Executive Summary

The overall objective of the Supply Chain is to deliver world class customer service at competitively superior costs. In order to achieve this, a Supply Chain Optimi ation !roject "SCO!# has been launched. $s the business process element in %uality&In Everythin' (e )o "%IE()#, the project is ali'ned with the Technical Operations Impact Strate'y, to become a partner in drivin' *+S 'rowth.

Project Objectives
To build a fast, flexible and reliable Supply Chain networ, that consistently delivers world class customer service at competitively superior costs.

Project Strategy
To implement inte'rated plannin' processes and stren'then partnerships amon' +anufacturin', )istribution, -etwor, !lannin' and +ar,et or'ani ations.

Project Sponsorship
Sponsors: Tom !rimm, !resident Technical Operations, *ernard .eclere, /! Supply Chain Cheryl Capps, /! Supply Chain !lannin' and Optimi ation

Project Structure
This project plan is comprised of 01 inte'rated *usiness Capability 2eleases "*C2s# desi'ned to implement the processes necessary to achieve the end state Supply Chain vision.

Scope
$ll ((+3 plants and mar,ets 'lobally4 556 of ((+* 'lobal sales and inventory.

Benefits
Improved Customer Service 2educed .ead times Improved $sset 7tili ation 2educed Operational Costs 2eliable execution of a sin'le Supply 2apid .aunch of new products Chain plan &across the 'lobal Supply Chain networ,

Stakeholders
Senior +ana'ement sponsorship from each sta,eholder 'roup is essential to the overall success of the project8
et!ork Planning Site Planning Marketing "inance

PD&C Markets

Manufacturin g #MSS $ #%M &hird Parties 'C$(egulatory

Distribution Custo)er Service &rade Sales

One Plant, One Team, One Plan. Seamless Integration, Flawless Execution
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Introduction to Inventory Tools

Executive Summary, cont:d

To maximi e effectiveness in the Supply Chain, Chan'e +ana'ement will be ,ey. $ Chan'e +ana'ement and .earnin' pro'ram will be available to facilitate the transition to the future state business model, identify and develop s,ills and competencies, facilitate or'ani ational transformation and establish pro'rams to reco'ni e and reward new behaviors.

Partnerships
;ey *usiness Capability 2eleases re<uire a close wor,in' relationship with the mar,ets to8 )esi'n, build, test and deploy identified business capabilities 2e=desi'n existin' functional processes and or'ani ation to support Supply Chain solutions

%ey Business Capability (eleases *BC(+s,

P-(& .(S #
*C2 Team BC(345Site Acceleration BC(345B Management Tools BC(36 Demand Consolidation BC(37 Tolling Automation BC(38 Sales & Operations Planning BC(39 I nventory Visibility BC(3: Net or! Planning BC(3= APS Demand Planning BC(3< APS Supply Net or! Planning BC(3; Mar!et I ntegration BC(3> Supplier I ntegration BC(364 Customer I ntegration Site

?ully Impacts

!artially Impacts

)oes not Impact

&/. S0PP12 C/-#

+ar,et -etwor, !lannin' ?inance Sourcin' )istribution Objective Insure that both S$! and *!CS sites meet the @minimum construction standardA needed for the networ, to perform as a networ,. !rovide a way to measure success a'ainst Supply Chain objectives. $bility to collect 3lobal ?orecasts and -et 2e<uirements and to ma,e this data visible across the enterprise. 2edesi'n and automation of the tollin' process to improve efficiencies and simplify the process. Improve decision ma,in' and execution by ali'nin' expectations between mar,ets and manufacturin' sites. $bility to collect inventory across disparate *+S systems, then format and consolidate into one location for plannin' and reportin'. Establish a networ, view of the supply chain and to pave the way for an advanced plannin' system. 7tili e $!S as a tool to improve unit forecast accuracy, incorporate baseline data calculations, mar,et intelli'ence, and uncertainty mana'ement principles. 7tili e $!S as a tool to improve site plannin' and schedulin' performance, incorporate capacity constraint plannin' and manufacturin' financial maximi ation. *rin' *+S mar,ets to a @minimum construction standardA by ali'nin' business processes with business rules and policies defined by the Supply Chain Operatin' +odel. Improve Supply Chain inte'ration with ,ey suppliers throu'h a collaborative approach to sharin' supply capability and product re<uirements. To build relationships with ,ey customers and sta,eholders that will establish standardi ed processes and develop technolo'y solutions to connect with customers and exchan'e information.

Supply Chain !erformance 9 Operational Tools

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!erformance 9 Operational Supply Chain Tools

*C2B* C +ana'ement Tools and *C21 C Inventory /isibility and are collectively comprised of !erformance and Operational Supply Chain Tools. To'ether, these tools provide a way to measure success a'ainst Supply Chain objectives, reinforce desired behaviors which contribute to achievin' the end state operatin' model, and drive performance improvement.

%ey "eatures
;ey features of the Inventory tools include8 $ sin'le reportin' platform "S$! *(# with 'lobal scope. $ balanced scorecard that is lin,ed to supply chain objectives and to compensation. )ia'nostic and operational reports to facilitate performance improvement. Standard metric definitions and calculations that allow meanin'ful internal and external comparisons. $utomated data collection process to ensure timely, accurate results. Standardi ed collection8 2etrieval of all inventory from all systems worldwide ?ormatD conventions One repository $utomated sorts and <ueries

/isible to all sitesD mar,ets8

+easures !ublished to TO.T Inventory +etric Ship to !romise Customer Service ?orecast $ccuracy

Metrics

Inventory /isibility Open Order 2eport *ac, Order 2eport ?orecast Consumption

Schedule $ttainment 2eceipt to !romise D/endor )elivery !erformance Cycle Time %C attainment

Diagnostic

Operational Data
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Supply Chain !erformance 9 Operational Tools

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!erformance 9 Operational Supply Chain Tools ?or Inventory cont:d

Benefits
!erformance and Operational Tools for Inventory /isibility will improve data inte'rity by enablin' a process to consolidate finished 'oods, in=transit, (I!, and raw material inventory data from multiple systems into one.

'uantitative Benefits
.ess time spent a''re'atin' inventories Shippin' cost reductions by stoc,in' customer inventory at )C closest to customer Overall reduction in inventory Improved /isibility to In=Transit inventory Improved mar,et service performance Improved 'ranularity of data C ability to plan on a s,u basis4 minimi e @surpriseA shorta'es and associated @fire drillsA Increased ability to balance supply shorta'es at one node with over stoc,s at another

'ualitative Benefits
Improved decision ma,in' in replenishment and settin' inventory policies based on availability of accurate inventory data

Scope

Our 'eo'raphic scope is all sites and all mar,ets. Our process scope will include the collection of all inventories from all systems worldwide, the introduction of a standardi ed format at every location for data collection and the desi'n of a data hub that will cleanse and format all data inputs. The product scope will include8 $ll finished 'oods $ll bul, intermediates and active pharma in'redients $ll product families $ll intra=company, in=transit inventory $ll (I! Erd party inventoried 'oods Consumer !roducts inventories Samples and trial si es )isplays +edical Ima'in' !roducts "Cold# ?inancial )ata

$ll owned *+S raw and pac,a'in' materials

The product scope will -OT include Inbound shipments from suppliers Outbound shipments to final customers !2I clinical supplies (holesaler inventory ?inancial reportin'

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