SCRLCGovernance Track Deliverables

May 5, 2008

Track Members

• John O’Connor Cisco• Erica Agiewich Cisco• Tony Aloise P&G• Gary Page BoA• Brent Meyers FedEx

Track Scope(as discussed at January SCRLC meeting)

• Set vision, mission, objectives, direction• Determine how we engage/react to legislation

that impacts supply chains• Skills and resources• Senior management engagement

Track ObjectiveProposal

• Set vision, mission, objectives, direction

Track DeliverablesProposal

1. Define/renew Vision, Mission, Objectives and Direction

2. Define Policy and Principles3. Define Organization Design requirements

Vision, Mission, ObjectivesTrack Deliverable #1

• Vision: Create a cross-industry council comprised of best practices manufacturing & services supply chain firms that will work together to develop and share supply chain risk management best practices.

• Mission: Work together to create best-practices supply-chain risk management standards, processes, capabilities and metrics to be adopted within our respective organizations, and that may be adopted within our respective industries (“industry integrators”).

• Objectives: - Develop & share best practices for supply-chain continuity planning, assessments &

reporting.- Develop & share best practices for supply chain risk management analytics

capabilities, tools and roadmaps.- Develop & share best practices for supply chain risk mitigation programs, models &

metrics.- Develop and share best practices crisis response capabilities & processes.

Track Deliverables #2Define Policy and Principles

• Define policies and principles• Define decision-making authority• Determine if we should engage in the

development of legislation

Define Policies and principlesTrack Deliverable #2

Governance Council Structure • 3-5 member companies serve on Governance Council (GC) for a period of 2 years. After

the first year, a half of GC is replaced. The following year, the remaining half is replaced. This allows some stability to GC.

• Membership to GC is based on self or SCRLC nomination, followed by approval by SCRLC member body.

• Once company leaves GC, a one year waiting period is required prior to rejoining the GC.

• GC elects its chairperson.

Define Policies and principlesTrack Deliverable #2 (continued)

Policyo Membership

– Establish membership criteria and administers the process. Key criteria are:– No competing companies within industries.– Executive management participation.– Non-disclosures agreement in place as to sharing of information.– Active participants and contributors in information tracks and GC.

o Information tracks:– Define tracks and its scopes.– Determine the best channel to communicate track findings.

o Events/Meetings– Establish:– Frequency and timing.– Content guidelines.– Host companies responsibilities.

Define Policies and principlesTrack Deliverable #2 (continued)

Operations (Administration of Policy):o Membership

– Oversee new member invitation and selection.– Ensure current members meeting obligations.

o Information Track Management– Ensure tracks are operating within defined scope.– Oversee communication and publishing of results.

o Event schedules and agenda– Establish schedules.– Ensure a host company meets obligations.– Cancel meeting if needed.

o Communications– Oversee website maintenance.– Maintain library and track deliverables and meeting presentations (website

postings).– Maintain GC meeting notes and action items.

Track Deliverable #3Define Organization Design Requirements

• Define requirements in terms of desired results, culture, tasks, info, etc (see attached for framework).

• Make recommendations and develop content on how to engage senior management.

Define Organization Design RequirementsTrack Deliverable #3 (work-in-progress)

Business Situation High complexity, high change Global supply chains World at risk (terrorism, natural disaster, governmental regulation)

Results Outcome Measure: Revenue at Risk ($) Process Measures: Risk Assessment (1-10)

Strategies Customer service is #1 Culture Rick mitigation is everyone’s job

Tasks Structure Single-point accountability within a supply chain People End-to-end supply chain experience Rewards Decision Making Risk analysis tools quantify risk

Risk assessment built into new initiatives Information Analysis using existing ERP data

For Discussion

• Where does “determine how we engage/react to development of legislation that impacts supply chains” belong? Maybe the Regulatory Track following the “should we” question.