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Key Initiatives for Inflation Containment in ATX Procurement for FY09

This document outlines essential initiatives for controlling inflation within the ATX Procurement team for FY09. Key strategies include the reorganization of the sourcing team by commodity, vendor price renegotiations to achieve substantial cost reductions, and inventory management improvements through renegotiating Minimum Order Quantities (MOQ) and reducing lead times. Performance metrics will focus on on-time delivery (OTD) and quality measurements (PPM). Effective vendor management, including monitoring delivery performance and contract coverage, is crucial for achieving our financial objectives.

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Key Initiatives for Inflation Containment in ATX Procurement for FY09

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  1. Razvan,Exhibit 109: M’l Inflation Containment

  2. Razvan,Net Material Inflation

  3. ATX Procurement – Key Initiatives FY09 • New Sourcing team organization ATX (Amiens&Cluj) • – based on commodity • Cost reduction - Vendor price renegotiation – Ex 109 • - Sourcing projects - Ex120 • Inventory reduction: - Renegotiate MOQ • - Reduce Lead-time • Delivery & Quality performance measurement • - OTD & PPM monthly tracking and vendor follow up • Improve Vendors DPO • Contract coverage • - New vendors & Top 30 vendors

  4. Procurement Org Chart – ATX Amiens&Cluj Steven Call EGS Sourcing Director Rick Holley Operations Director Amiens, FR Ion Goia Plant Manager Cluj RO Razvan Danciu European Sourcing Mgr. Plastics&Rubber Catalina Bumb Casting&Stamping Jennie Crabot Electrical Caroline De-Bruyne Packaging, Glass&Others Denotes location: Dominique Nicolas MRO & Indirects Amiens FR Cluj, RO New Sourcing team - Reorganized by commodity

  5. Review ATX Top 30 vendors - Overview

  6. Vendor Annual Negotiation • Metal renegotiation - Casting & Stamped pats • 40 K € achieved with casting vendors Superkino and Capell • Ongoing negotiation • - Stamping parts: ZLKL, Mopos, Koopron • - Plastic molding: SIP • Potential upside 35K €

  7. Supplier Delivery performance – OTD % • OTD Target => 90 % • Action plan –OTD% Improvement • Communicate and review delivery performance with ATX vendors

  8. Supplier Quality – PPM Rejected • ATX Supplier PPM Rejected – Last 6 months Target = 500 ppm

  9. Raw Inventory – Supply Chain Activities

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