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2	Table of Contents Introduction and Objectives Executive Summary Survey Responses Success Acceleration Footnotes Contact Information
3	Introduction and Objectives To understand the issues and obstacles available to buyers and suppliers in the forest products industry, a series of mirror image questions were asked. The premise was simple: given the severe economic pressures in the forest products industry, what opportunities are available for buyers and suppliers to create significant measurable value. For the last decade, “strategic supplier alliances” and “partnerships” have been the buzz of the industry. Value has been delivered, yet detrimental effects have been realized as well including a price focus and limited efforts in driving continuous improvement. Reality has set in — the focus must shift beyond price and move to total lowest cost. This will only be achieved through systematic and aggressive continuous improvement programs. This survey identifies the available opportunities, issues, and ways with which to move forward to capture sustainable value creation. It is Einstein who said, “These significant problems we face cannot be solved with the same level of thinking that we were at when they were created.” The same is true with buy/sell relationships. New levels of thinking drive improved ways in making business decisions, streamlined business processes, reestablished accountabilities and drive overall benefit for both the buying and selling organizations.
4	Introduction and Objectives
5	Executive Summary
6	Executive Summary
7	Executive Summary
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19	Success Acceleration Pathway
20	Success Acceleration Pathway Simple leverage vision – price push Kum Ba Yah approach Real jobs take precedence Flow chart mania Comfort zones are shallow Suppliers and buying organizations not engaged Limited use of automated tools Success is optional
21	Success Acceleration Pathway
22	Success Acceleration Pathway
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24	Footnotes Supplier respondent products represented in each of the categories include (simple representation): materials manufacturers – paper machine clothing, engineered fabrics, specialty chemicals, belts, etc; capital equipment manufacturers – pumps, valves, drives, controllers, motors, switches, etc.; MRO manufacturers – paperboard, packaging materials, screen cylinders, refiner fillings, cleaners, etc.; and distributors – electrical, pipe, valves, fittings, industrial components, etc. Suppliers were asked to check the one box that best describes their business, however, several suppliers responded with more than one category. In selecting the top attributes suppliers were able to select their top three choices for the written survey. Due to the nature of the interactive survey at the conference, buyers were able to select only their top choice. In determining reduction potentials, price/cost includes all cost considerations e.g. planning, product specification, inventory, transportation yield, ordering process, capacity, scheduling, other, etc. In selecting the best forms of gain sharing incentives, suppliers were able to select their top two choices in the written survey. Due to the nature of the interactive survey at the conference, buyers were able to select only their top choice. Other top gain sharing incentives cited by suppliers include higher margin and profit growth, forward price increases, and larger roles in customer decision making. Some suppliers indicated more than one selection.
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26	Contact Information The 2002 Forest Products Buyer/Supplier Gain Sharing Survey was conducted by Integrated Strategies, a leading supply chain, strategic sourcing, logistics and e-business hands-on resource. If you have questions regarding this survey, or would like to learn how continuous improvement and gain sharing programs can help your organization, please contact: Steve Trecha President and CEO Integrated Strategies Phone: (517) 381-4800, Ext. 219 Fax: (517) 381-4807 Email: strecha@sourcing.com Integrated Strategies Incorporated Strategy Center 5000 Marsh Rd, Suite 1 Okemos, Michigan 48864 For additional company information, visit Integrated Strategies online at: http://www.sourcing.com
27	Integrated Strategies Team Steve Trecha – President and CEO
28	Integrated Strategies Mission Statement
29	Integrated Strategies Core Capabilities and Strengths
30	Integrated Strategies Core Capabilities and Strengths