Supply Chain Strategy

Maturity by Mastering the FundamentalsMaturity by Mastering the Fundamentals Integrating with Ongoing InitiativesIntegrating with Ongoing Initiatives

Supply Chain Strategies Tailored to Product Line RequirementsSupply Chain Strategies Tailored to Product Line Requirements

ResultsResults

StrategyStrategy

• Supply anticipates demand

• S&OP and forecasts are integrated processes

• World-class customer satisfaction

• ERP “class “A”

Demand Management

Strategic Sourcing

SupplierExcellence

Continuous Improvement

• Global Cost Leadership• Best-value sourcing• Optimized Supply-base• Long Term Productivity

• On-time delivery• Defect elimination• Cost reduction• Supplier Development• Certified supplier base

• Supplier Development• Supplier to Point-of-

Use, VMI, e-Kanban• Electronic Commerce• Integrated logistics

12 1518

0

10

20

Tu

rns

2008 2009 2010

Inventory Velocity

TPS/Lean

• Supplier pull systems• Entitlement inventory• Rate-based planning• Point-of-Use inventory• Waste Reduction

0%

10%

20%

30%

40%

2007 2008 2009 2010

Pro

duct

ivity

Productivity(Cum.)

38%Improvement

38%Improvement

7% AnnualImprovement

7% AnnualImprovement

Supply Chain Strategy/VisionSupply Chain Strategy/Vision

Align The Supply Chain To The Needs Of The Business

James Martin – Executive Biography Vice President, Supply Chain & Information Technology Mr. Martin is an accomplished global supply chain executive with 24 years of performance results. James is a strategic thinker with a wealth of problem solving experience in global supply chain management, strategic sourcing and manufacturing operations. Mr. Martin has demonstrated significant P & L improvements and supply chain productivity in a variety of industries including

high technology, computer peripherals, major Department of Defense systems, aerospace, and automotive industries. Mr. Martin joined Saturn Electronics and Engineering in 2003 as their VP of Supply Chain Management where he has implemented “best in class” strategic sourcing, logistics, and materials management practices throughout their nine global manufacturing and distribution facilities. In 2004 Mr. Martin was given additional responsibility for all information technology due to his extensive manufacturing and procurement systems expertise. Prior to joining Saturn Mr. Martin was with CTS Corporation, Frequency Control Devices as their Director of Supply Chain where he had executive leadership for all supply chain functions. At CTS he led the supply chain management and capacity expansion during the telecom boom of 2000/2001. Through a leveraged strategic sourcing process, across multi-site operations, he was able to achieve 14% savings productivity in 2001. In 2002/2003 James led the transition of CTS manufacturing from North America to Asia including an expatriate assignment in China where he staffed and established a world-class Supply Chain Management organization and processes. In 1998 / 2000 Mr. Martin was with AlliedSignal / Honeywell where he had multi-site responsibility for all supply chain functions. He led supply chain improvements and turnaround of the $450M division including a 35% improvement in personnel productivity and 7% annual supplier cost savings. In 1996 / 1998 James was the Global Supply Manager for the high growth JAZ & ZIP drives at Iomega Corporation. At Iomega Mr. Martin was responsible for global ZIP capacity and supply, including materials management functions, supplier management, fulfillment, and Sales and Operations Planning. Iomega grew from $326M to $1.7B during James’ tenure. Prior to Iomega, Mr. Martin spent 11 years in management at Hughes Aircraft Corporation and Barnes Group where he lead and implemented best practices in supply chain management on major defense electronics and aerospace programs. James has a B.S. in Business Administration Commerce and Industry from The University of Wyoming. He is Six Sigma certified at both AlliedSignal and Iomega. In addition, he has extensive Lean and Operational Excellence training.