Total Cost of Ownership: Required Strategy for a Global Supply Chain Turnaround John Wilkerson, CPSM, SSMBB Bellwether Services [email_address] www.bellwether-services.com

Overview Operational Definitions Current State Future State Implementation Key Take Away References www.bellwether-services.com

Operational Definitions

Current State

Future State

Implementation

Key Take Away

References

Operational Definitions COGS - cost of goods sold S&OP - an integrated business management process SRM - spans all movement and storage of raw materials, work-in-process inventory, and finished good Supply Chain Planning Scope- ranges from marketing planning to packaging disposal Sustainability - is the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic , environmental and socia l challenges TOC - the combination if acquisition price of goods & services throughout the supply chain www.bellwether-services.com

COGS - cost of goods sold

S&OP - an integrated business management process

SRM - spans all movement and storage of raw materials, work-in-process inventory, and finished good

Supply Chain Planning Scope- ranges from marketing planning to packaging disposal

Sustainability - is the ability to meet current needs without hindering the ability to meet the needs of future generations in terms of economic , environmental and socia l challenges

TOC - the combination if acquisition price of goods & services throughout the supply chain

Current State Voice of Customer Shareholder Direction Executive Strategy Marketing Strategy Sales Data by Region Product Quality Company Culture COGS Supplier Capability Supply Chain Capability IT Resources www.bellwether-services.com

Voice of Customer

Shareholder Direction

Executive Strategy

Marketing Strategy

Sales Data by Region

Product Quality

Company Culture

COGS

Supplier Capability

Supply Chain Capability

IT Resources

Future State-Plan Customer Requirements Gap Analysis (Market – Disposal Analysis) Stabilize Planning Talent Engagement / Development Expand Capabilities (Insource v. Outsource) Communications Planning Sustainability Policy Development Project Management www.bellwether-services.com

Customer Requirements

Gap Analysis (Market – Disposal Analysis)

Stabilize Planning

Talent Engagement / Development

Expand Capabilities (Insource v. Outsource)

Communications Planning

Sustainability Policy Development

Project Management

Implementation Expand Supply Chain Capabilities Metrics (COGS) Sales & Operations Planning Supply Relationship Management (TOC) Talent Development Demand Planning (COGS) Supply Planning ( COGS) Communications Plan Culture Change www.bellwether-services.com

Expand Supply Chain Capabilities

Metrics (COGS)

Sales & Operations Planning

Supply Relationship Management (TOC)

Talent Development

Demand Planning (COGS)

Supply Planning ( COGS)

Communications Plan

Culture Change

Key Takeaways Focus on Customer Understand Culture Limitations Communicate Near Term Success Stories Focus on Costs & Service Lead by Example, Engage & Develop Talent Don’t get Mired in the Weeds Collaborate with Supply Base ( Total Cost of Ownership ) www.bellwether-services.com

Focus on Customer

Understand Culture Limitations

Communicate Near Term Success Stories

Focus on Costs & Service

Lead by Example, Engage & Develop Talent

Don’t get Mired in the Weeds

Collaborate with Supply Base ( Total Cost of Ownership )

TOTAL COST OF OWNERSHIP RESOURCES: HTTP://WWW.FORECASTERS.ORG HTTP://EN.WIKIPEDIA.ORG/WIKI/SALES_AND_OPERATIONS_PLAN#S.26OP_BEST_PRACTICES HTTP://WWW.AMAZON.COM/GP/PRODUCT/TAGS-ON-PRODUCT/1934947369/REF=TAG_DPP_CUST_EDPP_SA HTTP://GREEN-SUPPLY-CHAIN.BLOGSPOT.COM HTTP://WWW.BELLWETHER-SERVICES.COM/ABOUTUS.HTM About the Presenter: John Wilkerson is Vice President and Global Supply Chain Practice Leader at Bellwether Services, a Strategic Management consultancy providing High Performance solutions across numerous sectors including; Pharmaceutical, Medical Device, CPG, Food, Beverage, Automotive, Logistics, Chemicals, Private Equity, and Electronics as well as Defense, and Healthcare. Wilkerson is a respected industry expert and has extensive operations, analysis, and due diligence experience in Supply Chain, Sourcing, Manufacturing, IT, and Operational Excellence experience. He is a Certified Professional in Supply Management and Lean Six Sigma Master Black belt www.bellwether-services.com

About the Presenter:

John Wilkerson is Vice President and Global Supply Chain Practice Leader at Bellwether Services, a Strategic Management consultancy providing High Performance solutions across numerous sectors including; Pharmaceutical, Medical Device, CPG, Food, Beverage, Automotive, Logistics, Chemicals, Private Equity, and Electronics as well as Defense, and Healthcare.

Wilkerson is a respected industry expert and has extensive operations, analysis, and due diligence experience in Supply Chain, Sourcing, Manufacturing, IT, and Operational Excellence experience. He is a Certified Professional in Supply Management and Lean Six Sigma Master Black belt