Navigating the Currents of Global Trade Management Graham RF Napier President and CEO, TradeBeam

1. Navigating the Currents of Global Trade Management Graham RF Napier President and CEO, TradeBeam The 2nd APEC E-Commerce Business Alliance Forum May 17-19, 2006 Qingdao, China

2. TradeBeam GTM Global Market Leader • 3000+ customers globally • 100+ countries with TradeBeam users • 90+% world trade regulations • 50+% Tier 1 global OEM automotive suppliers • $2+ billion in LC's processed annually • US Department of Homeland Security partner for OSC • China JV Investment PanPacifics

3. Global Trade Drives Competitive Advantage Drivers • Revenue growth requires finding new customers, regardless of location • Lower costs require cheaper sources of supply, regardless of location • Changes in government policies are paving the way for freer trade • Companies are outsourcing and not seeing results hit the bottom line “Long-term benefits derived from globalization will outweigh the short term setbacks.” Alan Greenspan, 2005

4. Global Trade Challenges • Gaining accurate and timely landed cost information • Managing Inventories and re-order sourcing • Decreased supplier performance Global Procurement • Volatility in supply impacting customer satisfaction • Regulatory export restrictions • Maintaining product and service quality with operational flexibility Global Sales • Increased inventory carrying costs • Timely and accurate shipment information • Delays and penalties for customs and trade violations Global Logistics • Extended working capital tied up in global operations • Trade Finance costs and discrepancies • Payment tracking and reconciliation Global Finance

5. Strategic Go-to-Market Plan Global Corporations Retail Industry ($1.04 trillion/yr) Auto/ Manufacturing ($0.73 trillion/yr) Hi-tech/Telco Life Sciences ($0.93 trillion/yr) Global Service Providers Global 5000 Global 5000 Global 5000 Global Banking #1 Global Trading Bank #1 Regional Trading Bank Global Logistics #1 Global Logistics Provider #1 US Logistics Provider #1 Global Ocean Carrier Global Governments #1 Exporting Government #1 Importing Government Billions of dollars of goods tracked and managed annually using TradeBeam Over 50% of Tier 1 Auto suppliers use one or more of TradeBeam’s applications Millions of parties are security screened annually using TradeBeam applications

6. GTM Application Suite

7. Transportation process varies by mode and route Pallet RFID Tag Carton RFID Tag Cellular & GPS Factory Inland Dray Port of Lading- Terminal Steamship Line Port of Discharge- Terminal Inland Dray Distribution Center Inventory Update Customs Clearance Booking Request Inventory Update Purchase Order Status Update Bill of Lading Status Update Status Update ASN POD Containers are loaded on ship Containers are loaded on ship Containers moved to port of lading. Containers loaded Final delivery Containers moved DC. Vessel at sea Flow of Goods, Funds and Information GTM Application Suite Dispute Mgnt Import Export Invoice Mgnt Letter of Credit Order Mgnt Parts Master Event Mgnt Document Mgnt Inventory Mgnt Trade Finance Reconciliation Remittance Source: TradeBeam Visibility is Critical to GTM Success

8. Global Trade Regulations Global Regulation Support • Over 90 percent of world trade regulations • 50+ Countries • Membership and leadership in 10+ associations • Over 60 years of experience • 12 foreign languages • Subscription services to over 200 trade data sources • Multiple Customs House Brokers Countries/Regions/Zones Supported

9. Business Success Study Global Retailer Reduces Inventory by 10 Days Global Business GTM Issues • Diverse sourcing locations • Common shipment delays • Reactive issue management • Rapid depreciation of manufactured items • Limited ability to increase off-shore manufacturing • $5 billion annual sales • 250m units sourced annually • Over 3000 factories overseas • Imports goods from over 35 countries • Time sensitive manufactured goods GTM Strategy • Proactive management of uncertainties around international shipments • Obtain product information and shipment visibility from all logistics partners • Enable electronic sharing of customs information with brokers prior to goods entering U.S. Client’s Actual Results • 10 days inventory reduction in first 18 months due to shorter lead times and certainty of goods location • Import transit times reduced by 6+ days through improved visibility and proactive shipment management • Operational efficiency in simultaneously reducing headcount while increasing shipments by nearly 50%

10. Business Success Study Global Auto OEM Meets Target Price for Production Global Business GTM Issues • Product classification inconsistency impacting duties paid • Lack of process automation with customs agents • Higher transaction and documentation costs • The lack of a unified audit trail for imports and re-exports • Lack of a unified analytics around trade compliance • Global automotive OEM • Creating a low-cost car for emerging markets • Partially built in Western Europe • Exported to emerging market for final assembly & sale GTM Strategy • Minimize trade compliance transaction costs • Maximize the advantage of preferential trade agreements in product design and sourcing • Accurately calculate duty rates, meet compliance requirements, and create and submit customs documentation Client’s Actual Results • Carefully managed duties, taxes, and tariffs to meet its target list price for Logan of 5,000 Euros • Lower broker documentation and processing costs from $200 to $20 per transaction in some cases • Purchasing managers understand where to source parts based on best possible duty rates and total landed cost • Decrease duty owed

11. Business Success Study Global Hi-tech Manufacturer Reduces Inventory by 30% Global Business GTM Issues • High inventory levels • Reduce inventory levels without suffering stock outs • Service levels performance issues • Medical equipment manufacturer • Michigan is replenishing inventory to UK and Japan • Locations include Puerto Rico, Germany & Switzerland GTM Strategy • Provide full visibility of demand and supply for Stryker and its vendors. • Manage direct material supply through the min/max replenishment process • Share forecast, consumption, shipping, and receipt information with suppliers for them to manage the replenishment Client’s Actual Results • Reduced direct material inventory by 30% • Reduced some finished goods inventory by 30-40% • Reduced expedited freight and stock outs of direct materials • Reduced supply chain administrative costs • More than 90% of Stryker’s direct material supply is now managed through the min/max replenishment process

12. Thank You! The 2nd APEC E-Commerce Business Alliance Forum Download Center • APEC Presentation • GTM Best Practices; Automotive, Retail, Hi-tech, CPG, Logistics • GTM Whitepaper Available at: www.tradebeam.com