Company Name Logo Project Name Date EXAMINE ENHANCE

Objectives and Key Questions Objectives • Determine the best value chain strategy for. .

Strategy Trade-Offs (Delivery Time) Strategy Footprints Key Performance Metrics E L P M A

. . . manufacturing strategies offer a ~. . . % cost reduction in

The … strategies are more sensitive to transportation costs than the … Strategy E

VAM Costs are the key contributor to the savings in … and … strategies

The insignificant differences in … inventory is due to … E L P M

A ton of carbon emissions trades at € 23. 65 ($ 35. 50) in

Summary of Key Performance Metrics E L P M A X E Copyright ©

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Company Name & Logo Project Name Date EXAMINE. ENHANCE. EXECUTE

Objectives and Key Questions Objectives • Determine the best value chain strategy for. . . products Identify various value chain strategies and determine if any yield significant benefits over others • Key Questions • • What is the optimal final assembly and distribution strategy? Which value chain initiatives will provide additional improvements? Copyright © 2009. Flextronics. All Rights Reserved 2

Key Inputs Product logo Customers & Demand • Demand in COGS is ~$. . . B • • Products Product 1: …K items; ~$ …M product 2: …K items; ~$ …M The products are … Split by Regions: US. . . %; EU. . . %; APAC. . . % Product 1 Product 2 Customers are in USA, Europe and APAC - … largest cities in USA, … countries in Europe, … countries in APAC Operations • • • Transportation: • • • . . . by Air locally by road Copyright © 2009. Flextronics. All Rights Reserved Weight … kg Pallet size … … Cost & Finance Inventory: • FG: … DOI • Components: … DOI • • COGS $… $… 3 Total Cost is broken down by Material, Value-Add, Logistics Costs Logistics Cost is broken down by inventory, transportation and warehousing Indicative transport rates and times Inventory Rate of 15% which covers capital and noncapital costs (including obsolescence, mark-downs, depreciation, insurance)

Strategy Trade-Offs (Delivery Time) Strategy Footprints Key Performance Metrics E L P M A EX Includes inventory cost and transportation Average inventory in end-to-end supply chain Delivery time from hub to customer Green House Gas Emissions (CO 2) Copyright © 2009. Flextronics. All Rights Reserved 7 Product logo

Strategy Trade-Offs (SCRT) Product logo Strategy Footprints Key Performance Metrics E L P M A EX Includes inventory cost and transportation Average inventory in end-to-end supply chain Supply Chain Response Time Green House Gas Emissions (CO 2) Copyright © 2009. Flextronics. All Rights Reserved 8

Executive Summary Product big logo • The … Strategies offer lowest Total Cost and savings of ~…% as compared to … Strategy • SCRT increases by ~… days in the Hybrid strategies as compared to a … strategy • … strategies offer more flexibility to supply chain with increase in Total Cost • … with more of a low cost manufacturing concentration is only <. . % more expensive than the … strategies (… is more cost effective with Asia fulfilling demand for EU whereas in … fulfills demand for EU) Copyright © 2009. Flextronics. All Rights Reserved 9

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