WINNING GLOBALLYChair: Michael Jacobs

Chief Logistics Officer, Keurig Green Mountain

Opening Remarks & Introduction

Michael JacobsChief Logistics Officer, Keurig Green Mountain

Going Global Case Study Craig Simon

President and CEO, FedEx Supply Chain

How do I keep my products secure?

Why should I do business globally?

How do I organize internationally?

What time is it in Sri Lanka?

But I only speak English.How does customer

demand affect my sourcing decision?

What is a frontier market?

Is it safe over there?

Do they have paved roads?

What are the regulations?

How does Colombia compare to Panama?

Is there sufficient infrastructure?

Should I worry about FCPA?

What is CTPAT?

Who can sign contracts in Tunisia?

What will the price of oil be next year?

How do exchange rates affect profits?

Should I use a distributor or go direct?

What does it cost to source from another country?

Which countries are most important?

Where should I store my finished goods?

Should I use one operating system globally?

Brent Crude Oil Prices 1982–2014

Source: Trading Economics

1986:$8.75

2008:$145.61

2014:~$109

Export Trends for Top MarketsExports from some of these countries have been slowing down since CY2010 (YOY% Total Export Value in USD)

Source: IMF, National Authorities

World Trade Volume vs. Global Real GDP

Source: CPB Netherlands Bureau for Economic Policy and Analysis, Economic Intelligence Unit, FedEx Corporate Economics

• During the globalization of manufacturing, trade grew 2-3 times faster than GDP• In 2012 and 2013, trade volumes failed to grow at their historical rate• Since the “Great Recession,” trade has been steadily improving but not at the

prior pace

“New Normal”

Domestic AgendaNear Shoring

Protectionism

Impact of Global Trade

Source: U.S. Department of Commerce, April 2014

• 95% of America’s consumers live outside our borders• Every $1 billion in additional exports supports approximately

5,000 U.S. jobs• Since President Obama launched the National Export Initiative in

2010, U.S. has seen record exports and an increase of 1.3 million export-related jobs

Record U.S. Exports in 2013• U.S. exports in 2013 set record for fourth straight year – reaching

$2.3 trillion, up nearly $700 billion since 2009 • Record U.S. merchandise exports in 2013 to 63 markets, including:

• Canada (+2.7%)*• Mexico (+4.7%)• Colombia (+13.8%) • Panama (+9.6%)• Peru (+7.6%) • Jordan (+18.2%)

Source: U.S. Department of Commerce, April 2014

* Year-over-year change from 2012

Value of World Merchandise Exports 2003-2013

Source: WTO

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201302468

101214161820

In trillions (USD)

Six Largest Economies by Share of World GDP – 2005 vs. 2011

Source: International Comparison Program (ICP)

17.1

14.9

6.4

4.83.73.5

49.6

U.S.ChinaIndiaJapanGermanyRussiaOther

22.5

9.7

7.0

4.64.33.5

48.4

U.S.ChinaJapanGermanyIndiaUKOther

Total 2005 World GDP: $55 trillion Total 2011 World GDP: $90 trillion

How do you make decisions about where to do business globally?

10 Global Risks of Greatest Concern3. Water Crisis

5. Failure of Climate Change Mitigation and Adaptation

6. Greater Incidence of Extreme Weather Events

8. Food Crisis

Corporate Climate Adaptation Opportunities: Building Resiliency around the Globe

ND-GAIN: Data to Inform Decision MakersRanking & country scores• 177 countries• 50 indicators• 17 years of data• 9 variables

ND-GAIN MatrixThreats and opportunities for country-level investment decisions

ND-GAIN Matrix

ND-GAIN Country Profiles Example: Brazil

ND-GAIN Sector-Specific Profiles Example: Infrastructure

China India

Notre Dame Global Adaptation Indexwww.nd-gain.org

Managing DirectorJoyce Coffee

Research & DevelopmentJessica HellmannNitesh Chawla

Emerging Markets Definition• Countries restructuring economies and growing along market-

oriented lines and offer wealth of opportunities in trade, transportation, technology transfers and foreign direct investment.

• Stand out due to some combinations of these characteristics: • Fast-growing economies, contributing great deal to world

trade growth • Regional economic powerhouses with large populations,

large resource bases and large markets• Transitional societies undertaking domestic economic and

political reforms• Emphasize infrastructure developments and improving

regulatory and social environments

Components of Emerging Markets Index (EMI)

Emerging Markets Framework: EMI Roadmap

China

USA

Germany Japan

France

UK

Russia

India

Italy Spain

NLHK

BE

Brazil

S. Korea

Malaysia

Canada

Mexico

Thailand

SIN

Poland

Indonesia

Turkey

Czech R.

Australia

Austria

Sweden Switzerland

Vietnam

Ukraine

Saudi A.

Iran

Argentina

Ireland

UAE

S. Africa

Philippines

Hungary

NorwayDenmark

Chile

Finland

Romania

Slovakia

Colombia

Pakistan

Israel

Greece

Portugal

Egypt

Ecuador

Kazakhstan

Peru

Nigeria

Morocco

Serbia

Belarus

Bangladesh

Algeria

Venezuela

Bulgaria

Iraq

Slovenia

New Zealand

Kuwait Qatar Oman

Lithuania

Croatia

Sri Lanka

Costa Rica Panama

Jordan

Kenya

Estonia

Guatemala

Latvia

Ghana

Uruguay

Dominican R.

Cambodia

Bahrain

Honduras

El Salvador

Nicaragua

Laos

Montenegro

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Bu

sin

es

s C

lima

te I

nd

ex

Market Potential Index

HIGH

HIGHLOW

LOW

Frontier Next

Frontier Now

Small Emerging

HIGH

HIGHLOW

LOW

Frontier Next

Large Developed

HIGH

HIGHLOW

LOW

Frontier Next

Large Emerging

HIGH

HIGHLOW

LOW

Frontier Next

Small Developed

The Market Potential Index is derived f rom the Transportation, Market Size and Market Growth Indices. The Business Climate Index is derived f rom the Economic Activity, Business Environment, Human Development and Infrastructure Indices.

Talent Management Panel Discussion

Moderator: Michael JacobsChief Logistics Officer, Keurig Green Mountain

Panelists:Mary Iazzetta

Director Global Strategic Sourcing, Verizon

Ye’ella Nir-RosinDirector Worldwide Logistics & Supply Chain, Eastman Kodak

Nada Sanders PhdIacocca Chair, Professor of Supply Chain Management,

Lehigh University

Renee UreVP Integrated Supply Chain, IBM

Talent Management Panel Discussion

Mary IazzettaDirector - Global Strategic Sourcing

Using Technology to Address Global Challenges

The best, most reliable networks in the industry

2013 revenues of $120.6 billion

96% of Fortune 1000 Companies rely on VZ services

More than 176,800 employees worldwide

2014 Priority: Our Customers, Every Day

Global Strategic Sourcing

Manages global sourcing activities for approximately $26B in annual spend

End-to-end supply chain performance Network and IT HardwareSoftware and ServicesGrowth of business relationships with diverse suppliersStrategic supplier relationships enterprise wide

One Centralized Global Strategic Sourcing

Organization

Global Strategic Sourcing Category Management

U.S & Canada Region

Asia Pacific Region

Latin America Region

Europe, Africa and Middle East Region

KODAK’s Extensive Supply Chain Meets Global Demand

Manufacturing & R&DDistribution NodeService Parts Hub

ROLE OF UNIVERSITIES IN PREPARING TALENTNADA R. SANDERS, PH.D.

IACOCCA CHAIR, PROFESSOR OF SUPPLY CHAIN MANAGEMENTLEHIGH UNIVERSITY

Most have a primary goal to prepare talent for a global economy

Two strategies: Curricular modifications (e.g. student exchanges, dual degrees,

content changes) Practical experience (e.g. internships abroad, co-ops)

Variations in degree of immersion, geographic specificity, and job matching

Challenge in assessment and standardizing outcomes

Supply Chain Execution: Manufacturing, New Products Introduction, Cross-platform Solutions Integration, Engineering, Supply/Demand & Inventory planning, Customized Solutions

Procurement: Production, General & Services Procurement, Procurement Process Outsourcing

Quote to Cash / Sales Support• Pre-Sales support (New 2013 Mission): Client proposals

and quotes, Solution Design, Order processing• Post-Sales support: Order Fulfillment, Contract

Administration, Accounts Receivable Asset Management Risk and Compliance Management Supply Chain Transformation and Analytics

Integrated Supply Chain (ISC)ISC supports all IBM lines of business providing the following:

Multi- National Towers Globally Integrated Enterprise Smarter Value Chain

About IBM Conducts business in 200+ countries ~400,000 employees globally (~25,000 in ISC) Works with ~100,000+ business partners Comprised of 5 business units:

ISC Global Transformation Journey

2013 Revenue

Wrap-up & Closing Remarks Michael Jacobs

Chief Logistics Officer, Keurig Green Mountain