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Join the PURCHASING KNOWLEDGE REVOLUTION Prepared for CAM Canada www. propurchaser. com November 22, Join the PURCHASING KNOWLEDGE REVOLUTION Prepared for CAM Canada www. propurchaser. com November 22, 2004

Purchasing is a very busy job shorter planning cycles (AKA flexible manufacturing) unreliable information Purchasing is a very busy job shorter planning cycles (AKA flexible manufacturing) unreliable information smaller inventories (late, missing, incomplete) (less safety stock) fewer support people www. propurchaser. com

This is the real Job Increase the value received for the dollars we spend This is the real Job Increase the value received for the dollars we spend www. propurchaser. com

No one can be effective at their job if they’re always fighting fires. NOT No one can be effective at their job if they’re always fighting fires. NOT EVEN FIREMEN ! www. propurchaser. com

Urgent Work vs Non-Urgent Work Urgent work happens when: • Materials & services are Urgent Work vs Non-Urgent Work Urgent work happens when: • Materials & services are late, short, defective, or missing Non-urgent work happens when: • We improve our marketplace & technical knowledge to increase negotiating effectiveness • Surprise shortages occur due to • We seek out value-adding alternatives: unexpected high usage new suppliers or materials • Surprise shortages occur due to • We team up with Engineering, R&D, inventory reporting errors Production, & Suppliers to optimize materials, specifications & processes • Suppliers’ declare force majeur www. propurchaser. com

What’s the major difference? l Non-urgent work adds value! l It’s what our customers, What’s the major difference? l Non-urgent work adds value! l It’s what our customers, shareholders, senior managers, stakeholders, and WE really want us to do. l ‘Demonstrating profound value to the bottom-line’ means finding time for non-urgent work. www. propurchaser. com

The Joy of Escaping from the Everything is Urgent Zone 1. Carve out time. The Joy of Escaping from the Everything is Urgent Zone 1. Carve out time. 2. Drive down purchase costs. www. propurchaser. com

Escaping from the EVERYTHING IS URGENT Zone Manage one of the major time traps Escaping from the EVERYTHING IS URGENT Zone Manage one of the major time traps - Price Hassles www. propurchaser. com

How to spend less time haggling & hassling Track suppliers’ input costs - then How to spend less time haggling & hassling Track suppliers’ input costs - then tie what you pay to their costs. www. propurchaser. com

so too do your suppliers’ costs to produce the goods & services you buy so too do your suppliers’ costs to produce the goods & services you buy www. propurchaser. com

The best suppliers see advantage in linking prices to costs They actually prefer to The best suppliers see advantage in linking prices to costs They actually prefer to compete in a transparent arena www. propurchaser. com

Suppose you’ve been able to make a deal… How do you maintain it? Where Suppose you’ve been able to make a deal… How do you maintain it? Where do you find the time? www. propurchaser. com

Purchasers already need to keep track of so many things Components Packaging Utilities Services Purchasers already need to keep track of so many things Components Packaging Utilities Services Ingredients www. propurchaser. com MRO Transportation

The task of keeping tabs on suppliers’ inputs is daunting to say the least The task of keeping tabs on suppliers’ inputs is daunting to say the least www. propurchaser. com

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Enter the Internet www. propurchaser. com Enter the Internet www. propurchaser. com

For the first time in history INFORMATION can seek out PEOPLE! www. propurchaser. com For the first time in history INFORMATION can seek out PEOPLE! www. propurchaser. com

Even better, you can filter information to meet your personal requirements A perfect tool Even better, you can filter information to meet your personal requirements A perfect tool for busy people www. propurchaser. com

This is nothing short of a Purchasing Knowledge Revolution www. propurchaser. com This is nothing short of a Purchasing Knowledge Revolution www. propurchaser. com

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13% www. propurchaser. com 13% www. propurchaser. com

-12% www. propurchaser. com -12% www. propurchaser. com

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Advantages of using the Internet to track your suppliers’ inputs • Increases negotiating leverage Advantages of using the Internet to track your suppliers’ inputs • Increases negotiating leverage • Widens span of price control • Delivers cost transparency There are more good reasons to use this approach… www. propurchaser. com

Five More Good Reasons for tracking suppliers’ inputs 1. Attract low-cost producers 2. Strengthen Five More Good Reasons for tracking suppliers’ inputs 1. Attract low-cost producers 2. Strengthen the supply-chain 3. Reduce suspicion and acrimony 4. Benefit sellers as well as Purchasers 5. Enable automatic price reductions www. propurchaser. com

But best of all It frees up Purchasers’ precious time. But best of all It frees up Purchasers’ precious time.

What can Purchasers do with their new-found time? www. propurchaser. com What can Purchasers do with their new-found time? www. propurchaser. com

Devote more time to value-adding work… Improving marketplace & technical knowledge to increase negotiating Devote more time to value-adding work… Improving marketplace & technical knowledge to increase negotiating effectiveness Seeking out value-adding alternatives: new suppliers or materials Teaming up with Engineering, R&D, Production, & Suppliers to optimize materials, specifications & processes www. propurchaser. com

What Larry Bossidy of Allied Signal says about Purchasing… This thoroughfare to savings is What Larry Bossidy of Allied Signal says about Purchasing… This thoroughfare to savings is broad and fast -yet so unsexy that even seasoned managers pass it by. www. propurchaser. com

What William Marx, Executive VP of AT&T’s Telephone Products, says. . . Purchasing is What William Marx, Executive VP of AT&T’s Telephone Products, says. . . Purchasing is by far the largest single function at AT&T. Nothing we do is more important. www. propurchaser. com

Opportunity Knocks The Internet is powering a Knowledge Revolution which Purchasers (busy as they Opportunity Knocks The Internet is powering a Knowledge Revolution which Purchasers (busy as they are) can exploit to drive down costs, and make a profound difference to the bottom-line. OPEN THE DOOR! www. propurchaser. com

To Obtain Your Free Membership www. propurchaser. com/CAM/ Click ‘Free Trial’; complete the form To Obtain Your Free Membership www. propurchaser. com/CAM/ Click ‘Free Trial’; complete the form (90 seconds). www. propurchaser. com