Supply Chain Best Practices Consortium Advisory Board Update

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Supply Chain Best Practices Consortium Advisory Board Update Executive Seminar Joint Advisory Board Breakfast September, 2006 1

Agenda § Recap 2006 progress § Highlight near term plans – content, reports, Dashboard § Preliminary discussion of 2007 plans § Brainstorming on long term opportunities and direction § Enrollment goals for 2007 § Advisory Board recommendations for 2007 Copyright © 2006 Supply Chain Consortium. All rights reserved. 2

Progress in 2006 To date in 2006, the benchmarking content and online toolset has been significantly expanded to include: § Over 3, 800 online queries that provide real time access to benchmarking data § An online Search tool that quickly identifies benchmarks on specific issues § Five new analytical reports § Expanded data content with two new functional areas available now and two more sections coming soon § The Strategic Assessment Dashboard due to come online at the end of Q 4, 2006. Copyright © 2006 Supply Chain Consortium. All rights reserved. 3

New Content in 2006 The new content added to the benchmarking process this year includes: § Order Fulfillment – Internet/Catalog: implemented on June 22, 2006 § Network Design and Optimization: implemented on July 22, 2006 § Sales Forecasting: web pages to be available on September 15, 2006; data entry available on September 29, 2006 § Supply, Distribution, Inventory and Transportation Planning: target availability of October 20, 2006 Copyright © 2006 Supply Chain Consortium. All rights reserved. 4

New Consortium Members in 2006 The consortium now includes 103 companies with over $1 trillion in revenue. New members this year include: ACH Food Companies, Inc. American Standard Companies, Inc. Aramark Corporation Kimberly-Clark Corporation Leap. Frog Enterprises, Inc. Levi Strauss & Company Avon Products, Inc. Limited Brands, Inc. Bear Creek Corporation Loblaw Companies Limited Brach's Confections, Inc. Chico’s FAS, Inc. Croscill, Inc. H. E. Butt Grocery Company Herbalife International of America, Inc. Hewlett-Packard Company Honeywell International, Inc. Ingram Micro, Inc. Insight Enterprises, Inc. Mervyn's Nordstrom, Inc. Stock Building Supply Tech Data Corporation The J. M. Smucker Company The Men’s Warehouse, Inc. Tootsie Roll Industries, Inc. True. Value Company Waterford Wedgewood, USA, Inc. Copyright © 2006 Supply Chain Consortium. All rights reserved. 5

Consortium Now Includes Over 100 Companies Copyright © 2006 Supply Chain Consortium. All rights

Benchmarking & Best Practices in 2006 The content implemented since the founding of the

New Content Priorities for 2007 As we move to provide complete coverage of the supply chain, what new content should we consider adding in 2007? Note: List of content options continued on the next slide. Copyright © 2006 Supply Chain Consortium. All rights reserved. 8

New Content Priorities for 2007 (continued) Copyright © 2006 Supply Chain Consortium. All rights

Future Vision What are your thoughts on enhancing the value delivered by the consortium? § New initiatives to broaden participation? § New features, content or tools? § Expanded training options? § Customized on-site sessions to deliver results? § New “out of the box” ideas? Copyright © 2006 Supply Chain Consortium. All rights reserved. 10

Industry and Segment Structure As membership expands, we are recommending that the industry and segment definitions used by the consortium be re-aligned. § Implement a more intuitive industry breakdown § Adopt common segment definitions across industries where appropriate to facilitate end-to-end supply chain analysis. § Enhance the filter capability to allow segment only scenarios. Copyright © 2006 Supply Chain Consortium. All rights reserved. 11

New Industry Alignment Retail Distributors/Wholesalers Consumer Products Manufacturers Industrial/Commercial Manufacturers Copyright © 2006 Supply

Enrollment Goals for 2007 For 2007, our enrollment goals and supporting initiatives are as follows: § Add 50 new consortium members. § Achieve a 90% renewal rate for current and former members. § Send a customized copy of the new Strategic Assessment Dashboard to every current and former member company. Copyright © 2006 Supply Chain Consortium. All rights reserved. 13

Advisory Boards in 2006 With the new industry alignment, the Advisory Boards would transition

Advisory Boards for 2007 To the following Advisory Boards and annual cycles in 2007:

Next Step We will be scheduling 1 -on-1 conference calls with each Advisory Board member after the Executive Seminar to get your thoughts on the ideas presented today and your insights into how the consortium can expand the value delivered to members. Copyright © 2006 Supply Chain Consortium. All rights reserved. 16

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