1. Technology and the Supply Chain Lee Zimmerman CFPIM, CIRM, CSCP Materials & Logistics Manager, Gemalto January 14 th, 2010

2. 2 What is the most wasted resource in today’s companies? People

3. 3 Suppliers’ Under-utilized Value Our suppliers: - have a unique knowledge of our materials. - can improve our product costs and technologies. - can work with us beyond the individual purchase. The buyer is at the heart of building this supplier partnership.

4. 4 Vocabulary What is a Process Flow? Shows description and sequence of steps to perform an activity

5. 5 Purchasing Process flow – Current State Identify Potential Sources Buying OrganizationSupplying Organization Evaluate Competitive Bids Review Demand Requisition Material Place Purchase Order Create the Sales Order Receive Purchase Order Create & transmit packing list Produce Product Ship Product Verify incoming Count & quality Receive Pay Invoice Receive Payment

6. 6 Vocabulary What is a Value Added process? Any activity that your customer would be willing to pay you to do. What is a Value Stream Map? A process map indicating which activities are value added.

7. 7 Purchasing – Value Stream Map Identify Potential Sources Buying OrganizationSupplying Organization Evaluate Competitive Bids Review Demand Requisition Material Place Purchase Order Create the Sales Order Receive Purchase Order Create & transmit packing list Produce Product Ship Product Verify incoming Count & quality Receive Pay Invoice Receive Payment

8. Confidential 8 Removing and Automating Non-value added activities TechnologyActivities Supported On line Auctions and Portals and Trading Exchanges Reduce the time needed to identify and qualify suppliers Internet Databases (OLAP cubes) Provide demand views to suppliers. Review status of supply orders.

9. Confidential 9 Removing and Automating Non-value added activities TechnologyActivities Supported Blanket Orders & Supply agreements Reduce placement activity for orders Vendor Managed Inventory or Kanban signals Reduce or eliminate placement activity for orders

10. Confidential 10 Removing and Automating Non-value added activities TechnologyActivities Supported Supply Chain Event Management alerts Reduce monitoring time for buyers. Alert if supplier activity falls outside of alerts ranges. Electronic Data Interchange Hands off transmission of PO and ASN information

11. Confidential 11 Removing and Automating Non-value added activities TechnologyActivities Supported Radio Frequency Identification / Bar Codes Hands off receipt of product Electronic Funds Transfer Hands off payment of suppliers

12. 12 Purchasing -Future Vision VS Map Identify the preferred Source Buying OrganizationSupplying Organization Generate a Supplier Agreement Review Demand Produce Product Ship Product Import EDI notice at receipt Pay with EFT Transmit an EDI shipping notice Receive EFT payment

13. Any Questions?