How to Make

Business Intelligence Pay

A Practical Guide for Manufacturers and Distributors

July 2006
 Manufacturing and Distribution Companies Get Smarter with Business Intelligence

Business Intelligence = Better Decision-making for

Manufacturers and Distributors
Over the last decade, the vast majority of small and midsized businesses (SMBs) have implemented one or more
generations of Enterprise Resource Planning (ERP) systems to help manage their day-to-day business processes
such as accounting, order entry, and operations. Distribution companies have typically augmented these systems
SMBs are increasingly with inventory control and warehouse management capabilities, while manufacturing companies have added

utilizing BI to help identify bills of materials (BOMs) and Material Requirement Planning (MRP I) or Manufacturing Resource Planning
(MRP II) functionality. During this time we have seen three distinct waves of business software implementations:
areas of improvement that
n In the first wave, most SMBs were content to simply have the means to get their data (e.g., customer files,
can lead to lower costs
time estimates, costs, etc.) into the system correctly.
and increased revenues.
n With the second wave, the objective progressed into making sure the data reflected an accurate likeness
of how things actually transpired (forecasts, planning parameters, shipping alternatives, budgeted vs. actual
expenses, etc.).

n Recently, we entered a third wave of ERP implementations, characterized by a demand for access to and
analysis of key information from the system in order to make better business decisions—Business Intelligence
(BI). No longer the domain of large companies with deep pockets, a growing number of SMBs, including
manufacturers and distributors, want to be able to drill down into their data and extract information that they
can use to measure internal performance strengths and weaknesses. Thus, SMBs are increasingly utilizing BI
to help identify areas of improvement that can lead to lower costs and increased revenues.

What is BI?
Business Intelligence (BI) is an umbrella term that describes the process of gathering, manipulating, and
analyzing data from past and present sources, and providing intelligent reports that enable you to make
informed business decisions. It provides interactive, real-time, business-critical information on behaviors and
trends of your business and market.

BI Tools Improve Decision-making Abilities

According to Jim Worth, in his April 25, 2006 article for b-eye-network.com entitled Top 10 Trends in Business
Intelligence - What Do They Mean to Manufacturing Companies, “More organizations than ever are reaching
the conclusion that information quality is ground zero for solving many of their most pressing business
problems. Why is this? It is because poor information quality makes regulatory compliance difficult, impairs
decision-making and promotes inefficiency.”

To distill the BI discussion to its simplest terms, what businesses need most is the ability to find and extract key
information that identifies their strengths and weaknesses and helps them make better decisions. They also
want this information to be presented in a timely fashion and in a way that business people can understand.

Based on the size of your company and budgetary constraints, your goal is to determine what BI tools you
really need to drill down and extract the key performance data that will make your company more efficient
and profitable.

No longer a luxury---BI is a top priority

Meridith Levinson in her January 15, 2006 cio.com article entitled Business Intelligence: Not Just for Bosses
Anymore, says “Companies that use BI to uncover flawed business processes are in a much better position to
successfully compete than those companies that use BI merely to monitor what’s happening. Indeed, CIOs who
don’t use BI to transform business operations put their companies at a disadvantage.”

©2006 Sage Software, Inc. All rights reserved.

Manufacturing and Distribution Companies Get Smarter with Business Intelligence

According to Betsy Burton and Mark McDonald in their May 01, 2006 article entitled Smarter Use Of Business
Intelligence (courtesy of optimizemag.com), a January 2006 Gartner Executive Programs survey of 1,400 CIOs
indicated that “BI applications are CIOs’ top technology priority in 2006—and, for the second consecutive year,
business-process improvement is their No. 1 business concern. These priorities highlight how CIOs are working
across dual tracks to improve the business.”

The need for easily accessible business intelligence is even more relevant for manufacturers and distributors
than other segments. With ever-increasing price pressures coming from overseas competitors, the need for
manufacturers and distributors to extract and analyze key actionable data is more critical then ever before.
Add recent legislative changes and regulatory compliance issues to the mix, and the case for BI is just too
strong to ignore.

Are you ready for BI?

Keep in mind—manufacturing and distribution companies currently using older ERP systems might face
considerable challenges extracting relevant BI data. The good news is that affordable ERP systems with
integrated BI add-ons are available right now. Manufacturers and distributors who want to stay competitive in
this highly complex, global marketplace will be well served to explore the potential advantages of a BI solution
(if they haven’t done so already) and determine whether their current system is sufficient enough to play ball
with their competitors who have made the leap to a BI-bolstered ERP solution.

What BI tools do you need?

For starters, we recommend that you leverage your existing technology investment and find cost-effective, The good news is
easy-to-use BI solutions that integrate with your Microsoft Office Suite. That should be considered the minimum that affordable ERP
to get you the intelligence you need to boost your bottom line.
systems with integrated
However, more advanced BI tools can now deliver multi-dimensional analysis, graphing, charting, and more, for
BI add-ons are available
a fraction of the cost of an expensive Online Analytical Processing (OLAP) solution. Moreover, these tools should
right now.
be modifiable by a user without requiring extensive programming skills. A familiar and easy-to-use ERP interface
helps new users come up to speed quickly on BI tools.

Having access to an analytics tool can be a very powerful component of your BI plan. Analytics enable you
to transform data into information, and then get that data into the right hands, at the right time, and in the
correct format to facilitate timely decision-making. This, in turn, can help your company increase customer
satisfaction, decrease costs, and increase revenues.

BI helps ensure compliance

A combination of accounting and BI-related reporting tools can also serve as a vital part of your overall
internal control compliance strategy. As you determine how to respond to the new challenges imposed by
Sarbanes-Oxley, there is little doubt that much of your attention will be focused on managing, protecting, and
reporting on the data that at some point passed through your accounting system. 

One BI tool that can serve this process admirably is an “Alerts” solution that integrates with your accounting
system. Using alerts and special triggers, your organization can automatically generate e-mails, launch reports,
or generate system warnings without the need for monitoring.

While no software application will make you compliant, the right mix of accounting and BI applications can
work in conjunction with your internal policies, compliance programs, and other technology investments to
increase the transparency of financial events, ensure distribution of critical information in a timely manner, and
provide the peace of mind you need on matters of security and access.

©2006 Sage Software, Inc. All rights reserved. 3

 Manufacturing and Distribution Companies Get Smarter with Business Intelligence

Only use BI solutions that you can easily understand

The BI tools you implement must also be easy to use and learn and must be able to present data in a way that
everyone can understand. If you have access to BI tools that can convert all of your key performance data into
easy-to-understand terms that management can fully grasp, you have a tremendous opportunity to boost
bottom-line performance and overall profitability.
The BI tools you implement Conversely, if your proposed BI solution is hard to grasp, it likely won’t contribute much to your objective of
must also be easy to use locating and analyzing key, actionable data that can help your business run smarter. Whatever solution you

and learn and must be choose, make sure that all of you can figure out how to get the most out of it without needing a PhD. This
cannot be overemphasized!
able to present data in
All roads lead to implementation of cost-effective BI tools that support the more general business functionality of
a way that everyone can
ERP applications for manufacturers and distributors. Now, let’s turn to an overview of the unique evaluation and
understand. decision-making processes that these companies face in order to achieve the right balance of BI functionality with
their ERP foundation.

BI for Distributors
The evolution of business intelligence tools for the distribution sector has run parallel to that of ERP systems for
businesses in general. In his November 1, 2002 article for Internet World Magazine entitled Intelligence Tools
Create Smart Reports, John Pallatto succinctly states the case for BI as an integral component in the overall
company strategy for today’s distribution companies:

Before the advent of web-based business intelligence tools, a lot of enterprises were practically flying
blind when it came to understanding how fast their products were moving through the distribution chain.
If companies wanted to learn how much product was in their inventories compared to the inventories
of their wholesale and retail distributors, they had to rely too much on paper reports provided by sales
staff in the field or on the courtesy of their customers. Next, the battle was trying to collate sales and
inventory reports from data stored in separate, incompatible databases—one containing production line
information, another containing warehouse inventory tallies, and yet another for order management.

Bringing this disparate data together involved countless hours of grunt work, transcribing the
information from computer printouts into spreadsheets before the product line managers could start
crunching the numbers to find out what was actually going on in the marketplace.

More specifically, prior to the advent of BI as a key ingredient in the business management equation for small
to midsize distributors, most of these companies invested in business software that handled core requirements
such as general ledger, accounts receivable, accounts payable, inventory tracking, order entry, and purchasing
activities. They may have even added software functionality that fully automated their inventory control, shipping,
and warehouse management activities. If these companies invested in ERP applications from the second wave
(which also enabled them to forecast and compare actual vs. budgeted scenarios), they were likely on par with
their competitors in terms of access to data.

To be effective and deliver reasonable ROI, these second-wave ERP systems offered support of both financials
and some more advanced distribution features that could be found in industry-specific or “vertical” applications
designed for industrial products, consumer packaged goods, or high-technology products, for example.

John Pallatto delivers the following corollary to our description of the third wave of ERP:

…since the mid 1990s, companies have discovered ways to bring all these disparate data sources
together using Web-based business intelligence tools. These tools not only speed up and automate the
process of gathering the information, but also provide analysis tools that offer deeper insights into the
dynamics of their distribution channels.

4 ©2006 Sage Software, Inc. All rights reserved.

Manufacturing and Distribution Companies Get Smarter with Business Intelligence

With business intelligence technology, enterprises get more timely information, they discover new sales
opportunities, devise more-sophisticated pricing strategies, and learn more about which products are their
best sellers and where they are most popular. All of this information helps adherents of a well-implemented
business intelligence program increase revenue and improve profitability.

Software evaluation for distribution companies

Evaluating current business software systems and determining the need for upgrading and enhancements (such
as BI) to those systems can be a very overwhelming task for small and midsize distributors due to the sheer
quantity of products to choose from and the complexity of each system.

Distribution software is often specialized depending on the types of products sold. For example, some of the
most common distribution applications on the market are designed for distributors of industrial products,
consumer packaged goods, and high-technology products. Industry-specific software products are attractive
to distributors because they typically provide a dozen or so specific features designed to meet a particular
business requirement such as custom item look-ups in the fastener industry or rental management for equipment
distributors. In addition to industry-specific solutions, there are hundreds of add-on and complementary solutions
available to provide more advanced features. For example, there are literally hundreds of independent Electronic
Data Interchange (EDI) and Warehouse Management System (WMS) applications on the market today.

On the flip side, most popular ERP applications provide 75-90% or more of the functionality required by
distributors. To help bridge the gap with the industry-specific solutions, a few of the more established ERP
vendors offer numerous third-party enhancements and vertical applications. Some even offer BI tools that
“With business intelligence
are either embedded into the system or are modules that can be easily integrated with the core ERP system.
In many cases, these solutions may prove to be more cost-effective and complete than their industry-specific technology, enterprises get
counterparts. In any event, they are worth a look as you gear up to include BI as a major component of your more timely information,
ongoing strategy for business growth and operational efficiency.
they discover new sales
Here are a few things to consider as you commence your research into prospective BI-enabled
opportunities, devise
solutions:
more-sophisticated pricing
n Industry and niche publishers typically allocate most of their research and development to the inventory
strategies, and learn more
management, order entry, and purchasing side of their business applications with little investment in
accounting, business intelligence, customer relationship management, human resources, asset management,
about which products are
payroll and other non-distribution capabilities. their best sellers and where
n The distribution software market, like the ERP and accounting software market, has undergone considerable they are most popular.”
consolidation. Many smaller, niche software vendors have already been acquired by larger software vendors,
leading to the retirement of their legacy products and many unhappy end-users.

n Established ERP and accounting software vendors tend to have much larger installed bases and are much more
likely to support and enhance their products for years to come.

Warehouse management considerations

With warehouse management providing a critical piece of your distribution equation, it is essential that your
WMS also integrates with your distribution, accounting, and BI systems. Here are a few points to consider
when evaluating the warehouse management system that you currently have in place and the enhancements or
upgrades that may lie ahead.

For starters, to get the most out of your new WMS, you need to do more than simply add technology to your
current processes. The more you know about the problems you expect the new system to solve, the more
successful your final choice will be. So try the following:

©2006 Sage Software, Inc. All rights reserved. 5

 Manufacturing and Distribution Companies Get Smarter with Business Intelligence

• Discuss what modifications need to be made to current system procedures.

• Examine how your warehouse interacts with customers, suppliers and your organization’s departments.

• Look for weaknesses and ways to improve them.

Consider the benefits of fully integrated WMS with financials

Some end-to-end ERP solutions offer robust WMS modules as part of their database. Other back office solutions
have established integration with proven WMS solutions. In either case, selecting WMS software that integrates
with your accounting system ensures complete control and flow of information between your back office and the
warehouse floor. A fully integrated solution can automatically transfer data from your WMS to your accounting
Automatic updates of system, eliminating manual intervention, upgrade incompatibility, and transcription errors, while providing
accurate and up-to-date inventory control. If your ERP system does not have built-in WMS modules, look for a
inventory and shipping
smooth-running warehouse system that can easily and reliably interface with your financial data—supplying in-
information to your
depth information across the enterprise. Just as important, an integrated WMS will support your Web order and
back-office systems can EDI needs, and send back Advance Ship Notices (ASNs) to notify vendors of incoming shipments.
reduce transcription
Important questions to ask while evaluating a new system
errors, lower the staffing
During your evaluation of a new or upgraded WMS, make sure to get answers to the following questions in order
requirements for data to ensure that your system can satisfy all of your order fulfillment, shipping/receiving, inventory control, labor, and
entry, and improve equipment challenges.

access to up-to-date n How are inaccuracies negatively impacting my organization?

information throughout n What do I need to accurately pick, pack, and ship my orders?

your organization. n How can my current system integrate with e-business initiatives?

n What information do I need to make strategic decisions?

n How fast do I need warehouse data to be available across the enterprise?

n Does the system enable users to easily sort and view information, allowing warehouse employees to know
exactly which activities need to be done at all times?

n Does the software use a familiar navigational model?

n Is the system accessible over the Web through a secure connection?

n Can the software provide a real-time window into warehouse operation and access to critical data
with only a few clicks?

Look for a solution that integrates with your accounting database

As mentioned previously, not all ERP systems have a built-in WMS. If this is the case, make sure the WMS
software has solid integration with your accounting database so multiple departments and your warehouse
staff can more effectively track inventory and order fulfillment. Automatic updates of inventory and shipping
information to your back-office systems can reduce transcription errors, lower the staffing requirements for data
entry, and improve access to up-to-date information throughout your organization.

Ask for real-time updates

Look for systems that can provide you with real-time information. WMS software supporting wireless RF-based
technologies can facilitate real-time updates to the warehouse—the WMS is updated as soon as information is
captured on a Radio Frequency (RF)-based terminal. Also, if a system promises real-time delivery, make sure vital

6 ©2006 Sage Software, Inc. All rights reserved.

Manufacturing and Distribution Companies Get Smarter with Business Intelligence

business information (for example, inventory count) is updated as new data is entered, and not with a periodic
batch process. Warehouses performing batch updates run the risk of shipping delays, especially with orders
requiring same-day shipping—which can result in high compliance fines.

Understand how the system collects data

Consider how well the system monitors your critical operational activities. When you’re running at full capacity,
can you monitor which items have been received? If so, what communication standard is used to capture
and transfer data? Make sure that data flowing into your database from RF devices is validated before it is
allowed to update transactions in the database. You should also inquire about synchronization issues in case
of a lost RF connection during transaction uploads. Most RF-based technologies collect data using the 802.11
communication standard. Make sure the system you choose supports this widely accepted standard, and isn’t
limited to a proprietary communication standard.

Conclusion
Not all distribution systems are created equal. Some systems provide rich industry-specific functionality, but lack
fundamental accounting features, while others provide a broader feature set, which can be customized to meet
the needs of many different distribution environments. Small companies that have automated their accounting
and inventory processes, but not their WMS and extended supply chain systems, must prepare themselves for
a significant investment in money and time in order to implement and learn a more sophisticated business
application that offers BI functionality.

Distributors need to consider future growth, vendor viability, product stability and functionality, the availability
Distributors need to
of third-party add-on solutions, total cost of ownership, and potential return on investment when choosing
consider future growth,
new business software.
vendor viability, product
A defined software evaluation process will help distributors identify the best solution to meet their needs.
In addition, information gleaned from the evaluation process should be used during the implementation to stability and functionality,
keep the project on track and on budget. Successful implementations can reap huge company-wide benefits, the availability of third-
including sizable reductions in data entry, elimination of data entry errors, improved system security, and party add-on solutions,
significant improvements to the company’s bottom line.
total cost of ownership,
Distribution companies that have already ridden the first two waves of ERP implementation have likely reaped
and potential return on
significant cost savings and efficiency improvements. If you are ready to embrace the ROI-enhancing rewards
investment when choosing
of the third wave, make sure your company engages in a thorough evaluation process that measures the costs
and benefits of a narrowly focused industry-specific or vertical solution vs. a more comprehensive ERP and new business software.
BI solution.

BI for Manufacturers
If you’ve worked for more than one manufacturing company, then you already know that each one is
different—different processes, different tracking systems, different challenges. All of these variations add up
to the fact that you need a system tailored to your specific needs. There are so many solutions available that
you could spend months looking at demos and still not see it all. Narrow your search for a solution by defining
your company.

Jim Worth in the previously noted article Top 10 Trends in Business Intelligence - What Do They Mean to
Manufacturing Companies, offers a strong argument that manufacturing companies have much to gain with
a well-conceived BI plan:

©2006 Sage Software, Inc. All rights reserved. 7

 For manufacturers, information quality issues exist throughout the supply chain. One reason for this
is that manufacturers depend on data from suppliers, contract manufacturers, distributors, retailers,
and consumers in order to effectively and efficiently source raw materials, forecast demand, make and
market their products. Very seldom will manufacturers have control over the quality and format of this
external data. Through incremental improvements in data quality throughout the supply chain, however,
manufacturers can realize significant performance improvements, including improved speed and efficiency
of product manufacture, improved ability to perform demand analysis, improved channel partner
effectiveness through timely and accurate product and pricing information, and improved customer
“More companies are satisfaction through timely and accurate customer information. Measurement and verification are needed
looking to BI solutions to ensure the information quality program is reaching its objective.

as a means to help Regarding the increasing importance of compliance requirements for manufacturers. More companies are
looking to BI solutions as a means to help address regulatory compliance issues on an enterprise basis. …
address regulatory
After all, doing so can help manufacturers avoid costly penalties, negative media attention, and even keep
compliance issues on
executives out of court.
an enterprise basis.”
Searching for an affordable manufacturing/BI solution?
Here are a few questions to consider.
If you are considering your first fully automated manufacturing solution or looking to upgrade to a more
effective system with BI capabilities, you will want to ask the following questions to start narrowing down
the field of potential software solutions that will best fit the unique requirements of your company:

1. Are the standard accounting modules available for this package?

Look for General Ledger, Accounts Payable, Accounts Receivable, Purchase Orders, Sales Orders, and a very
strong Inventory Control module as a minimum set. You may also want to ask each prospective supplier about
the availability of additional modules such as Payroll, Fixed Assets, and vertical modules.

2. Which manufacturing modules are available?

Light Assemblers should look for a product that offers features like Bill of Materials (BOMs), sales kits, and
product configuration. Discrete manufacturers should look for MRP and MRP II, in addition to support for
BOMs. Make-to-Order and Job Shop manufacturers will likely need all of these features plus a method for
estimating and tracking costs on a project-by-project basis.

3. Do the accounting and manufacturing modules integrate seamlessly?

Even if all the accounting and manufacturing modules are available from the same vendor, there is no
guarantee that they will actually integrate seamlessly. In some cases, the accounting software vendor may have
acquired the manufacturing modules from another company, and integration may be shaky. With this in mind,
we encourage you to view a product demo to determine just how well the accounting and manufacturing
modules integrate and share information. For example, check to see that BOMs and Manufacturing Orders
have solid integration with Inventory Control and Sales Orders. You should be able to maintain inventory items
while defining BOMs, and configure orders based on BOMs during order entry.

4. How does the system handle data collection?

You will need to consider how well a system monitors your critical work areas. Can you monitor production if
you’re running at 100 percent capacity for your staff? Has inventory actually been received, and if so, are the
counts reliable enough to forecast material requirements? Data collection ties into true manufacturing as well
as accounting. How well you collect vital data determines your ability to forecast production information. Data
collection is an important part of the total solution for a company that requires MRP II.

8 ©2006 Sage Software, Inc. All rights reserved.

Manufacturing and Distribution Companies Get Smarter with Business Intelligence

5. What kinds of reports does the system provide?

Your system must be able to extract relevant information easily. A system using database files provides virtually
unlimited reporting capabilities. In addition to standard reports, the product should allow non-programmers to
design custom reports using industry-standard reporting tools.

6. Does the system have the capacity to grow?

If you’re not sure how well a system will accommodate your company’s needs as you grow, here are some
key questions to help you find out. What is the maximum number of customers, vendors, BOM levels, or
inventory items that are allowed? What is the maximum number of users that can be working with a particular
application at the same time? Can the software be customized to meet the changing needs of a growing
company?

Key BI Components of Your Manufacturing

or Distribution Solution
As you contemplate a cost-effective BI solution for your manufacturing or distribution company, you should
make sure that the integrated software delivers most, if not all, of the functions listed below at a price point
that fits your company’s budget:

Alerts
n – Alerts provide crucial monitoring, proactive notification, and automation capabilities that help your
company adapt to changing conditions and avoid alarming scenarios pertaining to payables, receivables,
budgets, sales, and inventory. With alerts functionality in place, you can pre-set a wide variety of benchmarks
SMBs want the ability to
in all of these areas and protect yourself from missing key time- or date-sensitive events or failing to respond
to deviations from acceptable levels. bring in data from multiple

Inquiry
n – Having an easy-to-use inquiry tool enables you to drill down into a specific area and quickly extract
locations and still be able to
data that is essential to your business. For example, if you need to examine sales trends by region over the see a unified macro view of
last 12 months, identify the top 5 customers for the quarter, or locate the top 10 best-selling items for the the entire enterprise.
last month, this type of BI tool will serve you well.

Analysis
n tool – SMBs want the ability to bring in data from multiple locations and still be able to see a
unified macro view of the entire enterprise. Analysis software should help you achieve this goal—providing a
quick snapshot of your business and enabling you to drill down into sales and purchasing trends, as well as
perform budget analysis. Some of these solutions offer “scorecards” that provide a quick view of the overall
health of your business. Make sure to insist on a multi-dimensional analysis tool that fully utilizes Excel’s
capabilities, including pivot tables and charts.

Dashboards
n – The term “dashboard” has become omnipresent in the ever-expanding BI lexicon. An effective
dashboard should provide a graphical snapshot of your business’s health that is easy to understand. Some
common categories of data (often from Excel) feeding the dashboard are revenues by period, product sales
by category, actual vs. budgeted financial indicators, and expenses by category, just to name a few. The good
news is that you can take full advantage of affordable BI solutions that offer this type of functionality.

Quick
n KPI’s – Whether analyzing business performance vs. another company or between divisions within
your company, quick access to key performance indicators enables you to see how your business is measuring
up at any moment in time. This type of solution should possess the capability to compare financial models
and actual performance vs. budget and forecast numbers for different time periods. In addition, it should
enable you to quickly establish benchmarking of results vs. competitors over varying time periods. Finally, you
should be able to export any KPI report or model to Microsoft Excel or Word.

©2006 Sage Software, Inc. All rights reserved. 

 Manufacturing and Distribution Companies Get Smarter with Business Intelligence

Graphical
n Presentations of data – Viewing data in graphical format makes the process of analyzing
performance so much quicker and easier. Make sure that your BI solution incorporates customizable graphical
views of your data in grid, pivot table, and interactive chart formats. This should be standard feature, not an
accessory.

Flexible
n reporting capabilities – The ability to create and generate reports (including exception reports) that
Whether analyzing
accurately reflect your company’s key performance data is crucial as is the ability to customize these reports
business performance
and display them graphically, if needed. In addition, you should be able to export these reports to an Excel
vs. another company or worksheet or include Excel spreadsheet data in these reports.
between divisions within Remote
n access – Most decision-makers conduct a significant portion of their business while out of the office.
your company, quick Thus, it is essential that they have remote access to a wide range of their company’s vital business data any
time they want via the Internet. Make sure your BI solution enables you to access your KPI’s such as sales,
access to key performance
product, and customer analyses, income and balance sheets, and inventory reports whenever you are out of
indicators enables you
the office.
to see how your business
Report
n automation – In order to stay ahead of the competition, most SMBs can’t afford to sit back and wait
is measuring up at any for their IT or accounting departments to provide the information they need to make informed decisions. They
moment in time. must be proactive in automating their entire reporting process-–from the creation to generation to distribution
of reports across the entire enterprise. Armed with streamlined, high-volume reporting, these companies are
equipped to respond to ever-changing market conditions and make the best possible decisions that impact the
health of their business.

How Sage Software Can Help You Achieve Your Goals

Sage Software understands that competitive advantage is derived from knowledge. Faster access to better
information results in smarter decisions. Sage Software offers several options for generating and delivering this
business-critical information from Sage MAS, Sage Accpac, and Sage Pro end-to-end business management
applications (accounting, distribution, manufacturing, warehouse management, human resource management,
etc.) to the decision-makers. These reporting solutions address different business needs (financial vs. end-to-end
reporting, transaction listing vs. drill down, etc.); different interaction needs (desktop vs. Web-based, on-demand
vs. scheduled pushed reporting, etc.); and fit different budgeting needs.

Business Intelligence Solutions

To stay competitive and to enjoy peak efficiencies, SMBs like yours need the right business intelligence (BI) tools
to analyze operations and determine underlying strengths and weaknesses. Sage Software BI solutions have
been specially designed to help you gain valuable insight into your business data and operations, enabling you
to make more effective decisions. With Sage Software ERP and BI solutions working together, your company has
the ability to pull data from anywhere in your enterprise, and perform insightful analysis so that you can achieve
the best possible results.

Distribution Solutions
If you’re like most distributors, you’re continually striving to increase sales, deliver on time, retain customers, and
minimize overhead. In addition, you’re focused on strategically managing your supply chain and keeping your
operating costs down. Over 60,000 U.S. distributors rely on Sage Software for distribution solutions that meet
the daily challenges they face head on, as well as provide the operational efficiency and big picture insights they
need to position their company for continued success.

10 ©2006 Sage Software, Inc. All rights reserved.

Manufacturing and Distribution Companies Get Smarter with Business Intelligence

Manufacturing Solutions
For over 25 years, Sage Software has served the needs of more than 80,000 discrete and process manufacturers,
which means approximately 1 in every 10 manufacturers in the United States is capitalizing on a Sage
Software solution. None of our competitors can make a similar claim. Sage Software provides a variety of
products for SMBs to handle virtually every aspect of their business from supply chain management to resource
scheduling, quality control, production reporting, and cost and pricing analysis.

About Sage Software

Sage Software is the North American business of UK-based Sage Group plc. Sage Software offers leading
business management products and services that give more than 2.6 million SMBs in North America the insight
for success throughout the lives of their businesses.

For more than 30 years, Sage Software has delivered easy-to-use, scalable, and customizable software for
accounting, customer relationship management, human resources, time tracking, and the specialized needs of
accounting practices and the construction, distribution, manufacturing, nonprofit, and real estate industries.

Sage Software’s parent company, The Sage Group, plc (London: SGE.L), reaches a global client base that
numbers 4.7 million SMB customers worldwide. It serves these businesses through more than 8,000 employees
in operations in North America, the UK, France, Germany, Portugal, Spain, Switzerland, South Africa, Australia,
and various countries in Asia.

Sage Software BI
solutions have been
specially designed to help
you gain valuable insight
into your business data
and operations, enabling
you to make more
effective decisions.

©2006 Sage Software, Inc. All rights reserved. 11

 800-854-3415
www.sagesoftware.com

The information contained in this document represents the current view of Sage Software, Inc., on the issues discussed as of the date this document was prepared. Because Sage Software
must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Sage, and Sage cannot guarantee the accuracy of any information presented
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