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

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

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

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?

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

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

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

Near Shoring Domestic Agenda “New Normal” Protectionism

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

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

Value of World Merchandise Exports 2003-2013 Source: WTO

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)

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

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

Corporate Climate Adaptation Opportunities: Building Resiliency around the Globe

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

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

ND-GAIN Matrix

ND-GAIN Country Profiles Example: Brazil

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

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

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

Components of Emerging Markets Index (EMI)

Emerging Markets Framework: EMI Roadmap

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

Talent Management Panel Discussion Mary Iazzetta Director - Global Strategic Sourcing

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

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

Global Strategic Sourcing Category Management

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

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

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

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