Markets An Extensive Portfolio Of Branded Women’S And Men’S Apparel

Navigating the Currents of Global Trade Management

Graham RF NapierPresident and CEO, TradeBeam

The 2nd APEC E-Commerce Business Alliance ForumMay 17-19, 2006

Qingdao, China

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TradeBeam Confidential & Proprietary

TradeBeam

3000+ customers globally

100+ countries with TradeBeam users

90+% world trade regulations

50+% Tier 1 global OEM automotive suppliers

$2+ billion in LC's processed annually

US Department of Homeland Security partner for OSC

China JV Investment PanPacifics

GTM Global Market Leader

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Global Trade Drives Competitive Advantage

Drivers

Revenue growth requires finding new customers, regardless of location

Lower costs require cheaper sources of supply, regardless of location

Changes in government policies are paving the way for freer trade

Companies are outsourcing and not seeing results hit the bottom line

“Long-term benefits derived from globalization will outweigh the short term setbacks.” Alan Greenspan, 2005

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Global Trade Challenges

Global Procurement Global Procurement Gaining accurate and timely landed cost information

Managing Inventories and re-order sourcing

Decreased supplier performance

Global SalesGlobal Sales Volatility in supply impacting customer satisfaction

Regulatory export restrictions

Maintaining product and service quality with operational flexibility

Global LogisticsGlobal Logistics Increased inventory carrying costs

Timely and accurate shipment information

Delays and penalties for customs and trade violations

Global FinanceGlobal Finance Extended working capital tied up in global operations

Trade Finance costs and discrepancies

Payment tracking and reconciliation

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Strategic Go-to-Market Plan

RetailIndustry

($1.04 trillion/yr)

RetailIndustry

($1.04 trillion/yr)

Hi-tech/TelcoLife Sciences

($0.93 trillion/yr)

Hi-tech/TelcoLife Sciences

($0.93 trillion/yr)

Global Corporations

Global Service Providers

Global 5000 Global 5000

Billions of dollars of goods

tracked and managed

annually using TradeBeam

Millions of parties are security

screened annually using

TradeBeam applications

Auto/ Manufacturing($0.73 trillion/yr)

Auto/ Manufacturing($0.73 trillion/yr)

Global 5000

Over 50% of Tier 1 Auto

suppliers use one or more of

TradeBeam’s applications

Global Banking#1 Global Trading Bank#1 Regional Trading Bank

Global Banking#1 Global Trading Bank#1 Regional Trading Bank

Global Logistics#1 Global Logistics Provider#1 US Logistics Provider#1 Global Ocean Carrier

Global Logistics#1 Global Logistics Provider#1 US Logistics Provider#1 Global Ocean Carrier

Global Governments#1 Exporting Government #1 Importing Government

Global Governments#1 Exporting Government #1 Importing Government

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GTM Application Suite

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Visibility is Critical to GTM Success

Pallet RFID Tag Carton RFID TagCellular & GPS

Containers loaded

Factory Port of Lading-Terminal

Final delivery

Distribution Center

SteamshipLine

Vessel at sea

Containers moved to

port of lading.

InlandDray

Containers moved DC.

InlandDray

Containers are loaded

on ship

Port of Discharge-Terminal

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GTM Application Suite

Flow of Goods, Funds and Information

Containers are loaded

on ship

Source: TradeBeam

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Global Trade Regulations

Over 90 percent of world trade regulations

50+ Countries

Membership and leadership in 10+ associations

Over 60 years of experience

12 foreign languages

Subscription services to over 200 trade data sources

Multiple Customs House Brokers

Global Regulation Support

Americas EMEA EMEA Asia/Pacific

Argentina

Brazil

Canada

Colombia

Dominican Republic

Mexico

Puerto Rico

USA

Austria Belgium Cyprus Czech Republic Denmark EgyptEstonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania

Luxembourg Malta MoroccoNorwayPoland Portugal RomaniaRussiaSlovakia Slovenia Spain Sweden SwitzerlandThe Netherlands United Kingdom TurkeyUAE

AustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew Zealand SingaporeSouth KoreaTaiwanThailandViet Nam

Countries/Regions/Zones Supported

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Global Retailer Reduces Inventory by 10 Days

$5 billion annual sales 250m units sourced annually Over 3000 factories overseas Imports goods from over 35 countries Time sensitive manufactured goods

Proactive management of uncertainties around international shipments

Obtain product information and shipment visibility from all logistics partners

Enable electronic sharing of customs information with brokers prior to goods entering U.S.

Diverse sourcing locations Common shipment delays Reactive issue management Rapid depreciation of manufactured items Limited ability to increase off-shore manufacturing

Global Business GTM Issues

GTM Strategy

10 days inventory reduction in first 18 months due to shorter lead times and certainty of goods location

Import transit times reduced by 6+ days through improved visibility and proactive shipment management

Operational efficiency in simultaneously reducing headcount while increasing shipments by nearly 50%

Client’s Actual Results

Business Success Study

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Global Auto OEM Meets Target Price for Production

Global automotive OEM Creating a low-cost car for emerging markets Partially built in Western Europe Exported to emerging market for final assembly & sale

Minimize trade compliance transaction costs

Maximize the advantage of preferential trade agreements in product design and sourcing

Accurately calculate duty rates, meet compliance requirements, and create and submit customs documentation

Product classification inconsistency impacting duties paid Lack of process automation with customs agents Higher transaction and documentation costs The lack of a unified audit trail for imports and re-exports Lack of a unified analytics around trade compliance

GTM Issues

GTM Strategy

Carefully managed duties, taxes, and tariffs to meet its target list price for Logan of 5,000 Euros

Lower broker documentation and processing costs from $200 to $20 per transaction in some cases

Purchasing managers understand where to source parts based on best possible duty rates and total landed cost

Decrease duty owed


Global Business


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Global Hi-tech Manufacturer Reduces Inventory by 30%

Provide full visibility of demand and supply for Stryker and its vendors.

Manage direct material supply through the min/max replenishment process

Share forecast, consumption, shipping, and receipt information with suppliers for them to manage the replenishment

High inventory levels Reduce inventory levels without suffering stock outs Service levels performance issues

GTM Issues

GTM Strategy

Reduced direct material inventory by 30%

Reduced some finished goods inventory by 30-40%

Reduced expedited freight and stock outs of direct materials

Reduced supply chain administrative costs

More than 90% of Stryker’s direct material supply is now managed through the min/max replenishment process


Global Business

Medical equipment manufacturer Michigan is replenishing inventory to UK and Japan Locations include Puerto Rico, Germany & Switzerland


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Thank You!

The 2nd APEC E-Commerce Business Alliance Forum Download Center APEC Presentation GTM Best Practices; Automotive, Retail, Hi-tech, CPG, Logistics GTM Whitepaper

Available at: www.tradebeam.com

Markets An Extensive Portfolio Of Branded Women’S And Men’S Apparel

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