Multinational Companies

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Multinational Companies Supply Chain
Opportunities In China
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• Julian Turnock
• Sourcing Director Emerging Markets ??????????
• Global Procurement ????Integrated Supply Chain,
  Motorola ???????????

26th September 2007
Motorola celebrated 20 years in China and 15
years in Tianjin in Sept 2007
2007?9?,????????????20?????????
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Motorola, A Truly Global Company
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2006 66,000 employees 42.9 billion in
revenue 22 increase over 2005 4.1 billion on
RD gt 50 of sales outside of the USA
2006 66,000 ??? 429?????? ?2005???22 ????41?
?? 50???????? ???
Were everywhere our customers need us!
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Motorola 2006 Global Sales
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Motorola Businesses
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Motorola Products / ???????
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Typical Products Produced In China
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Mobile Devices
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Cellular Network
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History Of Motorolas Supply Chain In China
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• Tianjin Manufacturing Operations / ??????
• First largest manufacturing complex in China
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• Established on March 25, 1992 - 2007 marks the
  15th anniversary
• ???1992?3?25?, 2007???????????15??
• Businesses Mobile Devices Cellular Networks
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• Products Cellular phones infrastructure
• systems telecom components
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Supply Chain Milestones In China
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July 17, 2006, the 200,000,000th handset
produced in the Tianjin Factory
2006?7?17?,????2??????
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Motorolas Supply Base In China
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?? 70??????????????
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Motorolas Supply Base In China
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ISCs 6 Key Priorities Are Critical to Achieving
Best-in-Class Performance
Key Priority
What does it mean?

• Organization and practices to achieve customer
  focused Best-in-Class performance

Execution Excellence

• One Motorola approach to supplier collaboration
  and cross business procurement leverage

Deep Supplier Partnerships

• Footprint and product flows to optimize cost and
  service performance, with lean/best practice
  sharing across sites

Manufacturing Logistics Optimization

• Pervasive deployment of quality principles
  across all businesses Back to Basics with
  Breakout Capabilities

Quality Renewal
Common / Leveraged IT Systems

• Leveraged IT spend, and investment only in
  systems that cement best in class processes

• Support structure, culture and metrics to support
  and further Best-in-Class performance

Organizational Efficiency
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Global Procurement Responsibilities
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• The goal of the Global Procurement Function is to
  deliver a world-class supply base to the
  businesses which is tightly integrated into the
  supply chain
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• Global Category Leaders manage the supply base to
  create a sustained competitive advantage for
  Motorola via cost, flexibility, quality, and
  technology
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Category Managers Areas of Responsibility
Category Management
Category Strategy Planning
Supplier Relationship Mgmt

• Supplier selection
• Component negotiations
• Supply assurance
• Preferred parts list
• Performance metrics
• SCT co-leader or member
• Cross category alignment
• Intra-function coordination

• Supplier Performance
• Agreement negotiations
• Issue resolution
• Supplier / MOT integration
• Supplier / MOT Executive relations

• Strategic planning
• Technology Planning
• SCT planning / mentoring
• Cross ISC BU planning

Establish mid-long term goals plans to achieve
Achieve short-mid term financial operational
targets
Ensure successful Supplier Alignment to MOT needs
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Procurement Strategies / ????

• Methodology
• Partner with world class suppliers who offer
  Motorola a competitive
• Cost Quality Service - Technology
  Capacity Global Support
• Sourcing Category Strategies Diversity
• As a key element of Motorola's long-term
  supplier strategy, our Category Mgrs
  aggressively seek out diverse suppliers
• Once a diverse supplier engages with Motorola we
  strive to develop a
  relationship that is mutually beneficial

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Procurement Strategies / ????

• Processes
• Drive category strategies/supplier selection via
  Rapid Sourcing Initiative
• RSI is fact-based 2 to 3 year commitment
  quarterly reviews
• Consolidates the number of suppliers leverage
  global relationships
• Supplier Agility
• Fact based approach with suppliers using value
  stream mapping
• Improve delivery cycle time
• Improve up-side flexibility
• Consistent global procurement processes

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Supplier Engagement / ???

• Communication
• Communication Sponsorship
• Deep supplier partnerships (one of the 6 ISC
  objectives)
• Annual supplier seminars
• Executive sponsors
• Quarterly business reviews
• Annual supplier surveys

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Supplier Engagement / ???

• Supplier Training Development
• Motorola University offers world class training
  programs for suppliers
• Procurement lead training
• Agility Process Training
• Corporate Social Responsibility
• Interactive specific business process training
  etc.

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Corporate Social Responsibility Program
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Business Conduct Expectations
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Corporate Social Responsibility Program
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• A Leaders Of The Global Initiative / ????????
• Were working together with other industry
  leaders to develop a common approach and the
  tools to manage corporate responsibility (CR)
  more effectively
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• We have joined industry leaders in the global
  push for higher standards of business ethics and
  environmental sustainability
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Thank You!
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