CMI ENGINEERING (BEIJING) CO., LTD. CMI INDUSTRY METALS

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1 Win Together ---CEB 1 st Supplier Day Ceremony CMI ENGINEERING (BEIJING) CO., LTD. CMI INDUSTRY METALS

2 Project Management Mathias Christiaen Shenliang Yu Sophia Yao John Zheng Jason Zhu Richard Wang Helen Wang Luis Liu General Manager of CEB ( Sponsor) Deputy General Manager ( Project Manager) HR & Administration Manager Quality Manager Estimation and Purchasing manager PM team manager Purchasing Engineer Purchasing Engineer

3 What has been achieved / put in place On July 10th 2017, CMI Engineering ( Beijing), Co., Ltd ( CEB) has managed its first «Supplier Day». This event has been a unique moment to gather 15 «Key supplier» for a reflexion about the competitivity of our Supply Chain. On a very competitive Chinese market, purchasing performance is a workstream on which CEB is focusing since several years and this first Supplier Day is in line with company PRP and strategy of Supplier Relationship Management. ( SRM) For this event all suppliers have been selected following various criteria ( quality, leadtime, cost,etc ) but also regarding their criticity in the purchasing process. Following this day, all suppliers have been invited to present a progress plan within the next 6 months. The ceremony ended with distribution of some awards tailor made for this event and with exchanges during a dinner

4 Targets of the project Target was to share CEB s visions with suppliers, to align, to create and capture a real return on good relationships. Managing key suppliers in order to become their preferred customer to get the best cost, quality, delivery and innovation. Shift the price negotiation model between Seller and Buyer into innovation together then win together through cost reducing, quality improvement and better delivery

5 Public impacted / concerned Supplier is key when: Supplier's performance can have a major and direct impact to CEB sales and profitability. It is very long or costly to change the supplier. Supplier s network is important for CEB future business (supplier can help CEB win new projects). Supplier s technology is important for CEB future business. Supplier s business strategy is in line with CEB business strategy (in terms of technology, markets, industry )

6 Date and scope of operation / application Project Launch Date : From May 1st of 2017 Critical stages: key suppliers selection by Sales, PM and Procurement team CMI Technology presentation Video making ( see attachment) Supplier Day Ceremony Date: July 10th, 2017 Suppliers involved: covering all CEB core business Equipment for Processing Lines Casings, Steel Structures and Process Equipment for Thermal Applications Pickling/*ARP (Plastics & FRP) Erection and Commissioning Spare Parts & Components AGENDA 1.Key supplier management speech by Ohanes Missirilian ( Prof EM Lyon Business School) 2.Monitoring tools presentation by CEB Purch. Manager. 3.Video 4.Supplier Collaboration speech by E.Albrand. (Bus. Dev & Sourcing Expert) 5.Supplier speech : Quality Monitoring 6.Awards ceremony 7.Dinner

7 Method of promoting / communicating the project Presentation of the project during CMI Industry Leadership Workshop on November 2017 during Best Practices Session Production of a movie that will be further used to present company sourcing capabilities. Dedicated Award tailor made for the event. Publication in CMI news ongoing

8 Budget allocated Total financial spending for the project is about 12 Keuros including : - Movie making - Meeting room and ceremony - Awards - Dinner - Consultancy costs - Internal hours

9 How this project is it sustainable / reproducible project? Supplier Day ceremony is a startline to promote the SRM and Value creation opportunities reserved for future business: Cost reduction activities Quality improvement Supply chain optimization Relationship nurturing activities

10 Measured impact All suppliers have been invited to present a progress plan within the next 6 months

11 The project in pictures

12 Thanks Address: 5 th Floor, Jinghan Mansion No. 8 Shixing East Street, Shijingshan District, Beijing P.R.China mathias.christiaen@mail.cmieng.com.cn

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