1. “ Building a Global Community” ONCE Global Summit 2005 May 4 – 6, 2005 Milan, Italy Hosted by i-Faber (www.1City.biz) Sponsored by:

2. Procurement Executive Circle The environment for the Purchasing Managers of the most important Italian companies Andrea Tiberi Marketing Manager i-Faber

3. Procurement Executive Circle (PEC) The project The environment The Italian purchasing managers haven’t, so far, any environment where they could meet up in order to share their experiences, understand the guidelines of their own function and match the strategic challenges requested by the top management of their companies The goal Enable the creation of: - an environment where the Purchasing and Supply Chain Mgrs. of the companies belonging to different sectors can meet up and share their experiences - a laboratory of models and best practices related to the Purchasing and Supply Chain function - an opportunity to share ideas, knowledge and analyse future relevant scenarios

4. The environment is characterized by the relationships among different bodies with peculiar roles… Body Board Purchasing Managers of the top Italian companies Management Committee Purchasing Managers of the leading Italian companies (“Top 250”) Industry committees Community Core companies (“Top 1000”) Role Future possible scenarios: how to reach the leadership Analysis & sharing Validation & feedback Procurement Executive Circle (PEC) Bodies involved and roles

5. Procurement Executive Circle (PEC) Method adopted Facilitator Community Validation Feedback Management Committee Synthesis Board Analysis

6. Procurement Executive Circle (PEC) Board composition The Board It features the Purchasing Managers of the top Italian companies for turnover in each industry or of those companies which represent benchmarking in their own business for a total number of 30 companies. These companies represent approximately 11% of the Italian GDP Some examples: Alitalia, Bayer, Carrier, Coca Cola, Kuwait Petroleum, Indesit Company, Pirelli, Sanofi Aventis, ST Microelectronics and Vodafone

7. Procurement Executive Circle (PEC) How the key issues are analysed More than three hundreds interviews were made to the leader companies of each industry in order to analyse deeply and share with the Management Committee the key issues of the first board meeting The panel of the interviewed companies is made of six industries: Distribution Process industry (Oil,….) Manufacturing industry Project based industry Financial services (Banks & Insurances) Other services – Utilities Besides Industry Committees are addressed to analyse, deeply and referred to the peculiar business,the key points coming from the board meetings and to work out on them enabling round tables

8. Procurement Executive Circle (PEC) Board meetings key points Further to the first 6 Board meetings, the key points of major interest, addressed to the Purchasing Department, were the following Organization Tools to support the function How the innovative technologies can increase the performances Expertise & Skill Gap KPI’S Legal aspects Risk Management

9. Procurement Executive Circle (PEC) Figures as 30th April 2005 Companies involved in the Board30 Companies involved in the Management Committee250 Board meetings per year 3 Industries Committees per year 6

10. Consultancy companies and solution provider Procurement Executive Circle (PEC) Third parties They are involved in the discussion of specific key issues Key2people, executive search company, is partner of PEC Value Partner Strategic and organizational subjects Accenture; AT Kearney; Deloitte Specific subjects KPMG; PCW; Roland Berger; Strategic Sponsor (D&B; Oracle) Presentations on focused topics

11. Universities Italian Politecnico, Milan (Engineering) SDA Bocconi, Milan (Economy) InternationalStanford University (USA) Villanova University (USA) London Business School (UK) Erasmo University, Rotterdam (NL) Eindhoven University (NL) Organizations ONCE, SIG, CAPS, Commercenet(US) CIPS(UK) Procurement Executive Circle (PEC) Third parties

12. Purchasing Social Responsibility The creation of a code, made of ten rules, which must be adopted by “ethic” companies in the relationships with their suppliers PEC Academy A knowledge center fully dedicated to the Purchasing Executives, aimed to examine – through 8 one-day events per year – the most important subjects discussed by international organizations and gurus Procurement Executive Circle (PEC) Special projects