RISK MANAGEMENT FACTS * One third of supply chains fails to manage risk + 37 percent automotive companies does not practice risk management > Currently 61 percent companies incorporated risk mitigation > Within 3 years its expected to reach 75 percent + Nine out of ten top supply chains expect to have process controls implemented across logistics and operations and compliance programs in place with their suppliers and service providersFINDINGS There is difference in opinion on the benefits of risk mitigation among automotive CFOs and automotive supply chain executives. The latter don’t find risk mitigation significant [i Fsremely signitcant [J Very sgifcant re 40% Improved forocast AAVTOMOTIE FOS 7% ‘accuracy ssn so a . resilioncy ar AUTOMOTIVE CFOS = w= 28% soon soa ‘More accurate, 38% % oom| See wn 2b AUTOMOTIVE SUPPLY CHAIN EXECUTIVES Improved rate of 43% rotum | | AUTOMOTVE CFOS 12% 55% oe { ANUTOMOTHE SUPPLY CHAN EXECUTES.RISK MANAGEMENT IN THE SMARTER SUPPLY CHAIN * Sophisticated demand planning * Integration with suppliers * Closer customer and supplier collaboration provide right mix of vehicles and products * Strong build to order means no excess inventory with the dealers + Smart tags allows spare parts to be traced throughout the supply chain reducing the risk of counterfeit + Instrumented containers collect information and report their physical location and environmental conditions enhancing cross continental transit visibility and green lane custom treatment + Advanced business analytics helps predicting outcomes and taking decisions ahead of time.