Building Valued Partnerships Initiative In 2012 the Global Procurement team at CHEP created a Global Procurement Strategy aimed at not only re-engineering our internal procurement processes but also at improving our global supplier relationships from inception to sustainable partnerships. This Strategy is comprised of several different components which globally involve people and processes as well as technology and systems. This Strategy is linked to CHEP’s overall business strategy. Our desire is to become a preferred supplier to our customers and a preferred customer to our suppliers. Most global companies focus on standardizing business processes to benefit not only economies of scale but also leveraging resource utilization while strengthening partnerships globally. We at CHEP not only share the same vision but also strive to exceed above and beyond while looking for opportunities to establish stronger and long term successful relationships with our supplier community. “We embarked on this journey in 2012, the foundations were laid over five strategic pillars that make up our global procurement strategy and all of them involve our suppliers in one way or another. Although we are still in the infancy stage of this journey and overall major initiative, we have already made great strides but there is still a lot of work to be done. By strengthening our global supplier partnerships we leverage international market conditions as well as cultivate regional and local supplier relationships. This commitment aligns with CHEP’s vision and mission to support the local communities where we do business as well as supplier diversity opportunities. Everyone at CHEP is bought into this Strategic approach and is committed to turn us into the global procurement powerhouse that our customers and suppliers expect us to be and rightfully so”, says Pranil Vadgama, CHEP’s VP of Global Procurement. The building blocks or foundations to our Building Valued Partnership Initiative include: Some of the main areas that we focus on for the initiative are: Implement automated standard metrics which identify best-practices through entitlement Collaborate with suppliers on solutions to reduce cost and improve productivity Standardize on product specifications Implement a standard global supplier qualification process & terms which enables CHEP to diversify its supplier base globally Integrate with the suppliers through technology to reduce complexity & waste Have a clear actionable long-term procurement strategy We know that if we are successful on this initiative, so will our suppliers.