customer handling presentation

7/30/2019 Customer Handling Presentation

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Customer SupplyChains



How Do F&HC Brands Arrive AtThe First Moment Of Truth?



98%+ Of Time We Ship To Customer’sDistribution Center (DC) Unless Directto Store Delivery (DSD)

Two Inventory Strategies:• Store Product And Replenish To Buffer• Flow Product And Keep No Inventory Buffer

UL’s Stored In Reserve Slots



How UL’s Are Handled At DC’s (~ 80% Of The Time UL’s Are Broken Down)

UL’s Handled As Pallets • Cross-Docked (Club DRP’s and Displays)

Depalletization Of UL’s • By Hand• Automatically

Handling Of Cases• On Pallets• On Conveyors• Break Pack Area For Picking

Less Than A Case



Cases Being Selected By

Hand

Predominantly Found In Grocery And Wholesaler Channel

Selectiononto Pallets

Pick Slot bySKU



Cases Being Selected By

Hand And Conveyed

Cases Tossed

OntoConveyor AfterStore Label

Applied

Predominantly Found In Grocery, Wholesalers, Drug, & Dollar



Cases Depalletized And Conveyed

Stretch Wrap Removed And Pallet Moved ToDepalletization Area

Predominantly Used In Mass, Also Used In Grocery. Future Will Be To Scan IndividualCases Vs. UL’s For More Efficient And Accurate Receiving.

Cases ManuallyDepalletized

Cases AutomaticallyDepalletized



Example of Automatic Depalletizer



Example Of Manual Depalletization



After Cases Depalletized

Store Label

Placed On Case

Future Will Be To Scan UPC Case Code And ApplyStore Label Automatically



The Conveyor Ride



Scanning and Diverting Of

Cases

Store Label Scanned

Scanner

Cases Being Diverted

Diverters



The Conveyor And Diverter

Ride To Trailer

Chute



Items Being Selected By

EachesCases Cut For Access To Pick Eaches And Placed In Pick SlotBy SKU

Eaches Mixed InTotes

Predominantly Used By Customers For Low Turn Items. Used ByDrug Channel For Some Home Care Items.



How Tote Gets To Trailer For Shipping To Stores



How Cases Get Loaded IntoTruck For Delivery To Store

• Dead Piled – No Pallet

• On Pallet



Store Case Picked Pallets ReadyTo Be Loaded On Trailer

Stretchwrap

Pallets

Predominantly Used In Food and Wholesalers

CaseOrientationIs Not

AlwaysUpright



Cases Being Loaded DeadPile For Delivery To Store

Predominantly Used In Mass, Dollar, And Drug Channels

EmphasisOn 100%

CubeUtilization

CasesHandStacked

Cases FromConveyor

How Would You Load?



How Cases Are Unloaded At Store

• If Dead Piled, By Hand

• If On Pallet, By Pallet Jack



Unloading At Store:Dead Piled Load

CasesPlacedOn SkateConveyor

CasesUnloaded

From 110Inch HighFullyCubedTrailer



Trailer With Mix Of DeadPiled Cases And Pallets

Pallets Used When Cross-Docking For Merchandising &/Or Non-Conveyable Product

Pallets

Dead Piled

Cases



Unloading At Store: Sorting And Palletizing By Store Aisle

Pallets



Sorted Pallets To Be Taken To Aisle



Store Backrooms:Where Excess Inventory Goes

Brown Corrugate Prevails With Organization Or Lack Of



Work Focused on Shelf Quality

PS Leadership Chartered N.A. GBU/MDO Team ToPilot Work In F&HC And Beauty Care

Two Objectives:• Define Robust Set Of Reasonable/Normal HandlingRequirements (to include stock-ability)

• Translate Requirements Into Packaging Specifications And Developing SOPs To Achieve Our Shelf QualityTargets (PPM defects)



New Resources For UnderstandingN.A. Customer Supply Chains

• Summary Of How ~75% F&HC N.A. Volume Is Handled• P&G Plant to Customer DC Dock • Customer DC to Store Shelf

• Logistics Fit For Use Grid• Defined for Selling Unit, Case, Unit Load and Displays• Requirements Defined as Required*, Emerging, or Optimal

• Components (packing materials)• Markings (print)• Format (configuration of package)

Request From CCSM (11/03)

*Current Industry or Legal Standard which may require reimbursement or have business ramifications



The U.S. Customer SupplyChain For F&HC (% ACV)

D.C. HandlingCase Conveyed ~ 40%

Picked as Eaches ~ 2% (Drug)

Shipped to Store

Cases on a Mixed Pallet ~ 40%Cases Dead Piled to Store ~ 40%Handled as UL’s to Store ~ 20% (Club DRP’s & Displays)



F&HC Brands At First Moment Of Truth (FMOT):

The Journey From Our Plant To The Store Ends

customer handling presentation

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