Brochure: Supplier Footprint Optimization

7 Creating transparency with a company-specific assessment of strategic and operational dimensions FOOTPRINT EVALUATION DIMENSIONS EVALUATION CRITERIA MARKET- DRIVEN OEM • TIER POSITIONING: Closer proximity for lower tiers • DELIVERY SCHEDULE: Just-in-sequence (closer proximity) vs. just- in-time (more flexibility) • LOGISTICS: Storage costs, transport routes and incurring customs cost • TYPE OF PRODUCT: Specific products (selected suppliers) vs. commoditized goods (multiple suppliers) PROVIDE GUIDE- LINES FOR SUSTAINABLE LOCATION STRATEGY OPERATIONS- DRIVEN • COSTS: “Landed costs” (e.g. production, logistics, complexity costs), direct and indirect manufacturing costs • CAPACITY: e.g. current capacities, potential additions • PROCUREMENT: e.g. quality and price of incoming goods • FLEXIBILITY: e.g. availability of workers, employment protection, external companies OPTIMIZE OPE- RATIONS UNDER OPTIMAL CONDITIONS RISK-DRIVEN • CLIENT DEPENDENCY: Client structure (single client structure creates significant risk exposure) • SUPPLY CHAIN & PRODUCTION RESILIENCE: Resistance to e.g. supply shortages, supply disruption, political unrest • CAPEX AND OPEX: Investment requirements and running expenses depending on location MINIMIZE POTENTIAL FALLOUT AND INCREASE RESILIENCE Source: goetzpartners; P3

Brochure: Supplier Footprint Optimization | Page 7