This document outlines a supply chain strategy to align the supply chain to business needs through initiatives like demand management, strategic sourcing, supplier excellence, continuous improvement, and lean principles. The strategy aims to achieve world-class customer satisfaction, global cost leadership, optimized supply base, long-term productivity, and waste reduction through practices such as forecast integration, best-value sourcing, on-time delivery, defect elimination, cost reduction, supplier development, electronic commerce, and pull-based inventory systems. The goals are 7% annual improvement and 38% overall improvement.

1. Supply Chain Strategy/VisionAlign The Supply Chain To The Needs Of The BusinessStrategyIntegrating with Ongoing InitiativesMaturity by Mastering the FundamentalsDemand Management Strategic Sourcing SupplierExcellence Continuous Improvement TPS/LeanSupply anticipates demand

2. S&OP and forecasts are integrated processes

3. World-class customer satisfaction

4. ERP “class “A”

5. Global Cost Leadership

6. Best-value sourcing

7. Optimized Supply-base

8. Long Term Productivity

9. On-time delivery

10. Defect elimination

11. Cost reduction

12. Supplier Development

13. Certified supplier base

14. Supplier Development

15. Supplier to Point-of-Use, VMI, e-Kanban

16. Electronic Commerce

17. Integrated logistics

18. Supplier pull systems

19. Entitlement inventory

20. Rate-based planning

21. Point-of-Use inventory

22. Waste ReductionResults7% AnnualImprovement38%ImprovementSupply Chain Strategies Tailored to Product Line Requirements