Join the PURCHASING KNOWLEDGE REVOLUTION

1. Join the PURCHASING KNOWLEDGE REVOLUTION Prepared for CAM Canada November 22, 2004

2. Purchasing is a very busy job shorter planning cycles (AKA flexible manufacturing) unreliable information (late, missing, incomplete) smaller inventories (less safety stock) fewer support people

3. This is the real Job Increase the value received for the dollars we spend

4. No one can be effective at their jobif they’re always fighting fires. NOT EVEN FIREMEN !

5. Urgent Work vs Non-Urgent Work • Urgent work happens when: • Materials & services are late, short, defective, or missing • Surprise shortages occur due to unexpected high usage • Surprise shortages occur due to inventory reporting errors • Suppliers’ declare force majeur • Non-urgent work happens when: • We improve our marketplace & technical knowledge to increase negotiating effectiveness • We seek out value-adding alternatives: new suppliers or materials • We team up with Engineering, R&D, Production, & Suppliers to optimize materials, specifications & processes

6. What’s the major difference? • Non-urgent work adds value! • It’s what our customers, shareholders, senior managers, stakeholders, and WE really want us to do. • ‘Demonstrating profound value to the bottom-line’ means finding time for non-urgent work.

7. The Joy of Escaping • from the • Everything is UrgentZone • Carve out time. • Drive down purchase costs.

8. Escaping from theEVERYTHING IS URGENT Zone Manage one of the major time traps - Price Hassles

9. How to spend less time haggling & hassling Track suppliers’ input costs- then tie what you pay to their costs.

10. so too do your suppliers’ costs to produce the goods & services you buy

11. The best suppliers see advantage in linking prices to costs They actually prefer to compete in a transparent arena

12. Suppose you’ve been able to make a deal… How do you maintain it? Where do you find the time?

13. Purchasers already need to keep track of so many things Components Packaging Utilities Services MRO Ingredients Transportation

14. The task of keeping tabs onsuppliers’ inputs is daunting to say the least

16. Enter the Internet www.propurchaser.com

17. For the first time in history INFORMATION can seek out PEOPLE!

18. Even better, you can filter information to meet your personal requirements A perfect tool for busy people

19. This is nothing short of a Purchasing Knowledge Revolution

23. 13%

24. -12%

37. Advantages of using the Internetto track your suppliers’ inputs • Increases negotiating leverage • Widens span of price control • Delivers cost transparency • There are more good reasons • to use this approach…

38. Five More Good Reasons for tracking suppliers’ inputs Attract low-cost producers Strengthen the supply-chain Reduce suspicion and acrimony Benefit sellers as well as Purchasers Enable automatic price reductions

39. But best of all It frees up Purchasers’ precious time.

40. What can Purchasers do with their new-found time?

41. Devote more time to value-adding work… Improving marketplace & technical knowledge to increase negotiating effectiveness Seeking out value-adding alternatives: new suppliers or materials Teaming up with Engineering, R&D, Production, & Suppliers to optimize materials, specifications & processes

42. What Larry Bossidyof Allied Signalsays about Purchasing…This thoroughfare to savings is broad and fast -- yet so unsexy that even seasoned managers pass it by.

43. What William Marx,Executive VP of AT&T’s Telephone Products,says... Purchasing is by far thelargest single functionat AT&T.Nothing we do is more important.

44. Opportunity Knocks The Internet is powering a Knowledge Revolution which Purchasers (busy as they are) can exploit to drive down costs, and make a profound difference to the bottom-line. OPEN THE DOOR!

45. To Obtain Your Free Membership www.propurchaser.com/CAM/ Click ‘Free Trial’; complete the form (90 seconds).