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Management
g
Klaus Venus, Head of Supply Chain Management
M di Europe
Mondi E & International
I t ti l
21st of April 2010
Agenda
Discussion
1 EBITDA is operating profit of subsidiaries and joint ventures before special items, depreciation and amortisation.
2 Group ROCE is the underlying operating profit including share of associates’ net earnings divided by average trading capital employed (excluding capital employed on the major strategic expansion projects in Russia and Poland).
Merebank
Mondi Shanduka
50%
Consumer Flexibles Newsprint
Corrugated
Containerboard
Recycled containerboard mill
Virgin containerboard mill
Corrugated Packaging
Corrugated box plant
Pre Print
Pre-Print Offset
z Our pre-print paper fits the needs of z Our offset paper exhibits very good
different printing technologies. surface characteristics to ensure
a perfect print result.
result
z Available in all standard formats.
z Available in folio & reels in
a wide range of grammages.
Discussion
Production &
Consumer Catalogue Order Inventory Delivery Supplier
Customer Warehouse Supplier
Management Management Management Management Management Management
Management
Money flow
M fl
e.g. Customer payment, transaction accounting, supplier settlement
Information flow
e.g.Customer forecast, delivery to address, product availability promise
Physical flow
e.g. Manufacture, store, pick, pack, ship, deliver, return
The Dynamics of a Supply Chain
Order size
End User
Trade Order
Distributor
Distrib tor
Order
Production Order
time
Quelle: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Across
Alliance Synchronised
y
Partners
With
hip
Customers
elationsh
Business
Functions Step 2: Collaborate with key
suppliers and customers
Withi
Within
Sc
Nature of Relationship
Mondi Uncoated Fine Paper Supply Chain
Formates
Supply Chain
Management
Output
Interviewed key supply
chain
h i personnell tto Quantitative & Qualitative
Interviews Assessment
understand current Benchmark vs. NAG
identify gaps
often relegated to secondary status resources are viewed as a necessity critical internal function and link in external collaborative supply
at operating locations; no formal but not part of core operations, and coordinates resolution on service chain for company; data on
training or development processes are often excluded from planning issues; still seen as staff function performance is gathered, used in
are in place to support the service processes, budget development and and not given leadership role with customer financial analysis,
Value
V
30 000
30.000
26.879 • Rationalisation of Logistics Providers
20.000
• Warehouse Structure Optmisation
• Product Basket Optimisation
Conducted workshops to
10.000 11.781
7.969
0
2.065 • Pilot VMI with 1-2 Key Customers
1 2 3 4 5 6 • Align Supply Chain Organisation
Year • Shift smaller Customers to Merchants/OPEC
id tif improvement
identify i t
• Define & Implement Supply Chain Wide
Performance Measures
• Improve Forecast Accruacy
opportunities
Wettbewerbsdifferenzierung über SCM 2009/06/17 Seite 13
Importance Factors for Customers
Sheeting
Halbfertigfabrikat Fertigware
Best-in-Class
2003
KPI (multiple GAP
Performance
companies)
1. Order Lead Time (days) Ð
2. Availability/Order Success
Rate (%) Ï
3. Forecast Accuracy (%) (by
SKU/Volume) Ï
4. Production Schedule
Adherence (%) Ï
5. Inventory Finished Goods
(days) Ð
6. Semi-finished Goods in (days) Ð
7. Order fulfill rate (delivery in
full on time) (%) Ï
There is a growing gap in how companies think about their supply chains.
Comprehensive, Flexible,
Strategy End-to-End approach
(Cohen, Roussel, 2004, p. 230) Strategic supply chain management: the five disciplines for top performers
Agenda
Discussion
To close the gap between our vision and the analysis a program was initiated
consisting of 8 projects
SPEED -
Production Product Integrated
Performance
Cycle Time Basket Supply and
Organization
Reduction Optimization D
Demand d
Planning
Paradigm shift from PUSH to PULL
Allocation
Planning
Forecasting
Customer A Customer B Customer C Customer X Customer Y / Customer Z /
…
/ Products / Products / Products / Products Products Products
Develop final
Control forecast
and finalize
Forecast Master Plan and
Consolidation release it for
Control forecast
execution
and finalize
Inventory
Replenishment
Block Scheduling
Semi- Transport.
Transport
finished Costs
Inventory
C t
Costs
Finished
Goods
Inventory
Success of
Sales Mondi
Forecast Production
Accuracy Shipment Scheduling
Accuracyy Production Adherence
A
Accuracy
Service Delivery
Accuracy Finishing
Accuracyy
Success Constrained
Factors Fill Rate
Un-
Finishing
constrained
Scheduling
KPI’s Fill Rate
Adherence
SC-Improvement process
1. Supplier
Collaboration
2 Logistics
2. L i ti
Collaboration
Stores
S
Suppliers
li Raw M
R Materials
t i l Material Product Retail
Converters Inbound Manufactur Outbound
Supply Distribution
ers
Consumers
3PL Di
Direct
t
3plTransport
Transport Exchanges
Transport Exchanges
Services
Services
3. Customer
Collaboration
Links with other B2B exchanges,
g e.g.:
g
• Transport exchanges
4.
Exchange
Collaboration
5. Industry
y
Standardisation
Leverage
Mondi
(quantity)
Production
M
IImproved
d production
d ti planning
l i
Reduced working capital Reduced Implementation VMI implementation costs
inventory Admin
Admin Replenishment planning effort
Automated order management Admin Transportation Increased transportation effort
B
Benefits
fit C t
Costs
VMI – Example out of our Web-based tool
Positive
downward
s trend
Agenda
Discussion
Q3 - Q4 Q1 - Q4 Q1 - Q4 Q1 Q2 Q3 Q4
S
Pilot VMI with Key
Roll out VMI to Key U
Customers
VMI 1 Customers (Design &
Build)
and Pilot / Implement with P
Key Suppliers
Strategic Issu Select
P
Transportation
Consolidation 2 Sourcing e Providers and L
Approach RFP Implement
30
25
20
15
10
200401
200403
3
200405
5
200407
7
200409
9
200411
200501
200503
3
200505
5
200507
7
200509
9
200511
200601
200603
3
200605
5
200607
7
200609
9
200611
200701
200703
3
200705
5
200707
7
200709
9
200711
200801
200803
3
200805
5
200807
7
200809
9
200811
Leadtimes Cost Improvements 2003-2008
Total Improvements SC-Program 2003-2008
60000
50000
48.568
40000
TS EURO
O
30000
28.768
20000
18.526
12.943
10000
4.616
848
0
1 2 3 4 5 6
Years
Lead of Best
Best-in-Class
in Class Companies
over Average Performing Companies
35
30+
30
25+ 25+
25
20+
20
Performance
Advantage for
15
E hA
Each Area (%)
10
0
Supply Chain Inventory Fulfillment Fill Rates
Cost* Levels Cycle Time
Source: PRTM/AMR Supply Chain Reference
* Based on the difference in supply chain cost as a % of revenue … while the rest are falling farther behind.
Agenda
Discussion
klaus.venus@mondigroup.com
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