SCOR

1. SCOR The Journey at Imation Presented by: Brad Fitzgerald Supply Chain Director Imation Data Storage & Information Management 1

2. “This is Imation” 2

3. SCOR the Journey at Imation • Enlightenment • Analysis • Structuring • Establishing the Foundation - Phase I • Supply Chain - Phase II • Supply Chain - Phase III and Beyond 3

4. SCOR the Journey at Imation • Enlightenment • Born of 3M July 1997 • Need to build a new identity and new core competencies one of which is supply chain • Our old ways will not work • What is supply chain? • Timing is critical • Change is inevitable • We need a vision • Can not invent the wheel. Go find it. Learn from others

5. SCOR the Journey at Imation • Enlightenment • We find the wheel -- SCOR • Summer ‘96 Newco becomes a founding member of SCOR • Validation of SCOR • Our needs are the same as others • Beginning to get buy-in by key supply chain managers within Imation • Adopt SCOR • Focus our time on understanding where we are? why? what to do? 5

6. SCOR the Journey at Imation • Analysis • Benchmarking 1996 “Integrated Supply Chain Benchmarking Study” • Internal collaboration • Integrated SC training begins • Heightened awareness of the gaps • Champions emerge • 1997 & 1998 The ERP Years • Benchmark Stop process • Benchmark Motorola process • Benchmark Dupont DSO • Benchmark sourcing • Ongoing utility of the ‘96 study - Cherry Picking • Keeping integrated SC visible 6

7. SCOR the Journey at Imation • Analysis • Benchmarking 1999 “Integrated Supply Chain Study” • Expand internal collaboration • Study teams evaluate our performance vs. industry • Brainstorming to develop potential action plans • Full circle heightened awareness • ‘99 operational performance gauged against benchmark

8. SCOR the Journey at Imation • Structuring • December ‘98 we move all corporate supply chain functions into businesses • Businesses organize under one supply chain head -- plan, source, make, and deliver…globally • Businesses form integrated product management teams to manage their products globally

9. SCOR the Journey at Imation • Structuring From: Corporate (all global)Business (all global) Public Relations Marketing Finance Sales Human Resources R&D Information Technology Manufacturing Sourcing Supply Chain Planning Logistics Order Management

10. SCOR the Journey at Imation • Structuring To: Corporate (all global)Business (all global) Public Relations Marketing Finance (Tax, Auditing, AR&AP) Sales Human Resources (Training) R&D Information Technology Manufacturing/ Supply Chain Finance Human Resources

11. SCOR the Journey at Imation • Structuring Resulting focused structure per product family globally. Program Manager

12. SCOR the Journey at Imation • Establishing the Foundation - Phase I • January ‘99 we are now an integrated Supply Chain Organization made up of 80% of the personnel who have for the most part been in corporate staff roles • We must now learn how to act as an integrated Supply Chain Organization and perform accordingly • Build a team • Brainstorm integrated supply chain actions • Establish goals together • Measure performance • Achieve many smaller victories • Celebrate the successes • Keep SC visible throughout Imation

13. SCOR the Journey at Imation • Establishing the Foundation - Phase I • Key Actions in ‘99 • Co-located team together • SCOR training for all SC leaders • Established level I goals for • Service • Cost • Assets • Flexibility • Measure performance monthly • Presented results monthly to business leadership team • Service • Cost • Assets • Flexibility • Created corporate councils to cross talk between business areas

14. SCOR the Journey at Imation • Establishing the Foundation - Phase I Results: Level I Supply Chain Metrics Service 50%  Cost 25%  Flexibility 50%  Assets 30% 

15. SCOR the Journey at Imation • Supply Chain - Phase II (2000) Our mission is to repeat or exceed 1999 performance improvements The Process: • Establish supply chain strategic goals • Establish quarterly level I goals to meet the strategic goals • Utilize benchmarking ‘96 & ‘99 to establish stretch • Brainstorm action plans to achieve the level I goals • Formalize effort in a program office

16. SCOR the Journey at Imation • Supply Chain - Phase II (2000) Lead a process bringing together program management with supply chain management to develop the SC strategic goals

17. SCOR the Journey at Imation • Supply Chain - Phase II (2000) • Established quarterly SC goals globally for: Service - On-time - In-full - Perfect order fulfillment Cost - SCOR % to sales - P&L supply chain Assets - DSO - DOS Flexibility - Cycle time for stock replenishment - Int’l OTIF replenishment

18. Definition • Project Charters • Scope • Objectives • Schedule • Milestones • Dependencies • Organization • Resources • Results Opportunity Identification PROJECT SIZE Year 2000 Planning Q1 Q2 Q3 Q4 Deficiencies Strategic Quick Hits Strategic Business Improvements Strategic Business Improvements Strategic Quick Hits BENEIFT Deficiencies & Strategic Quick Hits SCOR the Journey at Imation • Supply Chain - Phase II (2000)

19. SCOR the Journey at Imation • Supply Chain - Phase II (2000) Imation Supply Chain Process Map P1 P1.1 P4.1 P2.1 M1.3 M1.4 M1.5 P2.3 P2.4 S1.1 S1.2 S1.3 P1.3 P1.4 Deficiencies Strategic Both P1 P4 D1.5 D1.10 D1.3

20. SCOR the Journey at Imation • Supply Chain - Phase II (2000) Project Mapping to Supply Chain Process D1.8 Receive Product Deficiency ProjectsStrategic Projects • Retail OTIF • DC Capability Utilization • Oracle 11i • Finished Goods Consignment • Returned Goods Policy • Lights Out • Returned Goods Asset Recovery • Returned Goods Policy (CARE)

21. SCOR the Journey at Imation • Supply Chain - Phase III and Beyond • In August of 2000 we will have a full integrated SC performance assessment against our 2000 plans • We will identify how we will close any performance gaps this year • We will identify the strategic goals for 2001 • In September and October we will identify what will be required to achieve the strategic goals establishing the program plans for 2001. • In November and December we will reinvent our SC program office for 2001.

22. SCOR the Journey at Imation • In Conclusion • Supply chain has moved from relative invisibility from our past (1996) to at present a vital role for today’s companies performance. • The impact of our work is seen from Wall Street, the board of directors, the Imation leadership team to each employees bonus checks. • Supply chain must become a core competency at Imation if it’s not already. And we must keep it there. • SCOR has and is showing us the way.