Supply Chain

Intel Transportation Supply Chain

International Air Cargo Forum and Exposition

September 2006

Greg Skrovan

Intel Corporation

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Intel Confidential

The Intel you think of…

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Intel Confidential

The Intel that is a…

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Intel Confidential

Intel Supply Chain

Intel Supply Chain characteristics

10 fabrication plants, located in Ireland, Israel and USA 7 Assembly Test factories in Asia and Costa Rica 14 Distribution Centers throughout the world, including four retail boxing lines The manufacturing cycle of a typical Intel product includes at least one round world trip Intel ships ~1.9 million shipments per year averaging 550 kilos per day Intel Supply Chain has ~2,500 people in 14 countries.

Supplier

Fabrication Plant

Assembly Test

Boxing, Customer Storage and Cross docking

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Intel Confidential

The Intel Network

Europe America Asia

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Intel Confidential

Intel’s Influence in the Supply Chain

Leader in internet negotiations; used for virtually all freight contracts and negotiations. Instrumental in establishing the High Tech Shippers Coalition as a forum for influencing governmental policies. Helping to establish direction for RosettaNet proliferation through leadership in RosettaNet consortium. An original founder of Technology Asset Protection Association (TAPA) and active in leadership positions in all geographies. Transportation Materials & Manufacturing Engineering group has patented thermo-forming solutions that have saved millions in freight and packaging costs.

• Intel was ranked number 11 of the “Top 25 Supply Chain Companies” by AMR Research in 2005.

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Intel Confidential

Freight Spending and Geo Demand

Q2 Billings Revenue Q2 Billings Revenue

Imbalance between billings and consumption drives freight costs Air cargo represents 78% of freight spending 59% of freight spends originate in Asia (~20% from China 3PL’s) Challenges:

– Align the “right service / mode” to the Business Unit needs...