ELUPEG Mission and Objectives

1. ELUPEG Mission and Objectives “To be the catalyst and provide the forum, environment and access to tools to facilitate supply chain collaboration world wide”. “We aim for all supply chain stake holders to generate greater collective commercial, economic and social benefit than ever previously imagined, by identifying and acting upon opportunities to work together more easily and more effectively.”

2. Contents • Background – European Opportunities • Background – Vision versus Reality • The Vicious Circle • The Formation and Development of ELUPEG • ELUPEG Progress – 2005/06 • ELUPEG – The Future • ELUPEG – The Code of Conduct • ELUPEG Contact details

3. Background – European Opportunities • Major European opportunities and challenges for manufacturers and other Pan-European businesses were created by the EC92 concept - ’A single European market enabled by the free movement of goods, money and people’. • Manufacturers and brand-owners redefined their markets and offerings to seize the market opportunities, and developed new supply chain strategies, typically embracing the concepts of global / European sourcing, manufacturing, inventory deployment, warehousing and transport, enabled by greater reliance on outsourcing and the development of business-wide systems for supply chain planning and control. • Logistics service providers saw the opportunities for themselves in supporting these business developments and promised to provide European capability for a one-stop-shop for the provision of cheaper, faster, more efficient, more reliable, seamless, simpler, more secure and easier transport and logistics.

4. Background – Vision versus Reality • The shippers have experienced major challenges in implementing these strategies,both internal (e.g. organisational structure/resistance to change) as well as external (e.g. availability of appropriate systems and transport solutions). • Challenges are being met but the promise of the LSP’s has still to be delivered and the lack of provision on Pan European Transport and Logistics is now a significant barrier to the implementation of European Supply Chain strategies. • Given the key issues described above, Alan Waller and John Doran gave a presentation on board the Oriana for the Logistics Forum 2001 to tell the story as they saw it - the history, the current situation and the potential future developments. • This was backed up by a survey which confirmed and sharpened these issues and the potential solutions. • The results of the survey showed that the satisfaction levels of users, providers and enablers with the various aspects of European Logistics were between 40% and 60%.

5. Providers are locked in a vicious circle • Low margins • High competition Who will helpthem break out? • No investment • No risk-taking • Commodity services • Cost focus • No innovation • No pro-activity The Vicious Circle

6. The Formation and Development of ELUPEG • At the request of Oriana 2001 delegates, a group was assembled to tackle the issues on a joint collaborative basis - this was the origin of ELUPEG. • Members engage in collaborative action-based projects to improve European Logistics. • Open to all users, providers and enablers of European Logistics services - but members must engage in collaborative projects, which are intended to be self-funding. • Representation must be at appropriate and senior level. • Over 600 European companies are registered to receive ELUPEG progress reports. • Full membership is currently approaching 100 major businesses, with users representing some 20% of the logistics spend in Europe. • Run by members for members, with independent chairman plus steering group of user/provider/enabler leaders and secretariat. • User driven but democratic. • Non-profit-making with modest meeting/joining fees to cover costs.

7. ELUPEG Progress • Projects initiated todate: • Legal Framework • Confidentiality Agreement • Code of Conduct • Data Protection Agreement • Constitution • Memorandum & Articles of Association.

8. ELUPEG Progress : Established Collaborative Working Groups High Tech / Electronics Automotive CPG / FMCG Roadmap for Collaboration Chemical / Industrial

9. ELUPEG – The Future • Collaborative Working Groups will generate commercial partnerships to the mutual benefit of participating companies. • Lessons learned will be shared with the wider ELUPEG community. • Future projects will include; Standards – Information / KPI’s / Processes Systems / IT Transport / Warehousing physicals Directory of Services (User access only) Synergies from membership growth will drive additional project opportunities. Group meetings are important touch points & can drive project milestones BUT the action & benefits must be driven by the Collaborative Working Groups outside these meetings. ELUPEG IS NOT A SPECTATOR SPORT

10. ELUPEG – Code of Conduct • No selling - but it might happen. • No criticism of competitors. • No breach of confidence. • Open discussion. • Be constructive. • Promote the group. • Share learning. • Network with other networks. • Ensure fair play. • Get results – Win / Win / Win.

11. For Further Information on ELUPEG • ELUPEG Chairman-Alan Waller • Secretariat-Caren Tomkins (carentomkins@bishamconsulting.com) • Steering Board • Derek Bell - Bisham Consulting • Brian Bolam - OmPrompt • Buddug Williams - Shakespeares • Malcolm Pope - RHM • Peter Surtees - Kimberly Clark • Tom Wahnsiedler - Translogistica • Advisory Committee • Mark Bedeman – Accenture • Bas Hoogenbergh – Samsung • Andrew Spratt – Composite Global Logistics • Nigel Wakeling – Georgia Pacific • Website – www.elupeg.com

12. COLLABORATIVE WORKING GROUPS • CPG/FMCG - Peter Surtees (Kimberly Clark) • Automotive - Andy Spratt (Composite Global Logistics) • High Tech - Bas Hoogenberg (Samsung) • Process Collaboration - Brian Bolam (OmPrompt) • Chemicals • Temperature Controlled Foods • Russia