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The Mustang Process…

Mustang Innovation

2010

William Jones

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Introduction to Mustang Mustang Innovation provides comprehensive cost reduction programs to

companies across the US, Canada and Mexico. Our team of Subject Matter Experts (SME’s) brings in-depth understanding of the cost drivers in their areas of expertise and offers a fresh approach to manufacturing cost reduction and resource optimization.

Through the application of unique should-cost modeling programs, strategic sourcing & spend analysis, e-business techniques and our knowledge of the markets driving the cost categories, our SME’s help leading manufacturing companies realize millions of dollars in hard savings.

We understand the art of negotiation and the fundamentals of profit, and we use this knowledge to benefit our clients in the areas of packaging, direct component sourcing, logistics & transportation, and outsourced services.

Our goal is simple: extract maximum value for our clients, while providing them with sustainable processes to support their long-term goals.

We are not generalists. We bring focused resources with the credentials and documented successes to support our methods.

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Topics for Discussion

Confidentiality The Litmus Test Timeline Fee Structures The Subject Matter Experts Next Steps

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Confidentiality

Mutual Non-Disclosure Agreement (NDA) Legal, binding protection for client

information & for Mustang Mustang will provide standard

NDA Client may submit their own NDA

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The Litmus Test Initial Data Gathering – benchmark &

basis for savings estimation Per Category of Spend, supply the

following: Specifications Current pricing by item Current annual usage by item in

descending order Current supplier list by item Total, annual category spend Note any special circumstances, ie.

warehousing, special orders, VMI programs in place, etc.

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Timeline

Data gathering, Item Detail Form – 3 to 5 weeks, depending on condition of information

Construction of appropriate cost model or other strategic method and Request for Quotation/Proposal (RFQ/RFP) - 3 weeks

Possible negative impact if specialty items included

Supplier Information & Research – 30 days

Site Audits – Internal & Supply Base - 3 weeks

Supplier interviews – 3 to 4 weeks

Final Decision 120 days from start of project

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Fee Structures Flexibility is Key – tailored to the needs of the Client

Quick-strike analysis = no fees Daily rates

• $2k per day Senior Director• $1.5k per day Junior Director

Project-based fees Fee in Fee in 90 days Fee upon completion Percentage of save Example:

• Budgeted savings $1.2 million– Fee in $53,000.00– Fee in 90 days $26,500.00– Fee completion $26,500.00 if budget is achieved– Success fee of 12% on all over $1.2 million in save for one

year• Expenses billed separately

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The SME Team

William Jones – Founder, Sr. Managing Director, SME Packaging – corrugated, flexible, cartons, printed & non-

printed media, packaging engineering services POS – corrugated, metals, wood & design services Sales – brand development, positioning, advertising

Field Jones – Managing Director Administration – cost model construction, formulations, data

mining Packaging – spend analysis, supplier research

Lecia Laswell – Subject Matter Expert (SME) Direct components – raw ingredients (food, pet food),

commodities hedging, market analysis, strategic sourcing Indirect materials & Services - marketing services, MRO,

logistics, warehousing & inventory management, e-business Mike Parkinson – Subject Matter Expert (SME)

Packaging – chemical engineering, quality control, product innovation

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Proposed Next Steps

Completed NDA Completed Item Detail Form Data Analysis & Potential Savings Signed Project Agreement Bring the Value to the Client

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References

Details available upon request