Best Practices Consortium Supply Chain Best Practices Consortium Welcoming Keynote to the 2006 Supply Chain Consortium Executive Seminar Executive Seminar General Session September, 2006

Welcome

Seminar Goals This Executive Seminar will have been a success if: Participants have actively shared their ideas, experiences and thoughts on best practices. Each participant takes away significant insights or learnings that can be applied to improving their operations. Each participant has a better understanding of how to leverage the benchmarking and best practices process for maximum benefit. We have great suggestions on continuously improving the process and toolset for all participants.

Searching for Answers The Benchmarking & Best Practices process is designed to answer questions such as: How are we doing in comparison to our peers – below average, average, above average, exceptional? Are our costs reasonable and in line with other operations like ours? Are there any major gaps in our strategy that will leave us at a competitive disadvantage? Are we missing breakthrough opportunities? How can we demonstrate that we are doing a good job in many areas? How can we build consensus around initiatives that we feel certain are correct?

Vision The answers to these questions and many more are based on the Supply Chain Consortium’s Benchmarking & Best Practices process. The foundation principles of the process include: Relevancy – The data gathered and the tools provided ensure that the answers to key questions are based on a significant number of companies “like you.” Content – The content is driven by senior supply chain executives based on the issues they want addressed. The content covers the questions they want answered and the questions vital to their operations that they might not have thought to ask. Detail – The questions asked are detailed, actionable and cover a broad range of issues. Access – Information is available on-line and real time. Participation – Participation by a large number of peers is assured.

Benchmarking & Best Practices Tools Online Web Interview Search & Query Strategic Assessment Dashboard Hot Topics PeerNet Reports Online Forum Executive Seminar

Maximizing the Value of Executive Seminar Active engagement in the breakout sessions begets maximum value. Your Executive Seminar notebook Supply Chain Revelations Contest Panel input request Emerging Technology Center tour A CD will be provided after the seminar with a copy of all presentations and key discussion takeaways.

A Few Big Picture Thoughts 1. Synchronization Under Uncertainty     A. Proactive: Commodity         * Quality Forecasting         * Continuous Flow     B. Reactive: Fashion         * Lean, Theory of Postponement         * Speed  2. The World is Flat     A. Networks     B. Visibility     C. Duty and Customs     D. Transportation

A Few Big Picture Thoughts (continued) 3. Outsourcing     A. A strategic weapon: Focus on core competencies     B. A major mistake: Throw our mistakes over the wall     C. Must have a core competency of outsourcing     D. Flexibility/modularity    4. Customers/Supply Chain Partners     A. It is about collaboration/continuous improvement     B. The customer is the customer     C. One size fits one     D. Sharing: Information, expectations and aspirations