1. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation SUB - SUPPLY OPPORTUNITIES David Banks, 2009

2. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation SUB - SUPPLY OPPORTUNITIES SESSION 5 Friday 20 th November 2009 11:00 - 11:30h 11:00 - 11:30h

3. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation General Points Customer Wish List Typical Supplier Development Manual SUB-SUPPLY OPPORTUNITIES

4. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation Supply of goods and services to FDI companies in Macedonia Learning opportunity for SMEs FDI companies often willing to assist SMEs May have Supplier Development Programmes SUB-SUPPLY OPPORTUNITIES

5. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation Long Term Relationship with a small number of suppliers Local Supply Base allows for better contact, quicker response Close interaction with suppliers As good as alternatives on Quality and Service, but better on Price Often have a Supplier Quality Assistance Programme No favors CUSTOMER WISH LIST SUB-SUPPLY OPPORTUNITIES

6. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation GENERAL REQUIREMENTS Right of access Notification of organisation changes Applicability Purchase Order Requirements Protection of proprietary information Code of Conduct TYPICAL SUPPLIER DEVELOPMENT MANUAL SUB-SUPPLY OPPORTUNITIES PAGE 1

7. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation SUPPLIER QUALITY SYSTEM REQUIREMENTS Quality Management System Management Responsibility Resource Management Product Realization Measurement, Analysis and Improvement TYPICAL SUPPLIER DEVELOPMENT MANUAL SUB-SUPPLY OPPORTUNITIES PAGE 2

8. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation SUPPLIER ASSESSMENT Methods of Assessment Supplier Quality Questionnaire (SQQ) Supplier Audits Approved Supplier List VENDOR MANAGEMENT SYSTEM Methods of Assessment Supplier Quality Questionnaire (SQQ) TYPICAL SUPPLIER DEVELOPMENT MANUAL SUB-SUPPLY OPPORTUNITIES PAGE 3

9. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation ADVANCED PRODUCT QUALITY PLANNING Quality Control Plan Process Flow Chart Process Failure Mode and Effect Analysis (PFMEA) First Article Inspection Report (FAIR) Process Capability Products Parts Approval Process (PPAP) Concern Action Reports TYPICAL SUPPLIER DEVELOPMENT MANUAL SUB-SUPPLY OPPORTUNITIES PAGE 4

10. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation Stuffed PCBs Self Interest Supplier Development Team at HP Work Closely with Suppliers Focus on Quality and Service Lead Time 15 months Suppliers now export CASE STUDY: HP PRINTERS SUB-SUPPLY OPPORTUNITIES

11. CAPACITY BUILDING TOWARDS KNOWLEDGE BASED ECONOMY Project financed by Austrian Development Cooperation Technology Companies Learning at Close Range Close Customer Contact Customer Support Win-Win Focus on Quality and Service No Favours LESSONS SUB-SUPPLY OPPORTUNITIES