Digital Transformation In Logistics, Transportation, And Compliance .

Digital Transformation in Logistics, Transportation, and Compliance: The Albemarle Story 1 2020 ASUG Confidential

SESSION SPEAKERS David Kobe Senior Director Global Logistics and Trade Compliance Operations, Albemarle Executive leader of a global supply chain logistics organization operating in over 100 countries. David has over 25 years of experience leading supply chain transformations in the specialty chemical industry. His vision focuses on the development and implementation of the latest technologies to advance supply chain maturity and deliver value to customers. Ojas Patel SAP S4 Logistics & Trade Compliance Manager, Albemarle Thought leader transforming SAP TM, GTS, EWM & EH&S through series of projects, grouped and prioritized, to recognize functionality improvements and productivity. Freight Settlement, Order Change Management, Shipment Planning, Automation, Carrier Connectivity, Reporting, Visibility, User Experience, Strategic Freight Procurement . Mukesh Mahajan Solution Director – Supply Chain & Global Trade, Krypt Transforming Supply Chain & Global Trade of the clients globally 2 2020 ASUG Confidential

October 20-21, 2021 Two day live virtual event Global Trade Day - Oct. 20th Supply Chain Day - Oct. 21st Speaker sneak peek: Value-Packed Agenda Customer case studies, expert testimonials, product demos, future technologies Networking and Prizes Opportunity to network with experts, speakers and peers and win prizes 3 REGISTER Kryptinc.com/about/events 2020 ASUG Confidential 2021 Krypt All rights reserved

ALBEMARLE OVERVIEW MAKING THE WORLD SAFE AND SUSTAINABLE BY POWERING THE POTENTIAL OF PEOPLE With a history that extends back to 1887, today’s Albemarle is a leading global producer of Lithium, Bromine and Catalyst solutions. We think beyond business-as-usual to power the potential of companies in many of the world's largest and most critical industries, such as energy, electronics, and transportation. We actively pursue a sustainable approach to managing our diverse global footprint of world-class resources. In conjunction with our highly experienced and talented global teams, our values, and our collaborative customer relationships, we create valueadded and performance-based solutions that enable a safer and more sustainable future. Our products come from three Global business units and end up in a variety of products that power the potential of people. – Lithium products for clean battery technology that is powering the electric vehicle (EV) revolution. – Bromine products for fire retardants that safe guard our homes and families. – Refining Catalyst solutions for oil refining that make fuels cleaner and processes more sustainable Our products are used for a wide range of products manufactured by electric vehicle producers, pharmaceutical companies, electronics goods manufacturers, refineries, With Plants & Distribution Centers strategically located, we operate on a global scale, serving customers around the world. 4 2020 ASUG Confidential

KRYPT OVERVIEW EXPERTISE Warehouse Management Transportation Management Supply Chain Planning Global Trade Services Krypt is a global boutique consulting company providing customers with the highest quality Global Trade & Supply Chain Solutions since 2008. INNOVATION Artificial Intelligence Integrations SAP Services Partner Since 2008 100 5 2020 ASUG Confidential Customer Go-Lives Custom Solution Development Blockchain

Krypt & Albemarle Partnership Supply Chain and Logistics as a Competitive Advantage and Market Differentiator for Albemarle Enhance Optimize Automate 6 2020 ASUG Confidential Operate at peak efficiency Bring Visibility Focus shifted to the End Customer Experience Krypt partnered with Albemarle to automate processes Engaged a Global Team In US , EU & APAC

Krypt & Albemarle Partnership Salesforce Krypt Aligned with Albemarle business & IT Team and followed approach to get best results: Engagement Approach Process Stabilization Seamless Integrations Business Consulting Streamline & Stabilize Business Processes Seamless Business functions & systems integration Support & Supplement strategic, operational & tactical initiatives Digital Enterprise Foundation at Albemarle 7 2020 ASUG Confidential KAI - Trade Compliance Digital Platform Always Improve Logistics Transportation Compliance functional efficiency SAP S/4 HANA, SAP TM, SAP GTS, EWM,EHS, Elimica, others

Executive Summary : Logistics Transportation & Compliance Transformation

Success for Albemarle in Logistics, Transportation & Compliance Technology Usage for Task Completion and Execution People Involvement/Time Spent for Task Completion and Execution Timeline 9 2020 ASUG Confidential 2022

Program Objectives Drive Automation Enhanced User Experience Reporting Visibility Expected ROI Advanced TM Deployment Enhanced Warehouse Management Standardize across the organization 10 2020 ASUG Confidential

How the LTC Transformation was planned Release 2.0 Release 2.0 Release 3.0 Release 4.0 Release 4.0 Release 3.0 Automate Tracking Order Planning Agile – Every Management month EDI, Screening Issues, BDP 2 Releases Integration, TM & GTS Freight Procurement 3 Releases Forecast. Integration refinement Integrations Freight Settlement Automate Communication & Planning RF Device Enablement & User Experience Fiori Reporting Free Trade Agreements EH&S Advanced Planning & Enhance. ROI: Multi-Million Dollars expected savings with this initiative 2020 11 2020 ASUG Confidential 2021

GTS Integrations EWM & EHS Integration with ERP Systems S/4 HANA TM Integrations Albemarle IT Landscape: Enabling Logistics, Transportation & Compliance Automation Reporting 12 2020 ASUG Confidential 200 Carriers Brokers Brokers GPS Visibility

SAP Modules supporting the Digital Transformation in LTC Area How all releases stack-up 2.0.2020 2.0 2020 3.0 2020 3.0.2020 4.0.2020 4.0 2020 Agile – Every month Agile- Every Month 3 Releases SAP GTS 3 Releases 2 Releases SAP TM SAP TM SAP TM 2020 13 2020 ASUG Confidential SAP GTS SAP EH&S SAP EWM 2021

Problem Statements: Logistics Transportation & Compliance

Logistics, Transportation & Warehouse Key Areas for improvement Albemarle business team identified various opportunities to provide better service, cost control, and recognize efficiencies. High level following areas of opportunities were identified. 15 Areas in Warehousing where opportunities were identified for further Automation Remove Manual task creation. Order Change Management Remove Manual posting of goods receipt. Shipment Planning – From Manual to Automated No business disruption. Freight Settlement –EDI Invoice capability to Invoice matching Automate Manual warehouse processes: Putaway, picking products, internal movements. Carrier Connectivity – Improve Carrier interactions Remove the Rigidity in batch related data: Reduce manual work Master data sync Remove System inefficiencies Automate Label Printing. Enhance Usability Change of culture (accountability, discipline, standardization) 2020 ASUG Confidential

Global Trade & Compliance Key Areas for improvement Trade Team at Albemarle found several areas to provide better service, cost control, and recognize efficiencies: 16 Duty savings of 2M USD with enabling EU-JP FTA Automation of Reporting for Screening Improve process efficiency for export filing process with Broker Activating US import process to reduce manual efforts for ISF filings. Enhanced User Experience via Fiori 2020 ASUG Confidential Areas in Compliance where opportunities were identified for Transformation Report Shipping – Make Product description consistent on the SDS, Fiori App, Cover Sheet and Labels Dangerous Goods – Automate automatic validations for End points during DG fill. Global Label Management – Ensure no data is missing to avoid shipment delays Custom Reports – Provide additional data for Compliance and Regulatory reports.

Solutions Deployed Logistics Transportation & Compliance

Statistics of Deployment : 2020 & 2021 Below are the key statistics of the solutions deployed & planned in various releases 18 Release Year Requirements Delivered / Planned Modules 2.0 2020 60 SAP TM & PI/PO 3.0 2020 & 2021 44 SAP TM & GTS 4.0 2021 85 SAP TM, GTS, EWM & EH&S, PI/PO. Other Non-SAP 2020 ASUG Confidential

Logistics, Transportation & Warehouse Automation: Solutions Deployed in SAP TM Following are some of the solutions implemented in order to improve overall productivity, usability, automation and visibility: 19 Redesigned Freight Settlement processes for the max ROI Automated Shipment planning process for Road and Ocean which are the major modes Streamlined process for handling expedites to plan and execute them on priority Following are some of the solutions implemented in order to improve overall productivity, usability, automation and visibility: RF (Radio frequency) implementation for all the processes in the warehouse like Put-away, picking, internal product movements and physical inventory. Simplification in master data, overall configuration, processes and incompatibilities Automated warehouse task creation for put-away and picking based on the defined strategies leading to efficiency in the warehouse. Automated good receipt posting Enhanced in strategic freight procurement Enablement of goods receipt postings. Enhanced carrier connectivity, avoid manual texts/emails/phone calls Batch related data update Reporting & Analytics for transportation spending and distribution Posting the single GR document Automatic label printing at nearest printer. Track & Trace with GPS level shipment visibility 2020 ASUG Confidential

Global Trade Automation & Compliance Maintenance : Solutions Deployed in SAP GTS & EH&S Following are some of the solutions implemented in order to improve overall productivity, usability, automation and visibility: Several improvements undertaken in custom reports for Amsterdam Compliance, BRF Regulatory data and Functional Modules. Automated Compliance reporting Improvements in the area of Report Shipping. Enhanced SAP TM to SAP GTS interface to automate export filing process Automated Inter-company US Import Process in SAP GTS for broker filing. Incremental Improvements on the Fiori App to view Customer Master Info Records on SDS Sheets for maintaining regulatory compliance Enhanced new functionality to validate the Dangerous Goods Ends points and notify Global trade team for error or warning. Automated the process for labels to print COO information Activated EU-JP preference agreement .This solution helped business in terms of automating preference process as well as saving in duties annually. 20 Below are the key solutions implemented for maintaining Regulatory Compliance: Enhanced User Interface with Fiori 2020 ASUG Confidential

Benefits

Logistics, Transportation & Compliance Automation Benefits derived from SAP TM, GTS, EWM & EH&S Implementation After Process Stabilization automation, system can manage and plan the huge Inbound & Outbound demand with negligible manual intervention. Seamless Transportation Process Better customer service level Resource Optimization RF Scanner & Label Printing Automation 22 2020 ASUG Confidential Cost Savings Automated communication Less Errors Seamless Integration Free Trade Agreement Saving Better Visibility Track & Trace Warehouse Optimization

Questions? For questions after this session, contact us at [email] and [email]. 23 2020 ASUG Confidential

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SAP Modules supporting the Digital Transformation in LTC Area Agile -Every month 3 Releases 2.0 2020 3 Releases SAP TM 3.0 2020 2 Releases SAP TM SAP GTS 4.0 2020 SAP TM SAP EH&S SAP EWM SAP GTS Agile- Every Month How all releases stack-up 2.0.2020 3.0.2020 4.0.2020 2020 2021