Supply Chain

Supply Chain Readiness

Material Disclosure Solutions

NEMI Lead-Free Working Group Demo and Discussion December 9, 2003

1 © 2003 The GoodBye Chain Group LLC All rights reserved

E-Waste Transition – Suppliers are NOT Ready !!!

Immediate Business Problem: Overworked corporate staff can’t handle the nightmarish data collection and data accuracy problems being imposed upon them by the most far-reaching E-Waste legislation ever • Pb-free assembly required by July, 2006- RoHS • OEMs must collect data from hundreds of suppliers

Their job is complicated by: • • • • No standardized data collection format No standardized communication format No simple weight calculation tools Globally dispersed suppliers

High communication time with suppliers = high costs

E-Waste Transition – GCG’s Immediate Solution!!! GCG’s

GCG’s Portfolio of Supplier Readiness products and services • Material Declaration Software • Material Disclosure Workshops that provide suppliers with •Compliance Awareness •Material Disclosure solutions •Turn-key Material Declaration Outsource Services GCG can • • • •

Make suppliers aware of regulatory drivers Standardize and automate the declaration process Provide OEM’s with accurate material disclosure information Do it all cost effectively

Front-End Pain: Front-End Pain: Data Collection Nightmare Data Collection Nightmare

OEM 25 EU Countries with 25 Different Requirement Sets

Apple/UC Berkeley Study:

Supplier C Supplier A Time needed to complete Materials Declaration for each part: • 7.66 weeks overall • 4.75 communications per part # Implies 4750 communications for OEM with 1000 part #’s #’ Suppliers often: • Don’t know what they get Don’ from their suppliers • Report inaccurately • Over-report to avoid liability

Supplier B

Supplier D

Supplier X

Supplier Y

Supplier Z

© 2003 The GoodBye Chain Group LLC All rights reserved

Back-End Pain: Halted shipments Back-End Pain: Halted shipments Sony Example Sony Example...