Meeting Agenda & Council Structure Overview

1. Meeting Agenda & Council Structure Overview Applied Materials, host Austin, TX May 17-19, 2010

2. Meeting Agenda

3. SCRLC Vision/Mission • Definition:Supply Chain Risk Management (SCRM)The practice of managing the risk of any factor or event that can materially disrupt a supply chain whether within a single company or spread across multiple companies. The ultimate purpose of supply chain risk management is to enable cost avoidance, customer service, and market position. • Our Vision: Lead world class manufacturing & services supply chain firms to share and influence supply chain risk management best practices. • Our Mission: • Create a framework to identify and share best-practices to deliver world class performance in supply chain risk management • Raise awareness and advocate supply chain risk management framework externally • Create an engagement model to proactively influence standards and regulations across industries and their related organizations/councils

4. ISO 31000

5. Alignment of Tracks to ISO 31000 Security/Regulatory Standards & BP Risk Assessment BCP Crisis Management Resiliency

6. 2010-2011 SCRLC Work Calendar May 2010 Oct 2010 Jan 2011 May 2011 • Review and finalize council structure • Review and finalize deliverable content • Review and finalize maturity model self-assessments • Deep dive on track best practices • Align on council and track objective, deliverables, leads/members • Finalize documentation process • Maturity model self-assessment results drive 2011 SCRLC meeting agendas • Define best practices communication plan (internal and external)

7. Track Sessions: Direction • Validate and update high-level track objective(s), lead, and members • Define value proposition, vision, mission • Include what has been done and what is planned • Validate and update track deliverables: • Collect completed best practices • Determine process to link back to ISO 31000 • Prepare for: • Best Practices WG’s recommendation to integrate track deliverables • January 2011 SCRLC Meeting: Sharing track best practices

8. Track Sessions: Attendees • STANDARDS - RM • Leader: Glen Meskimen, AMAT • Lance Solomon, Cisco • Patrick Nowatzky, Rolls Royce • SECURITY / REGULATOYR– RM • Matagorda Island L1C10 • Leader: • Ken Kongismark, Boeing • Bob Ricketts, Teradata • Jeff Beck, Genzyme (phone) • Robert Munyon, Genentech • Robert Larson, DHL • RISK ASSESSMENT – RM • Southside Café B131 • Leader: • John Brown, Coca Cola • Elizabeth Carroll, John DeereTaylor Wilkerson, LMI • Mudit Bajaj, Jabil Circuit • Nancy Moore, RAND • RESILIENCY – RM • Lake Livingston L2B5 • Leader: • Chris Patterson, GE • Dave Pollard, FedEx • Stephen Fecho, Merck • Grover Thurman, Foxconn • CM – RM • Devils Hollow L1D5 • Leader: Randy DiGirolamo, FedEx • Sandy Chen, Cisco • Joe Pelayo, AMAT • April Decker, AMAT • BCP – RM • Lake Casa Blanca L2B5 • Leader (interim): • Jennifer Williams, Foxconn • Beverly Williamson, J&J • Raelene Wong, AMAT • Allison Fujii, Boeing • Jane Khoury, Cisco (phone)

9. Current Track Objectives Risk Assessment Objective: Best practices for performing a risk assessment and impact analysis in the supply chain Resiliency Metrics – metrics for recovery time objectives in the supply chain. Supplier Resiliency, Product Resiliency, Node Resiliency (Internal and external suppliers) BCP Objective: Assess your internal recovery capabilities and assess your suppliers’ recovery capabilities - Internal: Business Processes within your company - External: Sourcing and Logistics Resiliency Objective: Implementing, developing and driving projects that improve resiliency - Including; Existing and New Products, Existing and New Supply Chains (transportation, manufacturing, logistics) • Incident Detection & CM Objective: Develop Best Practices for Supply Chain Incident Detection and Crisis Management Regulatory Objective: Get information out there to shape policy and inform policy makers and partner with an organization that can lobby policy makers. 2: Provide input to the ISO standard development team. Best Practice Sharing with the council. Governance Objective: To provide recruiting, meeting coordination, and administrative support to the council • Standards & Best Practices Objective: • Provide non-regulatory framework for collecting, developing, and implementing best practices for risk and resilience management • Drive and influence standards to improve risk and resilience management • Provide guideline of best practices document • Influence assessment standards Security Objective: Risk minimization – best practices for prevention, avoidance, deterrence security threats in the supply chain Intermodal Supply Chain Security – expanding on the ISO28000.

10. Current Track Objectives/Deliverables

11. Track: SCRLC Governance • Objective: To provide recruiting, meeting coordination, and administrative support to the council • Deliverables: • Track Leaders: • Lance Solomon, Cisco • Dave Pollard, FexEx • Track Members: • John Brown, Coca ColaKaren Juhl, BoeingKen Kongismark, BoeingRobert Larson, GenentechChristopher Patterson, GEErin Thomoson, EI

12. WG: SCRM Best Practices & Standards Development • Deliverables: • Internal: • Evaluate ISO31000 and gather member feedback on the applicability of this standard to our objectives and approach for addressing risk in our supply chains – Complete as of Feb 2010 • Determine how to apply ISO 31000 to supply chain risk and resilience management • Develop process for defining cohesive track deliverables and for reviewing/finalizing track deliverables • Deliver a supply chain risk and resiliency maturity model framework • Document SCRM guidelines of best practices of council member companies in a standard framework • External: • A strategy to influence standards and how to engage with external orgs. • Determine what and how to publish externally • Objective: • Provide non-regulatory framework for collecting, developing, and implementing best practices for supply chain risk and resiliency management. • Create an engagement model to proactively influence standards and regulations across industries and their related organizations/councils. • Work Group Lead: Glen Meskimen, App Materials • Patrick Nowatzky, RR • Casper Hunsche, SCC • Lance Solomon, Cisco

13. Best Practices & Standards: Profile

14. Best Practices & Standards : Deliverables

15. Best Practices & Standards : Actions

16. BCP and Recovery Plannng: Profile

17. BCP and Recovery Plannng : Deliverables

18. Security/Regulatory Track Proposal Vision/Mission/Deliverables/Value Proposition/Objectives Lead/Members

19. In Scope Describe relevant supply chain security programs, supply chain requirements, and track proposed changes Describe best approaches for monitoring regulatory initiatives that create potential supply chain risk Define supply chain security best practices Define use of open source intelligence reports to identify supply chain risks Contingency planning/continued operations in post-incident scenarios Describe latest technological solutions to mitigate supply chain security risks Monitor international regulations and policies impacting supply chain security Out of Scope Import/export compliance regulations or policies (inco-terms) Security/reliability risks to supply chains from non-human sources Security/Regulatory Scope

20. Security/Regulatory Value Proposition • Minimize risks from: • Complexity of issues related to security/regulatory requirements • regulatory compliance with existing regulations • Unknown impacts of new regulations • Losses/impacts related to security gaps (theft, contraband, product tampering) • Proactively mitigate risks from counterfeit products • Bottom Line: Stakeholder confidence in your company, products, and supply chain

21. Security/Regulatory Vision • Not applicable: Part of the greater SCRLC Vision that the Tracks support

22. Security/Regulatory Mission • Provide SC security best practices and implementation guidelines to minimize, mitigate, and resolve SC security risks • Provide best practices/guidelines/ framework for monitoring and prioritizing potential SC risks related to proposed regulatory changes • Provide best practices and framework for influencing/shaping future regulations/policies

23. Security/Regulatory Deliverables • Key applicable regulatory/compliance requirements that affect supply chain security and supply chain risks • A framework describing “how to” analyze global regulatory risks related to various business models/industrial sectors by geographical region (and potentially how to shape/influence such regulations) • Best practices describing “how to” implement an effective supply chain security program to minimize risk

24. Security/Regulatory Objectives • Captured already

25. Security/Regulatory: Open Questions? • Who comprises the BP & Standards Working Group and the Governance track? • Future SCRLC acting in an advisory capacity to shape policy/regs?

26. Supply Chain Resiliency Track Proposal Vision/Mission/Deliverables/Value Proposition/Objectives Lead/Members

27. In Scope: Product, Supplier and Physical Network Resiliency Planning and Implementation for: Existing and New Products, Existing and New Direct Material and Services Suppliers, Existing and New Suppliers, Existing and New Networks/Network Design Out of Scope: Product Quality Process Demand Planning Process Resiliency Scope

28. Resiliency Value Proposition • Define filtering mechanisms to initiate supply chain risk assessments • Management visibility/capability to prioritize risks and needed mitigations • A framework for assessing points of supply chain risk throughout the life cycle of your products and/or the supply chain

29. Resiliency Vision • Captured in larger SCRLC Vision

30. Resiliency Mission • Provide a best practices implementation guide for SC resiliency which includes measures and treatment plans for total life cycle supply chain management

31. Resiliency Objectives I. Planning Setting Objectives, Targets and Establishing Resiliency Metrics • Decision process for mitigation vs. acceptance of risk, Trigger points for affordability vs. risk mitigation, Identify the design elements and decisions which impact resiliency. Identify the consequences of making optimal risk choices and acceptable mitigations for known risks. a. Product Resiliency: Component/Raw Material Mitigation – methods for prioritizing which products and components to mitigate. Component / Supplier Risk Attribute and Risk Rating Process: b. Physical Network: Node and network assessment, Identifying single points of failure. • - Internal Processes and Systems (Manufacturing Locations, Planning systems, B2B) • - External (CM, ODM/OEM, Supplier, Transportation, 3PL, Freight Forwarders, Customs Brokers) II. Implementation • Implementing, developing and driving projects that improve resiliency. Mitigation Techniques and Decision Processes, Techniques for Risk Management; Mitigation, Transfer Development of Product, Supplier and Network Recovery Playbooks a. Product Mitigation • - Existing Products • - New Products b. Physical Network Mitigation • - Existing Network: Network Optimization, Process for integrating resiliency into supply chain design, Process for integrating resiliency into capacity planning • - Network Design c. Supplier Mitigation

32. Resiliency Deliverables • Define Best Practices for Supply Chain Resiliency • Standard Questions for Resiliency as part of the BCP Process. • Recommended Tools and Processes for conducting data collection and assessment of the supply chain nodes • Proposed implementation processes and procedures • Guidelines for defining metrics and criteria to determine effectiveness of a supply chain resilience program based on each company’s business model

33. Resiliency Open Questions? • Who comprises the BP & Standards Working Group and the Governance track? • Future SCRLC lobbying to shape policy/regs?

34. Crisis Management Track Profile

35. CM Track Deliverables * = per team availability

36. CM Track Deliverables (cont’d) * = per team availability

37. CM Track Deliverables (con’td)

38. Risk Assessment Track Applied Materials, host Austin, TX May 17-19, 2010

39. Risk Assessment: Profile

40. Risk Assessment: Deliverables

41. Existing Track Structure

42. Track Alignment Existing Tracks

43. Proposed SCRLC Structure

44. Next Steps Complete existing track work for next quarterly meeting Existing track work focused on best practices Best practices form the foundation for Product, Implementation, and Communication tracks At next meeting, realign council to new tracks Identify new track leaders Identify volunteers for each track

45. Master Track Roster