Program

8.30AM - 8.40AM

Chairman's Address

Andrew Bartolini Director of Global Supply Management Research Aberdeen Group

8.40AM - 9.10AM

Keynote Address

Achieve faster sourcing success in China – and fully exploit the necessity for International Procurement Offices

For many foreign companies, the creation of International Procurement Organizations (IPO’s) in low-cost countries is more than a necessity – it is also an imperative to keep competitive. Shanghai alone is already home to 200+ global procurement/sourcing offices. And in the past year alone, they have purchased between them over $50 billion worth of China-made products. This opening presentation delivers highly authoritative sourcing insights from a top procurement and IPO professional who has been operating in China for over a decade:

• How to set up a fast growing sourcing organization in China
• Find out how to reach low-cost countries with a spend growth of over 90% and achieve attractive cost savings
• Five key success factors for sourcing in China
• Everything you need to know about the saving expectations for industrial commodities
• Risks and pitfalls: Why do companies fail with sourcing in China – and what are the fatal errors you must avoid at all costs?

Nis-Peter Iwersen has been responsible for setting up two green field companies in China, in Tianjin and Suzhou. He set up and now manages the Danfoss International Procurement Offices in China. Danfoss produces 250,000 items per day in 53 factories in 21 countries and employs 18,000 people worldwide.

Nis-Peter Iwersen Vice President Danfoss International Procurement Offices, China

9.10AM - 9.40AM

Keynote Address

How you can optimize your sourcing strategy in all areas – LCCS and local sourcing

Like any other tier-one automotive supplier, Arvin Meritor has to meet annual cost reduction goals for customers, but at the same time, it must also provide acceptable returns to its investors. A familiar scenario? Come and discover proven techniques that will help you achieve this two-pronged goal. Low-cost country sourcing might be just one of the options – and combined with local sourcing, can help you gain a further competitive advantage:

• Find out the secrets behind “cost competitive countries”
• Seven steps to sourcing success: What are they, and how do you implement them?
• Better commodity price fluctuation management: How to drive costs out of your products
• Everything you need to know to calculate your total landed cost: Freight costs, payment terms, supplier’s ability to utilize EDI, purchase minimums the supplier may have in place, lead times, delivery credibility, willingness to manage in-transit inventory, the supplier’s weighted average incident rate for quality

Over a twenty-seven year career, Mark Purtilar has developed global business expertise in supply chain management and senior level executive assignments in the United States, Mexico, South America, Europe, Asia and Africa. Arvin Meritor has a global presence in 25 countries on 6 continents and employs 31,000 people worldwide.

Mark Purtilar Vice President Global Procurement Arvin Meritor

9.40AM - 10.10AM

Keynote Address

How Novartis has embraced LCCS to maximize new market opportunities

As an international company, Novartis has historically sourced its requirements from a variety of locales, but most of its suppliers have been located in the regions where it has operational bases: North America and Europe. However, the company’s sourcing activity began to take on a very different look, as a corporate initiative on low-cost country sourcing took hold. Come and find out about the forces driving this shift, including the prospect of cost savings and the need to gain insights into other potential markets for Novartis products and the desire to access a larger pool of innovative scientific talent. You’ll hear how Novartis has expanded its supplier base in strategic emerging markets by pro-actively establishing supply market knowledge and wholeheartedly promoting and capturing third party sourcing opportunities in these markets.

Julie Chen heads the Novartis Pharma Low Cost Sourcing Program and prior to her current position, was Director of Production Purchasing for the Novartis US Pharmaceuticals Operation. The Swiss health care company is one of the world’s leading firms in research and manufacturing of prescription drugs, generic medicines, infant and hospital food and over-the-counter health care products. Novartis’ turnover is $32 billion, and the company employs 91,000 associates in 140 countries.

Julie H Chen Head Low Cost Sourcing Novartis Pharmaceuticals

10.10AM - 10.40AM COFFEE BREAK, EXHIBITION, NETWORKING

10.40AM - 11.25AM

Keynote Panel Session

Your chance to ask world class LCCS executives how LCCS has helped them to reduce costs and achieve other tangible results

Come and quiz our three Keynote Address experts! Their first-hand, up-to-the moment experience in LCCS is second to none. While their combined wisdom is a valuable resource for you to tap into. This is your chance to profit from a series of authoritative – and forthright – insights, along with honest discussion of common pain points, success stories and lessons learned.

Nis-Peter Iwersen Vice President Danfoss International Procurement Offices, China
Mark Purtilar Vice President Global Procurement Arvin Meritor
Julie H Chen Head Low Cost Sourcing Novartis Pharmaceuticals
Andrew Bartolini Director of Global Supply Management Research Aberdeen Group (Moderator)

11.25AM - 11.55AM

Presentation

LCC Logistics: The nitty gritty details that can make or break you

As companies chase lower production costs, the advantages of cheaper labor can easily be squandered by spiraling logistics costs. Make sure it doesn’t happen to you:

• Bringing your LCC supply chain under even tighter control: From customs and duties to taxes and hidden costs
• How to shorten LCC lead times
• Profiting from all warehouse-based services: Consolidation and deconsolidation, inventory control, pick-and-pack, repackaging and labeling for local markets, storage
• Working more closely with your 3PL’s at every point of transportation conduit
• Pros and cons of turning your LCC supply chain over to a single logistics provider

Deborah Winkleblack Executive Director International Logistics & Compliance Claire's Accessories

11.55AM - 12.25PM

Limited Brands Case Study

How to successfully manage your low-cost country suppliers and overcome the supply base problems

According to a recent Hackett Group study, consolidating supplier networks and focusing more spending with a handful of key suppliers, can generate more than $50 million in savings per $1 billion of spending – and significantly reduce the cost of procurement. At the same time, top concerns for companies that put over 20% of their total spend with LCC’s are related to their supplier base and include product quality, supplier resources and the complexities of managing a remote supplier. In this presentation, you’ll earn about LCC supplier base management techniques that are guaranteed to result in improved price, quality and delivery:

• The best way to find and qualify suppliers in low-cost regions
• How to overcome business culture differences – and communication issues
• Developing a sustained approach to supplier on-boarding – and how this helps you avoid costly disappointments with low-cost suppliers
• Secrets of building trustworthy supplier relationships with your LCC suppliers and how to build a collaboration model for your supply base

Maria Prince has two decades of procurement experience and is currently responsible for the procurement of New Product and Launch Programs for the Victoria’s Secret brand. Limited Brands owns and operates more than 4,000 US stores with seven brands selling men's and women's apparel and personal products. The company has revenues of $9.7 billion and employs 110,000 workers.

Maria Prince CPM Director, Procurement – Launch Victoria's Secret Production, Limited Brands

12.25PM - 1.25PM LUNCH

1.25AM - 2.10PM

Panel Session

Improve the efficiency of LCCS: Organize yourself!

• Learn the best way to coordinate the most efficient and productive LCCS plan
• Explore the leverage of a cross-functional team that includes procurement, engineering, supply chain and finance people
• See how to organize a comprehensive, multi-year program that makes the migration process most effective
• Choose your best option: The business-unit-by-business-unit approach, or a company-wide top-down strategy?
• Discover the secrets of superior performance levels and how to determine the optimum balance between cost, logistics and quality to deliver the best possible overall supply chain performance
• Secure your business: Have an exit plan ready – and develop an alternative sourcing scenario
• Understand how to use LCCS to press home your competitive advantage

John Campi Senior Partner & Member, Board of Directors IndustriaPlex

Shahriar Shaghafi VP Global Supply Chain & Materials Operation Novellus
Kirk Eberhart Global Director of Supply Material Sciences Corporation

Christian Verstraete Solutions & Technology Integration Manufacturing & Distribution Industry Hewlett-Packard

Pierre Mitchell Procurement and Supply Chain Director The Hackett Group

2.10PM - 2.40PM

Presentation

Don’t get left behind! Where will the next low-cost sourcing locations emerge – and how can you capitalize on them?

For the past decade, talk about sourcing in Asia has largely meant sourcing in China. But now, manufacturing and exports are growing rapidly in other parts of Asia, especially in South Korea, Taiwan, India and ASEAN. Or should you be investigating Vietnam? And what about Brazil and Russia? This session will give you a useful overview of the next emerging low-cost sourcing locations and offshoring trends:

• Low-cost regions that are likely to become major players in the next ten years
• Business-critical criteria that must absolutely be taken into account when you make a country versus country sourcing decision
• Offshoring versus nearshoring: Can nearshoring help your business more?
• How to stay in the loop and continually evaluate your sourcing opportunities

Scott Champion’s responsibilities encompass strategic and tactical procurement, global sourcing, and supplier management. American Safety Razor Company is the leading global supplier of private label wet shaving razors and blades along with branded industrial and medical cutting implements.

Scott Champion MCIPS, C.P.M., A.P.P. Director of Corporate Purchasing American Safety Razor Company

2.40PM - 3.10PM

Presentation

Business Process Offshoring: Huge cost savings – and more

According to a recent PricewaterhouseCoopers study, nearly 75% of US and European multinational companies now use outsourcing or shared services to support their financial functions. Estimates of the overall business process outsourcing market are as high as $500 billion, and a quarter of that work is now going offshore. India’s BPO industry leads the way, with over 400 companies – including captive units and third-party services providers – employing 300,000 people. Taking into account the labor costs, the cost savings potential of business process offshoring is huge; The average call center employee cost in India is $7,500, as opposed to $19,000 in North America. But that’s not all:

• Pros and cons of moving each of your business processes offshore: Customer service, finance and accounting, human resources, product development and advanced analytics
• How to take advantage of the opportunities presented by offshoring to fundamentally re-engineer operations, source new product ideas and serve customer segments that are currently too expensive to develop and exploit
• How to reduce the price of business process offshoring : Additional technology, telecommunications and management overhead
• What about the other prime benefits of offshoring: People, market discipline, access to technology and resources
• Minimizing offshoring risks: Unfavorable legislation, lawsuits, negative publicity, data security, privacy, intellectual property rights

Brett Mauser Director – Procurement NCR Corporation

3.10PM - 3.40PM

Presentation

Turnkey projects and LCCS: How not to overlook anything that can impact the bottom line of successful sourcing

This valuable presentation takes you through the specifics of sourcing various parts of a turnkey project in low-cost countries, and then shipping them directly to the project’s site. You will learn how to take into account all the vital elements that impact the completed project’s bottom line: Taxable presence in the country of fabrication, the impact of duty in the countries of fabrication and importation, plus transportation costs of shipment of free issues material to the selected fabricator.

UOP LLC, a Honeywell company, has been delivering cutting-edge technology to the petroleum refining, gas processing, petrochemical production and major manufacturing industries for over 90 years.

Tricia Senese PT&E Senior Logistics Administrator UOP, a Honeywell Company

3.40PM - 4.10PM COFFEE BREAK, EXHIBITION, NETWORKING

AFTERNOON ROUNDTABLES

FIRST SESSION: 4.10PM - 4.50PM

SECOND SESSION: 4.50PM - 5.30PM

Here's the chance to get up-to-speed on the topics and issues that are business-critical to you right now. Each roundtable discussion is led by influential industry experts - people who really know their stuff! Ask questions, benchmark and exchange views and experiences with your peers.

Each session lasts for 50 minutes and gives you ample opportunity to get the answers you need, in a highly focused, small group environment.

The quick and easy way to improve your understanding about latest developments in each of the rapidly-evolving low-cost world regions. Pick and mix the sessions that are most relevant to your current business priorities. Our experts show you how to:

• Compare wages, infrastructure and supplier capabilities across different regions.
• Assess the strengths – and weaknesses – of each region for specific industries.
• Examine the pros and cons of sourcing in each region.
• Update your strategy to accommodate what’s next on the horizon for sourcing
• Discover if maybe you are only scratching the surface of your potential savings in low-cost countries

1. China
2. India
3. Central & Eastern Europe
4. Latin America
5. Mexico
6. Africa
7. South-East Asia

LCC SOURCING FOR BEGINNERS: The session that’s back by popular demand

4.10PM - 5.30PM

If you are still in the process of drawing up your sourcing strategies, this Workshop is a must! Come and find out how to progress LCCS from an interesting idea into a solid plan of action.

We’ll take you step by step through the sourcing process and help you take key decisions about what to source, where to source it from, and how to make it happen.

You’ll examine:

• The three strongest reasons to source from low-cost countries: Direct cost savings, local talent and access to the domestic market
• How to put a number on the savings you can anticipate from cost migration
• The best indicators in your particular industry to help you decide if it’s time to source from low-cost countries
• How much it will cost to shift elsewhere – and where to go
• Top tips to help you achieve smooth, profitable LCC migration

You’ll also leave this Workshop with an extremely helpful LCCS Starter Kit.

Brad Blonkvist Director Archstone Consulting

5.30PM - 6.45PM NETWORKING PARTY

8.20AM - 9.00AM

Breakfast Roundtables

Take part in your choice of Industry Specific and Hot Topic Roundtable Discussions:

INDUSTRY SPECIFIC ROUNDTABLES

• Apparel
• Automotive
• High-tech and electronics
• Chemicals
• Food and beverages
• Pharmaceutical and health
• Retail
• Transport and logistics

HOT TOPIC ROUNDTABLES

• Trade regulations and tariffs
• Cultural issues
• Intellectual property risk
• Product security while in transit and in inventory
• Political instability
• Currency shifts

9.00AM - 9.45AM

Keynote Address

Better ways to protect a vulnerable LCC supply chain from disruptions – and how to side-step risks at its source

LCC sourcing reduces the cost of your products, but it also multiplies trade issues, pushes pay terms upwards, and increases business complexity as lead times and risks are increased. And then there are the terrorist threats and strikes, political instability in Third World countries, a possibility West Coast shipping dock shutdowns and other unexpected events with the potential impact even more heavily on a long, complex supply chain that includes low-cost countries. In this session you will find out how to implement important security improvements in ways that enhance your supply chain efficiency and effectiveness in low-cost countries. Moreover:

• Get familiar with the risks: Political instability, exchange rates, carriage capacity, shelf life, customer demand
• Learn how to minimize the impact of smaller disruptions: For example, cumulative cost of deliveries that are frequently slightly late only but result in temporary stock-outs and frustrated customers
• Find out what steps you should take to mitigate risk while keeping your supply chain costs as low as possible
• Strategies that can trade off risks for your benefit: How to lessen one risk without raising another: Number of suppliers versus protection of your intellectual property, minimizing inventory versus providing continuity of supply
• Developing a collaborative supply network business model that’s based on open, seamless relationships with supply chain partners and real-time visibility

Tony Barone has been the driving force behind Pfizer’s cutting edge Global Strategic Trade Management Program which examines duty, indirect tax, trade preference and compliance aspects of manufacturing, site and global sourcing decisions. Pfizer employs 120,000 people worldwide and every year dedicates more than $7.1 billion to research and development.

Anthony Barone Director Global Logistics Policy Pfizer

9.45AM - 10.15AM

Presentation

Protecting your reputation: Don’t let LCCS give you bad press – how to manage the ethical and social aspects of outsourcing

While most businesses turn to LCCS as a way to boost profits, many politicians see the gain only at the unacceptable cost of American jobs. Moreover, some think that when outsourcing companies become competitors throughout the product cycle, traditional US vendors will have to show they have learned more from outsourcing than just how to transfer costs. Another problem of increasing concern among procurement professionals is the negative publicity around companies that have been charged with violating business codes of conduct and social compliance standards in low-cost markets. This presentation will show you how to minimize the risk of damaging headlines:

• Find out how responsible, ethical behavior can help you to maintain a good public image without risk or damage to your trade relations with low-cost country suppliers
• How to develop and apply your Codes of Conduct such as human rights at work and freedom of association
• Effectively monitoring the execution of vendor compliance agreements with your suppliers

Steve Robinson Sr. Director, Internal Audit Supply Chain Gap

10.15AM - 10.45AM

Presentation

How to build a supply chain that will support your move to the next low-cost region: Taking into account – and overcoming – the hidden costs of sourcing

A survey conducted by the Aberdeen Group reveals that 25% businesses failed to lower their costs – and some even experienced a cost increase by sourcing globally. The fact is, global sourcing has many hidden costs that organizations tend not to manage directly as part of the supply chain processes. These include the cost of trade, the impact of longer lead times, the impact of variability on inventory stocking, the additional costs required for expedited transportation, the cost of bringing on new suppliers, and the dramatic impact on your working capital. In this presentation we will go beyond the cost of labor and landed costs and focus on all the hidden extras, and in particular, on the impact of the increased investment in working capital:

• Proven ways to achieve full convergence of your supply chain in low-cost countries: Physical, informational and financial aspects
• How to measure the cash-to-cash cycle time – and its effect on your working capital
• Everything you need to know about inventory ownership programs driven by third-party financial organizations – and how they can help you relieve the pain of longer supply chains and the corresponding financial impact on your working capital

Bob Belshaw Senior VP GE Commercial Finance Trade Distribution Services

10.45AM - 11.15AM COFFEE BREAK , EXHIBITION, NETWORKING

11.15AM - 11.45AM

Presentation

Don’t let your suppliers become your competitors! Protecting your Intellectual Property assets

In some industries, certain game changers have led to a new form of hyper-competitiveness: The traditional customer-supplier balance of power changes, and suppliers emerge as potential competitors to the businesses they once relied upon. The fact is, that the rapidly growing capabilities of LCC manufacturers, especially when combined with their rapid absorption of intellectual property, is having an unprecedented impact on the structure of supply chains, the segmentation of value chains, and the relative value of the hard and soft constituents of products and services. In this presentation you will learn how to adapt to a new level of global collaboration across the supply chain – one that spans from strategic global sourcing through cutting edge supply chain services to robust IP protection. You’ll also discover how to overcome risks when working with less sophisticated suppliers and how to successfully manage your IP in low-cost regions.

Naseem A. Malik Director, Global Sourcing ACCO Brands - S&O

11.45AM - 12.15PM

Material Sciences Corporation Case Study

Travel step-by-step along MSC’s road to low-cost country sourcing

From developing a powerful sourcing strategy, to choosing locations and suppliers, and developing performance measurement criteria. Business intelligence you won’t get elsewhere, plus a full understanding of the end-to-end global supply chain.

MSC provides material-based solutions for electronic, acoustical/thermal, and coated metal applications. It employs 562 people, with a network of partners that stretches across four continents. As Global Director of Supply Chain, Kirk Eberhart works closely with internal stakeholders and the MSC leadership team to identify emerging opportunities for savings and expense reduction in all aspects of the supply chain.

Kirk Eberhart Global Director of Supply Material Sciences Corporation

12.15PM - 1.15PM LUNCH

1.15PM - 2.00PM

Panel Session

How to get the most out of your LCC suppliers – and how to overcome business and cultural differences

• Techniques that enable you to re-evaluate relationships with your LCC suppliers – and generate additional cost savings
• How to overcome supplier shortage problems and develop a sound supply base
• How to increase supplier motivation to deliver high quality products services on time, every time
• What measures should you put in place to prevent today’s supplier becoming tomorrow’s competitor?
• Identify the most profitable buy-brand-sell suppliers

Naseem A. Malik Director, Global Sourcing ACCO Brands - S&O
John Jung CEO First Index

James Jin General Manager Mfg.com China

Geoff Peters Director Archstone Consulting (Moderator)

2.00PM - 2.30PM

Presentation

The globally integrated organization – and the vital role of procurement

Becoming a globally integrated enterprise is about two things: Entering new markets, leveraging deep local roots and lowering the center of gravity to drive growth, while simultaneously gaining access to talent and skills and then scaling them globally to develop new, distinctive capabilities. Which, of course, is a lot easier said then done! In this presentation, you will learn how you can use your procurement organization to spearhead a global organization that enables you to meet both objectives.

Bill Schaefer Vice President Procurement Services IBM

2.30PM - 3.00PM

Wrap-up Session

Final advice that will re-energize your LCCS strategy: How to achieve a sustainable LCCS policy

The constant search for a “low cost” solution to your product and service needs is going to continue as a prime business concern. But it’s a “Total Cost” solution that will generate the savings we all seek in our search for the low cost solution. On time fulfillment of the highest quality at highly competitive total cost can be achieved – with the correct strategy.

This session will sum up the variables that need to be considered to succeed. From organizational structure of the sourcing or procurement team, to the management of risk in a variety of forms, this presentation will cover what is arguably the most important:

• How to organize yourself for success
• Top tips to setting and achieving outrageous goals
• How to verify your metrics for continuous improvement
• How to measure the performance of your low-cost country suppliers
• The role of risk mitigation

John Campi Senior Partner & Member, Board of Directors IndustriaPlex