1 Robertson Cox / Sourcematix Confidential© Robertson Cox All Rights Reserved. Strategic Source Planning Templates

2 Robertson Cox / Sourcematix Confidential© Robertson Cox All Rights Reserved. Strategic Source Planning  A full source plan covers all elements in the supply chain from the end customer, or the focal organisation undertaking the analysis, upstream to the raw materials in the chain.  It defines the revenue flow, the physical supply of goods/services and the competitive forces and power structures in the chain.  An accelerated source plan analyses only at the first, second and perhaps the third upstream tiers in the chain.  The power regime mapping is a more graphical representation of the complex power regime network that exists in the chain, based on the source planning analysis undertaken.  The templates provided can be utilised as they are, or modified if the user wishes to create a more comprehensive analysis.  Users are simply requested to create presentation analysis that allows other users to understand the physical and value flows relative to power structures in the chain when devising their own presentational material. The diagram overleaf demonstrates how a strategic source plan and power regime map is compiled:

3 Robertson Cox / Sourcematix Confidential© Robertson Cox All Rights Reserved. HIGH DEFINITION TV Example Strategic Source Plan A HIGH-LEVEL STRATEGIC SOURCE PLAN FOR A HIGH DEFINITION TELEVISION Monopoly supplier with limited competitors, 95% net margins Limited competition in supply market with few dominant players, 60% net margins Few players with reputation for sound (e.g. Bose), but competitive market, 35% net margins Many suppliers, highly contested, low switching costs, less than 5% margins Many suppliers, but mergers occurring. Margins currently less than 10% Many suppliers, highly contested, low switching costs, less than 5% margin (except for Dell) but these are declining Many suppliers, highly contested marketplace, low switching costs, less than 5% margins Many suppliers, highly contested, low switching costs, less than 5% margins (unless supply shortages occur) Highly contested marketplace, many supplier, low switching costs, less than 5% margins THE END CUSTOMER PAYING THE PURCHASE PRICE OF $1, % OF VALUE FINAL ASSEMBLY SUB- ASSEMBLYCOMPONENTS SUB- COMPONENTS THE PERFORMANCE OUTCOME AND COMPETITIVE (BUYER AND SUPPLIER POWER) ENVIRONMENT Original equipment manufacturers (Sony, LG, Panasonic etc.) Retailer/ Wholesaler Control Boards Boxes Sound Components/ Speakers Digital Receivers LCD Panel Displays Various (wiring, fans, cabling, capacitors, etc.) Raw material suppliers (various) 5-25% of purchase price 10-35% of purchase price 12% of purchase price 5% of purchase price 6% of purchase price 23% of purchase price 12% of Purchase price 2% of Purchase price THE VALUE (REVENUE) CHAIN THE PHSYCIAL SUPPLY CHAIN

4 Robertson Cox / Sourcematix Confidential© Robertson Cox All Rights Reserved. Example Supply Chain Power Regime Focal Buyer First-Tier Second- Tier Third-Tier Raw Materials Buyer RM > > 0 = > = = > > = = >Buyer Dominant > Supplier Dominant =InterdependentIndependent0 0

5 Robertson Cox / Sourcematix Confidential© Robertson Cox All Rights Reserved. VALUE (REVENUE) CHAIN PHYSICAL SUPPLY CHAIN STAGES SUMMARY OF KEY MARGINS AND COMPETITIVE FORCES AT EACH STAGE POWER REGIME ANALYSIS OF DYADIC BUYER-SUPPLIER RELATIONSHIPS AT EACH STAGE Strategic Source Planning Template

6 Robertson Cox / Sourcematix Confidential© Robertson Cox All Rights Reserved. Supply Chain Power Regime Template Focal Buyer First Tier Second Tier Third TierN Tier You >Buyer Dominant > Supplier Dominant =InterdependentIndependent0