Task 03.

You San Francisco Logistics (SFL) are one of the potential suppliers of RGC, given the RFQ you are

expected to develop a proposal. In addition to what is in the RFQ you must determine the following.

You have read the RGQ and feel the scope of work is beyond SFL's capability. The CEO of SFL has just told you that SFL must win this business. What do you recommend?

What type of strategy will you use to ensure the business is awarded to SFL ?

RGC wants rock bottom pricing. How do you protect yourself from loses? What is your pricing strategy?

What is your value proposition to RGC as a supplier?

What type of supply chain would you recommend?

SFL will have an opportunity to ask 5 questions pertaining to the potential business. You need to develop the 5 questions. These questions, when answered will give you additional information to help secure and win the business. What are the 5 questions?

1)

2)

3)

4)

5)

INTRODUCTION

Purpose of this Document

This document is the formal Request for Quotation (RFQ) for the current Rapid Global Communications AB opportunity.

Company overview

Rapid Global Communications AB, (RAPID GLOBAL COMMUNICATION), offers mobile communication products for people who appreciate the possibilities of powerful technology. Established in 2001 by Telefonaktiebolaget LM RGC and RGC, the joint venture continues to build on the success of its two innovative parent companies. RAPID GLOBAL COMMUNICATION creates value for its operator customers by bringing new ways of using multimedia communications while mobile. The company has approximately 5,000 employees across the globe working on research, development, design, sales, marketing, distribution and support.

Our vision is "to become THE communication entertainment brand".

RAPID GLOBAL COMMUNICATION has adopted an Environmental Policy built around six objectives: Product Design, Production, Respect for communities, Comply with the Law, Integration of good environmental quality practices to our business and communication with stakeholders.

RAPID GLOBAL COMMUNICATION shall develop environmental requirements for our key business relationships, particularly our vendor supply chain and assist vendors in meeting those requirements.

See appendices: 9.12 Appendix 12: Logistics Environment requirements and 9.15 Appendix 15: Supplier Social Responsibility Code

RAPID GLOBAL COMMUNICATION Sourcing and Global Logistics team wishes to partner with global logistics providers to develop world class delivery of our products. Regional focus of this RFQ is to provide a customer centric logistics solution.

Please visit xxxx for further information.

Deliver Mobile phones from RAPID GLOBAL COMMUNICATION supply units to below regions

The opportunity of a total forecasted volume 2010/2011 of 62 000 is split into following parts

{C}1.{C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to Western Europe market

{C}2.{C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to Central Eastern Europe, Middle East and Africa.

{C}3.{C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to APAC market.

{C}4.{C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to LAM markets

{C}5.{C}Rapid Global Communication Customer deliveries from Supply Units to NAM markets

Service Levels

For each of above regions, RAPID GLOBAL COMMUNICATION is looking into offering our customers different transportation service levels.

{C}1.Standard

The lead-time requirement for standard lead-time is documented in appendix: 9.3 Appendix 3: Lead-time matrix:

{C}2.Express

The lead time for express shipments should be at least 2-3 days shorter than standard lead-time

{C}3.Green

To be a Green alternative the solution shall reduce CO2 emission >50% vs. standard air transport

The proposed solution shall provide a competitive cost level at an acceptable lead time.

The proposed solution shall not drive an increase of the total sustainability foot-print

The proposed solution might be applicable D2D or part of flows and/or specific product flows

Therefore, the Contractor is requested to provide proposal for each of the different service levels.

Deliver goods from Rapid Global Communication fulfillment center in Brno to RAPID GLOBAL COMMUNICATION customers and service locations according:

{C}1.{C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to Western Europe market

{C}2.{C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to Central Eastern Europe, Middle East and Africa.

{C}3.{C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to APAC market.

{C}4.{C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to LAM markets

{C}5.{C}RAPID GLOBAL COMMUNICATION customer deliveries from Supply Units to NAM markets

The same service level requirement described in 1.3.1 Service Levels applies for above.

Total number Supply Units are 8. Details for each Supply Unit are attached in section: 9.1 Appendix 1: Pick-Up Points and Geographical distribution

No I entered a point under the requirements for services

Reverse Logistics and Collection Hubs

RAPID GLOBAL COMMUNICATION is looking for additional service for reverse logistics from RAPID GLOBAL COMMUNICATION customers to the supply units.

This includes reverse transport as well as services like, consolidating returns, counting of units, issuing return documents on behalf of RAPID GLOBAL COMMUNICATION and packing activities.

Where it's possible RAPID GLOBAL COMMUNICATION is interested in having a return HUB in each pickup region, i.e. Western Europe, Central Eastern Europe, Middle East, APAC, Americas for later consolidated return transport to the supply units.

RAPID GLOBAL COMMUNICATION has another flow of returns which is returning phones from High volume repair centers to RAPID GLOBAL COMMUNICATION supply units for repair. We do see synergies in adding this flow into this as well. As importing and exporting repaired phones into China is incurring a VAT cost, RAPID GLOBAL COMMUNICATION would like to understand the Contractors capabilities to support import and export services of repaired phones in China.

Approximate volumes:

To hub, from

EMEA40k per month

Americas10 k per month

APAC10 k per month

EMS RF50 k per month

From hub, to

Supply units in China50k per month

Additional services

RAPID GLOBAL COMMUNICATION is also interested to know about the Contractors capability to offer addition services as repacking, smaller reworks, smaller customization, split pallets into smaller shipments.

Furthermore, RAPID GLOBAL COMMUNICATION would also like to know the Contractors capability for doing stock management, stock ownership transfer, order management for specific customer setups.

Confidentiality

Note that the information in this document and the opportunity in general must be treated according the Non-disclosure Agreement.

Contact Details

All communication regarding this RFQ should be directed to below contact (or through the Ariba system as described in section 8 Format of tender response.

Process and Timetable

It is the intention of RAPID GLOBAL COMMUNICATION to conduct a comprehensive, diligent and yet speedy tender process and by this giving the Contractor partner the possibility to enter the Global Transport distribution as early as possible.

In the RFQ Quote Matrix meeting the Contractor will be invited to ask questions regarding how to fill in the Quote Rate Matrix, see Appendix 2: Quote rate matrix.

In the RFQ walkthrough meeting the Contractor will be able to ask questions related to the RFQ. To do as efficient as possible, questions should be sent in advance by e-mail to

The tentative timetable for this RFQ process is as follows:

Activity

Responsible

Start

Finish

RFQ Invitation Letter

RAPID GLOBAL COMMUNICATION

2010-04-19

RFQ distributed

RAPID GLOBAL COMMUNICATION

2010-04-23

Questions submitted for RFQ walkthrough phone

RAPID GLOBAL COMMUNICATION

2010-04-29

3 pm CET

RFQ Quote Matrix phone meetings

RAPID GLOBAL COMMUNICATION and Contractor

2010-05-03

2010-05-10

RFQ walkthrough phone meetings (Questions should be sent in advance)

RAPID GLOBAL COMMUNICATION and Contractor

2010-05-03

2010-05-10

Due date, Tender response of rate sheet

Contractor

2010-05-17, 12.00 AM CET

Tender response (Ariba)

Contractor

2010-05-28

Tender response presentation (Lund)

Contractor

2010-05-31

2010-06-11

Tender evaluation

RAPID GLOBAL COMMUNICATION

2010-06-14

2010-06-28

Contract negotiations

RAPID GLOBAL COMMUNICATION

2010-06-28

2010-07-15

Signing of contract

2010-07-16

Preferred implementation date

Q3'10

Figure 1 - Tentative timetable for RFQ process

DESIRED BUSINESS RELATIONSHIP

This section describes the type of business relationship that RAPID GLOBAL COMMUNICATION would like to establish with prospective Contractors.

Management of Relationship

In cases where legal contracts, e.g. service agreements or frame agreements, already exist, it is preferred that above mentioned agreements are amended with additional requirements outlined in this RFQ document.

If no Logistics agreement exists it is expected that the Contractor will accept RGC terms and conditions specified in this RFQ.

RAPID GLOBAL COMMUNICATION General Model

As mentioned previously, any proposals to provide separate high quality transport services for the opportunities mentioned in section 1.3, 1.4, 1.5 and1.6 will be considered. RAPID GLOBAL COMMUNICATION would also be pleased to consider combined solutions or proposals involving subcontracted services to achieve an integrated solution.

The key aspects of the relationship are:

{C}a){C}The Contractor is expected to appoint a single Account Manager responsible for the overall relationship with RAPID GLOBAL COMMUNICATION. A Contract Manager will also be nominated by RAPID GLOBAL COMMUNICATION to provide a consistent interface between the two parties. It is expected that these managers will seek to continually develop the relationship to the mutual benefit of both parties.

{C}b)Legal contract(s) will be drawn up; formalizing the relationship between RAPID GLOBAL COMMUNICATION and the selected Contractor(s).The contract will include specification of services provided by the Contractor, remuneration for those services, liability, contract termination procedures, review frequency, performance targets, start up requirements and contract duration.

{C}c){C}Operational and management procedures will be defined. These will provide the baseline for the processes and responsibilities involved in the relationship.

{C}d){C}A set of detailed security standards is provided by RAPID GLOBAL COMMUNICATION and must be managed and integrated into the transportation solution.

{C}e){C}A set of Key Performance Indicators (KPI) and targets will be managed. Recurrent Business Review meetings will be used as the follow up forum for the decided KPI's, see section 5.1.

{C}f)Performance related remuneration and benefit sharing will be part of the contract, see section 5.1.

Invoicing and Payment for Services

Charging Mechanism

The assumption is that all charges, for the services provided, will be invoiced by the contractor, latest the 15th each month, based on pick up during the previous month by the Contractor. Charges should be invoiced to one appointed RAPID GLOBAL COMMUNICATION entity and be specified according to Section 9.5 Appendix 5: Monthly Freight Cost Specification

.

To shorten the administrative lead-time and enable fright cost validation in the RAPID GLOBAL COMMUNICATION freight cost check tool, it is of high importance that the specification is followed. After successful validation RAPID GLOBAL COMMUNICATION will inform the Contractor and send a Purchase Order. After that the Contractor sends a matching Invoice.

A Payment Term of 90 days should apply.

The Contractor should invoice in one currency. Preferred invoice currencies are USD or EUR.

Transportation Claims and Return of Goods Process

Below the RAPID GLOBAL COMMUNICATION Transpiration Claims process and Return of Goods process are outlined, also see 9.18 Appendix 18: Transportation Claims and Return of Goods Process.

Any claim should be submitted to RAPID GLOBAL COMMUNICATION by using the Claim and Release Form, see section 9.19 Appendix 19: Claim Release Form.

Figure 2 - RAPID GLOBAL COMMUNICATION Transportation Claims Process

Figure 3 - RAPID GLOBAL COMMUNICATION Return of Goods Process

Bonus & Penalties payment

Bonus and Penalties are agreed and financially adjusted on quarterly basis in the FQBR meeting, see 4.2.4. For details concerning Bonus and Penalties model, see 5.1.1 Bonuses & Penalties.

Project and Project Implementation Cost

It is expected that the respective selected contractor recognize the business costs for the kind of venture described in this document. It is not the intention of RAPID GLOBAL COMMUNICATION to cover any costs incurred by the chosen contractor during the project and implementation phase.

SCOPE OF THE TRANSPORT OPERATIONS

This section describes the scope of transportation operations that RAPID GLOBAL COMMUNICATION is seeking to contract out. This scope does not define explicit requirements for the exact configuration of the network, but instead outlines flows that need to be supported. It is expected that Contractors will propose transportation solutions, making best use of their existing capabilities and logistics experience. Contractors are encouraged to offer creative solutions, which can provide the most cost effective solutions, incl. VAT impact on cash flow, world class performance, tracking on shipments, capability to perform additional services and flexible approach to support parcel and pallet deliveries in 2008 and beyond.

Overview of Service and Distribution Network for mobile phones

The required services are shown below in Figure 4 - Overview of service and distribution network..

Figure 4 - Overview of service and distribution network.

Daily Operations

Transportation/ Transportation planning

The Contractor is expected to receive a copy of RAPID GLOBAL COMMUNICATION' Purchase/Sales orders (Supply flow) and to RAPID GLOBAL COMMUNICATION' RMA (Reverse logistics flow) and pre book transport taking uplift capacity and flight schedules into consideration. The Purchase/Sales order will have delivery dates to RAPID GLOBAL COMMUNICATION' customer ship-to addresses including transport lead-times and customs clearance lead-times. The Contractor is responsible for the complete transport solution between RAPID GLOBAL COMMUNICATION' global supply units and to the RAPID GLOBAL COMMUNICATION' regional customers.

It is expected that the Contractor have the ability to suggest and implement optimized transportation solutions based on the requirements in this document.

The Contractor shall actively seek to further enhance the installed transportation solutions in order to continuously reduce cost and transportation lead time.

The Contractor shall continuously seek to consolidate Outbound shipments throughout the entire supply chain and by doing this ensure that the most cost efficient transportation solutions can be applied.

The Contractor is expected to proactively seek information about changes to country legalization or import rules that will impact the requirements on shipping documents, labelling, delivery terms etc. Furthermore, the contractor is expected to effectively share this knowledge with RAPID GLOBAL COMMUNICATION Delivery teams

The Contractor is expected to support printout of shipping documents, legalization of documents and other RAPID GLOBAL COMMUNICATION documents throughout the complete supply chain.

It is expected that the Contractor will perform and handle all appropriate customs procedure in relation to the logistics solutions set forth in this document.

In addition to above, the Contractor is expected to manage overnight storage, support re-packaging, re-labelling, customer appointments, pre alerts and security inspections.

RAPID GLOBAL COMMUNICATION will continuously request emission data from the first Contractor, showing the emission result affected by transportation necessary in the supply chain where RAPID GLOBAL COMMUNICATION has the interest and responsibility for the transport activities.

The contractor must have an environmental management system (EMS), shall consider environmental aspects when selecting vehicles and fuels, shall on request provide us with figures on energy use and emission to air of exhaust gases like carbon dioxide (CO2) for the transport of our products , shall use most efficient and optimized carrier means to minimize the environmental impact and shall comply with the RAPID GLOBAL COMMUNICATION Supplier Social Responsibility Code and be responsible for ensuring its contractors, suppliers and consultants as well.

See Appendix 9.12 Appendix 12: Logistics Environment requirements{C}{C} for detailed requirements.

RAPID GLOBAL COMMUNICATION will continuously request emission data from the first Contractor, showing the emission result affected by transportation necessary in the supply chain where RAPID GLOBAL COMMUNICATION has the interest and responsibility for the transport activities. See appendix 9.14 Appendix 14: Forwarder CO2 reporting template for detailed requirements.

By RAPID GLOBAL COMMUNICATION approved service providers are consequently requested to create opportunities for this demand to be continued and available upon request or whenever convenient. Whenever convenient or at year end, RAPID GLOBAL COMMUNICATION will demand statistics regarding environmental emissions to include ALL transport activities which are under control by approved first tiers. Pre-transports, Cross trade, Main transport and on- carriage must be shown and we wish to underline the importance of this requirement.

RAPID GLOBAL COMMUNICATION requirement will cover inbound/outbound and domestic movements and all means of transport which are under the control of our service providers.

Format of tender response

Overview and detailed format of Response

This section presents the required format for responses to this RFQ. Failure to adhere to this format may adversely effect the evaluation of the response. Responses are expected to be clear, concise and in the English Language.

The layout of the response is shown in Figure 6 - Layout of response and the presentation material should follow the headings accordingly.

Information should be provided in MS PowerPoint, Excel or Word.

Section Number

Title

1

1. Management Summary

Summary of your overall solution. Specific strengths of the proposal should be highlighted, including areas of significant business benefit to RAPID GLOBAL COMMUNICATION.

Presentation material should be uploaded in Ariba.

There are no mandatory subsections to this section.

2

2. Transport Solutions

Provide a diagram and specification of how each of the transport flows is supported. The specification should include:

{C}1.{C}What routing is used out of supply units? Please state routing, lead time (see lead-time matrix in appendix: 9.3 Appendix 3: Lead-time matrix ) and flight mapping per destination.

{C}2.{C}What are your primary carriers?

{C}3.{C}How much (tonnes) do you currently ship out of the gateways serving our supply units per week?

{C}4.{C}Ability to meet peaks in weekly and daily fluctuations.

{C}5.{C}Ability to meet required service levels, please specify historic on time delivery performance levels (%) out of gateways serving our supply units.

{C}6.{C}Specific security measures. Please describe how you manage security in the transport flows. Describe your risk management process

{C}7.{C}Other special transport capabilities

{C}8.{C}Environmental requirements.

Please fill in evaluation in appendix: {C}9.13{C}{C} {C}Appendix 13: Environmental evaluation - transport providers{C}{C}

{C}9.{C}Social Conducts

Describe how each of the network flows will operate. Your description should include description of each task in the process

Description of the communication process with RAPID GLOBAL COMMUNICATION/Supply Units

2:1 Transport solutions - Mobile Phones

Supply units to all regions/sub regions

Per Service Level (Std, Express and Gren)

2:2. Transport solutions - Fulfilment Center, Brno

Fulfilment Center to all regions/sub regions

Per Service Level (Std, Express and Gren)

2:3 Transport solutions - Returns Reverse Logistics and Collection Hubs

From RAPID GLOBAL COMMUNICATION customers and High Volume Repair Centers to the supply units

3

3. Transport capability

3:1 Provide details on the current fleet strength clearly stating the number and type of aircraft/vehicle/vessels in the fleet.

3:2 Flexibility and Scalability of Network

Describe how your solutions can be scaled to meet changing business volumes year by year. Indicate the lead time to enable efficient reaction to an increased requirement and additional uplift capacity on given routes

3:3 Robustness of Network

Describe how your solution would cope with unforeseen operational crises, such as natural disasters, or work force disruptions.

4

4. Disaster Recovery and Continuity Plan

Please present a Disaster Recovery and Continuity Plan for quoted areas.

5

5. Information systems and flows

Describe your proposed overall information systems approach to your transport solution. Indicate the appropriate use of Electronics communication I and Email. At a minimum include capability to provide Rosetta Net messages.

Describe your pre-alert process, how you ensure that RAPID GLOBAL COMMUNICATION customer receives the correct document/information, when and who are sending the pre-alerts.

Describe how you would ensure the transportation solution is seamlessly supported and how they are integrated.

Describe your Track and trace solution door to door

Describe how you ensure data quality and timely sending of electronic messages.

6

6. Business relationship and Management Quality

6:1 Management Interface

Name one individual who will act as your dedicated management interface to RAPID GLOBAL COMMUNICATION. Describe how you would expect this interface to work, in terms of discussing status and resolving issues, including problem escalation procedure.

Describe how you would expect to work with RAPID GLOBAL COMMUNICATION to set additional targets for performance and continuous improvement.

Describe how you would expect to work with RAPID GLOBAL COMMUNICATION to continually develop the transport solution and performance to the mutual benefit of both parties.

6:2 Management Quality

Describe your company's approach to recruiting, training, developing and retaining your operational and management staff. Provide these details for both your permanent and temporary staff. Give examples of where your staffs have supported flexible working practices in order to provide exceptional service levels to your customers.

6:3 Terms of Business

Price quotation for this tender is provided on a totally variable basis.

RAPID GLOBAL COMMUNICATION prefer to see flat rates for airfreight in major lanes.

7

7. Solution Implementation

This section should describe in detail the Contractor's proposed implementation of their solutions

Describe how you would implement the solution including time plan.

8

8. Price Quotation

Prices could be quoted in any of the currency found in section 5.5 Currency in Tender Response

Different currency rates may be applied by the Contractor on lanes to fit different origins and destinations.

All prices quoted should be based on the business volumes presented in Appendix 1: Pick-Up Points and Geographical distribution. Prices quoted should exclude insurance costs, but should include any documentation, administration or destination handling charges, as well as local taxes.

8:1 Transport Pricing

Quote prices, using Appendix 2: Quote rate matrix. It is of highest importance that the instructions provided in the Quote matrix file are followed.

The Quote matrixes should be completed in separate files for the following 3 areas:

8:1:1 Deliver Mobile phones from RAPID GLOBAL COMMUNICATION supply units to below regions

8:1:2 Deliver goods from Rapid Global Communication fulfillment center in Brno to RAPID GLOBAL COMMUNICATION customers and service locations according:

8:1:3 Reverse Logistics and Collection Hubs{C}{C}

For the area 8:1:1 and 8:1:2, the pricing must cover complete regions, i.e. it is mandatory to cover all countries specified in a region in the files in section 9.1{C}{C}.

For the area 8:1:3 the Contractor should, from a best performance and rate perspective, appoint one country per region.

Important note: The Quote pricing .xls file should be named according following naming standard: "QuoteMatrixGRFQ"_"Contractor Name" _"Area"_"Revision". For example: QuoteMatrixGRFQ_RAPID GLOBAL COMMUNICATION_812_R1.xls.

Only complete quoted regions are accepted.

The Quote rate matrixes (8:1:1, 8:1:2 and 8:1:3) should be sent by e-mail to latest 2010-05-17 at 12.00 a.m. CET.

8:1:4 Additional services

Present price indication for services requested in section 1.6 in Power Point. Please keep it succinctly. Note that the submitted prices will only be treated as indications (RFI), i.e. not legally binding.

8:2 Fuel and Security Surcharges

Please specify the mechanism for fuel surcharges and security surcharges. Also propose how surcharge forecasts could be provided to RAPID GLOBAL COMMUNICATION (monthly or biweekly) to enable more precise financial accrual forecasting.

8:3 Implementation Pricing

We expect all implementation costs to be covered by the Contractor.