1. Oriflame Purchasing Management Workshop Module 8 – Cebal Case Study Cebal Supplier Intelligence Best Strategy? Cebal - Brief and Role play

2. Cebal Supplier / Competitor? Intelligence Review

3. Purchasing Workshop Module 1 © The Delos Partnership 2005 2005-10-11 Oriflame Purchasing Management Workshop3 Cebal – Oriflame Key Needs Understand Cebal overall strategy on Tubes for the global Cosmetics Market and the resulting strategy with Oriflame. Understand how the above is influenced by Cebal strategy with other product / market thrusts. Understand Cebal strategy on other alliances & key customers Understand Cebal strategy on Investments – especially relating to Tubes and Cosmetics market.

4. Purchasing Workshop Module 1 © The Delos Partnership 2005 2005-10-11 Oriflame Purchasing Management Workshop4 Oriflame Focus and Plan therefore is… Cebal Key Customers Tube Sales China and India are high growth markets and Cebal will seek alliances with …The key Asia Region customers are ? Tubes Cost & Pricing Cebal Business Strategy Overall Capacity is … What is the ex. works costs of Tubes from each Cebal plant? Sell their highest cost and least efficient tube plant to ? What are the lowest prices in the world for Tubes and the lowest prices offered by Cebal? Capacity relating to Oriflame Spec is… Sales to Oriflame were … 2005 Sales Analysis is …. Plan appears to be increase tube capacity and acquire two competitors to increase share and profit. They will specifically try to improve sales at our competitor and take market share from ? What are the costs of manufacturing Tubes using latest technology and Lean? Cebal Business Thrusts Key Plants are …. What thrusts does Cebal have to get to a lower Cost? The key customers in West Europe being targeted by Cebal over the 2006/7 period are …. 2006 Sales Plan is...

5. Purchasing Workshop Module 1 © The Delos Partnership 2005 2005-10-11 Oriflame Purchasing Management Workshop5 Intensive Partnering Sell Oriflame Business to Cebal? Sell Oriflame plant to Cebal? Set up JV* in China? Set up JV* in India ? * Would involve Oriflame know how and multiyear Supply agreement Cebal Collaborative Strategy

6. Purchasing Workshop Module 1 © The Delos Partnership 2005 2005-10-11 Oriflame Purchasing Management Workshop6 Cebal Leverage Strategy Start a legal process for non compliance of current agreement and delivery of full value entitlement. (Define the net value that would be gained through this action). Send invoice for Oriflame costs associated with contract supply & quality performance failures. (Define the net value that would be gained through this action). Start plan to reduce Cebal volume by switching to competitors (Define an alternative sourcing plan and the associated volumes and costs of change) Collaborate with their biggest & strongest competitor and start increasing volume elsewhere (Define feasibility with key stakeholders).

7. Purchasing Workshop Module 1 © The Delos Partnership 2005 2005-10-11 Oriflame Purchasing Management Workshop7 Innovation Cebal New Tube Innovation The plastic coextrusion process is very often used for its advantages in terms of barrier qualities against light and oxygen. Sometimes less well known, the fact of using a multilayer complex within the tube making process also allows for a wide range of design possibilities in addition to the guarantee for a higher protection of your formulations. Cebal Tubes Europe-Asia portfolio already included several visual and touch effects based upon plastic coextrusion: soft touch, stone like sleeve, interferential mother of pearl... Yet today Cebal brings up a new offer thanks to its current mastery of the extrusion technique, with its pearlescent tubes, which associate suppleness of the sleeve, pearl aspect of the dispensing cap and light effects on shelves. Three main advantages result from these new material possibilities: - mother of pearl can now be conciliated with more variation in color and light, - coextrusion offers new means for design sophistication, in addition to its more common barrier properties, - bi-injection technology on Cebalcap flip top dispensing cap guarantees an optimized pearl effect on cap together with the pearl effect on sleeve.

8. Purchasing Workshop Module 1 © The Delos Partnership 2005 2005-10-11 Oriflame Purchasing Management Workshop8 Roles Maggie Taverna – Sales Director Luca Nanni Bernard Hensenne Julien Bellanger Paul Warrick Cebal Team Oriflame Team Edwin Koehler Bruno Bastin Francoise Beaujean Robert Connolly

9. Purchasing Workshop Module 1 © The Delos Partnership 2005 2005-10-11 Oriflame Purchasing Management Workshop9 Brief Both teams to brainstorm how they will obtain the best value for their respective companies. Data on the Tubes recommendation needs to be reviewed by the Oriflame team. Cebal do not have all of the data but know that they are the leader with Tupack their nearest competitor and that other suppliers have been reduced to approved status or eliminated. Oriflame Sales and Marketing have told Oriflame Purchasing that the launch of the latest Oriflame products must take place in the new Cebal pearlescent and co - extruded tube.