.0
> Digital End to End Planning, Forecasting and
Inventory with Kinaxis
Digital Solutions for Supply Chain efficiencyDigital Customer Delivery Experience
> Network Modeling to optimize distribution footprint,
transportation and lead times
> Digital Factory to have full visibility and ensure
product quality

36. Smart Supply Chain is an End to End Approach with Customer
Page 36Confidential Property of Schneider Electric |
Dashboard Order
Pattern
Open
Orders
Customer Lead Time
Sales
Backlog LIME
• Dashboard
Calculate & Show the KPIs by chart & Excel based on user selection.
• Order Pattern
Analysis sales order info to get customer’s ordering behavior.
• Customer Lead Time (CN To Be Deployed Due to China SAP not capture
E2E yet)
Analysis the lead time from order placing to ex-works DC/at door by customer
to get improvement opportunity
• Open Orders
Show overall backlog order status .per selection (future due and past due)
• Sales backlog
Show overall sales backlog status VS forecast
LIME - Logistic Intelligence Made Easy: Customer Sales & Performance shared dashboard

37. Page 37Confidential Property of Schneider Electric |
Track & Trace - provide full delivery visibility optimizing our customers’ projects and operations
Shipping Details
• Tracking delivery-to-customer door 24/7 through Schneider’s
online portal
• Improve customer digital experience on order and delivery
tracking, easy manage project scheduling
• Available in MySE
Schneider
DC
Customer
door
Smart Supply Chain is an End to End Approach with Customer

38. Page 38Confidential Property of Schneider Electric |
Transparent Plant - Transparent Information from SO Creation to SO Delivery
https://setp.schneider-electric.cn/
It can provide customer transparent, reliable, on time SO Info.
Smart Supply Chain is an End to End Approach with Customer

39. Page 39Confidential Property of Schneider Electric |
Kinaxis – Sales, Inventory, Operation Planning Tool
What is Kinaxis
• ONE Unique Planning Collaborative platform to support
End to End SIOP Process:
Achievement
• Collaborative Sales Forecast :
• Operational run with Kinaxis in
China and HK from 2015 Q2
• Deployment Co-planning with
Customer in progress.
• Demand Requirement Planning :
• Operational run with Kinaxis in
Trading cluster and MTS-MTO
Cluster.
• Validating the solution for network
modeling, to meet China specific
biz needs.
• Master Production Planning :
• Operational run with Kinaxis in
SSD&WPF from 2014.
• Green light for MPP roll out to
other plants. Deployment
Schedule to be validated by Global
team.
• Vendors Forecast co-Planning :
• Validating Vendor forecast new
logic in 2015 Q3
• Plan to go live in Q1,2016.
Next Focus
• Complete End to End Digital
Supply Chain implementation with
vendor forecast co-planning
function.
• Roll out Master Production
Planning to all Make To Stock
plants
• Deployment of DRP to remaining
entities in China.
• Run all SIOP Steps and
Collaborative meetings live in
Kinaxis
Smart Supply Chain is an End to End Approach with Customer

40. Page 40Confidential Property of Schneider Electric |
• Interfaced with our ERPs
• Effective daily transportation
planning and DC execution
• Deployed in 7 GSC China sites
so far
• 1 single data source of truth
• Local for Local deployment
• Deep data mining & crunching
• Perform continuous “what if”
analysis
• Identify saving opportunity
• Optimize End to End supply
chain operations
• Master data accuracy
• Break carrier monopoly
• Transportation business
processes, contracts & rates
standardization
• Cost visibility and
management
• Improved productivity
• Benefiting to customer
delivery experience
Transportation transformation
by Schneider Supply Chain in
China
Providing Operations
with tactical directions
(flow optimization,
stock rebalancing…)
Data feeding our
Network Modeling
Translate
business need
into OTM system
Oracle Transportation Management system & Network modeling - enables us to re-engineering our SC
1/2
Smart Supply Chain in Designing the Logistic footprint

41. Smart Supply Chain in Designing the Logistic footprint
Page 41Confidential Property of Schneider Electric |
Integrate &
optimize
transportation
resource
Customer demand
vs.
DC LfL status
Planning:
what’s to be
shipped today?
Planning: What’s to
be shipped today?
Oracle Transportation Management system & Network modeling - enables us to re-engineering our SC
2/2

42. Smart Supply Chain is an End to End Approach: Manufacturing
Page 42Confidential Property of Schneider Electric |
Manufacturing Execution System 1/3
Operations Technical
Scheduling
Labor Management
Technical Data &
Document Control
Maintenance
Management
Machine Allocation
and Status
Data Collection
Quality Management
Product Tracking &
Genealogy
Work Orders
Management
Process
Management
(Interlocking &
Conformity)
Performance
Analysis
PROCESS (Manufacturing operations)
ERP / PDM (Business Operations)
Closer to
the ERP
features
Closer to
the
Process
Features
Acquisition
Production management
Process control
Performance and Quality
Receipts providing
Maintenance
Datatransactiontimeframe
> Day
/ shift
< Day
/ shift
(hour)
Real-
Time
• Standard of 11 modular bricks of functionality (refer to ISAs95 standard)
• MES is the “production driver” of data between real time and business operations
• Functions logically contribute to each other

43. Page 43Confidential Property of Schneider Electric |
Support assembly process in the workshop:
The aim of the MES is, from an order portfolio issued from SAP, to
prepare the execution (technical scheduling if required), to control and
follow up the production execution. After the production execution, the
information is given back to SAP for the inventories and production
activities update.
Align with SPS requirements:
•Must be design in accordance with the 40 SPS principles
•Must display “visual” information to users: Visual Management
•Must be Helpful to react faster in front of problems
•Must be useful for Short Interval Management
•Must be helpful to trigger production and MPH when process or mix-
Smart Supply Chain is an End to End Approach: Manufacturing
Manufacturing Execution System 2/3

44. Page 44Confidential Property of Schneider Electric |
Maintenance
Customer
Production
SAP
MES
Warehouse
Quality
KPI & Andon
(E-SIM)
Order management
Paperless
(E-WI,drawing…)
E-Kanban & Pull
Quality control
(traceability)
Smart Supply Chain is an End to End
Approach: Manufacturing
Manufacturing Execution System 3/3

45. Page 45Confidential Property of Schneider Electric |
One MM Tool – ERP Master Data Management and Optimization
What is One MM Tool
Is a cloud based web client application
for material Management, could be used
by multi -organization, multi –functions
with standard rule, KPI and dashboard
Achievement
•Stock Parameters Optimization: installed
standard calculation method for the
parameters such as ABC/FMR, Safety Stock,
Re-order Point Economic order quantity etc.
• Health Stock Management : Health stock
range, Health stock Ratio, Health stock
tracking and actions tracking
• Demand &Inventory Visibility: get stock,
open SO and order history in Global IG plant
• Obsolescence Management : manage
New Obsolete Creation(NOC) and Pre-
NOC, Scraping Tracking
• Lead Time Management : OG customer E2E
lead time track, OG supplier lead time
management
Next Focus
• Continuous Optimization on Health
stock Ratio, reduce Obsolescence
• Continuous Optimization on E2E
Lea time to customer or from
suppliers base on analysis from
one MM Tool
• Deploy NOC and Pre-NOC for
other DCs and Plants
• Training for new deployed plant
AVX P
• Deployment plan for AVX E
Architecture scheme
Smart Supply Chain is an End to End Approach: Manufacturing

46. Page 46Confidential Property of Schneider Electric |
Sites Management Practices – Visit register, Plant introduction, Andon, …
Andon SystemPlant Digital Introduction
GO See – to share excess equipments, toolsCustomer Visit e-register System
Smart Supply Chain is an End to End Approach: Manufacturing

47. Smart Supply Chain is an End to End Approach: Vendor Bidding Tool
Page 47Confidential Property of Schneider Electric |
e-Reverse Auction : Supplier on-line bidding tool
I know exactly the price range
and I want savings
3I want to have some allocation
and I want savings
2I will award 100% business to
the best price
1
English Auction
Dynamic
Auction
Dutch Auction
An e-Reverse Auction (eRA) is a dynamic on-linenegotiation where one buyer invites several suppliers to
progressively improve their bids during a short period of time, in order for them to win a specific contract.
ARIBA

48. Smart Supply Chain Is an End to End Approach:
Upstream Order Management
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Vendor Web Portal: standard tool in PO Release, Acknow., VMI Visibility, Delivery Bar Coding
Paperless
Paperless PO
Vendor Performance