1. “Addressing evolving supply chain challenges to improve performance” David Brown Head of Supply Chain & Operations EY Ireland Please see final slide for guidance on using EY colours and themes

2. Recent examples of challenges facing global supply chains Addressing evolving supply chain challenges to improve performance in a changing world “British steel crisis deepens as SSI UK goes into liquidation” 1700 direct jobs, and many of the 6,000 jobs in the local economy or supply chains which rely on the works at SSI, could now be lost. “British steel crisis deepens as SSI UK goes into liquidation” 1700 direct jobs, and many of the 6,000 jobs in the local economy or supply chains which rely on the works at SSI, could now be lost. “UDG Healthcare to sell two units to LloydsPharmacy owner McKesson” ….to focus on its higher-growth, higher- margin international healthcare services businesses “UDG Healthcare to sell two units to LloydsPharmacy owner McKesson” ….to focus on its higher-growth, higher- margin international healthcare services businesses “US clothing retailers losing to European rivals” "Their supply chain is almost totally vertically integrated. That allows them to not only control the manufacturing process, but also manufacture quickly and bring apparel more flexibly to the market. “US clothing retailers losing to European rivals” "Their supply chain is almost totally vertically integrated. That allows them to not only control the manufacturing process, but also manufacture quickly and bring apparel more flexibly to the market. “Supply chain initiative to tackle challenges of agri-food industry” Virtually every sector of the farming industry here has been affected adversely by volatile market conditions over the past few months. “Supply chain initiative to tackle challenges of agri-food industry” Virtually every sector of the farming industry here has been affected adversely by volatile market conditions over the past few months.

3. Internal cost structures challenged Increasingly complex routes to market Challenging opportunities in emerging markets What are the main drivers of complexity Consumer behaviour is changing Costs are hard to control Growth is challenging External cost pressures growing Limited volume growth in mature markets Drivers Key challenges Digital is shifting control to the consumer Addressing evolving supply chain challenges to improve performance in a changing world

4. Evidence suggests little progress has been made recently Traditional approaches are struggling to make the breakthrough in performance Addressing evolving supply chain challenges to improve performance in a changing world

5. So how do you align or reinvent the Supply Chain to cope with the new normal? Addressing evolving supply chain challenges to improve performance in a changing world

6. Configuring the Supply Chain to align with this customer centric view allows it to become a critical enabler Addressing evolving supply chain challenges to improve performance in a changing world 1 Strategic architecture Integrated Supply Chain Operating Model Supply Chain Network & Flow Optimisation 2 Complexity Optimisation Commercial Excellence Run-to-Target Manufacturing Route-to- Market Optimisation Integrated operational excellence Supply Chain Segmentation and Synchronisation Supply Chain resilience Supply Chain Risk, Sustainability and Resilience 3 Performance management Financial Supply Chain Talent development and change management Digital, Analytics and IT enablement

7. CharacteristicsSegment Supplier Manufacturing Distribution Product portfolio Customer channel Planning/customer So how has this been implemented and what have been the outcomes? 123 Determine supply chain segments Determine commercial strategy by segment Re-align end to end SC strategies, configuration and parameters by supply chain segment Addressing evolving supply chain challenges to improve performance in a changing world Efficient Premium Innovation

8. SCR Operational Excellence Journey Addressing evolving supply chain challenges to improve performance in a changing world Supply Chain Risk, Sustainability and Resilience Supply Chain Network and Flow Optimisation Integrated Supply Chain Operating Model Supply Chain Segmentation and Synchronisation Initiative Reliability and Complexity Optimisation Commercial Excellence Run to Target Manufacturing Route to Market Optimisation

9. Thank you Contact details: David Brown dbrown@uk.ey.com +44 7801 944 693 dbrown@uk.ey.com Please see final slide for guidance on using EY colours and themes