8 TH WORLD CARGO SYMPOSIUM LOS ANGELES MARCH Supply Chain Management Track

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1 8 TH WORLD CARGO SYMPOSIUM LOS ANGELES MARCH 2014 Supply Chain Management Track 1

2 8 TH WORLD CARGO SYMPOSIUM LOS ANGELES MARCH 2014 Items to Note: Please keep in mind the compliance to competition law guidelines Coffee Breaks & Lunch are located in the in exhibition hall Kindly silence electronic devices For all agendas and event information visit the event app: 2

3 Opening Remarks Jo H. Frigger Chairman & CEO, Emotrans 3

4 Welcome Address Jason Foote VP International Air Operations - Global Air Cargo & Charter Sales, UPS 4

5 Air Freight versus other modes of transport Tony Prophet Senior Vice President Operations, Hewlett-Packard 5

6 How to manage high dependency on Air Cargo in shorter product life cycles? Cindie A. Blackmer Mgr. Transport Contracts and Negotiations, Intel. 6

7 Maximization of Global Logistics Network Value: Velocity, Cost Effective and Sustainable World Cargo Symposium Cindie Blackmer Intel Corporation, Sr. Manager Global Logistics Sourcing and Supplier Mgt March 12, 2014 CPLG Customer Fulfillment Planning and Logistics Group 7

8 Intel's Vision This decade we will create and extend computing technology to connect and enrich the lives of every person on earth 8

9 Predictable Silicon Track Record Executing to MOORE s LAW Enabling new devices with higher functionality and complexity while controlling power, cost, and size 9

10 Fab and Assembly Test Sites Oregon D1C, D1D, D1X* Arizona Fab 12, 32, 42* New Mexico Fab 11X Massachusetts Fab 17 Ireland Fab 24 Israel Fab 28 Dalian Fab 68 Chengdu Vietnam Costa Rica Penang Kulim Wafer Fab Assembly/Test * Projected

11 Delivering Intel s Vision Through World s Best Supply Chain Technology Leadership Manufacturing Scale Agile and Responsive Supply Chain Social Responsibility We continue to extend our leadership through innovation We are making significant investments and have the scale to deliver We have a worldclass Supply Chain delivering what our customers want We care for the planet and its people These 4 themes continue to be integral pieces that shape our SC strategy 11

12 Operational Excellence: Our Core DNA 78% Improvement 32% Improvement 75% Improvement % Improvement Supply Chain Spends as a % of Revenue 40% Improvement

13 New Level of Collaboration & Velocity Enable Innovation and Growth Design Plan Enablement Source Make Deliver Customer Returns 13 13

14 Meeting the Challenge with Transportation Solutions 14

15 Competitive Supply Base Reliable, Timely Sourcing

16 Leveraging Industry Data to Manage Freight Costs Every Bid leverages industry trends to set expectations. Healthy competition drives the best balanced outcome of cost and customer requirements. 16

17 But, what about Sustainability? The Big Ask! 17

18 Transportation CO2 Reduction Strategy Our strategy is to balance our goal of reducing Intel s supplier related environmental and social footprint with our need to ensure the most technologically advanced, cost-effective, resilient, and predictable supply chain Intel Transportation goal: 30% transportation CO2 by 2015 (2011 baseline: 340,000 MTons of CO2) 90% Green Certified by 2020 CO2 reduction results (compared to 2011 BL): % CO % CO goal: 26% 18

19 The CO2 Reduction Plan: Mode and Package Air to Ocean conversions Aggressively enable ocean shipments for qualified capital equipment, materials and components. Packaging optimization Optimize packaging dimensions, weight and waste for customers and our factories ~3,000MTonnes Transportation CO2 impact 19

20 The CO2 Reduction Plan: The Forwarders and Integrators We are searching out the data. We are Using the data we can find. We are making Decisions for Green! IPCC s Special Report on Aviation and the Global Atmosphere Source: International Civil Aviation Organization 20

21 We have a Crazy Green Idea Opportunities Green Dynamic Routing - Capability to make real time Green, Cost Effective routing decisions Our Challenges: Lack of publicly available data on aircraft fuel efficiency Detailed routing data is available on ad-hock basis only The Ask!!! Need a single industry recognized source of data on ALL Major aircrafts Airlines transparency of their footprint on a shipment level with invoices to include CO2 emissions at the shipment level. Ex. Fuel burned/kg Green Certified standards established for Air Cargo industry 21

22 Challenge: Work together to change the Transportation infrastructure for velocity, cost and Sustainability! Predictable Silicon Track Record Executing to MOORE s LAW Enabling new devices with higher functionality and complexity while controlling power, cost, and size 22

23 Q & A 23

24 Back up 2013 CO2 reduction details CO2 Reduction Pillar % of 2013 CO2 Savings 2013 CO2 reduction, % Air to Ocean conversions 78% -15% Supplier Programs 18% -4% Packaging 4% -1% Total 100% -20% IPCC s Special Report on Aviation and the Global Atmosphere Source: International Civil Aviation Organization odology%20icao%20carbon%20calculat or_v revised.pdf 24

25 Coffee Break in Exhibition

26 Airport hub connectivity Joseph A. Czyzyk CEO, Mercury Air Group, Inc. 26

27 Maximization of global logistics networks through intelligent use of information Joost van Doesburg, European Shippers Council Tony Prophet, Senior Vice President Operations, Hewlett-Packard Cindie A Blackmer, Mgr Transport Contracts and Negotiations, Intel Joseph A. Czyzyk, Chairman & CEO, Mercury Air Group Chuck Zhao, Process Engineer, Cargo Airport Services USA Ashwin Bhat, Vice President Head of Global Area Management, Swiss WorldCargo Richard H. Fisher, President, Falcon GlobalEdge 27

28 Closing Remarks Jo H. Frigger, Chairman & CEO, Emotrans Joost van Doesburg, European Shippers Council 28

29 8 TH WORLD CARGO SYMPOSIUM LOS ANGELES MARCH 2014 Don t Miss the Closing Plenary! Innovation Jam Session Launching of IATA Innovation Awards And more 29

30 Gala Reception & Dinner: California Science Center Gala Dinner Sponsor Items of Note: Gala Reception Sponsor Ticket Required for Entry Busses depart from The Hyatt at 18:15 18:30

31 Networking Lunch in Exhibition

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