1. June 2003 1 Overview Presentation Supply Chain Operations Reference-model (SCOR)

2. SCOR Overview July 2004 2 The SCC is an independent, not-for-profit, global corporation with membership open to all companies and organizations interested in applying and advancing state-of-the-art supply chain management systems and practices. The SCC is an independent, not-for-profit, global corporation with membership open to all companies and organizations interested in applying and advancing state-of-the-art supply chain management systems and practices. Over 800 Company Members Over 800 Company Members Cross-industry representation Cross-industry representation Chapters in Australia/New Zealand, Brazil, Europe, Japan, North America, Southern Africa, and South East Asia with petitions for additional chapters pending. Chapters in Australia/New Zealand, Brazil, Europe, Japan, North America, Southern Africa, and South East Asia with petitions for additional chapters pending. The Supply-Chain Council (SCC) has developed and endorsed the Supply Chain Operations Reference-model (SCOR) as the cross- industry standard for supply chain managementThe Supply-Chain Council (SCC) has developed and endorsed the Supply Chain Operations Reference-model (SCOR) as the cross- industry standard for supply chain management

3. SCOR Overview July 2004 3 Quantify the operational performance of similar companies and establish internal targets based on “best-in- class” results Benchmarking Characterize the management practices and software solutions that result in “best- in-class” performance Best Practices Analysis Process Reference Model Capture the “as-is” state of a process and derive the desired “to-be” future state Business Process Reengineering Capture the “as-is” state of a process and derive the desired “to-be” future state Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results Characterize the management practices and software solutions that result in “best-in- class” performance What is a process reference model? Process reference models integrate the well-known concepts of business process reengineering, benchmarking, and process measurement into a cross- functional framework Process reference models integrate the well-known concepts of business process reengineering, benchmarking, and process measurement into a cross- functional framework

4. SCOR Overview July 2004 4 Supplier Plan Customer Customer’s Customer Suppliers’ Supplier Make Deliver Source Make DeliverMakeSource Deliver Source Deliver Internal or External Your Company Source SCOR is structured around five distinct management processes SCOR Model Return Building Block Approach ProcessesMetrics Best PracticeTechnology

5. SCOR Overview July 2004 5 Customers Suppliers P1 Plan Supply Chain Plan P2 Plan Source P3 Plan Make P4 Plan Deliver SourceMakeDeliver S1 Source Stocked Products M1 Make-to-Stock M2 Make-to-Order M3 Engineer-to-Order D1 Deliver Stocked Products D2 Deliver MTO Products D3 Deliver ETO Products S2 Source MTO Products S3 Source ETO Products Supply-Chain Operations Reference-model (SCOR) 6.1 - Processes Return Source P5 Plan Returns Return Deliver Enable D4 Deliver Retail Products

6. SCOR Overview July 2004 6 SCOR Boundaries SCOR Spans: SCOR Spans: All supplier / customer interactionsAll supplier / customer interactions Order entry through paid invoice Order entry through paid invoice All physical material transactionsAll physical material transactions From your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc. From your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc. All market interactionsAll market interactions From the understanding of aggregate demand to the fulfillment of each order From the understanding of aggregate demand to the fulfillment of each order ReturnsReturns

7. SCOR Overview July 2004 7 Material Flow SCOR Level 1 Operations Strategy Analyze Basis of Competition SCOR Level 2 Configure supply chain Align Performance Levels, Practices, and Systems Implement supply chain Processes and Systems Implement supply chain Processes and Systems SCOR Project Roadmap Competitive Performance Requirements Performance Metrics Supply Chain Scorecard Scorecard Gap Analysis Project Plan AS IS Geographic Map AS IS Thread Diagram Design Specifications TO BE Thread Diagram TO BE Geographic Map Information and Work Flow AS IS Level 2, 3, and 4 Maps Disconnects Design Specifications TO BE Level 2, 3, and 4 Maps Develop, Test, and Roll Out Organization Technology Process People SCOR Level 3

8. SCOR Overview July 2004 8 Mapping material flow Latin American Suppliers (D1) Warehouse Other Suppliers (D1)Manufacturing European Supplier (S1) (SR1,SR3) (S1, D1) (SR1,DR1,DR3) (D2) (DR1) Warehouse Warehouse Warehouse (S1, D1) (SR1, DR3) (S1, D1) (SR1,DR1,DR3) (S1) (SR1,SR3) (S1, S2, M1, D1) (SR1,,DR1)

9. SCOR Overview July 2004 9 Mapping the execution processes S1 D1S1 M2 S2 D2 M1 D1 S1 S2 D1 M1 European RM Supplier Key Other RM Suppliers Alpha Regional Warehouses S1 DR1SR1 DR1SR1DR1SR1 DR3SR3 RM Suppliers DistributorsALPHA DR3SR3 S1 Americas Distributors Americas Distributors SR1 SR3

10. SCOR Overview July 2004 10 Identifying Plan Activities Consumer P2P2 P4P4P4P4 P4P4P4P4 P3P3 P4P4P4P4 P4P4P4P4 S1 D1S1 P2P2P2P2 P2P2P2P2 P2P2 P3P3P3P3 P3P3P3P3 P4P4P4P4 P4P4P4P4 M2 S2 D2 M1 D1 S1 S2 D1 M1 European RM Supplier Key Other RM Suppliers S1 Alpha Regional Warehouses RM Suppliers DistributorsALPHA P1P1P1P1P1P1

11. SCOR Overview July 2004 11 Supply Chain Scorecard & Gap Analysis 50% $30M Revenue $30M Indirect Cost 35 days 97 days 0% 63% Supply Chain SCORcard Performance Versus Competitive Population Overview MetricsSCOR Level 1 MetricsActualParityAdvantageSuperiorValue from Improvements Delivery Performance to Commit Date 85%90%95% Fill Rates 94%96%98% EXTERNAL SupplyChainReliability Perfect Order Fulfillment 80%85%90% Order Fulfillment Lead times 7 days5 days3 days Flexibility Responsiveness Production Flexibility 30 days25 days20 days Total SCM Management Cost 19%13%8% 3% INTERNAL Cost Warranty Cost NA Value Added Employee Productivity NA$156K$306K$460KNA Inventory Days of Supply 119 days55 days38 days22 daysNA Assets Cash-to-Cash Cycle Time 196 days80 days46 days28 days Net Asset Turns (Working Capital) 2.2 turns8 turns12 turns19 turnsNA Supply Chain Response Time 82 days55 days13 days 45 days $7 M Capital Charge Key enabler to cost and asset improvements $30M Revenue

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