Fact Based Negotiation

2. Supply Chain End-to-End Value Added

3. Electronic Market Supply Chain LG PCB supplier Tyco Molex Sony EMS/ODM Foxconn Flextronics BYD Lite-on Winston Compal Solteras SANMINA Component Supply WINTEK Samsung SHARP Toshiba Liteon VPT Samsung Altus LG PCB Tyco Molex Sony Altus Intel, QUALCOMM, Mcron, STM, TSMC End Customer

5. Who Participant ? Foxconn Samsung LG BYD TOSHIBA ALPS Konica Minota Micron STM Sony OmniVision Kodax Magachip Largan GESO Foxlink Molex Tyco Hirose FCI Panasonic Amphenol SMK Acon Unitech Unimicron Wus Compeq Multek MFLEX Ichia Gflex Lishen Sanyo SINCO Sam Young LiteOn Vista Point Memtech Jabil Silitech DKUIL Seiwoo Wintek Flex

7. CSI Methodology Triangulate improving cost model accuracy and confidence. Should Cost Design RFQ Cost Model Cost Research Data Data

11. Fact-Based Negotiation Intelligence wins the wars Direct labor Indirect labor Scrap Plant and equip-ment burden Other over-head (warranty,ship-ping) SG&A Net profit Supplier’s Should cost $50 best-in-class cost $ 80 Supplier quote Negotiations start with a closing gap between supplier’s prices and best-in-class costs . . . RFQ Quote Target price $70 Should cost

12. Traditional Annual Negotiation New Conract Price Low than market Price Begin Loss price adventage Re-gain price adventage after 6-month

13. Fact-based Negotiation Achieving 3% Incremental Cost Reduction Incremental Saving Incremental Saving Annual Negotiation Saving Annual Negotiation Saving

15. Are You Ready to Play? Do you have fact-based negotiation playbook?