Step 1 Project Theme Theme Emerson Engagement Strategy

Step 1: Project Theme: Theme Emerson Engagement Strategy - The objective of this initiative is to deploy a focused engagement strategy enabling the continued growth and improvement of the Emerson Supply Chain and efficient use of resource time. Step 2: Boundaries: Supply Chain Strategy (True North), OTM and Operations Continuous Improvement Roadmap (CIR), Operational Activity and Projects (A 3) Step 3: Grasp the Situations: Current State : Overview of Today’s Engagement Strategy: Daily Call scheduled for 30 minutes, Monday – Friday Topics covered include: • Daily action item list • Cycle Time Report • Emerson Share. Point Tickets • Jira Tickets Observations: • Discussion is tactically focused • Single item work session vs. multi item update sessions • Unable to accurately gauge priority of items • Meetings often run over scheduled time • Inefficient use of resource time • Multiple Non-standardized tools • Good value in learning through broad communication Opportunity to: • Align actions with most critical SMART Targets • Align actions towards a broader strategy • Work tactical items off-line • Focus meeting on critical tasks / Next Steps • Align on resource requirements • Opportunity to define owners of specific topics • Preserve solutions development through cross-team leverage • Educate and communicate to broader team through initiatives Gaps: • Define True North Vision and Smart Targets • Define Key Initiatives • Build Continuous Improvement Roadmap • Deploy tools for streamlining communication • Perceived Lack of Global Engagement & Standardization • Create depth and leverage of Subject Matter Experts SIC: EMS Sponsor: L Warner Location: Global Team Name: Emerson Engagement Team Leaders: D Sorg, A Berkowitz Team Members: A Berkowitz, R De. Young, N Gan, R. Hermes, F Ibarra, R Lake, N Meisner, M Noellsch, A Oestreich, S Olsen, A Quatrano, F Ross, C Scott, B Sher, D Sorg, J Touzon, M. Williams Date: 1/18/13 WIP Step 6: Implementation: Sub-team Meeting 1/17 Output: Strategic House & SMART Targets - DRAFT Step 4: S. M. A. R. T. Targets (metrics): # Target Goal A B C Continuous Improvement Roadmap (CIR) - DRAFT Step 5: Action Plan (Kaizen Newspaper): # Action Owners Date Status 1 Kick-off call team 1/13 Complete 2 Identify key stake holders and leaders for each meeting topic, True north sub team Team 1/13 Complete 3 Draft True North & SMART Targets Sub Team 1/18 Complete 4 Align team on True North & SMART Targets Team 1/21 Complete 5 Translate True North into Draft CIR Adam 1/21 Complete 6 Transition to on-going CIR Management Team 1/21 In transition 7 Schedule re-occurring followup calls Adam 1/21 8 Post CIR to Share. Point Location Brian 1/21 9 Team to add this weeks actions to next 7 days Team 1/24 Step 7: Lessons Learned: • Lessons the team learned? ? ? Step 8: Parking Lot / Future Concerns: • Future Issues? ? ? • Concerns? ? ? Step 9: Cost Savings & Calculations:

True North Vision VISION Develop Leaders of Supply Chain Solutions that Move and Improve the World MISSION Deliver value to our business units by establishing a Supply Chain platform to improve Speed, Reliability, and Cost through Maximizing Organizational Leverage, Providing Flexible Regional and Inter-continental Solutions, and Minimizing the Impact of Increasing Frequency of Shipment and Support Efforts to Improve Customer Service Levels. SUPPLY CHAIN SYSTEM Supply Chain Planning & Design Sourcing & Contract Management Supply Chain Execution Invoicing & Payment Lean Global & Enterprise Wide Total Landed Value Strategic Alignment Agile / Flexible Optimized & Integrated Predictive Compliant Trust Open Aligned Flexible Leveraged Defined Win-Win Tactical Planning Meet the Plan Right Part Right Qty Right Place Right Time Right Price Plan vs. Actual Timely Accurate Complete Paperless, No Touch Traceability Terms / Strategy INFRASTRUCTURE PEOPLE • Motivated • Skilled • Critical Thinkers • Team • Leaders • Change Agents • Core Values • Realized Potential PROCESSES • Lean • Repeatable • Standardized • Simple • Documented • Measurable • Embraced • Current INFO/ DATA • Integrated Enterprise Wide • Accurate • Available • Timely • Comprehensive • Relevant • Standardized SYSTEMS • Integrated Enterprise Wide • IT Architecture Strategy • Real-time visibility • Flexible • Supports Processes Performance & Compliance Monitoring Simple Relevant Real-time Balanced Defect Identification Root Cause Analysis E es L P ipl nt M c e A n i EX g pr lopm ic g e n i e v t id de tra u G ort r S p ea se p su f 1 -y Hou o ASSETS • Lean • Continuous Flow • Fully Utilized • Flexible • Variable / Transactional • Strategically Positioned PARTNERS • Collaborative • Flexible • Lean Culture • Proven Sustainability • Driving Value • Progressive INNOVATION – STRATEGY – COMMUNICATION – INTEGRATION

2013 Emerson Global Logistics Top Brand Value Delivered Exceptional Service Innovative Thinking Profitable Growth. MISSION Deliver value to our business units by establishing a Supply Chain platform to improve Speed, Reliability, and Cost through Maximizing Organizational Leverage, Providing Flexible Regional and Inter-continental Solutions, and Minimizing the Impact of Increasing Frequency of Shipment and Support Efforts to Improve Customer Service Levels. MAJOR INITIATIVES Global and Regional Mode Teams A. B. C. D. Drive Competitive Tension through e. Sourcing Leverage utilization of Marquee Providers Migrating to Transformational Bidding Reduce leakage Digitizing the Supply Chain A. Drive data standardization throughout the global organization B. Launch Supplier Connectivity Program, Full Electronic Communication with Suppliers C. Expand Scope of OTM / Global Rate Engine (GREa. TR) D. Deploy Next Generation of Audit Payment . A. Conduct Company-wide e. Sourcing transportation bid to include 50% or $330 M in Spend B. Increase monthly Marquee provider spend to 45% or greater C. Develop a weighted provider service factor and apply to annual bid response evaluation and award criteria D. TBD Safety = S, Engaged Customers = EC, Engaged Employees = EE, Adaptable Products = AP, Lean Process = LP Safety W Supply Chain Optimization A. B. C. D. Implement Air Load Control Tower Implement RSCO Control Tower Implement Ocean Control Tower Mitigate cost impact of Higher Frequency of Shipment and Inflation E. Decouple Freight Cost Embedded in Material Costs F. Deploy Mexico cross dock solution . . I P SMART TARGETS A. Map/Modify 100+ ERP Systems A 1 Deploy Measure of Supplier ETH Compliance B. Implement 30 Suppliers C. Implement GREa. TR EU 2014, China/India 2015 D. Reduce / Eliminate Billing Errors, Paper Bills and Auditing Fees Leadership Integrity Commitment A. Capture 80% of freight under management through the air load control tower by Q 4 ’ 13 B. Capture 100% of network Volume by Q 3 ’ 13 C. Capture 100% of volume by Q 4 ’ 13 D. Achieve Mode Shift and Consolidation Savings run rate of $5 M by Q 4 ‘ 13 E. Decouple $5 M of annual Freight Embedded in Material Costs in 2013 F. Implement two Mexico Cross-Docks Excellence

2013 Emerson Global Logistics Top Brand Value Delivered Exceptional Service Innovative Thinking Profitable Growth. MISSION Deliver value to our business units by establishing a Supply Chain platform to improve Speed, Reliability, and Cost through Maximizing Organizational Leverage, Providing Flexible Regional and Inter-continental Solutions, and Minimizing the Impact of Increasing Frequency of Shipment and Support Efforts to Improve Customer Service Levels. MAJOR INITIATIVES Air Load Control Center RSCO A. Implement Air Load Control Tower B. Mitigate cost impact of price Inflation C. Savings Programs A. Award provider utilization B. Decouple Freight Cost Embedded in Material Costs C. Air and Parcel Mode Shift D. Gear up to Deploy Airfreight consolidation to mitigate cost impact of higher frequency shipments E. Spot bid process F. Service Level Selection G. NA Match Pay Improvement D. Measure and Improve OTD E. Improve carrier communications Ocean Program A. Migrate RSCO Control Tower A. EU B. NA B. Implement X-dock strategy C. Enable transformational bidding strategy D. Develop high volume outbound solution E. Improve program functionality and align with Perfect Execution A. Improve end-to-end visibility through the x-dock B. Enable selection of lowest total cost carrier A. Implement Ocean Control Tower SMART TARGETS A. Capture 80% of freight under management through the air load control tower by April’ 13, 100% by September ‘ 13 B. Reduce e. Sourcing cycle time from 375 days to under 60 days C. Savings Achievement: 1. 08 m Total Savings A. Achieve $360 k savings in 2013, $2. 09 m in 2014 B. Achieve $160 K savings in 2013, $1. 1 m in 2014 C. Achieve $110 savings in 2013, $900 K in 2014 D. Develop plan to achieve $376 K in savings 2014 E. Achieve $80 k saving in 2013, $270 K in 2014 F. Achieve $140 k saving in 2013, $330 K in 2014 G. Achieve $TBDk saving in 2013, $TBDK in 2014 D. Develop plan to Increase OTD from 91% to XX% (Program Freight) E. X% of on-time pick-up and arrival status reported within 2 hours Safety = S, Engaged Customers = EC, Engaged Employees = EE, Adaptable Products = AP, Lean Process = LP Safety A. Transition 100% of active freight under management to the RSCO control tower by April ’ 13 B. Complete 6 multi-modal X-docks in US, Mexico and EU A. Complete analysis of 1 st X-Dock in EU by FY Q 3 ’ 13 (June) B. Complete analysis and implement 1 st X-Dock in Mexico September ‘ 13 C. Expand US WC X-Dock to include freight outside the ocean program April ’ 13 D. Achieve $5 m Annual run rate saving by September ‘ 13 C. Develop program metrics that support transformational bidding – September ‘ 13 D. Increase LTL Program participation to 80% – TBD E. Drive towards Perfect execution A. Enable integrated X-Dock solution – April ‘ 13 B. Implement best total cost carrier – April ’ 13 C. Planned Delivery Need-by Date April ‘ 13 Leadership Integrity Commitment Excellence A. TBD