Team Development Slide 1 © The Delos Partnership 2005 Supplier Relationship Management Module 4 – Project Team Development Vision & Strategy Supplier Interfaces The Business Model Supply Vision & Strategy Key Internal Relationships

Team Development Slide 2 © The Delos Partnership 2005 Board of Directors CEO Executive Committee Global Sales & Marketing Global Supply FinanceOperations Thousands of employees One of the market leaders, present in many countries Typical Business Structure

Team Development Slide 3 © The Delos Partnership 2005 Supply Vision What is your Supply Vision and what Strategies are being used to achieve the supply vision internally and with your Suppliers?...

Team Development Slide 4 © The Delos Partnership 2005 Supplier Interfaces Supplier Interfaces

Team Development Slide 5 © The Delos Partnership 2005 New in New in2005/6/7 Vision2005/6/7 Strategy Priorities Priorities2005/6 Demand Quality, Finance I.T. etc Suppliers Business Model Integration Business Model Integration Supply Side Integration

Team Development Slide 6 © The Delos Partnership 2005 SupplyImprovementStrategySupplyImprovementStrategy 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

Team Development Slide 7 © The Delos Partnership 2005 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

Team Development Slide 8 © The Delos Partnership 2005 Supply Side Resources & Plan Supply Side Resources & Plan Business & Customers Business Strategy Priorities Key Markets Product Offer Product Innovation Supply Chain Competitors Alliances Channels Quality & HSE Business & Customers Business Strategy Priorities Key Markets Product Offer Product Innovation Supply Chain Competitors Alliances Channels Quality & HSE 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 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 Business 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 Business Centric Procurement Policy Risk Map Spend Map Agreements Supplier Map / Managers Partnership projects Sourcing Process Leverage/Benchmarks Performance Measures Workshops Total Value Plans Supply People Organization Roles Capability & Values Education No Holes Reduction of layers Focus & Goals Remuneration Polycompetence Global Supply Key Plants Core processes Maintenance CEMRO Capacity Productivity Logistics Inventory Planning Systems Global Supply Key Plants Core processes Maintenance CEMRO Capacity Productivity Logistics Inventory Planning Systems

Team Development Slide 9 © The Delos Partnership 2005 Interfaces with Suppliers CEO Sales Marketing Finance R&D HR IT Delivery

Team Development Slide 10 © The Delos Partnership 2005 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…

Team Development Slide 11 © The Delos Partnership 2005  Questions ?

Team Development Slide 12 © The Delos Partnership 2005 Supply Side Planning is dedicated to preparing the future; Current Year – Delivery & the starting point for analysis / assessment for the future Next Three Years – Current / +1 Year / +2 Years Purchasing Strategy, Focus & Priorities for the Current Year What needs to be done in the current year to prepare for next year Purchasing Strategy for next year Plans in the current and next year for 2 years time Preparing the Supply Side future is made up of five key elements; Supply and Purchasing People - Strategy and Education Demand & Innovation Alignment (S&OP – IEP) Manufacturing, Facilities and Process Alignment (including ERP) Quality First & H.S.E. Supply Chain, Procurement & Finance Integration Supply Side Planning Approach Supply Side Planning