Integrated Supply Chain Fact Sheet 2007

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Integrated Supply Chain We’re scientists. We’re artists. Most of all, we are a global communications leader, powered by, and driving, seamless mobility. Motorola is revolutionizing broadband and wireless networks – bringing cutting-edge technologies into your everyday life, with style. “We strive to become a best-in-class supply chain that delights customers and is a distinct competitive advantage for Motorola.” - Rita Lane, senior vice president, Motorola Integrated Supply Chain Who We Are Motorola’s Integrated Supply Chain supports the company’s Enterprise Mobility Solutions, Home & Networks Mobility and Mobile Devices business units, ensuring that customers receive products and services when and how they want them. We do this through a coordinated network that includes: Hardware and software suppliers Manufacturing facilities Distribution centers Logistics providers What We Do The Integrated Supply Chain includes all resources and processes that begin with components and extend through the delivery of the finished product to customers. At the most basic level, it is our responsibility to: Procure hardware and software Introduce new products Manufacture products and systems Pick, pack, ship and repair manufactured goods Our Top Priorities Working across all Motorola businesses, the Integrated Supply Chain is focused on the following six priorities: Execution excellence in everything we do Deep supplier relationships Manufacturing and logistics optimization Quality renewal Common leveraged information technology (IT) solutions Organization efficiency

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Fact sheet for the Integrated Supply Chain at Motorola in 2007

Transcript of Integrated Supply Chain Fact Sheet 2007

Page 1: Integrated Supply Chain Fact Sheet 2007

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We’re scientists. We’re artists. Most of all, we are a global communications leader, powered by, and driving, seamless mobility. Motorola is revolutionizing broadband and wireless networks – bringing cutting-edge technologies into your everyday life, with style.

“We strive to become a best-in-class supply chain that delights customers and is a distinct competitive advantage for Motorola.”

- Rita Lane, senior vice president, Motorola Integrated Supply Chain

Who We AreMotorola’s Integrated Supply Chain supports the company’s Enterprise Mobility Solutions, Home & Networks Mobility and Mobile Devices business units, ensuring that customers receive products and services when and how they want them. We do this through a coordinated network that includes:

Hardware and software suppliers Manufacturing facilities Distribution centers Logistics providers

What We DoThe Integrated Supply Chain includes all resources and processes that begin with components and extend through the delivery of the finished product to customers. At the most basic level, it is our responsibility to:

Procure hardware and software Introduce new products Manufacture products and systems Pick, pack, ship and repair manufactured goods

Our Top PrioritiesWorking across all Motorola businesses, the Integrated Supply Chain is focused on the following six priorities:

Execution excellence in everything we do Deep supplier relationships

Manufacturing and logistics optimization

Quality renewal

Common leveraged information technology (IT) solutions

Organization efficiency

Page 2: Integrated Supply Chain Fact Sheet 2007

"The best kept secret over the past several years is the phenomenal work done by the Integrated Supply Chain!" - Motorola Chairman and CEO Ed Zander

About Motorola Motorola is known around the world as an innovator and leader in wireless and broadband communications. We are committed to helping you get and stay connected simply and seamlessly to the people, information and entertainment you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks — with a full complement of support services as well. A Fortune 100 company with global presence and impact, Motorola had sales of US$42.8 billion in 2006. For more information about our company, our people and our innovations, please visit www.motorola.com.

Last Updated 9/07

What Makes Us Proud

Execution Excellence and Organization Efficiency• Improved inventory turns and made record

shipments in 2006• Achieved #12 ranking on AMR Research Top 25 Supply Chain List • Supported 22%corporate growth in 2006 while increasing labor productivity by 45% in terms of quarterly revenue per employee• 82% increase in quarterly units shipped per employee

Deep Supplier Relationships• Leveraging One Motorola procurement strategy• Conduct fact-based negotiations• Continuous supplier collaboration• Host annual supplier conference to emphasize

need for collaboration, quality and value• Deployed Rapid Sourcing Initiative• Reduced supply base significantly• Raised supplier expectations for perfect quality• Launched Supplier Agility program

Manufacturing and Logistics Optimization• Optimized footprint and product flows• Applied Lean and shared best-practices across

all sites

Quality Renewal• Created supplier scorecard and management

system for Top 50 suppliers• Reduced cost of poor quality

MOTOROLA and the Stylized M Logo are registered in the U.S. Patent and Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

Common Leveraged IT Systems• Invested more than 80% of spend on

leveraged IT systems• Launched total order management process

People• "Supply Chain Leadership Program," now in its

second year, enables selected supply chain MBA graduates to participate in 18-month rotational program

• Employees participated in 209 university events during 2006-2007 academic year globally

• Established university partnerships with three US and six international leading supply chain programs to recruit top talent for early career development programs

• Recruited 55 top-talent individuals to full-time positions and hired 111 interns globally in 2007

• Senior Vice President Rita Lane serves on board of directors for National Minority Supplier Development Council and National Gay and Lesbian Chamber of Commerce in the U.S.