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Strategic Sourcing

Strategic Sourcing. Rosemont,IL 16 – 17 Feb 2010. Buyouts – Lead Time Reduction Actions. Astec Philippines FY10 Est. Spend $1.2M. Situation: SDN (A’s) – high demand GL series – Make to order – unpredictable

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Strategic Sourcing

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  1. Strategic Sourcing Rosemont,IL 16 – 17 Feb 2010

  2. Buyouts – Lead Time Reduction Actions Astec Philippines FY10 Est. Spend $1.2M Situation: SDN (A’s) – high demand GL series – Make to order – unpredictable Electronic component supply has been unpredictable 1st half this year Strategy/Goal & Status: SDN – Hold 2 wks fg in Philippines (Astec) June 09 SDN - Hold raw per forecast for all parts with >4 wk lead time June 09 Parts on order GL Series – hold raw – committed to 6 wk mfg lead time June 09 Parts on order GL Series for Drop in orders (Rush – short jobs) Work with Novel / Astec US partner to quote Complete Build up label inventory for quick delivery March 09

  3. Buyouts – Lead Time Reduction Actions GRE S.China FY10 Est. Spend $1.2M Situation: Labor issues in south China and increase in orders put GRE behind Exxx Series – “Heavy” Transformers – cost prohibited to ship air SLD/SLS Series – Linear Power Supplies – easily shipped Strategy/Goal & Status: Meeting weekly and prioritizing Shop Build 24/7 Production Ongoing Manufacture E500/E750/E1000 units in Rainsville Complete To negotiate 2 wks FG for A items to handle spikes May 09 Re-evaluate after new year. If labor continues to be an issue and safety stock not put in, quote moving < 500 KVA transformers to NA

  4. Buyouts – Lead Time Reduction Actions MMR S.China FY10 Est. Spend $1.6M Situation: Generally good situation – MMR completes assembly - holds 2 Mo inventory in TX w/ one week ship times Orders up on “C” items – Slow response out of MMR Baymaster FY09 378 pcs FY10 YTD 702 58607444001 FY09 4,680 FY10 YTD 3,278 No planning for components - waiting 6-8 wks for hardware – not stock in China Can move to NA…. Full move penalty approximately 35% - $600K Strategy/Goal & Status: Meeting to review inventory position Ongoing Ordering to hold 3 months of component inventory in China June Key part – 58607444001 Running backup tool at Pace February

  5. Buyouts – Lead Time Reduction Actions Jinan N.China FY10 Est. Spend $1.4M Situation: A’s steady demand across multiple customers B’s and C’s – drop in demand on many parts No current “backup suppliers” Strategy/Goal & Status: Up’ed inventory on B’s and C’s Ongoing Identified two US based potential suppliers to “flex” demand May 09 Anvil – US Mfg – Reviewing and quoting SCI – Holds Inventory & will sell – to quote

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