Download - Sune Sørensen, GGP Group presentation at Spare Parts 2013

GLOBAL GARDEN PRODUCTS GROUP

1

Sune Sørensen

Director Spare Part & Service

GGP Group

Stockholm, Sweden

February 8th, 2013

This image cannot currently be displayed.


About GGP GROUP

GGP (Global Garden Products) is a leading manufacturer of lawn mowers and a

wide range of powered garden equipment.

With 1100 employees and a turnover of

more than EUR 430 million, it gathers over

75 years of market experience in its well

known consumer brands - Stiga, Alpina,

Mountfield, Atco and Castelgarden – and it

represents a first choice partner for the

OEM and Private Label industry.

p. 2



Products

p. 3



Production

A manufacturing network with four production plants in Italy, Sweden and

Slovakia, strategically well located in Europe, backed up by a strong facility in

China, ensures both competitive costs as well as the

highest flexibility to respond to customers’ demand.

From “designed to target” up to overall marketing and service excellence,

GGP’s competence is one of the widest and deepest in the industry.

CastelfrancoItaly

CampigoItaly

GuangzhouChina

Poprad

Slovakia

TranåsSweden

p. 4


GGP Production and Subsidiaries


GGP Subsidiaries

GGP Production

GGP Spare Part WHs

TRANÅS

POPRAD

GUANGZHOU

CASTELFRANCOCAMPIGO

p. 5


The value chain

p. 6

Manufacture

Subsidiary Distributor DIY chains

Dealers Dealers DIY shops

Consumers


Presentation overview

• Simplified classifications of the presented companies.

p. 7

Highseasonallity

Lowseasonallity

Consumergoods

Professionalproducts

Eurocoptor

Alstom

Claas

Electrolux

GGP


Aftermarket trends in the garden industry

• 1. Increased attention from the dealers on the aftermarket since

the crisis in 2009.

• 2. Spare part pricing is becoming international.

• 3. Cross boarder sales has increased helped by the Internet.

• 4. High focus on B2B dealer portals.

• 5. Delivery time requirements have increased from 3-4 day to

24/48 hours delivery.

• 6. Differentiated logistic services requested.

• 7. High focus on reducing the logistic costs.

• 8. The Chinese Challenge.

• p. 8


The three main logistic cost elements

p. 9

Warehousing

handling costs

Stock value(working capital)

Freight costs

There is a strong relationship among the three cost elements.


How to reduce the logistic costs?

• Complete new range of robotic GGP mowers were to be introduced on

the market one year ago, but no space for additional logistic costs.

⇓• Only A and B parts to be stocked to reduce the number of new SKUs

plus to reduce the warehouse space occupied.

p. 10


How to reduce the logistic costs?

• In the past GGP would have stocked 100% of the components at the

spare part stock – ideally available from the product launch.

•• With the new method only 38% of the components were stocked.

Hereof 3% have never been sold and 4% are now obsoleted. The

rest are active and available on stock.

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Products and parts lifecycle

Lau

nch

Ma

chin

e

ph

ase

-ou

t

Pa

rt

ob

slo

tete

d

Phase-in Phase-out

Phase-in management tool


Available untilstock is zero

No longer available

Spare part tobe substituted

Spare part NOT to be substituted

X7

X8

X6

X9

Part stillactive

Scrap

Phase-out phase

Creation of a new Code

Update master data in SAP

Spare part managed with/without stock

Spare part for a machine discontinued

Spare part available up to stock zero (stop purchasing)

Spare part will be replaced after stock be at zero

Spare part replaced by a new one

Spare part discontinued

X1

X2

X4

X5

X6

X7

X8

X9

29

39

‘ ‘

12

19

Spare Parts Material StatusSpare Parts Material Status

Current Situation New Situation

Cost calculation X3

11

Description

VGI-022414-096-20100451-GE1-k

Scrap

Available

Creation

Phase-in

Phase-out

Global Garden Products – The aftermarket Spare parts lifecycle

VGI-022414-096-20100451-GE1-k

Scrap

Available


Cost calculation



Spare part available till stock 0

(stop purchasing; no later substitution)

Spare part will be replaced after stock 0

(stop purchasing, substitution after stock is consumed)



Creation of a new code

Creation

Spare parts lifecycle

VGI-022414-096-20100451-GE1-k


Cost calculation









Creation of a new code X1

X2

X4

X5

X6

X7

X8

X9

Y1

Y2

Y3

Y5

Y8

Y9

X3

Y4

No stockOn stockSpare parts lifecycle

VGI-022414-096-20100451-GE1-k


Cost calculation









Creation of a new code

X2

X4

X5

X6

X7

X8

X9

Y2

Y3

Y5

Y8

Y9

X3

Y4

Parts on

stock

X1 Y1

No stockOn stockSpare parts lifecycle

VGI-022414-096-20100451-GE1-k


Cost calculation









Creation of a new code X1

X2

X4

X5

X6

X7

X8

X9

Y1

Y2

Y3

Y5

Y8

Y9

X3

Y4

No stockOn stock

Parts in

pricelist

Spare parts lifecycle

Thank you!

Download - Sune Sørensen, GGP Group presentation at Spare Parts 2013

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