LHP Software. LHP Telematics. LHP Joint Venture

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1 LHP Software LHP Telematics LHP Joint Venture Engineering Solutions Engineering Resources

2 LHP Software LHP Telematics LHP Joint Venture Engineering Solutions Outsourced Projects Engineering Resources Embedded Software IT Solutions Test 26 engineers available to support project based software engineering consulting services

3 LHP Software LHP Telematics LHP Joint Venture Engineering Solutions Engineering Resources Technical Recruiting Software Engineers Electrical Engineers Mechanical Engineers Information Technology Manufacturing Engineering No matter how sophisticated the technology, it is still takes people

4 LHP Software LHP Telematics LHP Joint Venture Engineering Solutions Engineering Resources Remote Monitoring Systems Engineering Hosting Consulting

5 Partial Client List

6 Screen shot of web page seen by the fleet manager

7 Conexus/Bingham McHale Event, September 8, 2010 honesty harmony speed simplicity

8 Outsourcing Outsourcing is subcontracting a service or process, such as product design, manufacturing, or accounts payables, to a thirdparty company. The decision whether to outsource or to do inhouse is often based upon achieving a lower production cost, making better use of available resources, focusing energy on the core competencies of a particular business, or just making more efficient use of labor, capital, information technology or land resources. It is essentially a division of labor. Copyright 2009, Telamon Corporation, 1000 E. 116th Street, Carmel, IN

9 Key Outsourcing Terms Offshore Exporting of certain business related functions from the US and other developed countries to areas of the world where there is both political stability and lower labor costs or tax savings. Really any country other than your own. Copyright 2009, Telamon Corporation, 1000 E. 116th Street, Carmel, IN

10 Key Outsourcing Terms Onshore Similar to offshore, but within the same country. Nearshore Similar to offshore, but performed by neighboring countries (i.e. Mexico, Canada). Possible similar cultures/political landscapes. Copyright 2009, Telamon Corporation, 1000 E. 116th Street, Carmel, IN

11 Introduction to Outsourcing What to outsource? Better question is what NOT to outsource. 1.If using a new provider, nothing that directly touches a customer 2.What is considered your core competency 3.Taking into consideration your stakeholders needs 4.High Risk vs. Low Risk Copyright 2009, Telamon Corporation, 1000 E. 116th Street, Carmel, IN

12 Vendor Selection Cost Culture Skills & Resources Turnover References Supplier Stability In no particular order. Copyright 2009, Telamon Corporation, 1000 E. 116th Street, Carmel, IN

13 CONEXUS MANUFACTURING CONNECTIONS LUNCHEON APICS-CIND Central Indiana Chapter Advancing Productivity, Innovation, and Competitive Success

14 The global leader and premier source of the body of knowledge in operations management, including production, inventory, supply chain, materials management, purchasing, and logistics. Since 1957, individuals and companies have relied on APICS for its superior training, internationally recognized certifications, comprehensive resources, and worldwide network of accomplished industry professionals. Advancing Productivity, Innovation, and Competitive Success

15 Advancing Productivity, Innovation, and Competitive Success APICS Chapters in Indiana Michiana 4 Chapters serve Indiana Michiana Fort Wayne Central Indiana Ohio Valley Fort Wayne Central Indiana Ohio Valley

16 APICS-CIND is One of 23 Chapters which comprise the Great Lakes District Advancing Productivity, Innovation, and Competitive Success The Great Lakes District is one of nine North American Districts

17 APICS' more than 250 local chapters are divided into 9 geographic districts that span North America. APICS Districts Advancing Productivity, Innovation, and Competitive Success

18 Currently there are over 90 APICS International Associates Outside North America, APICS is represented by two types of organizations: International Associates (IA): International Associates are non-profit membership organizations, who provide APICS certification exams and related products, and membership services such as local meetings, networking opportunities, and conferences in every region of the globe. Authorized Education Providers (AEP): Authorized Educational Providers teach APICS courses and provide consulting based on the APICS body of knowledge in every region of the world. Advancing Productivity, Innovation, and Competitive Success

19 Advancing Productivity, Innovation, and Competitive Success Foreign Direct Investment into More than 15,800 new jobs & $8 Billion investment since 2005 First in North America for attraction of production jobs through FDI Focus on Asia, Europe creating new jobs for Hoosiers Indiana

20 Advancing Productivity, Innovation, and Competitive Success

21 Advancing Productivity, Innovation, and Competitive Success OUTSOURCING TRENDS: THE WHY S AND THE HOW S ALL RESPONSES WERE TAKEN FROM THE ST QUARTER APICS SURVEY OF SENIOR SUPPLY CHAIN EXECUTIVES

22 Advancing Productivity, Innovation, and Competitive 10 Success My company will increasingly rely on cost reduction to meet its profitability targets over the next year. Strongly agree 45% Somewhat agree 34% Neutral--neither agree nor disagree 13% Somewhat disagree 5% Strongly disagree 3% Percentage of respondents

23 Advancing Productivity, Innovation, and Competitive 11 Success In response to the economic downturn, did your organization or department rationalize inventory? Select all that apply Reduced Inventory Carrying Costs 31% We did not rationalize our inventory 2% Performed additional Inventory analysis such as lot tracking or audits Changed Inventory Forecasting 33% 33% Reworked Inventory to increase value 23% Revalued Inventory 26% Adjusted Safety Stocks 61% Reduced Inventory Levels 84% Percentage of respondents

24 Advancing Productivity, Innovation, and Competitive 12 Success Did your department or organization optimize any of the following in 2009? Select all that apply LEGAL CONTRACTS AND AGREEMENTS 7% ENERGY EFFICIENCY/ENVIRONMENTAL FOOTPRINTS 40% IT/ERP SYSTEMS 23% VENDOR/PARTNER RELATIONSHIP REQUIREMENTS 40% DEMAND MANAGEMENT PRACTICES 49% S&OP 60% Percentage of respondents

25 Advancing Productivity, Innovation, and Competitive 13 Success Select your department or organizations priorities which best addressed the 2009 economic downturn? Select all that apply DECREASING PRICES 14% INCREASING PRICES 12% PARTNERING WITH OTHER ORGANIZATIONS 23% DEVELOPING NEW PRODUCTS 50% ENTERING NEW MARKETS 32% INCREASING PRODUCTIVITY 58% REDUCING EXPENSES 92% Percentage of respondents

26 Advancing Productivity, Innovation, and Competitive 14 Success Looking back on 2009, what areas did your department or organization find challenging compared to the previous year? Select all that apply STRATEGIC PLANNING AND FORECASTING 65% PURCHASING 47% DISTRIBUTION/LOGISTICS 33% INVENTORY MANAGEMENT 64% PRODUCT DEVELOPMENT 15% ENTERING NEW MARKETS 27% MAINTAINING/INCREASING PRODUCTIVITY CUSTOMER SERVICE 53% 51% Percentage of respondents

27 Advancing Productivity, Innovation, and Competitive 15 Success What was the biggest lesson learned over the past 18 months for your company? AGILITY IS SURVIVAL INVENTORY IS THE DIFFERENCE BETWEEN SUPPLY AND DEMAND AND KNOWING HOW TO ATTAIN AND MAINTAIN APPROPRIATE LEVELS OF INVENTORY IS KEY SUPPLY CHAINS MUST ADJUST QUICKLY TO THE CHANGING DEMANDS OF THE CUSTOMER BALANCE NEEDS TO BE FOR BOTH AGILITY AND MAKING THE SUPPLY CHAIN FOCUS ON THE TIME TO MARKET TIMELINE AGILITY IN THE SUPPLY CHAIN WITH A FOCUS ON CASH FLOW MANAGEMENT This question asked at a recent CIND APICS Panel discussion of Senior Supply Chain Executives from three of Indianapolis s largest multi-national companies

28 Advancing Productivity, Innovation, and Competitive 16 Success WHAT IS THE COMMON THEME FOR OUTSOURCING TO BE A SUCCESS IN THE CURRENT ECONOMY? TOTAL LANDED COST ENVIRONMENTAL COST OF PRODUCT TRANSPORTATION COSTS PAYMENT TERMS TIME TO MARKET RISK MANAGEMENT GEOGRAPHICAL POLITICAL INTELLECTUAL PROPERTY FULLY INTEGRATED S&OP (LEVEL 4 PER THE APICS BODY OF KNOWLEDGE OR VERY CLOSE) INVENTORY MANAGEMENT

29 APICS-CIND Central Indiana Chapter Advancing Productivity, Innovation, and Competitive Success