Oriflame Purchasing Management Workshop Module 4 – Project Team Development Oriflame Vision & Strategy Supplier Interfaces The Business Model Supply Vision & Strategy Key Internal Relationships

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop2 Oriflame Management Structure Board of Directors CEO Executive Committee Global Marketing Global Supply FinanceOperations 4,600 employees One of the market leaders in 30 countries

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop3 Supply Vision What is the Oriflame Supply Vision and what Strategies are being used to achieve the supply vision internally and with your Suppliers?...

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop4 Supplier Interfaces

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop5 New in New in2005/6/7 Vision2005/6/7 Strategy Priorities Priorities2005/6 Demand Quality, Finance I.T. etc Suppliers Business Model Integration Supply Side Integration

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop6 OriflameSupplyImprovementStrategyOriflameSupplyImprovementStrategy New Suppliers with better value proposition New Suppliers with better value proposition Supplier Cost & Price Improvement Supplier Cost & Price Improvement Supplier RFTQ100%OTIF Performance Supplier RFTQ100%OTIF Performance Supplier On Time New Product Performance Supplier On Time New Product Performance Supplier Sales Forecasting & Demand Planning Supplier Sales Forecasting & Demand Planning Supplier Lead time & Process Improvement Supplier Lead time & Process Improvement Improved Supply Strategy + Quick Wins

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop7 Business and Financial Strategy & Priorities Sales & Marketing Supply Chain & Manufacturing Customer Service Purchasing & Supplier Management InnovationSupport Functions Demand & Supply Balance Demand & Innovation Side Processes & Management Supply Side Processes & Management

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop8 Supply Side Resources & Plan Oriflame Business & Customers Business Strategy Priorities Key Markets Product Offer Product Innovation Supply Chain Competitors Alliances Channels Quality & HSE Oriflame Business & Customers Business Strategy Priorities Key Markets Product Offer Product Innovation Supply Chain Competitors Alliances Channels Quality & HSE Oriflame Culture HSE, Quality, Lean HSE Performance Eye of the customer Voice of the customer Welcoming problems Internal failure Supplier failure Six Sigma / Lean Total Quality Oriflame Culture HSE, Quality, Lean HSE Performance Eye of the customer Voice of the customer Welcoming problems Internal failure Supplier failure Six Sigma / Lean Total Quality Supplier Management Oriflame Centric Procurement Policy Risk Map Spend Map Agreements Supplier Map / Managers Partnership projects Sourcing Process Leverage/Benchmarks Performance Measures Workshops Total Value Plans Supplier Management Oriflame Centric Procurement Policy Risk Map Spend Map Agreements Supplier Map / Managers Partnership projects Sourcing Process Leverage/Benchmarks Performance Measures Workshops Total Value Plans Oriflame Supply People Organization Roles Capability & Values Education No Holes Reduction of layers Focus & Goals Remuneration Polycompetence Oriflame Global Supply Key Plants Core processes Maintenance CEMRO Capacity Productivity Logistics Inventory Planning Systems Oriflame Global Supply Key Plants Core processes Maintenance CEMRO Capacity Productivity Logistics Inventory Planning Systems

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop9 Interfaces with Procurement CEO Sales Marketing Finance R&D HR IT Delivery

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop10 Customer Focus Work together to come up with ideas for Supply Chain and Purchasing to integrate with the Vision & Strategy, be more Customer centric and how valuable customer solutions could be delivered faster…

Purchasing Workshop Module 4 © The Delos Partnership 2005 Oriflame Purchasing Management Workshop11 Questions ?