1. Presented by www.SourceOneInc.com Supply Management By: Leigh Podolak Presented by Source One Management Services, LLC www.SourceOneInc.com Lesson 1 Roles of Supply Management Importance of Supply Chains Lesson 2 Future Forces Shaping Supply Management Being Prepared for the Future

2. Presented by www.SourceOneInc.com Lesson 1 Supply Management Key Roles Identify opportunities. Develop relationships and methods that encourage efficient and effective processes. Access resources, tools, and assets available, to position the company for long-run supply assurance, price/cost advantage, and innovation access. See the whole picture; from original creation of products and services through to obtaining and using them all the way to acquiring them.

3. Presented by www.SourceOneInc.com “Supply Management is linked hand in hand with suppliers, other departments, and customers and has a leadership role in taking initiative to find value for customers and business performance” The challenge of the complexity of purchasing was to learn it, stabilize it, and keep it on course. Supply Management is one department that has vast networks of eyes, ears, and antennas on the supply market. Consolidation, fewer suppliers, standardize specs = price benefits. Defining Supply Management Lesson 1

4. Presented by www.SourceOneInc.com Nature of Supply Chains Today Supply Chains are investments, processes, and flows of goods designed to meet the needs of a set of ultimate customers or consumers. Characteristics Multitiered – beyond immediate suppliers and customers Customer Driven Exist Externally and Internally An on-going journey, not a destination Lesson 1

5. Presented by www.SourceOneInc.com Nature of Supply Chains Today cont… Mapping Supply Chains: Physical – movements, transportation, delivery flows within and between firms. Financial – flows of cash between organizations. Informational – data movement, access to information, capture and use of data... Relational – link between company, supplier and customers. Innovational – who and how product and service are developed and come to market. Lesson 1

6. Presented by www.SourceOneInc.com Lesson 1 Globalization: Lowest cost production, improved telecommunications and information links. Technologies: Unit costs will continue to drop. Regulatory policies Management shifts: Speed of competitive pressures, need for innovation, reconfigure business structure. Source One – Being an effective supply manager: Scan for opportunities, take initiative to bring in new revenues, remove unnecessary steps, assets, costs and reduce risk. Looking to the future

7. Presented by www.SourceOneInc.com Lesson 2 The Impact of Future Forces Shaping Supply Management Ever Increasing Customer Demands – “more, faster, cheaper” Superior value for price Customized products and service The Breakneck Pace of Technology Change and New Manufacturing Capabilities Innovations in material science, telecommunications, and computing Changes in supplier economics Enhancements in manufacturing methods and design

8. Presented by www.SourceOneInc.com Lesson 2 The Impact of Future Forces cont… The Word Economy and Geopolitical Shifts Globalization and Global security Cultural Differences Fluctuating currencies Regulatory inconsistencies

9. Presented by www.SourceOneInc.com Lesson 2 Future Vision 1. Build a foundation for achievement 2.Focus on delivering value 3.Exploit changes to define breakthrough strategies

10. Presented by www.SourceOneInc.com Lesson 2 Role & Responsibilities of a Procurement Service Provider Explore new opportunities and advanced sourcing techniques Seek lower costs, higher productivity, more flexibility Manage supplier relationships Understand and anticipate future direction - market shifts

11. Presented by www.SourceOneInc.com Lesson 2 Procurement Service Provider Role & Responsibilities Pursue low cost country sourcing Expansion into foreign markets, global sourcing Balance benefits and risk lengthened lead times increased uncertainty heightened security

12. Presented by www.SourceOneInc.com Resources The Supply Management Handbook, – Seventh Edition, McGraw-Hill Presented by: – Source One Management Services, LLC –www.SourceOneInc.com www.sourceoneinc.com