Supply Chain Talent Research Survey Results Final – North America August 11, 2008

1. Supply Chain Talent ResearchSurvey ResultsFinal – North AmericaAugust 11, 2008

2. Agenda • Scope of Work Review • Survey Results • Demographic Data • Skills • Universities

3. Project Overview Underlying Issue and Focus of Work Many organizations are concerned about the lack of sufficient as well as trained supply chain talent. It is believed that industry or academia alone cannot independently solve the issue of establishing the functional standards or creating key cross university partnerships focused on teaching critical supply chain skills. Scope of Work Commissioned The Global Supply Chain Professional Development Committee commissioned AMR to develop, conduct and analyze a cross industry survey intended to highlight current organizational priorities, gaps, and opportunities for industry and academia to consider towards clarifying the requisite skills and competencies needed in educating a supply chain professional Work Conducted per Commission Survey jointly developed with committee Survey jointly advertised and promoted by the extended team through AMR client lists as well as the SCC, SCMR, CSCMP, CGT and other avenues Survey managed by AMR with 287 completed surveys collected via our 3rd party Vendor Survey data cleansed, aggregated and analyzed Presentation deck with graphics and tables developed for distribution

4. Demographic Data • Geography of Respondents • Industry Breakdown • Company Characteristics • Job Function • Job Level of Respondents • Span of Influence • Historical Hiring

5. Geography – Total Market Region Located N=287 S2. In which region of the world are you currently located?

6. Industry Breakdown – North America 212 completed surveys

7. Company Characteristics Total Revenue Total Employees N=212 S4. For classification purposes, approximately what was you company’s annual revenue for 2007? S3. Approximately how many full-time equivalent (FTE) employees are there in your entire organization, including all branches, divisions, and subsidiaries?

8. Job Function N=212 S5. What is your role or job function?

9. Job Level N=212 S6. What is your job title?

10. Span of Influence How Participate in Hiring Decision Span of Influence N=212 S7. Which of the following statements best describes your level of involvement in your company’s strategy for hiring supply chain management professionals? S8. Which of the following best describes your span of influence within your organization with respect for hiring supply chain management professionals?

11. Historical Hiring How Many Hired N=212 N=196 S9a. Has you company hired supply chain management professionals in the last 3 years? S9b. And how many have you hired?

12. Skills Section • Projected Supply Chain Design • Span of Control versus Performance (using Model Framework) • Critical Skills Priorities Now and in 2010 • Skills Desired versus Availability • Level of Competency Desired • Skills Available from the Current Talent Pool

13. Projected Organizational Design Q16a. Which statement represents your company’s manufacturing governance structure now? Q16b. Which will likely best represent your company’s manufacturing governance structure in 2010?

14. Major Stations of Attribute Model Defined

15. Span of Control and Performance: Using Model Framework Q1. Which of the following processes is your supply chain organization at your company responsible for? Q2a. Please rate the importance of the following SC processes to your company on a 1 to 10 scale where 1=not important at all and 10=extremely important. Q2b. Please rate your company’s performance on each of these on a 1 to 10 scale where 1=We do not perform well at all and 10=We perform extremely well.

16. Critical Skills Priorities: Now and in 2010 Q4a. In which of the following process areas do you currently have a critical need for SC talent? Q4b. And in which areas do you anticipate your company will have a critical need for SC talent in 2010?

17. Quality of Skills Has ALL the skills Level of Competency Desired vs. Available New Product Performance Measurement & Analytics Source Deliver Plan Skills Available Customer Mgmt Has SOME of the skills Make Technology Enablement Strategy & Change Mgmt Post Sales Support Governance Has VERY FEW of the skills Basic Leadership/Strategic Intermediate Advanced Skills Sought

18. Quality of Skills Level of Competency Desired Q6. For each SC process area, please indicate which level of competency(ies), if any, you are seeking to fulfill. (Asked only for areas for which have a critical need for SC talent now)

19. Quality of Skills Skills Available From The Talent Pool Q8c. You indicated that you reach out to Universities or colleges in search of new supply chain talent. For each of the following processes, please select the level of skills available from the talent pool offered.

20. University Section • Primary Sources of Recruitment • Supply Chain Stations Recruited • Regions Recruited From • Most Frequently Recruited Programs North America • Where Industry goes for SC Talent in North America by Station • Level Hired • Key Competency Station and Attributes

21. Primary Sources for Recruitment Channels for Recruiting Supply Chain Talent Q8a. For each supply chain process area below, please indicate where you go for new talent.(Multiple responses allowed)

22. Supply Chain Specialty Areas Recruited For At N.A. Universities Specialty Areas Sought N=136 For each University you identified, please indicate which of the processes or specialties you recruit for.

23. Regions Industry Recruits From Multiple responses allowed and percentages are based on total number of responses, not respondents. Q9. In which of the following regions do you reach out to universities or colleges in search of new SC talent for ANY of your SC process areas? (Multiple responses allowed)

24. Most Frequently Recruited Programs for SC Talent in N. America Q10-14. Please indicate which universities or educational institutions you reach out to in [region]. Select up to 5 educational institutions within each region using the pull-down lists N=167

25. Most Frequently Recruited Programs for SC Talent in N. America Q10-14. Please indicate which universities or educational institutions you reach out to in [region]. Select up to 5 educational institutions within each region using the pull-down lists N=167

26. Supply Chain Specialty Area Recruited For, By University Specialty Areas - Functional Q10-14. For each educational institution identified, please indicate which of the processes or specialties you recruit for

27. Supply Chain Specialty Area Recruited For, By University Specialty Areas - Enablers Q10-14. For each educational institution identified, please indicate which of the processes or specialties you recruit for

28. Recruits Hired by Level All Regions (N=149) In North America (N=132) Q10b, Q11b, Q12b, Q13b. For each University you indicated in [region], please indicate whether you go to that educational institution or college for undergraduate talent, graduate talent, or both.

29. Key Competency Stations and Attributes No.1 • Transportation, Strategic & Operational (76%) • Logistics Planning and Control (73%) • Warehousing, Strategic and Operational (56%) • Delivery Management (56%) • Inventory Management and Control (55%) • Third Party or Outsource Management (42%) Attributes and Interest Level (N=66) Deliver 79% Of all respondents had this station in their Supply Chain span of control No.2 • Demand Management (88%) • Inventory Planning and Optimization (84%) • Sales and Operations Planning (67%) • Modeling, “What-If” Scenarios (62%) • Capacity Management (55%) • Product Portfolio Analysis (34%) • New Product Management (34%) • Service Offering Development (20%) Attributes and Interest Level (N=86) Plan 71% Of all respondents had this station in their Supply Chain span of control Q15. For each of the following attributes within the [process area], please indicate where specifically you have a need for SC talent (Multiple responses allowed)

30. Key Competency Stations and Attributes No.3 • Development of Dashboards (77%) • Hierarchy of Performance Measures (65%) • Presentation and Reporting (59%) • Ad hoc analysis (56%) • Exception Management (50%) • Trade-off Management (38%) Attributes and Interest Level (N=66) Performance Measurement and Analytics 69% Of all respondents had this station in their Supply Chain span of control No.4 Attributes and Interest Level (N=69) Strategy and Change Management • Best Practice Analysis and Benchmarking (68%) • Change Management Techniques (62%) • Global Manufacturing and Distribution (57%) • Management Dashboards & Metrics (57%) • Lifecycle Management Strategy (52%) • Business Process Design and Vision (50%) • Process Integration (49%) • Globalization (48%) 69% Of all respondents had this station in their Supply Chain span of control Q15. For each of the following attributes within the [process area], please indicate where specifically you have a need for SC talent (Multiple responses allowed)

31. Key Competency Stations and Attributes No.5 Attributes and Interest Level (N=68) Source • Sourcing Strategies & Plans (71%) • Supplier Selection & Development (71%) • Total Cost Analysis (62%) • Supplier Collaboration (60%) • Relationship Management (60%) • Negotiation & Contracting (60%) • Risk Management (50%) • Needs Assessment (37%) • Order Management & Conflict Resolution (37%) 67% Of all respondents had this station in their Supply Chain span of control No.6 Attributes and Interest Level (N=53) Customer Management • Order Management (62%) • Relationship Management (60%) • CPFR/VMI (47%) • Customer Service(45%) • Collaboration Techniques (42%) • Negotiation Strategies (42%) • Sales and Distribution Interface (40%) • Joint Value Creation (40%) 50% Of all respondents had this station in their Supply Chain span of control Q15. For each of the following attributes within the [process area], please indicate where specifically you have a need for SC talent (Multiple responses allowed)

32. Key Competency Stations and Attributes No.7 Attributes and Interest Level (N=33) Make • Materials Management (79%) • Production and Inventory Control(73%) • Master Production Scheduling (70%) • Quality Management (58%) • Process Control (55%) • Product Conversion (55%) 45% Of all respondents had this station in their Supply Chain span of control No.8 Attributes and Interest Level (N=50) Technology Enablement • Planning & Execution Systems Management Selection & Implementation (74%) • New Technology Adoption (62%) • Enterprise Resource Planning System Management (60%) • Statistical Analysis Tool (58%) • EDI (50%) • IT Communications with Suppliers & Customers (48%) 44% Of all respondents had this station in their Supply Chain span of control Q15. For each of the following attributes within the [process area], please indicate where specifically you have a need for SC talent (Multiple responses allowed)

33. Key Competency Stations and Attributes No.9 Attributes and Interest Level (N=22) Governance • Organizational Planning (64%) • Business Controls (64%) • Risk Management (64%) • Training (64%) • Social Responsibility (46%) • Federal, Governmental Controls (36%) • Intellectual Property (32%) 34% Of all respondents had this station in their Supply Chain span of control No.10 Attributes and Interest Level (N=35) New Product • New Product Design Planning & Logistics Execution (Workflow) (66%) • Demand & Capacity Planning (63%) • Cross Functional Coordination with Ongoing Sales & Operations (64%) • Make Versus Buy Sourcing Decisions (37%) • Network Design (34%) • Postponement Strategies (31%) • Service Offerings (17%) 28% Of all respondents had this station in their Supply Chain span of control Q15. For each of the following attributes within the [process area], please indicate where specifically you have a need for SC talent (Multiple responses allowed)

34. Key Competency Stations and Attributes No.11 Attributes and Interest Level (N=25) Post Sales Support • Reverse Logistics (Returns Management (56%) • Service Parts Management – Predictive Modeling (39%) • Technical Service Support (39%) • End of Life Management (33%) • Maintenance, Repair and Overhaul (28%) • Warranty Management (17%) 27% Of all respondents had this station in their Supply Chain span of control Q15. For each of the following attributes within the [process area], please indicate where specifically you have a need for SC talent (Multiple responses allowed)