ISCM Planning Conference Call

1. ISCM Planning Conference Call January 21, 2003 James B. Rice, Jr. Director - Integrated Supply Chain Management Program Massachusetts Institute of Technology

2. Call Objectives • Primary • Review plans for Finance-SC event • Event design • Plans to enlist • Set date(s) • Discuss and review options for event themes 2003 • Refined options • Secondary • Discuss research agenda options • Update on program • Welcome back to TI and Tom Shields! • Harvesting • ISCM Update to Bellefeuille-Rice IEEE Paper? • 12-4-02 Meeting Follow Up: Update

3. Finance-SC Event • Input from sponsors • Event design • Small ISCM-only • Must have commitment to support and participate • Larger symposium with ISCM-only follow on • Balance broader commitment • Timing • Researcher interest

4. Event Planning 2003 • Themes? • Managing and Leveraging the Extended SC/SN for Advantage • Others: Outsourcing, Finance, Globalization, Coordination across multiple companies of the SC/SN • Options to consider • SC Response Intermediary Event • DoT Volpe Center • USCG, Customs, Leaders • SC Resilience • Operations Research Applications Session • Research Update at MIT • Supply Chain Visualization • Communications Industry Roadmapping • Management Innovations Event, May 2003 • ILP and Sloan Sponsored

5. 2003 Event Draft Update • Timing • 1Q • January 5-7 Executive Education • 2Q • Finance – SC Event, last 2 weeks of April • Joint event with Intel University Day for 2Q/3Q (Chandler, Az)? • ISCM Exchange Meeting (Research Review?) • 3Q • Joint event with Intel University Day for 2Q/3Q (Chandler, Az)? • Joint event with Lucent Affiliates Day for 3Q? • 4Q • ISCM Exchange & Key Contact Planning Meeting at MIT

6. Reference SlidesSummary – 12-4-02 Mtg

7. Meeting Review • Succeeded in • Review ISCM Program activities 2002 • Preliminary plan for events in 2003 • Identifying plan to develop the 2003 research agenda • Strong support among sponsors for some new ideas and approaches • Event proposed by P&G • ISCM sponsor composition • Higher level of interaction among sponsors • Long-term perspective and support for ISCM work • Work to be done • Develop plans for Finance-Supply Chain event Spring 03 • Refine plans for all 2003 events • Develop research agenda/investments

8. Follow Up – Program Structure • Program Structure and Size • Agreed desire to increase to 10, not more • High leverage for revenue from additional sponsors, also makes participation less sensitive to absence of individual firms at events • Agreed to refocus on longer-term commitment • Will work to develop a simple (if possible) agreement calling for multi-year (3 years) support • Annual payment, but multi-year commitment to fund • Require a clause that allows sponsors to opt out if business conditions call for suspending support • Effectively, this is an agreement in principle that obligates the firm only for the single year • Key point is to think longer term and invest in longer term, higher impact work.

9. Follow Up – Additional Sponsors • Specific Companies in each industry • 3rd Party or Outsource Contract Manufacturer • Automotive Supplier or OEM • Retailers • Company to provide an international perspective • Also – potentially ISCM sponsor customers and/or suppliers • Need to identify how to engage and enlist additional sponsors • Role of ISCM sponsors

10. Follow Up – Event Planning • Agreed to continue with Quarterly event schedule • Potential annual theme for events • Current coordination with APL working • Part of each event with larger multi-sponsor group (including Affiliates Program in Logistics) • Ensure time at each event for ISCM-only discussion • Confirmed interest to maintain • Sponsor exclusivity • Focus on research • Identified interest in events that potentially profile sponsor supply chains/networks • Some events may be hosted at sponsor locations

11. 2003 Event Draft Plan • Consider annual theme • Managing and Leveraging the Extended SC/SN for Advantage • Others: Outsourcing, Finance, Globalization, Coordination across multiple companies of the SC/SN • Dates • 1Q • January 5-7 Executive Education • ISCM Exchange Meeting • 2Q • Finance – SC Event, last 2 weeks of April • Joint event with Intel University Day for 2Q/3Q (Chandler, Az)? • 3Q • Joint event with Intel University Day for 2Q/3Q (Chandler, Az)? • Joint event with Lucent Affiliates Day for 3Q? • 4Q • ISCM Exchange & Key Contact Planning Meeting at MIT

12. Follow Up – Research Agenda Ideas • Clockspeed sessions at sponsor sites • Value Chain Roadmapping • Engage Prof. Charlie Fine to apply Communication VC Roadmapping to other industries • A finance study across the industry roadmap? • Auto-ID Technology applications in SC • Study of preparing for system response • Upturn in market • Standardization of new technology that significantly increases demand for new equipment • Disruption in SC due to terrorism • Integration, coordination across the SC • SC Visualization Project – Application

13. Follow Up – Harvesting Research • Group agreed that harvesting (leveraging research learnings by applying to the business) is important and core work for ISCM • Suggestion that the group learn from IEEE paper on Harvesting and Knowledge Transfer • Potentially ISCM could expand the paper and enrich it to make it more useful within ISCM sponsors • Paper written Joe Bellefeuille of Lucent & Jim Rice

14. Summary • Lots of work to do • A newly energized sponsor group • Higher level of sponsors engaged • Clear need to build the group in numbers and long-term perspective