Supply Chain Risk Leadership Council (SCRLC): Governance and Next Steps

1. Supply Chain Risk Leadership Council (SCRLC): Governance and Next Steps Oct 3-4, 2007

2. Agenda Review & Introductions

3. Success Criteria Looking back: • Oct 06 - Members endorsed the Council and established governance. • Feb 07 - Locked scope and established tracks to accelerate meaningful results. • Jun 07 – The vision began to deliver conceptual valued results through the newly established tracks. This meeting: • TSMC stepped up as host • Each track will deliver valued results with practical learnings • Agreement on next set of milestones and SCRLC evolution

4. Agenda Review • Track Progression from June • Framework review and close out of framework track • Security / regulatory track reports • Metrics working session  moving from baseline to new • Supplier reliability survey results • TSMC risk overview & fab tour • International SOS pandemic presentation • SCRLC evolution, governance, communications

5. SCRLC Evolution

6. SCRLC Evolution • Have we met our objectives? • Bringing together a unique group of industry, academic and government leaders together to advance the discipline of SCRM • Providing Council members with actionable ideas and recommendations to integrate into their own risk management strategy • Creating a collaborative environment that inspires members to initiate scope and lead new initiatives and projects. • Encouraging proactive supply chain risk management planning from a 3-5 year perspective

7. SCRLC Evolution • Evolution of SCRLC – Option 1 • Continue as-is as stand alone supply chain risk focused Council • Pros – Independence, flexibility, control membership • Cons – Resource intensive to drive tracks, organize meetings • Tracks create additional deliverables, milestones • Determine ways to increase participation and output: • Promote ourselves in the industry • Sponsor a conference • Sponsor a track at a conference, e.g., CSCMP • Write a white-paper

8. SCRLC Evolution • Evolution of SCRLC – Option 2 Become a working group within a Supply Chain organization • Pros –Leverage additional resource & perspectives • Cons – Lose independence and control of membership, potential expense to join • Potential organizations: • Supply Chain Council • Institute of Supply Management • Corporate Executive Board Procurement Strategy Council • Stanford Global Supply Chain Management Forum

9. SCRLC Evolution • Evolution of SCRLC – Option 3 • Become a working group within an ERM organization • Pros –Leverage additional resources, members, new perspectives • Cons – Lose independence and control, lose focus on Supply Chain • Potential organizations: • Risk and Insurance Management Society, Inc.Business Recovery Manager’s Association (BRMA)Disaster Recovery Journal • Association for Contingency Professionals • DRI Institute for Business Continuity

10. SCRLC Commitment and Formation

11. Council Ground Rules Revisited • SCRLC Commitment - Regular attendance at major meetings • Academic - 1 out of 3 meetings per year • Gov't - 1 out of 3 meetings per year • Industry - 2 out of 3 meetings per year • Material participation in major meetings • Material participation in 1 or more tracks

12. Council Membership • ExxonMobile and MIT are no longer active • Nokia re-affirmed commitment • Cisco recruiting Toyota, Bank of America and World Customs Organization

13. SCRLC #5 and Beyond

14. Save the Date! Location: P&G office in Cincinnati, Ohio Dates: Jan15-16,2008 or Jan 29-30, 2008 Speakers: Propose to invite AMR Track case studies E2E facilitated drill

15. SCRLC Website

16. SCRLC Communications • Website (www.scrlc.com) launched Sept 2007 and will be complete by Nov 2007

17. SCRLC Communications • Log in • -User Id = your email • -Password = supplychain (lowercase) • Benefits • Threaded conversation regarding track material • Discussion board capability • Conference information and registration • Ownership can be transitioned

18. SCRLC Meetings Going Forward • Overall Council Meetings Frequency and Method • Move to 2x/year in person trips • Increase frequency of track meetings • Tracks • Framework track into “sustaining mode” • Maintain other 3 tracks • Add BCP/BCM/Crisis management track under Craig Babcock’s leadership

19. External Communications

20. Communication Proposal • In June the SCRLC agreed to wait until after October to “go public” • Phase I Recommended approach (Soft Launch): •   The following materials be created on behalf of the Council by Cisco Mfg PR to facilitate messaging delivery and message alignment when speaking to customers, at external speaking venues, etc. • a.  Key Messages:  What is core content we want to be relaying? Focus on thought leadership, unique make up of the Council. • b.  FAQs:  Guidance on responding to fundamentals about the Council (Why formed?  Why these members, etc.) as well as potentially sensitive questions (Will others be invited?  When can expect certain milestones?  etc.) • c.  1-3 Slides:  For members to use as needed in customer communications, as part of broader presentations on risk, etc. Focus on framework, importance of SCRM, etc. • Phase 2 Recommended approach: • Once at least one externally relevant milestone has been achieved, consider issuing a news release about the Council, its members, mission and momentum.