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1. Based on an interview conducted by Shoshanah Cohen, PRTM director, with Robert Schlaefli, Stratex vice president of global operations. 2. APICS The Educational Society for Resource Management (www.apics.org) is a not-for-profit international educational organization recognized globally as a source of knowledge and expertise for manufacturing and service industries in such areas as materials management, information services, purchasing, and quality. 3. Based on an interview conducted by Kate Fickle, PRTM director, with Mike Pearce, Smith Bits vice president, and other Smith Bits executives. 4. Based on an interview conducted by Brad Householder, PRTM principal, with Peter Kelly, Agere executive vice president, global operations group. 5. Jennifer S. Kuhel, Big Blue Supply Chain: Robert Moffat Discusses IBM s Plan to Link Procurement, Distribution, Manufacturing and Logistics, Supplychaintech.com, September 13, 2002. 6. David Drickhamer, Looking for Value: Reducing Internal Costs and Enhancing Customer Value Draw Attention, Industryweek.com, December 1, 2002. 7. Flextronics Web site, Corporate Background Information, http://www.flextronics.com/corporate/backgrounder/asp. 8. Based on an interview conducted by Bob Moncrieff, PRTM director, with Mike McNamara, Flextronics COO. 9. Christopher Reilly, Central Sourcing Strategy Saves Dial $100 Million, Purchasing.com, January 17, 2002. 10. Based on PMG benchmarks derived from consumer products companies supply chain performance (submitted 2003). 11. Based on an interview conducted by Shoshanah Cohen, PRTM director, with Angel Mendez, palmOne senior vice president of global operations.

Uneven distribution can be caused by the current dynamic routing protocols, such as RIP (Routing Information Protocol), OSPF, and IS-IS (Intermediate System to Intermediate System), because they always select the shortest paths to forward packets As a result, the short paths may clog while links along a longer path are idle The Equal Cost Multi-Path option of OSPF is useful in distributing load to several shortest paths, but if there is only one shortest path, it doesn t help Traffic engineering is the.

EXHIBIT 5-1

2

12. W. L. (Skip) Grenoble, How Will We Staff Our Supply Chains Global Supply Chain (February March 2000). 13. Procter & Gamble Web site, http://www.pg.com. 14. Based on an interview conducted by Shoshanah Cohen, PRTM director, with Jeff Rosen, AFC vice president of operations and information technology.

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process of arranging how traffic flows through networks so that congestion caused by uneven network utilization can be avoided Constraintbased routing is an important tool for making the traffic engineering process automatic Avoiding congestion complements graceful degradation of the network under load, so traffic engineering complements differentiated services Constraint-based routing is used to compute routes that are subject to many constraints The goals are to select routes that can meet QoS requirements and increase utilization of the network Constraint-based routing considers not just the topology of the network, but also the requirement of the flow, the availability of resources on links, and other possible policies specified by the network administrators A constraintbased router may find a longer, but lightly loaded path better than the heavily loaded shortest path As a result, network traffic is distributed more evenly OSPF-TE and IS-IS/TE distribute bandwidth information as extensions to their link-state advertisements.

EXHIBIT 5-2

Constraint-based routing better meets the need of QoS requirements for unimpeded flows of data and improves network utilization, but increases communication and computation overhead and the size of routing tables, and introduces possible routing instability Also, longer paths may consume more resources Because constraint-based routing algorithms recompute routing tables more frequently than dynamic routing algorithms do, they can produce instability, shifting traffic fruitlessly, again and again, to try to avoid congestion Constraint-based routing is similar to the dynamic/adaptive routing used in telephone and ATM networks It helps differentiated services to be delivered better RSVP and constraint-based routing are independent but complementary When MPLS and constraint-based routing are used together, they make each other more useful With these protocols and technologies, companies are now building QoS features on top of existing IP infrastructures The challenges now are in finding methods to design, manage, and operate these networks.

1. A Global Study of Supply Chain Leadership and Its Impact on Business Performance, Accenture/Stanford/INSEAD study, 2003. 2. Mike Uhl and Kevin Keegan, Choosing the Right Model(s) for Managing Supply Networks, PRTM white paper used as the foundation for a PRTM article in EBN (November 2, 2000). 3. David A. Menachof and Byung-Gak Son, The Truth about Collaboration, http://www.totalsupplychain.com, February 2002. 4. Based on interviews conducted by Shoshanah Cohen, PRTM director, with Nolan Perry, Logitech s director of project management services, and Gray Williams, vice president, worldwide supply chain. 5. Allison Bacon, Larry Lapide, and Janet Suleski, Supply Chain Collaboration Today: It s a Tactic, Not a Strategy, AMR Research Report, September 2002. 6. http://www.alcatel.com. 7. Based on an interview conducted by Steve Palagyi, PRTM director, with Burt Rabinowitz, Alcatel vice president of sourcing and procurement. 8. http://www.dowcorning.com/main.asp. 9. http://w1.cabot-corp.com/index.jsp. 10. http://www.jambajuice.com/what/jambadifference.html. 11. http://www.calstrawberry.com/facts/industry.asp. 12. Based on an interview conducted by Shoshanah Cohen, PRTM director, with Anne Kimball, Jamba Juice director of supply chain management. 13. George V. Hulme, In Lockstep on Security, Information Week (March 18, 2002).

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