sune sørensen, ggp group presentation at spare parts 2013

Download Sune Sørensen, GGP Group presentation at Spare Parts 2013

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Sune Sørensen, Director Spare Part & Service, GGP Group presentation at Spare Parts Business Platform 2013

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  • 1. GLOBAL GARDEN PRODUCTS GROUP1Sune SrensenDirector Spare Part & ServiceGGP GroupStockholm, SwedenFebruary 8th, 2013

2. This imagecannotcurrently bedisplayed.About GGP GROUPGGP (Global Garden Products) is a leading manufacturer of lawn mowers and awide range of powered garden equipment.With 1100 employees and a turnover ofmore than EUR 430 million, it gathers over75 years of market experience in its wellknown consumer brands - Stiga, Alpina,Mountfield, Atco and Castelgarden and itrepresents a first choice partner for theOEM and Private Label industry.p. 2 3. This imagecannotcurrently bedisplayed.Productsp. 3 4. This imagecannotcurrently bedisplayed.ProductionA manufacturing network with four production plants in Italy, Sweden andSlovakia, strategically well located in Europe, backed up by a strong facility inChina, ensures both competitive costs as well as thehighest flexibility to respond to customers demand.From designed to target up to overall marketing and service excellence,GGPs competence is one of the widest and deepest in the industry.CastelfrancoItalyCampigoItalyGuangzhouChinaPopradSlovakiaTransSwedenp. 4 5. This imagecannotcurrently bedisplayed.GGP Production and SubsidiariesThis imagecannotcurrently bedisplayed.GGP SubsidiariesGGP ProductionGGP Spare Part WHsTRANSPOPRADGUANGZHOUCASTELFRANCOCAMPIGOp. 5 6. This imagecannotcurrently bedisplayed.The value chainp. 6ManufactureSubsidiary Distributor DIY chainsDealers Dealers DIY shopsConsumers 7. This imagecannotcurrently bedisplayed.Presentation overview Simplified classifications of the presented companies.p. 7HighseasonallityLowseasonallityConsumergoodsProfessionalproductsClaasEurocoptorAlstomGGPElectrolux 8. This imagecannotcurrently bedisplayed.Aftermarket trends in the garden industry 1. Increased attention from the dealers on the aftermarket sincethe 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 to24/48 hours delivery. 6. Differentiated logistic services requested. 7. High focus on reducing the logistic costs. 8. The Chinese Challenge. p. 8 9. This imagecannotcurrently bedisplayed.The three main logistic cost elementsp. 9Warehousinghandling costsStock value(working capital)Freight costsThere is a strong relationship among the three cost elements. 10. This imagecannotcurrently bedisplayed.How to reduce the logistic costs? Complete new range of robotic GGP mowers were to be introduced onthe 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 SKUsplus to reduce the warehouse space occupied.p. 10 11. This imagecannotcurrently bedisplayed.How to reduce the logistic costs? In the past GGP would have stocked 100% of the components at thespare 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. Therest are active and available on stock.p. 11 12. This imagecannotcurrently bedisplayed.Products and parts lifecycleLaunchMachinephase-outPartobslotetedPhase-in Phase-out 13. Phase-in management tool 14. This imagecannotcurrently bedisplayed.Available untilstock is zeroNo longeravailableSpare part tobe substitutedSpare part NOTto be substitutedX7X8X6X9Part stillactiveScrapPhase-out phase 15. This imagecannotcurrently bedisplayed. 16. Spare PPaarrttss MMaatteerriiaall SSttaattuussCreation of a new CodeUpdate master data in SAPCost calculation X3Spare part managed with/without stockSpare part for a machine discontinuedSpare part available up to stock zero (stop purchasing)Spare part will be replaced after stock be at zeroSpare part replaced by a new oneSpare part discontinuedCurrent Situation New SituationX1X2X4X5X6X7X8X92939 111219Description 17. VGI-022414-096-20100451-GE1-kGlobal Garden Products The aftermarket Spare parts lifecycleCreationAvailableScrapPhase-inPhase-out 18. VGI-022414-096-20100451-GE1-kAvailableScrapCreation of a new codeUpdate master data in SAPCost calculationSpare part managed with/without stockSpare part for a machine discontinuedSpare 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)Spare part replaced by a new oneSpare part discontinuedCreationSpare parts lifecycle 19. VGI-022414-096-20100451-GE1-kOn stock No stockCreation of a new code X1Update master data in SAPCost calculationSpare part managed with/without stockSpare part for a machine discontinuedSpare 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)Spare part replaced by a new oneSpare part discontinuedX2X4X5X6X7X8X9Y1Y2Y3Y5Y8Y9X3Y4Spare parts lifecycle 20. VGI-022414-096-20100451-GE1-kCreation of a new codeUpdate master data in SAPCost calculationSpare part managed with/without stockSpare part for a machine discontinuedSpare 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)Spare part replaced by a new oneSpare part discontinuedOn stock No stockX1 Y1X2X4X5X6X7X8X9Y2Y3Y5Y8Y9X3Y4Parts onstockSpare parts lifecycle 21. VGI-022414-096-20100451-GE1-kOn stock No stockCreation of a new code X1Update master data in SAPCost calculationSpare part managed with/without stockSpare part for a machine discontinuedSpare 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)Spare part replaced by a new oneSpare part discontinuedX2X4X5X6X7X8X9Y1Y2Y3Y5Y8Y9X3Y4Parts inpricelistSpare parts lifecycle 22. Thank you!