Score More With Network Powered Sourcing

October 2013

Overview

Advantages of network powered sourcing Benefits of network powered logistics sourcing

Sourcing Management Products

Network Powered Sourcing

Sourcing Management

4

Elemica SmartLink Sourcing Management includes the following Products: • Self Service Bid • Supported Service Bid • Accelerated Sourcing • Assisted Strategic Sourcing • Strategic Sourcing • Collaborative Sourcing • Special Projects • Logistics Sourcing

Elemica Gained Extensive Category Knowledge By Executing Over 17.000

Sourcing Events Including Forward/Reverse Auctions,

Rfx And 650 Aggregation Events With Multiple

Customers.

The Total Volume That Elemica Brought To The Market Exceeds $28 Billions Of

Contracted Spend.

Elemica Category Knowledge

Elemica Category

Experience

Capital Equipment

(13%)

Direct Materials

(16%)

Indirect Materials

(24%)

Services Biz & Ind

(42%)

Surplus & Scrap Material

(6%)

Pigments

Promo items

Temporary Labour

Packaging Electrical Services

Storage Equipment

Fillers

MRO equipment & Consumables

Facility mgt Services; Janitorial, Cleaning, Security, Canteen etc

Industrial Waste Transport trucks

Utilities Travel

Co-generation

Laboratory Equipment

Chemicals

Office equipment & Consumables

IT Hardware & Software

Non-manufacturing Waste

Forklifts Trucks

Anti-Oxidants

C-parts & Tail End Spend

Optimization

Building & Landscaping Services

Surplus Parts, Raw Materials

& Inventory

Property & Plant Equipment

Marketing Services

Car leasing & Renting

Warehousing Transportation & Logistics PPE & working clothes

HR Services

Certification Services

Additives

Material Handling Equipment

Fire Protection

• Market • Customers • Tire/ Chemical or other Industries

Knowledge

• With Customers • Within Customer (Stakeholders)

• Suppliers

Communication • Process Oriented • Project Management

• Analytic Approach

Quality

• Company strategy • Intern. Challenges • Local Needs • Solutions • Suppliers needs

Understanding • Aggregation • Think out of the box • New services, reporting / reviews

Innovation

Sourcing Aggregation at Elemica

A UNIQUE and successful “market proof” approach: Elements which facilitate the Achievement of Goals

Aggregations produce savings and improved contract terms &

conditions that might not be otherwise available

Getting aggregations started is always challenging: • Effectively communicating opportuni-

ties to a large community is difficult • Disparate goals and differing priorities

are often a barrier

Aggregation & Collaboration Portal • Only Verified Users Can Log In

• The Content Adjusts To Each User Responsibility Area.

Elemica SourceLink Is A Customer Portal Designed To Leverage The Potential Of: • Category Knowledge • Aggregations • Sourcing Projects • Open Contracts

The Opening Screen Shows A Limited List Of Pipeline Projects And

Case Studies As Well As Customer Locations News Events And Round

Tables Are Announced Here

Knowledge & Opportunities at your disposal

The list contains 3 project types: • Prospect: projects under

definition. Can be joined • Ongoing: projects already

launched. Cannot be joined • Awarded: projects concluded.

They Might Be Open To Join (Open Contracts)

Case Studies Are Filtered By Geographical And Responsibility Area

A Logged-in User Can Search For Projects In His Responsibility Area And Learn More About Them A Customer Can

Propose New (Aggregation) Projects Anonymously

My Projects tab contains all the projects managed by the user and the relevant information including the Aggregation Room

Knowledge & Opportunities at your disposal

The Search Returns A List Of All The Projects And Documents Available On The Required Category

• Shorter cycle time: getting aggregation projects started faster thanks to structured communication

• Increased customer satisfaction through visibility into Elemica Sourcing Projects pipeline.

Increase Speed &

Value

• Availability of documentation about specific categories • Repository of reference projects for aggregation & collaboration and Sourcing Services in general

Knowledge Repository

• Collaboration initiated by customers and validated by Elemica • Aggregation rooms including meeting and document sharing • Analysis of aggregation interests to show trends in industry sectors or procurement areas. News and events.

Community & Trends

Advantages of Elemica SourceLink

Elemica SourceLink enhances the customers experience of Elemica and delivers value & benefits in the following areas:

Aggregation Opportunities

Domain CategorySourcing Project Description

(open for multiple customers to aggregate)Comments

Industrial Domain Utilities Energy & Gas generationDemand aggregation as well as Solar Power, windmills,etc

Industrial Domain Utilities Production Waste FFWD

Industrial Domain Utilities Plastic Pallets FFWDOne way plastic pallets should be pooled, reused or forward.

Industrial Domain Facility Mgt Cleaning ServicesIndustrial Domain Facility Mgt Catering ServicesIndustrial Domain Facility Mgt Vending Machines ServicesIndustrial Domain Facility Mgt Security ServicesIndustrial Domain Facility Mgt Industrial Hand Dryers Demand aggregation for washroom hand dryersIndustrial Domain MRO Polyethylene Foils Demand aggregation, eg stretch film, liners, etc

Industrial Domain MRO Forklift TrucksDemand aggregation including purchase, lease, maintenance etc

Industrial Domain MRO Forklift Trucks Service & MaintenanceMulti brand service suppliers when not part of lease conditions for maintenance, servicing, overhaul etc

Industrial Domain MRO Metal Racks/Storage Equipment

Industrial Domain MRO Metal StructuresNegotiate standardized pricing for all types of customized metal non-power equipment

Industrial Domain MRO MRO services Calibration, testing, certification, maintenanceIndustrial Domain MRO Industrial Hygene Analysis

Industrial Domain MRO MRO Consumables & C-parts mgtAggregating MRO commodities and move to manufacturer as well as local distributors

Industrial Domain MRO MRO LubricantsIndustrial Domain MRO Tailor Made Parts concentration Developing Best Cost Country SuppliersIndustrial Domain MRO Laboratory Equipment Spare parts maintenance and service

What’s your interest? Please check the aggregation projects that are of greatest interest to you. (see back of feedback form)

Network Powered Logistics Sourcing

Elemica’s Comprehensive Supply Chain Operating Network

Logistics Management

Sourcing Management

Customer Management

Supplier Management

PGI updates VMI, triggers PO

Ord

er c

onfir

mat

ion

trig

gers

ship

men

t

Supp

lier P

rofil

es

Data & Information Exchange Logistics

Management Sourcing

Management Data & Information Exchange

Source

Execute

Logistics Process

Source

Execute

SmartLink Logistics Solutions

Logistics Sourcing

Carrier Rate

Management

Road Transport Execution

Freight Invoice Managment

Extra Cost Collaboration

(ECTA code Exception Mgmt + Time Slot Booking/ Optimization)

Logistics Sourcing is changing

• Identify the As-Is situation gets easier • Ensure a reliable Logistics network

• Detailed visibility on the execution process.

• Validation process for the non-contracted services and related cost

Moving from Regional sourcing to Full

Network sourcing

Control on the additional cost

Getting visibility on the Non-priced

service elements

Business Values combining Logistics management with Sourcing management

Source

Execute

The Elemica Rate Manager contains current and historical rates and service parameters. It provides historical rate developments and is the basics for your carrier contract management.

The Logistics management suite provide all current and Historical data needed. Trend analyses gives insight on the what to expect for the near future.

Source

Execute

Execution data provides you all accurate shipping data including non-price factors such as transit times, pre-notice periods, change requests and other operational issues (ECTA-Codes).

The Elemica Rate Manager contains current and historical rates and service parameters. It provides historical rate developments and is the basics for your carrier contract management.

The Logistics management suite provide all current and Historical data needed. Trend analyses gives insight on the what to expect for the near future.

Business Values combining Logistics management with Sourcing management

Source

Execute

Keeping track of Freight Invoices and if applicable, assessorial costs you are able to validate negotiated / offered rates by 3PLs to check contract compliances.

Business Values combining Logistics management with Sourcing management

Execution data provides you all accurate shipping data including non-price factors such as transit times, pre-notice periods, change requests and other operational issues (ECTA-Codes).

The Elemica Rate Manager contains current and historical rates and service parameters. It provides historical rate developments and is the basics for your carrier contract management.

The Logistics management suite provide all current and Historical data needed. Trend analyses gives insight on the what to expect for the near future.

Elemica Logistics & Sourcing Solutions create Competitive Advantage

• Transportation costs 10-15% lower than average companies

• Building a more reliable and robust logistics network

• Grow Strategic Carrier partnerships

• Reduce sourcing efforts

• Eliminate shipping disruptions

• Reduce Work-Load on day-to-day business

• Improved KPI performance management

• Improved financial control.

Sourcing Management Products

Knowledge

Ongoing Elemica Sourcing Knowledge Development

White Paper

Spend Assessment

Sourcing Project

Training

• Sourcing Project • Spend Analysis • Benchmark

Execution

• Training • Consulting • Commodity Pack • White Paper

Knowledge

• SourceLink • Round Table

Community

Questions/ Comments

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