Section 1: Introduction

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2 Section 1: Introduction Company Information 1. Please provide us with your company name. 2. Please indicate the scope you consider when responding to this survey e.g. Australian Business Unit, ANZ Business Unit, Retail Channel. Note: You are welcome to complete this survey for a subset of your business if you feel the supply chain is sufficiently differentiated from other parts of the business. You may also complete multiple surveys for each differentiated supply chain within your business Whole of business (Australia) Specific business division Please specify the name of the division, if applicable. Contact Information Note: Details are requested so that respondents can be provided their unique report. 3. Please provide us with your name. 4. Please provide us with your role title. 5. Please provide us with your e mail address. 6. Please provide us with your contact phone number. 1

3 Company Details 7. What are the total annual net sales of the company/division/business unit you are completing the survey for? 8. Is your Head of Supply Chain part of the Australian Executive leadership team? Yes No 9. If no, please provide us with the Executive function representing supply chain at board level. 10. Please indicate the approximate % split of net sales based on source of products (0% 100%, totaling to 100%). Offshore 100% 50% 100% Local Australian Manufacturing Industry Trends 11. What are the key industry trends which will impact your supply chain strategy over the 3 10 years? e.g.: Higher collaboration with retail customers through initiatives like on shelf packaging. 2

4 Section 2: Supply Chain Dimensions Capability: Lean Definition: The degree to which the supply chain is consuming resources efficiently e.g. assets, staff, materials) and minimising waste across the end to end supply chain Dimension: Measurement 1. What metrics do you currently utilise in your supply chain? (choose all that you use). Productivity metrics (i.e. idle time vs utilised time metrics e.g. labour productivity) Effectiveness metrics (i.e. performance during utilised time e.g. picks per warehouse FTE/ hour) Office based supply chain processes Yield metrics (e.g. Throughput) 2. At which facilities do you employ supply chain metrics such as those noted in the previous question? (choose all that apply) Manufacturing facilities Logistics facilities Office based supply chain processes Extended supply chain (e.g. with customers) 3. How often are these key supply chain performance metrics typically reviewed/reported? (choose most appropriate answer) Annually (e.g. in budgeting period) Quarterly Monthly Weekly Daily 4. Do you measure CO2 emissions within your supply chain processes? Yes No Dimension: Empowerment 5. Which statement best describes the attitudes towards 'Lean' principles in your company? There is no (or only very basic) awareness of benefits associated with Lean principles/practices There is a general favorable opinion towards utilising Lean principles/practices Lean principles/practices are broadly seen as a key enabler to improve performance Lean principles/practices are an integral part of corporate / supply chain strategy 6. Which statement best describes your company's capability to implement Lean principles? No internal capability Can satisfy specific needs only (not integrated approach) There is a central approach, coordination and support for Lean There is a thorough company wide approach and methodology to Lean including training

5 Dimension: Reach 7. Which statements best describe your company's approach to operational improvement and adoption of Lean techniques? (choose all that apply) Note: Site refers to all supply chain sites i.e. warehouses, manufacturing sites. Nil Lean is not the underlying approach Lean projects are frequent but there is no formal approach for continuous improvement The approach to Lean is site focused rather than network oriented Lean has been applied to improve specific areas of major sites Lean initiatives have been mainly focused on manufacturing Lean is fully applied to major supply chain sites All sites layout configuration and end-to-end supply chain operation is fully based on Lean principles 8. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above

6 Section 2: Supply Chain Dimensions Capability: Fast Definition: The ability to minimise the absolute lead time throughout the inbound and outbound supply chain and adapt speed without major implications, through the smart design of physical and information flows Note: Supplier in the page below refers to raw material and packaging suppliers i.e. Upstream suppliers. Dimension: Inbound 9. Which statements best describe how your company measures inbound lead times? (select all that apply) Supplier lead times between purchase order and replenishment are not systematically tracked and measured Supplier lead times are tracked on an exception basis, typically when facing shortage issues Supplier lead times are tracked systematically and are part of overall supplier evaluation Supplier lead times are measured in days Supplier lead are measured in hours Lead time accuracy is a critical factor in supplier selection Joint improvement initiatives are in place with suppliers to reduce lead-times 10. Which statement best describes the flexibility of your inbound supply? (select the answer which best reflects your overall situation with key suppliers) Suppliers deliver products at specified dates or intervals Express delivery from suppliers is available at a premium and used on a regular basis Flexibility in upstream supply sources has been implemented (e.g. alternative supply bases to accelerate replenishment) Dimension: Outbound 11. Which statements best describe how your company measures outbound delivery lead times to major customers (e.g. Woolworths and Coles)? (select all that apply) Delivery lead times to customers are not tracked systematically Lead times to customers are tracked systematically Delivery lead times to customers are measured in days Delivery lead times to customers are measured in hours 12. Which statement best describes your company's outbound delivery performance measurement situation with major customers (e.g. Woolworths and Coles)? (select most relevant answer for your current situation) Customer deliveries are generally made at set/recurring dates and times, performance is not monitored Customer delivery dates and lead times are monitored but not a critical part of performance evaluation Customer delivery performance is closely monitored for performance evaluation Lead times to customers are fully measured and considered a best in class competitive edge versus key competitors

7 Dimension: Information Flows 13. Please select all statements which describe your company's sharing of information with supply chain partners. (i.e. internal partners, suppliers and customers) Inbound and outbound delivery performance information sharing is made on an ad hoc, on demand basis Exact delivery dates (inbound/outbound) are not critical information outside of logistics Information is shared on a daily basis with external players Internal data exchanges are based on discrete batches, ad hoc requests and analyses Most relevant information (e.g. inventories, lead times, orders) is shared with external stakeholders through EDI Internal stakeholders have seamless access to information Continuous dataflow on products and flows is in place with internal and external partners through an extranet or similar Orders are tracked and information is available to internal and external stakeholders on line at anytime 14. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above

8 Section 2: Supply Chain Dimensions Capability: Reliable Definition: The ability of the supply chain to define appropriate service levels and to consistently deliver against these both internally and externally, with regard to products, services and information Dimension: Definition of Internal and External Service Agreements 15. Which statement best describes how your third-party service agreements address customer service issues? Agreements ask for tracking for only exceptional service issues Agreements ask for tracking for major risk areas of underperformance Agreements ask for tracking for most of the risks of underperformance of service delivery Agreements ask for structured and systematic issue resolution for all service issues Dimension: Tracking of promise & performance 16a. Please select the statement which best describes how your company s delivery promise and performance is tracked Very basic KPIs at selected supply chain steps are in place but not continuously tracked Standard set of KPIs at selected supply chain steps are continuously tracked to gain transparency Multiple KPIs in each step of the supply chain are used to track performance to achieve full transparency 16b. Please select another statement to describe how your company s delivery promise and performance is tracked Information about delivery performance is only provided on enquiry for selected customers Information about delivery performance is tracked and provided on enquiry for most customers Comprehensive information about delivery performance provided for most customers Every customer receives comprehensive information on delivery performance

9 Dimension: Proactively addressing service issues 17. How does your company typically communicate delays and issues of service delivery to its customers? (select most applicable) They are usually not communicated to the customer Most delays and issues of service delivery are communicated to the customer All delays and issues of service delivery are immediately communicated to the customer Time of delay, expected new delivery date and measures to solve issue are always communicated to the customer 18. Which statement best describes how your company proactively avoids defects, customer complaints and returns? (select most applicable) Only limited and basic quality measures are in place in our supply chain Key quality measures are in place at discrete points in the local supply chain Key quality measures are in place throughout the supply chain Comprehensive quality processes are in place across the extended supply chain 19. Which statement best describes how your company tracks and addresses service issues? (select most applicable) Issues are only tracked and addressed for exceptional service issues Issues are tracked and addressed for major risk areas of underperformance Issues are tracked and solved for most of the risks of underperformance of service delivery Structured and systematic issue resolution system in place for all service issues 20. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above

10 Section 2: Supply Chain Dimensions Capability: Transparent Definition: The degree to which information of the right granularity is shared and accessible to stakeholders across the end to end supply chain Note: Supplier in the page below refers to raw material and packaging suppliers i.e. Upstream suppliers Dimension: Information available to suppliers 21. Please select all statements which describe the level of information your company shares with suppliers. There is no intent to strategically share information (e.g. forecasts, inventory levels, capacities) with suppliers The company shares relatively high level information with suppliers on an as needs basis The company shares detailed information (e.g. inventory by SKU, production plans) on demand Suppliers have real-time access to key operational data at the appropriate level of granularity There are joint initiatives to improve transparency and availability of information Dimension: Information received from suppliers 22. Which statement best describes the level of information that key strategic suppliers share with your company? (select most applicable) There is no offer from suppliers to share information (e.g. forecasts, inventory level, capacity) Suppliers share high level information only when requested The company has real-time access to suppliers' key operational data at the appropriate level of granularity as required Suppliers continuously share information in real time typically through EDI or web portals Dimension: Internal Information 23. Which statements best describe the availability of information within your company? (select all that apply) No access to real-time information Information within the company is difficult to access generally There are multiple IT systems that are not interconnected / manual extractions are required to access information from other sites Information within the company is easily accessible within a department but data from another department is difficult to access IT systems are well interconnected with access to real-time information Relevant information only is shared between functions and departments Information is widely shared across functions and departments

11 Dimension: Information given to customers 24. Which statements best describe how your company shares information with its key customers? (select all that apply) Order specific information (e.g. order status, pricing, lead-time) is not available to the customer Order specific information is available to customers on request, generally managed through sales or customer service Order specific information is open to customers, but not in real-time All order information is available to customers in real-time Some delivery performance metrics are available to customers Key delivery performance metrics are available to customers Customer has real-time access to delivery performance metrics data and information Dimension: Information received from customers 25. Which statement best describes how key customers share information with your company? (select most applicable) There is no intent from the customers to share information (e.g. forecasts, inventory level, capacity) Some customers share some high level information at a low frequency or as requested The majority of customers share detailed and high level information on demand The company has real-time access to major customers' key operational data at the appropriate level of granularity 26. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above

12 Section 2: Supply Chain Dimensions Capability: Collaborative Definition: The ability to establish suitable vertical (suppliers, customers), horizontal (other companies) and internal relationships to capture and share short and long term value Note: Supplier in the page below refers to raw material and packaging suppliers i.e. Upstream suppliers. Dimension: Supplier 27. Please select all statements that describe the level of collaboration with your suppliers. No strategic alliances with key suppliers and very limited information sharing for supply planning/product introductions A few strategic alliances with key suppliers and some information sharing for supply planning/product introductions Strategic alliances with key suppliers and good information sharing for supply planning/product introductions Collaboration supported by some degree of governance structures, Service Level Agreements (SLAs), and benefits sharing Some enhanced collaboration through processes and capabilities for SRM, Supplier Portals and Quality Assurance Established strategic alliances with key customers and robust information sharing for demand planning/product introductions Established governance structures, Service Level Agreements (SLAs), and benefits sharing Strong supporting process and system capabilities for Supplier Relationship Management, Supplier Portals and Quality Assurance Production/distribution scheduling is tightly aligned with order and lead time scheduling for key/strategic suppliers

13 Dimension: Customer 28. Which statements best describe the level of collaboration with major retail customers (Coles, Metcash and Woolworths)? (select the most applicable response per retailer i.e. 3 responses in all. If you do not do business with one or more retailer, please ignore all responses for those retailers) Relationship with COLES is at the foundational/transactional level with basic collaboration required to flow goods in timely fashion, or Relationship with COLES is at the collaboration level with enhanced approaches to sharing of planning and operational data, including to support product introduction and major events, specific implants or dedicated customer support functions are in place or planned, or Relationship with COLES is at the advanced/preferred supplier level with advanced partnerships in place and monitored business planning, event management and review and dedicated teams where appropriate. Relationship as well as business monitoring and review likely to be in place or planned. Relationship with METCASH is at the foundational/transactional level with basic collaboration required to flow goods in timely fashion, or Relationship with METCASH is at the collaboration level with enhanced approaches to sharing of planning and operational data, including to support product introduction and major events, specific implants or dedicated customer support functions are in place or planned, or Relationship with METCASH is at the advanced/preferred supplier level with advanced partnerships in place and monitored business planning, event management and review and dedicated teams where appropriate. Relationship as well as business monitoring and review likely to be in place or planned. Relationship with WOOLWORTHS is at the foundational/transactional level with basic collaboration required to flow goods in timely fashion, or Relationship with WOOLWORTHS is at the collaboration level with enhanced approaches to sharing of planning and operational data, including to support product introduction and major events, specific implants or dedicated customer support functions are in place or planned, or Relationship with WOOLWORTHS is at the advanced/preferred supplier level with advanced partnerships in place and monitored business planning, event management and review and dedicated teams where appropriate. Relationship as well as business monitoring and review likely to be in place or planned. Dimension: Internal 29. Which statement best describes the level of collaboration within your company? (select most applicable) Limited sales and operations planning process driving cross functional collaboration for planning and new product introductions, and limited shared measures of supply chain success across cost, service and inventory if any. Solid sales and operations planning process driving cross functional collaboration for planning and new product introductions and some shared measures of supply chain success across cost, service and inventory. Advanced and entrenched sales and operations planning process driving cross functional collaboration for planning and new product introductions and full set of cross functional shared measures of supply chain success across cost, service and inventory. Dimension: Other Companies 30. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above

14 Section 2: Supply Chain Dimensions Capability: Flexible Definition: The degree to which events and unforeseen circumstances triggered by changes in customer, supplier, product and processes can be managed on short notice Note: Supplier in the page below refers to raw material and packaging suppliers i.e. Upstream suppliers. Dimension: Supplier 31. Please select only one statement which best describes the ability of your company to manage changes in supply specifications. (e.g. lead time requirements, source location etc.) Very long notice period and very significant efforts required to manage changes in supply specifications with limited ability Significant efforts required to manage changes in supply specifications Some notice and effort required to manage changes in supply specifications Changes in supply specifications are managed with ease at short notice 32. Which statement best describes the availability of alternate sources of supply for your company in key areas such as raw and packaging materials? The supply chain is dependent on single sourced suppliers for most materials and services The supply chain is dependent on single sourced suppliers for some critical materials services but has flexibility for others The supply chain has alternative sources of supply available for all critical and for almost all other raw material and supply chain services if required The supply chain has actively developed alternative sources of supply for all critical raw material and supply chain services as part of a contingency plan Dimension: Customer 33. Which statement best describes the ability of your company to respond to changing customer requirements? (e.g. Lead time, delivery location) The supply chain cannot respond to changing customer requirements without significant effort and time to achieve this The supply chain has limited flexibility to changing customer requirements but a high degree of effort and time is required to achieve The supply chain is flexible to changing customer requirements but still requires some time and effort to achieve the required changes The supply chain is easily flexible to changing customer requirements with minimal additional effort and within short timeframes

15 Dimension: Products 34. Which statement best describes the ability of your company to respond to new product requirements? Limited cross functional sales and operations planning processes are in place and can support simple new product requirements (e.g. product line extensions) to be managed through the existing supply chain A solid cross functional sales and operations planning process is in place to manage the introduction of standard new product requirements, with reasonable supply chain flexibility to manage volume capacities An advanced and entrenched cross functional sales and operations planning process is in place to manage the introduction of complex new product requirements, and there is planned flexibility in capacity to manage volatile demand volumes 35. Which statement best describes the ability of your company to respond to changes in supply and production locations? Simple new product requirements (e.g. product line extensions) can be managed through the existing supply chain but with capacity constraints requiring prioritisation decisions Standard new product requirements can be managed through the existing supply chain with limited cross functional sales and operations planning processes in place to manage these changes A robust cross functional sales and operations planning process is in place to manage the introduction of complex new product requirements, with planned flexibility in capacity to manage required volumes Dimension: Processes 36. Which statement best describes the ability of your company to adapt to internal supply chain process changes? The supply chain has limited ability to adopt internal supply chain process changes and manage cross functional dependencies. The supply chain has the ability to adopt internal supply chain process changes and manage cross functional dependencies, but with significant efforts required The supply chain can adopt internal supply chain process changes and manage cross functional dependencies The supply chain can rapidly adopt internal supply chain process changes and manage cross functional dependencies seamlessly 37. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above.

16 Section 2: Supply Chain Dimensions Capability: Adaptive Definition: The ability to respond to more structural (internal and external) changes brought by the overall strategy as well as product and customer requirements Note: Supplier in the page below refers to raw material and packaging suppliers i.e. Upstream suppliers. Dimension: Changes in Corporate Strategy 38. Which statement best describes how your company's supply chain supports the implementation of corporate strategy? Current supply chain capabilities often limit rather than facilitate the implementation of Corporate Strategy Current supply chain capabilities sometimes limit rather than facilitate the implementation of Corporate Strategy The supply chain is often seen as a strong enabler for the implementation of Corporate Strategy The supply chain adds real value as a key aspect of the company s competitive advantage 39. Which statement best describes the scalability of your company s current supply chain? The supply chain is limited in its capacity to meet current volumes and has no spare capacity to meet volume growth The supply chain can meet current volumes but has limited capacity to meet volume growth without significant investment The supply chain can meet current volumes and has potential to scale up in some product lines to meet future volume growth The supply chain can meet current volumes and is fully scalable to meet future volume growth across product lines 40. Which statement best describes the scalability of your company s current supply chain? Not applicable local focus only Expansion into new markets or geographies cannot be supported through leveraging the existing supply chain resources, systems, processes, people and governance Expansion into new markets or geographies can be supported in part through leveraging the existing supply chain governance, but requires significant investment or change to systems, processes, and people with significant integration effort The supply chain can support expansion to new markets / geographies through leveraging the existing supply chain resources, systems, processes, people and governance with relatively small integration effort The supply chain can seamlessly support expansion to new markets / geographies through the extension of the existing supply chain resources, systems, processes, people and governance, with minimal effort to integrate the new market/geography

17 Dimension: Product and Customer Strategy 41. Which statement best describes the ability of your supply chain to respond to customer requirements to provide customisation? (as opposed to change in lead times and delivery locations in the Flexible section, Q29) The supply chain is mainly based on internal capabilities and tied to the current product portfolio any significant change in customer customisation requirements is unlikely to be manageable The supply chain is operating close to full capacity and regularly struggles to meet current customer requirements, any significant changes to customisation will place great strain on capability Significant customer customisation requirement changes would likely require the supply chain to be reconfigured with significant additional investment Current capacity could be partially complemented based on existing agreements with external suppliers in the event of more demanding customer customisation requirements There are agreements with external third parties that can be leveraged to flex supply and service requirements to meet customer customisation requirements The supply chain can adapt quickly and is flexible enough to satisfy higher customisation of existing products Dimension: Operations Strategy 42. Which statements best describe issues your company's supply chain network and operations face in relation to adaptability? (select all that apply) There is no robust supply chain network and operations strategy The supply chain is highly exposed to commodity price fluctuation or exchange rate exposure, with no sourcing alternatives to face changes on raw material prices or supply shortage There is little room to mitigate the impact of commodity price increases and normally implies structural changes to the supply chain The company benefits from high volume driven discounts but the supplier base is limited with little or no sourcing alternatives Global sourcing is one of the priority actions but there is a strong local/regional effect on the supplier base Commodity price fluctuation is normally countered by aggressive cost cutting projects and operational improvements which may not be sustainable over time Impact of commodity price fluctuation is high with limited capacity to pass price increases on to the customer 43. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above

18 Section 2: Supply Chain Dimensions Capability: Risk Managed Definition: The ability to proactively identify and evaluate risks across the supply chain, and translate this into an effective risk mitigation plan Note: Supplier in the page below refers to raw material and packaging suppliers i.e. Upstream suppliers. Dimension: Risk Recognition and Evaluation 44. Which statement best describes your company's identification and management of supply chain risks? (choose most appropriate response) Supply chain risks are not pro actively identified in the organisation Basic supply chain risks are recognised and their impact on business continuity is assessed at least every two years Standard supply chain risks are recognised and their impact on business continuity is assessed every 6 12 months more complex supply chain risks are recognised and assessed occasionally (e.g. material availability, industrial relations risks) Extensive risk assessment including suppliers, third-party logistics providers, customer and geo political risk is assessed at least annually and in a structured way 45. Which statement best describes your company's Health, Safety & Environment risk management processes? Health, safety, environment risk reduction is limited to meeting legal requirements Health, safety, environment risk reduction extends beyond meeting legal requirements and is regularly reviewed internally Health, safety, environment risk reduction extends beyond meeting legal requirements and is regularly reviewed internally, and through external experts Dimension: Supply Chain Risk Mitigation 46. Which statement best describes your company's supply chain risk mitigation processes? Risk mitigation is limited to mandatory insurance cover terms and legal requirements Risk mitigation only focuses on internal activities; suppliers and third parties are not covered by the system Network risk mitigation plans are in place, with an established process to manage different risk types across the end-to-end supply chain, including suppliers and third parties 47. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above.

19 Section 2: Supply Chain Dimensions Capability: Accurate Definition: The degree to which relevant supply chain information is timely and correct Note: Supplier in the page below refers to raw material and packaging suppliers i.e. Upstream suppliers. Dimension: Performance 48. Please select all statements which describe how your company monitors the accuracy of operational KPIs (e.g. inventory level, production lead-time, delivery lead-time, scrap, plant utilization rate) The accuracy of operational KPIs is not monitored No processes are in place to improve accuracy Accuracy performance accountability is not clearly defined or linked to performance evaluation The accuracy of operational KPIs is monitored through some spot checks Manual process controls are in place to improve accuracy Accuracy performance accountability is clearly defined and linked to performance evaluation The accuracy of operational KPIs is frequently monitored (e.g. Every qtr) Manual and automatic process controls are in place to improve accuracy Dimension: Transactional 49. Please select only one statement which best describes the impact of accuracy of information provided to the customer (e.g. quantity, delivery date, incoterm, quality elements, production location) Accuracy related issues and concerns are very common and are highlighted every month Accuracy related issues and concerns are frequent and are highlighted every quarter Accuracy related issues and concerns are infrequent and are highlighted every year Accuracy related issues and concerns are rare 50. Which statement best describes how your company controls the accuracy of information provided to customers? Ad hoc checks occur, especially when the customer complains about the order Order accuracy is reviewed periodically as a matter of course Orders are systematically controlled for priority orders/customers (large orders / orders from main customers) for accuracy and periodically for others Accuracy of the information given to all customers is systematically reviewed

20 Dimension: Static 51. Which statement best describes how internal replenishment parameters (e.g. inventory, order quantities) are reviewed? (select most appropriate) Replenishment parameters are not reviewed, or only on an ad hoc basis on demand Replenishment parameters are periodically (e.g. annually) reviewed for a selection of SKUs Replenishment parameters are reviewed regularly (e.g. quarterly) for most SKUs Replenishment parameters are reviewed often (e.g. monthly) for all SKUs 52a. Which statement best describes how contract parameters with suppliers (e.g. lead time, incoterm) are reviewed and revised if required? Contract parameters are reviewed and revised if required on demand only Contract parameters are reviewed and revised if required for main suppliers when negotiations occur Contract parameters are reviewed and revised if required for the main suppliers frequently Contract parameters are reviewed and revised if required for all suppliers frequently 52b. Which statement best describes how contract parameters with customers (e.g. lead time, incoterm) are reviewed and revised if required? Contract parameters are reviewed and revised if required on demand only Contract parameters are reviewed and revised if required for main customers when negotiations occur Contract parameters are reviewed and revised if required for major customers frequently Contract parameters are reviewed and revised if required for all customers frequently 53. Which statement best describes how regularly production parameters (e.g. batch quantities, production speeds, scrap rate) are reviewed and revised if required? Production parameters (e.g. batch quantities, production speeds, scrap rate) are reviewed and revised if required on demand only Production parameters are reviewed and revised if required quarterly annually Production parameters are reviewed and revised if required monthly quarterly Production parameters are reviewed and revised if required weekly monthly 54. Which statement best describes how changes to replenishment, contract or production parameters are tracked? Changes cannot be tracked Changes can be tracked by user Changes can be tracked by user and time/date of change Changes can be tracked by user, time/date and by reason

21 Dimension: Planning 55. Which statement best describes how the accuracy of demand plans (forecast accuracy, forecast bias) is monitored? The accuracy of demand plans is not actively monitored though some accuracy spot checks may occur The forecast error is measured regularly for single time lags and for aggregate high level forecasts The forecast error and bias is measured frequently for multiple time lags for aggregate high level forecasts and for some detailed level forecasts The forecast error and bias is measured perpetually for all time lags for detailed level forecasts 56. Please select only one statement which best describes the level of accountability for accuracy of demand plans Accuracy not tied to performance evaluation Accuracy performance rarely rewarded Accuracy performance accountability is not clearly defined or linked to performance evaluation Accuracy performance accountability is clearly defined and linked to performance evaluation 57. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above

22 Section 2: Supply Chain Dimensions Capability: Complexity Controlled Definition: The degree to which complexity driven by product and service portfolio, customers and suppliers is managed across the end to end supply chain Note: Supplier in the page below refers to raw material and packaging suppliers i.e. Upstream suppliers. Dimension: Product / services portfolio 58. Which statement best describes how portfolio management is linked with strategic business planning? Portfolio management not linked with strategic business planning Portfolio management has some integration with strategic business planning Portfolio management is heavily integrated with strategic business planning 59. Please select only one statement which best describes the processes used to limit product complexity (e.g. formulations, packaging, designs). No rule based process for limiting product complexity proliferation A rule based process for limiting product complexity proliferation A robust rule based process for limiting product complexity proliferation 60. Which statement best describes the available fact base for understanding the cost of complexity? No fact base to understand cost of complexity Limited fact base is available to understand cost of complexity via ad hoc review Strong fact base is available to understand cost of complexity through comprehensive cost to serve analysis Dimension: Customer & Channels 61. Which statement best describes the internal processes used to manage complexity of customer supply chain requirements? No internal cross functional process to manage complexity of customer supply chain requirements Occasional collaboration with sales & marketing to manage complexity of customer supply chain requirements Regular internal collaboration activity with sales & marketing to manage complexity of customer supply chain requirements with different stages of segmentation Robust and entrenched formal internal collaboration process with sales & marketing to manage complexity of customer supply chain requirements with different stages of segmentation 62. Please select only one statement which best describes the level of supply chain configuration change required to adapt to new customer requirements (e.g. what is the impact of delivery location or time slot change in terms of complexity of change and interdependencies with other deliveries etc.) Significant supply chain configuration change required to adapt to new customer requirements Some supply chain configuration change required to adapt to new customer requirements Limited supply chain configuration change required to adapt to new customer requirements

23 63. Which statement best describes how customers are segmented for differentiation of supply chain service? No segmentation of customers using a defined method and no differentiation of the supply chain service Limited segmentation of customers with no defined method and limited differentiation of the supply chain service Moderate segmentation of customers through a defined method and some differentiation of the supply chain service according to segmentation principles Robust and entrenched methods to segment customers and provide specific service through differentiated supply chain standards and practices Dimension: Suppliers 64. Please select all statements which describes the time and effort required to integrate new suppliers into the supply chain. Significant time and effort required to integrate new suppliers into the supply chain Some time and effort required to integrate new suppliers into the supply chain Basic process with some time and effort required to integrate new suppliers into the supply chain Efficient process with low time and effort required to integrate new suppliers into the supply chain Supplier Relationship Management (SRM) systems support ease of integration 65. Please select only one statement which best describes the understanding of supplier requirements to enable smooth integration. Limited understanding of supplier requirements to enable smooth integration Good understanding of supplier requirements to enable smooth integration Good understanding of supplier requirements to enable smooth integration, track record of success with some exceptions Good understanding of supplier requirements to enable smooth integration, good track record of success 66. Which statement best describes how your company's suppliers are segmented? No segmentation of suppliers using a defined method and limited differentiation between transactional and strategic suppliers Limited segmentation of suppliers with no defined method and limited differentiation between transactional and strategic suppliers Key segmentation of suppliers through a defined method and differentiation between transactional and strategic suppliers Robust method to segment suppliers through a defined method and differentiation between transactional and strategic suppliers 67. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above.

24 Section 2: Supply Chain Dimensions Capability: Green Definition: The degree to which the end to end supply chain is environmentally responsible Note: Supplier in the page below refers to raw material and packaging suppliers i.e. Upstream suppliers. Dimension: Effective and responsible use of natural resources 68. Which statements best describe your company's responsible use of natural resources? (select all that apply) In line with national laws and regulations (or target to be within the year) Effective and responsible use of natural resources is a topic the company is committed to Company exceeds local laws and regulations High level, discrete tracking of natural resources usage and waste High level direct natural resources reduction objectives (energy, water, waste) have been defined (e.g. resource management, packing alternatives and reuse of scrap materials) Natural resources consumption is part of the performance measures Extensive objectives have been defined through the whole supply chain, with advanced levers e.g. product redesign, waste exchanges or valorisation Company communicates externally (financial community, customers) about its natural resource consumption performance A collaborative approach with suppliers and partners has been initiated to limit natural resources consumption through the end to end Supply Chain Strong partnerships have been established with Non-Government Organisations (NGO) who certify results Dimension: Reduction of pollution 69. Which statements best describe your company's efforts to reduce impacts on the environment? (select all that apply) Company is in line with national laws and regulations (or target to be within the year) Supply chain contribution to Greenhouse Gas (GHG) emissions is estimated but not measured accurately Company exceeds national laws and regulations High level, discrete tracking of natural resources usage and waste High level direct natural resources reduction objectives (energy, water, waste) have been defined (e.g. resource management, packing alternatives and reuse of scrap materials) Natural resources consumption is part of the performance measures Extensive objectives have been defined through the whole supply chain, with advanced levers e.g. product redesign, waste exchanges or valorisation Company communicates externally (financial community, customers) about its natural resource consumption performance A collaborative approach with suppliers and partners has been initiated to limit natural resources consumption through the end to end Supply Chain Strong partnerships have been established with Non-Government Organisations (NGO) who certify results

25 Dimension: End of life management 70. Which statements best describe your company's efforts to improve product recyclability and end of life management? (select all that apply) Company is in line with national laws and regulations (or target to be within the year) Product recyclability is not monitored Company exceeds national laws and regulations Product recyclability is measured at least annually Product recyclability is included in performance measures Key areas of improvement have been defined and performance is monitored on a regular basis Company communicates externally (financial community, customers) about its performance A collaborative approach with suppliers and partners has been initiated to develop product recyclability across the Supply Chain Has a leadership role in emerging regulation at both the industry and government level 71. Additional Comments: Please provide any additional commentary regarding assessment of this capability, including clarifications and dimensions that you feel have not been addressed in the questions above

26 Section 3: Supply Chain Priorities 72. Please rank the relative importance of the 11 capabilities to the supply chain you consider to be in scope for this survey, by adjusting the values in the cells below between 1 and 11. (Highest importance = 1, Lowest Importance = 11) Capabilities Current Focus Importance in 3 5 years Lean () Fast () Reliable () Transparent () Collaborative () Flexible () Adaptive () Risk Managed () Accurate () Complexity Controlled () Green () Total Note: Current Focus Please adjust these ratings according to the relative importance you place on each capability for each sales channel. Importance in 3 5 years Please rate based on the importance of these capabilities in 3 5 years time.

27 Section 4: Digital Supply Chain Capabilities Companies in a wide variety of sectors are investing significantly to digitalise their supply chain management and entire business models. Digitalisation impacts SCM in all its forms, from DHL increasing productivity by 25% through data glasses for picking processes to Amazon and Alibaba investing in robotics for goods handling and drones for deliveries. A digital supply chain is based on connected processes and direct communications Traditional disconnected supply chains Sporadic single level customer interaction, decoupled and decelerated reacting supply chain elements, Supply chain planning based on centralized, OEM driven data systems, heterogeneous data and discontinuous data exchange between supply chain elements

28 AFGC Supply Chain Capability Survey Digital and connected supply chains Supply chain activities are fully orientated to the end customer (volume, variants, usage), Direct interconnection of supply chain elements contrary to hierarchic organizational scheme Supply chain interaction based on real-time data and shared data bases These technologies come together across the whole supply chain to create substantial efficiency and effectiveness improvements

29 AFGC Supply Chain Capability Survey Section 4: Digital Survey In basic layman terms, digital in supply chains means seamlessly connected processes and systems that allow for constant and immediate data flow thus building the platform for application of advanced analytics and technology to drive efficiency and effectiveness in the end to end system Dimension: Strategy 1. How do you define digital in the context of supply chains? 2. Which statement best describes the understanding of digital within the leadership team of your organisation? There is a lack of understanding amongst the leadership team on what digital means for the supply chains There are a few executives who understand the relevance of digital to supply chains There is widespread understanding on the relevance of digital to supply chains but no clear agreement on the value There is widespread understanding on the relevance of digital to supply chains and also clear agreement on the value 3. Which statement best describes your company s current plans on digital supply chain? There is no digital supply chain plan in place There is an adhoc digital supply chain plan in place, but it is not yet part of the company's core investment agenda There is an adhoc digital supply chain plan in place and it is part of the company's core investment agenda There is an adhoc digital supply chain plan in place and it is part of the company's core investment agenda and money has been allocated to implement the plan 4. Dimension: Planning Where is your company in terms of using the below technologies in its planning functions? Note: Do not answer for technologies in light grey Big Data Don't know Not relevant Relevant and no current plans to deploy Relevant and plans to deploy in near future Cloud Services UI & display innovation Robotics Sensors & Nanotech & Geolocation 3D Printing

30 AFGC Supply Chain Capability Survey Dimension: Supply 5. Where is your company in terms of using the below technologies in its supply functions? Note: Do not answer for technologies in light grey Big Data Cloud Services UI & display innovation Robotics Sensors & Nanotech & Geolocation 3D Printing Don't know Not relevant Relevant and no current plans to deploy Relevant and plans to deploy in near future Dimension: Manufacturing 6. Where is your company in terms of using the below technologies in its manufacturing functions? Big Data Don't know Not relevant Relevant and no current plans to deploy Relevant and plans to deploy in near future Cloud Services UI & display innovation Robotics Sensors & Nanotech & Geolocation 3D Printing