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CUSTOMER INNOVATION STUDYFerrarire-engineers supply chain processes andmaintains very lean inventory with Infor LN“With Infor LN, we changed our supply chain and manufacturingprocesses and through a new relationship we formed with a3PL, we set to zero not only the material we manage internally,but also the risk that we would have a lack of materialsanywhere on our production lines. The end result wasreducing lost production hours.”Vittorio BoeroCIO, Ferrari infor.com/customers

Table of Contents3Facts at a glance4Executive overview5 Situation analysis Ferrari—A global luxury performancesport car producer and retailer6Innovation strategyConsolidating the application landscape8ResultsChanging supply chain andmanufacturing processes9 Looking ahead Establishing a global ledger of accounts10 Learn More

Facts at a glanceHEADQUARTERSINDUSTRYEMPLOYEESMaranello, ItalyAutomotive2,902PARTNERSWEB SITEINFOR PRODUCTS AND MODULESInfor Consulting Services (ICS)ferrari.comInfor LN, Infor ION ,Infor Warehouse Mobility,Infor Sales & Operations PlanningCustomer Innovation Study: Ferrari3

Executive overviewSituation analysis I mplement new supply chain and manufacturing processes to support the launchof new V6 and V8 turbo engine families for Maserati, which is also part of the FiatChrysler Automobile Company. L aunch and execute various information and communication technology (ICT)initiatives, which have been strictly defined, consolidated, and approved by Ferrari’sboard of directors, to support global sales operations. nhance the sophistication of IT systems to better manage internal processes andEimprove efficiency.High levelimpact7,255cars made last year with the help ofInfor LN4waves of implementation in aphased approachInnovation strategy I mplement Infor LN in Gestione Industriale (the division that produces sport cars andengines) with a functional stage-gate approach to eliminate 59 legacy systems acrossthe finance, sales, after sales, and technical assistance application landscape. I mplement Infor LN in Gestione Sportiva (Ferrari’s Formula 1 team) to cover supplychain and manufacturing processes. se Infor ION to create a simple and robust architecture to manage the 200 Uinterfaces in the application landscape. Collaborate with the Infor development team to increase the speed of the materialresource planning (MRP) process, which became standard in Infor LN.Results utsourced responsibility for material handling to an external third-party logisticsOcompany, thereby reducing the capital investment previously required for inventoryand eliminating the risk of insufficient materials along the production line. educed the time it takes to run the MRP process by 4 hours by collaborating withRInfor’s development team. ained approval from the board of directors for Wave 3 of the Infor LNGimplementation by working with Infor Value Engineering to create a business case.Customer Innovation Study: Ferrari59legacy systems consolidated withInfor LN110,000increase in the number of messagesexchanged with the help of Infor ION;went from 50K to 160K (daily peak)across 200 interfaces on the newV6 project4

SITUATION ANALYSISFerrari—A global luxury performancesport car producer and retailerFerrari re-engineerstheir processesFerrari is among the world’s leadingluxury brands focused on the design,engineering, production, and sale ofthe world’s most recognizable luxuryperformance sports cars. The Ferraribrand symbolizes exclusivity, innovation,state-of-the-art sporting performance,and Italian design. Its history and theimage enjoyed by its cars are closelyassociated with its Formula 1 racingteam, Scuderia Ferrari, the mostsuccessful team in Formula 1 history.Customer Innovation Study: FerrariFrom the inaugural year of Formula 1in 1950 through the present, ScuderiaFerrari has won 224 Grand Prix races, 16Constructor World titles and 15 Drivers’World titles. Ferrari designs, engineers, andproduces its cars in Maranello, Italy, andsells them in over 60 markets worldwide.Ferrari is divided into two business units:Gestione Industriale, which produces theiconic Ferrari sport cars and engines forits external customers like Maserati; andGestione Sportiva, the Formula 1 team.With 95% of sales originating outsideof Italy, Ferrari is a global company thatsought to enhance the sophisticationof its IT systems to better manageits internal processes and improveefficiency. The huge re-engineering ofFerrari’s processes required softwaresupport; Ferrari chose Infor LN, Infor ION,Infor Warehouse Mobility, and Infor Sales& Operations Planning to help do this.5

INNOVATION STRATEGYConsolidating theapplication landscapeFerrari decided to split the Infor LNimplementation into different wavesto mitigate the risk associated witha big bang implementation. The waveswere organized by functional areaand orchestrated to go-live acrossFerrari’s entire global organization atthe same time.Across all waves of the implementation,Infor LN will manage the processesthat 59 legacy systems previouslymanaged across the finance, sales,after sales, and technical assistanceapplication landscape.“Many of the initiatives we haveset in motion are not only forthe processes managed in theheadquarters in Maranello,but because we are touchingprocesses like finance, likethe revenue cycle, Infor LNwill have an impact on ourworldwide operations.”Vittorio BoeroCIO, FerrariCustomer Innovation Study: Ferrari6

110,000increase in the number of messagesexchanged with the help ofInfor ION; went from 50K to 160K(daily peak) across 200 interfaceson the new V6 projectInfor IONmakes complexintegrations easierCustomer Innovation Study: FerrariFerrari uses Infor ION to create a simpleand robust architecture and manage the200 interfaces in its application landscape.Ferrari primarily uses Infor ION for businessto-business integration with Ferrari’s thirdparty logistics (3PL) company’s warehousemanagement system.Multiple interfaces exist betweenInfor LN and other production tools to enableplanning, trolley handling, and productionprogress monitoring. The number ofmessages exchanged with the helpof Infor ION increased from 50,000 to160,000 across the 200 interfaces on thenew V6 project.7

RESULTSChanging supply chain andmanufacturing processesDetailedimpact0Value realizedWith the help of Infor LN, Ferrari outsourcedall responsibility for material handling toan external third-party logistics company.This not only reduced the amount ofmaterials the company manages internallyto zero and reduced the capital investmentpreviously required for inventory, but alsoeliminated the risk of having a lack ofmaterials along the production line. With thenew lean process, there is less productiondowntime and no risk that a delivery dateto a customer is delayed due to materialsbeing unavailable. Production planningat Ferrari also benefits from new tools tomanage and simulate engine planning,finite capacity planning, and new controlpoints and monitoring to guarantee anincrease in production tracking. InforSales & Operations Planning connects thecompany’s commercial sales forecast to themanufacturing and supply chain processesand is ultimately used for the MRP forecast.Thousands of work orders lines are plannedon a weekly basis for items with more than10 bill of material levels, all while ensuringthe purchasing and supply chain choicesmeet price and delivery time requirements.Customer Innovation Study: FerrariIncreasing speedand flexibilityFerrari engaged in technical collaborationwith Infor’s development team to increasethe speed of the MRP process. Thecollaboration was beneficial to bothparties: Ferrari reduced the time it takesto run the MRP by 4 hours and Infor madethis enhancement standard in futureversions of Infor LN. With the high level ofpersonalization and flexibility Ferrari offersits customers, having its systems wellconnected through Infor LN and Infor IONmeans they can change the specificationsof a car right up to the very last possiblemoment until the vehicle is introduced tothe production line.materials managed internally as allmaterials are now managed by a 3PLsince Infor LN was implemented4hour reduction in the time it takes torun the material resource planning(MRP) process; now it takes less than2 hours0risk of having insufficient materials onthe production line200points of sales spread across62 countries will roll up to one ledgerof accounts8

LOOKING AHEADEstablishing a globalledger of accountsFerrari will work toward completing the third waveof the implementation, so that 200 points of salesspread across 62 countries can roll up to one ledgerof accounts. In a seperate but related revenue cycleproject, Infor LN will expand its impact to Ferrari’ssales and after sales processes and be part of a newcommercial system for headquarters, branch officesand Ferrari’s dealer network. These projects will helpFerrari stay fully compliant with regulations requiredto comply with the recent IPO that made them apublically traded company on the New York StockExchange (NYSE).Once all aspects of the re-engineering of Ferrari’sprocesses is complete, the company will analyze andassess other initiatives—like providing user friendlyand flexible tools to salespeople and customers, ormoving Infor solutions to the cloud.Customer Innovation Study: Ferrari“Once we complete the remainder ofour work on Ferrari’s huge processre-engineering, we are interested ininvestigating the opportunity to usethe cloud services from Infor throughthe Lift and Shift program that wasannounced at Inforum Europe.”Vittorio BoeroCIO, Ferrari9

Learn moreAbout Ferrari4:41Hear from Ferrari’s CIO on how Infor LN helps manage Ferrari’sinternal processes and improve efficiency.Ferrari video ›Scuderia Ferrari SponsorshipInfor AutomotiveInfor LN“At Infor, we hold speed and quality invery high regard, and there’s no betterpartner to represent that than ScuderiaFerrari.” said Charles Phillips, CEO, Infor.“By sponsoring the prestigious FormulaOne team, we want to send a messageabout Infor and our software: We’re agile,we’re precise, and we build experiencesto support the best of the best aroundthe world.”Automotive tier and aftermarket supplierslive in a world of constant change—if youcan’t keep up successfully, you riskfalling behind permanently. Cuttingedge Infor Automotive solutions helpyou change in ways that meet yourneeds and your schedule. When yoursystems make it easy to keep ahead ofthe breakneck speed of auto industryprogress, you’ll turn your ability to changeinto a strategic advantage.Infor LN is the leading integrated suiteof software designed specifically forproject-driven, engineer-to-order,and work-order-based manufacturingcompanies. Manufacturers around theworld use Infor LN’s advanced processesfor in-line sequencing, assembly linecontrol, and serial genealogy to buildcomplex products at scale.Scuderia Ferrari sponsorship ›Infor LN ›Infor Automotive ›Customer Innovation Study: Ferrari10