Copyright 2008 SiPM Location x Date, V.1 CLIENT XX PURCHASE WORKSHOP OBJECTIVES 20XX 1 This is a draft example of a workshop. Feel free to adapt it to your needs. It should be a “feel good” workshop, where your buyers feel important. Celebrate the successes of last year and develop next years objectives. In the end, the buyers leave with individual objectives that are not yet SMART. They get 1 week to digest them and discuss them with the manager before final sign-off.

Agenda Workshop FIRST DAY PREPARATION SECOND DAY CONSOLIDATION : 1. Welcome Purpose Workshop (name) :5. Consolidation objectives day :2. Big picture: Purchasing Vision :6. Brainstorming Individual input World-Class segments :3. Achievements 20x :7. Break – preparation by chairman Break :8. Assign objectives :4. Brainstorming Key learnings 20x Objectives to be continued Budget 20x (next year) :9. Refine individual objectives 18.00:Catching-upLunch 18.45:Refresh :10. Wrap-up 19:30:Bar and dinner14.30:End 2

Agenda Workshop FIRST DAY PREPARATION SECOND DAY CONSOLIDATION : 1. Welcome Purpose Workshop (name) :5. Consolidation objectives day :2. Big picture: Purchasing Vision :6. Brainstorming Individual input World-Class segments :3. Achievements 20x :7. Break – preparation by chairman Break :8. Assign objectives :4. Brainstorming Key learnings 20x Objectives to be continued Budget 20x (next year) :9. Refine individual objectives 18.00Catching-upLunch 18.45Refresh :10. Wrap-up 19:30Bar and dinner14.30:End 3

Copyright 2008 SiPM OBJECTIVES WORKSHOP 4

Workshop Objectives The goal of the workshop is as a team to: DEVELOP OUR INDIVIDUAL BUSINESS OBJECTIVES FOR 20XX The difference between where we are (current status) and where we want to be (vision and goals) is what we do (target objectives and action plans) 5

Workshop Objectives The objectives will need to be aligned – Between each other – In line with corporate strategy – In line with purchasing mission – Support the long-term purchasing vision & strategy – Leave room for personal objectives Only new objectives – On top of current daily activities 6

Workshop Objectives The objectives will be SMART – S pecific Clearly state what it is you want to do/achieve by way of a factual description. – M easureable. Ensure that the success of your business objective can be measured against concrete criteria. – A chievable. Is the objective achievable given your current operational resources and/or competence/capacity. – R ealistic. Is the scope of the objective within the bounds of what is recognisable as a proper ‘business fit’. – T ime Bound. Include a time scale within which the objectives should be achieved. 7

Copyright 2008 SiPM THE BIG PICTURE: PURCHASING VISION AND MISSION 8

Agenda Workshop FIRST DAY PREPARATION SECOND DAY CONSOLIDATION : 1. Welcome Purpose Workshop (name) :5. Consolidation objectives day :2. Big picture: Purchasing Vision :6. Brainstorming Individual input World-Class segments :3. Achievements 20x :7. Break – preparation by chairman Break :8. Assign objectives :4. Brainstorming Key learnings 20x Objectives to be continued Budget 20x (next year) :9. Refine individual objectives 18.00Catching-upLunch 18.45Refresh :10. Wrap-up 19:30Bar and dinner14.30:End 9

We are in the WINS program WINS : Our program to become best-in-class. World-Class Innovative Sourcing Innovative and structured methodology to approach world-class Todays workshop is part of WINS Mr. WINS More info at 10

Framework Client Vision & Strategy P u r c h a s i n g Mission P u r c h a s i n g Strategy P u r c h a s i n g Structure P u r c h a s i n g Vision Category plan Execution Category plan Category plan 11

Client mission and strategy 12 TYPE HERE CORPORATE MISSION/STRATEGY

Client mission and strategy: link to purchasing 13 TYPE HERE WHAT THIS MEANS FOR PURCHASING

Scope Direct: 40 M€ 40% Overhead: 25 M€ 25% Scope: 65M€ Labour: 35 M€ 35% 14

Purchasing Vision Client Vision & Strategy P u r c h a s i n g Mission P u r c h a s i n g Strategy P u r c h a s i n g Structure P u r c h a s i n g Vision Category plan Execution Category plan Category plan 15

Purchasing Vision client WE WILL BECOME ONE OF THE FEW “WORLD-CLASS” SOURCING DIVISIONS IN THE WORLD WE WILL BECOME ONE OF THE FEW “WORLD-CLASS” SOURCING DIVISIONS IN THE WORLD 16 = INSPIRING ONE-LINER (SEE EXAMPLE):

Why is World-Class important? 7M€ 61M€ 85% of our turnover is spent with suppliers! We will need to superiorly manage this spend. Source data: xxx SCOPE 17

Vision: what does world-class look like? Internal customer satisfaction (both board and BU) Being “spoken” (in the same way as an UPS…) Client purchase keynote speaker at international conferences Discover differentials with competition Suppliers ask us to present at their (world-)conferences Our suppliers want to align with us xM profit increase thanks to purchasing Manage total spend World-class = Rarity/unique/small world RESULT OF BRAINSTORMING 18 You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.

Vision: what does world-class look like? Possible quote to paste on site: Client stock quote peaks thanks to client purchasing. Client purchasing enhances overall value through great strategic thinking, great planning and smart negotiations. Client website/investors page 19 You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.

Purchasing Mission Client Vision & Strategy P u r c h a s i n g Mission P u r c h a s i n g Strategy P u r c h a s i n g Structure P u r c h a s i n g Vision Category plan Execution Category plan Category plan 20

Purchasing Mission = measurable long-term goal By 20xx, purchasing will have: Xxx Saved xxxM€ (DCF) built a reputation of “reliable partner”: (example) strong team with professionals who belong to the top in their field supplies transparency in (future) spend 21 TYPE HERE THE PURCHASING MISSION

Purchasing Strategy Client Vision & Strategy P u r c h a s i n g Mission P u r c h a s i n g Strategy P u r c h a s i n g Structure P u r c h a s i n g Vision Category plan Execution Category plan Category plan 22

WINS strategy: main steps to reach world-class Skills (People/processes/systems) BronzeSilverGold 1. Strategic Sourcing and Category Management BronzeQuick wins/cut down source plans in place More formal sourcing strategies under development Savings are measured but not captured SilverDefined way of sourcing agreed and in place for all spend Each major category has a sourcing leader Global sourcing Measure, Capture and Control savings (1), formally acknowledged by local FD All significant glass have dual supply Transition PU to dual sourcing/600ml technology GoldTime allocation buyers: 5% tender, 5% problem solving, 40%analysis and cost out initiatives, 20% listening to stakeholders, 20% competitive advantage analysis Savings are aligned with budget and reporting pack Top Management review & challenge of source plans (1): capturing savings is different from price down benefit. Nothing BronzeSilverGold 23 Coverage 0% 40% 80%

WINS strategy: main steps to reach world-class 20% SKILLS 0% 40% 80% COVERAGE BronzeSilverGold 0 MEASURE Yr 3 Yr 4 Yr 2 Yr 1 60% 24 MISSION: DESCRIBE IN BULLETS

Vertical axis: coverage 25 EXPLAIN HERE THE CURRENT STATUS

Horizontal axis: skills 26 EXPLAIN HERE THE CURRENT STATUS

WINS strategy = current status 27  = hard €   Yr 1 SET GOALS YEAR X = CURRENT WORKSHOP 20% SKILLS 0% 40% 80% COVERAGE BronzeSilverGold 60%

WINS strategy = execution is key Uitspraak Bossidy: zie extranet Delivery of Individual objectives is key – monthly coaching sessions – tools at your disposal via sipm.com – colleagues 28

Purchasing Structure Client Vision & Strategy P u r c h a s i n g Mission P u r c h a s i n g Strategy P u r c h a s i n g Structure P u r c h a s i n g Vision Category plan Execution Category plan Category plan 29

Organisation 30 TYPE HERE CURRENT ORGANISATION STRUCTURE AND (IF APPROPRIATE) - FUTURE

Responsibilities in purchase process R&R 31 YOU MAY WANT TO EXPLAIN THE R&R PER FUNCTION: who does what?

Copyright 2008 SiPM ACHIEVEMENTS 20XX 32

Agenda Workshop FIRST DAY PREPARATION SECOND DAY CONSOLIDATION : 1. Welcome Purpose Workshop (name) :5. Consolidation objectives day :2. Big picture: Purchasing Vision :6. Brainstorming Individual input World-Class segments :3. Achievements 20x :7. Break – preparation by chairman Break :8. Assign objectives :4. Brainstorming Key learnings 20x Objectives to be continued Budget 20x (next year) :9. Refine individual objectives 18.00Catching-upLunch 18.45Refresh :10. Wrap-up 19:30Bar and dinner14.30:End 33

Achievements 20xx € => € 2007 LT SUPPORT Category x 100 K € Category y 60 K € Category z 400 K € … ….. Totalx K € Category x, y, z xxx Dashboard New people xxx “WE HAD AN EXCELLENT AND BUSY YEAR” “WE HAVE INCREASED OUR CREDIBILITY” 34 BRAINSTORMING: USE FLIPCHART (EXAMPLE FOR CLIENT PREPARING 2007 OBJECTIVES) You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.

Achievements: external view tekst 35 TYPE HERE VIEWS FROM CEO, SUPPLIERS… (IF APPROPRIATE) You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.

Copyright 2008 SiPM LEARNINGS 2006 CONTINUE OBJECTIVES 36

Learnings 20xx POSITIVE NEGATIVE (WHAT TO AVOID IN 20XX+1) xxx Rank from important to less important 37 USE FLIPCHART You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.

Objectives to be continued 38 USE FLIPCHART You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.

Budget/expectations stakeholders 39 PUT INPUT FROM OTHER STAKEHOLDERS ON FLIPCHART You may want to use the wall during brainstorming i.e. tape a roll paper on the wall and write down the results of the brainstorming.

Copyright 2008 SiPM DAY 2 SUMMARY DAY 1 40

Agenda Workshop FIRST DAY PREPARATION SECOND DAY CONSOLIDATION : 1. Welcome Purpose Workshop (name) :5. Consolidation objectives day :2. Big picture: Purchasing Vision :6. Brainstorming Individual input World-Class segments :3. Achievements 20x :7. Break – preparation by chairman Break :8. Assign objectives :4. Brainstorming Key learnings 20x Objectives to be continued Budget 20x (next year) :9. Refine individual objectives 18.00Catching-upLunch 18.45Refresh :10. Wrap-up 19:30Bar and dinner14.30:End 41

Summary Day 1 Most important projects Objectives to continue Learnings 42

Copyright 2008 SiPM INDIVIDUAL INPUT WORLD-CLASS QUESTIONNAIRE 43

Agenda Workshop FIRST DAY PREPARATION SECOND DAY CONSOLIDATION : 1. Welcome Purpose Workshop (name) :5. Consolidation objectives day :2. Big picture: Purchasing Vision :6. Brainstorming Individual input World-Class segments :3. Achievements 20x :7. Break – preparation by chairman Break :8. Assign objectives :4. Brainstorming Key learnings 20x Objectives to be continued Budget 20x (next year) :9. Refine individual objectives 18.00Catching-upLunch 18.45Refresh :10. Wrap-up 19:30Bar and dinner14.30:End 44

Individual input 45 PERSONAL INPUT THAT HAS NOT BEEN DISCUSSED

World-class segments 46 DISCUSS QUESTIONNAIRE: NEW PROJECTS?

Copyright 2008 SiPM APPENDIX 47

First price, than costs Cost outCost downPrice downPrice driftCost outCost downPrice downPrice drift Tactical cost managementStrategic cost management Cost Price 48 In your quest for better purchasing, first focus on price. Only after focus on cost. current status © John Hughes