2. Chief Logistics Officer, Keurig Green Mountain
WINNING GLOBALLY
Chair: Michael Jacobs
Chief Logistics Officer, Keurig Green Mountain

3. Opening Remarks & Introduction
Michael Jacobs
Chief Logistics Officer, Keurig Green Mountain

4. Going Global Case Study
Craig Simon
President and CEO, FedEx Supply Chain

5. But I only
speak English.
Why should I do business globally?
How does customer demand affect my sourcing decision?
What does it cost to source from another country?
What is a frontier market?
Who can sign contracts in Tunisia?
How do I organize internationally?
Which countries are most important?
Is there sufficient infrastructure?
Where should I store my finished goods?
What are the regulations?
What will the price of oil be next year?
Do they have paved roads?
What time is it in Sri Lanka?
How does Colombia compare to Panama?
How do I keep my products secure?
Should I worry about FCPA?
Should I use one operating system globally?
Should I use a distributor or go direct?
How do exchange rates affect profits?
What is CTPAT?
Is it safe over there?

6. Brent Crude Oil Prices 1982–2014
2014:
~$109
2008:
$145.61
1986:
$8.75
Source: Trading Economics

7. Export Trends for Top Markets
Exports from some of these countries have been slowing down since CY2010 (YOY% Total Export Value in USD)
Source: IMF, National Authorities

8. World Trade Volume vs. Global Real GDP
During the globalization of manufacturing, trade grew 2-3 times faster than GDP
In 2012 and 2013, trade volumes failed to grow at their historical rate
Since the “Great Recession,” trade has been steadily improving but not at the prior pace
Source: CPB Netherlands Bureau for Economic Policy and Analysis,
Economic Intelligence Unit, FedEx Corporate Economics

9. Near Shoring
Domestic Agenda
“New Normal”
Protectionism

10. Impact of Global Trade
95% of America’s consumers live outside our borders
Every $1 billion in additional exports supports approximately 5,000 U.S. jobs
Since President Obama launched the National Export Initiative in 2010, U.S. has seen record exports and an increase of 1.3 million export-related jobs
Source: U.S. Department of Commerce, April 2014

11. Record U.S. Exports in 2013
U.S. exports in 2013 set record for fourth straight year – reaching $2.3 trillion, up nearly $700 billion since 2009
Record U.S. merchandise exports in 2013 to 63 markets, including:
Canada (+2.7%)*
Mexico (+4.7%)
Colombia (+13.8%)
Panama (+9.6%)
Peru (+7.6%)
Jordan (+18.2%)
Source: U.S. Department of Commerce, April 2014
* Year-over-year change from 2012

12. Value of World Merchandise Exports 2003-2013
Source: WTO

13. Six Largest Economies by Share of World GDP – 2005 vs. 2011
Total 2005 World GDP: $55 trillion
Total 2011 World GDP: $90 trillion
Source: International Comparison Program (ICP)

14. How do you make decisions about where to do business globally?

15. 10 Global Risks of Greatest Concern
3. Water Crisis
5. Failure of Climate Change Mitigation and Adaptation
6. Greater Incidence of Extreme Weather Events
8. Food Crisis

16. Corporate Climate Adaptation Opportunities: Building Resiliency around the Globe

17. ND-GAIN: Data to Inform Decision Makers
Ranking & country scores
177 countries
50 indicators
17 years of data
9 variables

18. ND-GAIN Matrix
Threats and opportunities for country-level investment decisions

19. ND-GAIN Matrix

20. ND-GAIN Country Profiles Example: Brazil

21. ND-GAIN Sector-Specific Profiles Example: Infrastructure
China
India

22. Notre Dame Global Adaptation Index www.nd-gain.org
Managing Director
Joyce Coffee
Research & Development
Jessica Hellmann
Nitesh Chawla

23. Emerging Markets Definition
Countries restructuring economies and growing along market- oriented lines and offer wealth of opportunities in trade, transportation, technology transfers and foreign direct investment.
Stand out due to some combinations of these characteristics:
Fast-growing economies, contributing great deal to world trade growth
Regional economic powerhouses with large populations, large resource bases and large markets
Transitional societies undertaking domestic economic and political reforms
Emphasize infrastructure developments and improving regulatory and social environments

24. Components of Emerging Markets Index (EMI)

25. Emerging Markets Framework: EMI Roadmap

27. Talent Management Panel Discussion
Moderator: Michael Jacobs
Chief Logistics Officer, Keurig Green Mountain
Panelists:
Mary Iazzetta
Director Global Strategic Sourcing, Verizon
Ye’ella Nir-Rosin
Director Worldwide Logistics & Supply Chain, Eastman Kodak
Nada Sanders Phd
Iacocca Chair, Professor of Supply Chain Management,
Lehigh University
Renee Ure
VP Integrated Supply Chain, IBM

29. Talent Management Panel Discussion
Mary Iazzetta
Director - Global Strategic Sourcing

30. Using Technology to Address Global Challenges
The best, most reliable networks in the industry
2013 revenues of $120.6 billion
96% of Fortune 1000 Companies rely on VZ services
More than 176,800 employees worldwide
2014 Priority: Our Customers, Every Day
Talking points:
The largest U.S. wireless company with the largest 4G LTE network
The largest and fastest all-fiber network in the U.S.
Global IP network reaches customers in more than 2,700 cities in more than 150 countries

31. One Centralized Global Strategic Sourcing Organization
Manages global sourcing activities for approximately $26B in annual spend
End-to-end supply chain performance
Network and IT Hardware
Software and Services
Growth of business relationships with diverse suppliers
Strategic supplier relationships enterprise wide
One Centralized Global Strategic Sourcing Organization

32. Global Strategic Sourcing Category Management

35. KODAK’s Extensive Supply Chain Meets Global Demand
Europe, Africa and
Middle East Region
U.S & Canada Region
Asia Pacific Region
Latin America Region
Manufacturing & R&D
Distribution Node
Service Parts Hub

37. Most have a primary goal to prepare talent for a global economy
Role of Universities in Preparing Talent Nada R. Sanders, Ph.D. Iacocca Chair, Professor of Supply Chain Management Lehigh University
Most have a primary goal to prepare talent for a global economy
Two strategies:
Curricular modifications (e.g. student exchanges, dual degrees, content changes)
Practical experience (e.g. internships abroad, co-ops)
Variations in degree of immersion, geographic specificity, and job matching
Challenge in assessment and standardizing outcomes

39. Integrated Supply Chain (ISC)
About IBM
ISC supports all IBM lines of business providing the following:
Conducts business in 200+ countries
~400,000 employees globally (~25,000 in ISC)
Works with ~100,000+ business partners
Comprised of 5 business units:
Supply Chain Execution: Manufacturing, New Products Introduction, Cross-platform Solutions Integration, Engineering, Supply/Demand & Inventory planning, Customized Solutions
Procurement: Production, General & Services Procurement, Procurement Process Outsourcing
Quote to Cash / Sales Support
Pre-Sales support (New 2013 Mission): Client proposals and quotes, Solution Design, Order processing
Post-Sales support: Order Fulfillment, Contract Administration, Accounts Receivable
Asset Management
Risk and Compliance Management
Supply Chain Transformation and Analytics
ISC Global Transformation Journey
Multi- National Towers
Globally Integrated Enterprise
Smarter Value Chain
2013 Revenue

41. Wrap-up & Closing Remarks
Michael Jacobs
Chief Logistics Officer, Keurig Green Mountain