EGS Commodity Review Meeting October 19, 2007. Agenda. Stacy Rice â€“ Emerson PBL Bill Estes â€“ Supply Chain Overview Thomas Deboevre - ATX Mark Dâ€™Amico â€“ Procurement Overview Tracy Grever â€“ Logistics Jim Dimitri â€“ e-Kanban Clara Perez â€“ Packaging, Rubber Eileen McSharry â€“ MRO
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Agenda • Stacy Rice – Emerson PBL • Bill Estes – Supply Chain Overview • Thomas Deboevre - ATX • Mark D’Amico – Procurement Overview • Tracy Grever – Logistics • Jim Dimitri – e-Kanban • Clara Perez – Packaging, Rubber • Eileen McSharry – MRO • Jim Platt - CDCM • Natja Guzman – Plastics, NPD • Todd Gatti - CDCM • Charlie Chen – Ballasts, Electrical Parts, SOLA Buyouts • Alejandro Ramirez – Castings • Tim Bohnert - CDCM • Steven Call – Metals, Stampings, ECM Buyouts
Topics • Expectations • Key Initiatives • EGS Procurement Spend • 109 FR • Bridge to Current • KPI’s Major Commodities • E-Sourcing Overview • Sourcing Decision Tool Review
Key Initiatives • Drive supply chain improvement in concert with Procurement initiatives • Execute more effectively • Improve integration of operations team in sourcing events • Improve utilization of Emerson tool sets • Drive $26M+ through E-Sourcing for FY08 • Improve velocity of sourcing implementation through tighter project management • Utilize Sourcing Decision Tool to streamline supply chain and impact inventory reduction • Drive suppliers to next level of payment terms • Build cost savings and process improvements for MRO integrated supply solution • Localize supply base to manufacturing locations • Engage in e-kanban • On-board ATX and Elmira into MIN
FY07/08 Procurement Bridge $0 $5M $7M Metal inflation improves/VAT,RMB largely resolved; 3.1% or $5.3M in FY08
E-Sourcing PlanAggressive Plan across all Spend Categories Direct material +$1.5M for Alloy Die casting Logistics +$900k Indirect +$550k; Forklift trucks