American Airlines Propriety & Confidential

A Corporate Conversation

American Airlines

Shell

UPS

Understanding the supply chain and

how your company fits

Understanding Supply Chain

American Airlines Propriety & Confidential

• Total Cost of Ownership (TCO)

• Calculating total cost for every activity in the supply

stream

• Strategic Approach

• Align with corporate imperatives

• Analyze the immediate and future market

• Defining the Value System

• Competitive drivers

– Reduce cost/waste

– Increase quality

– Improve delivery

– Train workforce

Understanding Supply Chain

American Airlines Propriety & Confidential

• Supply Chain Challenges

• Mitigate Risk

– Identify the trigger of risk events

– Develop a plan to mitigate when

an event occurs

– Monitoring metrics and activities

in preparing for an event

– Evaluate financial impact of risk

• Identify and address choke points for a sustainable

workflow/production

• Future capabilities and technology requirements

American Airlines

American Airlines Propriety & Confidential

Five Imperatives to in restoring American to the

greatest Airlines in the World

1.Focus on our customers’ needs and wants

2.Be an industry leader in safe and reliable airline

operations

3.Engage our team members

4.Provide a return for our investors

5.Look to the future

CAUTIONARY NOTE: This announcement may contain forward looking statements concerning the financial condition, results of

operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be

deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on

management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause

actual results, performance or events to differ materially from those expressed or implied in these statements. October 2015

THE OIL SUPPLY CHAIN

The upstream sector includes

the search for potential

underground or underwater

crude oil and natural gas

fields, drilling of

exploratory wells, and

subsequently drilling and

operating the wells that

recover and bring the crude

oil and/or raw natural gas to

the surface.

UPSTREAMThe downstream sector

commonly refers to the

refining of petroleum

crude oil and the

processing and purifying

of raw natural gas, as

well as the production,

marketing and

distribution of products

derived from crude oil

and natural gas.

DOWNSTREAM

The midstream sector involves the

transportation, storage and wholesale

marketing of crude or refined petroleum

and natural gas products.

MIDSTREAM

•Challenge is for SMWBEs to Find Your Fit

•Operational Efficiency and Safety Culture in

the “New Norm”

Large global contracts

replacing regional

contracts

(Enterprise Framework

Agreements)

•More accountability to be placed on Prime

Contractors to help mature/grow the supply

chain

2nd Tier becoming critical

•Best candidates have some proven skills

that have growing needs

•Looking for crossover, relatable and

Capacity Building Programs

on the rise

•Meet strict safety demands

•Focus on their UNIQUE value proposition

•Show value (costs savings, process

improvements, etc.)

•Grow Capacity/Prepare to weather industry

volatility

Supply chains are

shrinking, suppliers must:

Current Industry Issues and Trends

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.

© 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

SUPPLIER DIVERSITY PROGRAM

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.

© 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Ten Step to Success

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.

© 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

HOW TO CONNECT WITH THE UPS

SUPPLIER DIVERSITY PROGRAM

The following steps must be taken in order to participate in

the Supplier Diversity Program:

Register in the Ariba Database: ups.supplier.ariba.com

Provide brief introduction of your company

Provide one page capability statement

Note: Once your application has been accepted and

approved in Ariba, your profile will remain in our database

for one year and at the end of that period, you must request

to stay in our database for an additional year.