Innovating… On a Reduced Budget Identifying Opportunities to Reduce waste and Inspire Innovation in your Procurement Cycle 1

MFG.com – Quick Overview

MFG.com is the only place manufacturers can source real-time in a “true” marketplace setting Founded in 2000 Headquartered in Atlanta, with operations in Shanghai, Munich, Paris, Geneva and Bangalore Available in 7 languages, over 50 currencies Serves over 300 manufacturing categories Over 200,000 members in 50 countries Subscription based model for Suppliers Buyers use the marketplace at no cost “ One of the 15 companies that will change the world” -CNNMoney.com 3

Sample of Buyers Currently Sourcing via MFG.com NASA Johnson Space Center Northrop Grumman General Dynamics Spawar Systems Dassault Textron GE 4

The Current Sourcing Process

Searching For New Suppliers Supplier Directories Search Engines Networking 6

The RFQ Process… 7

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Identifying Waste

Organizational Waste 13 “

Saving money here….. 14

Starts with saving money here. 15

Waste Reduction Opportunities Prototypes Built to print non critical Spares MRO Parts 16

Opportunities for Innovation

Opportunity Only Exists When a Large Number of Potential Suppliers Do 18 Opportunity

How a Marketplace Can Help… 19 Sourcing Marketplaces

Opportunities for Innovation Direct access to suppliers that have the capability, capacity and credentials to meet exact sourcing needs One-to-many communication Capacity based response Apples-to-apples format Community based rating system Online Intellectual Property Protection Full Audit Trail 20

What our Buyers are Seeing… Capacity is the ultimate cost diver The market is smarter than any one supplier Traditional Benchmarking studies are obsolete 21

What to Expect from Marketplaces in the Future Global Adoption Sourcing Offline will become a thing of the past Greater Tie-ins with ERP Providers Vertical Expansion Should Cost Model 22

Questions

Thank You! Bill Ryan Director of Sourcing Services