sune sørensen, ggp group presentation at spare parts 2013
DESCRIPTION
Sune Sørensen, Director Spare Part & Service, GGP Group presentation at Spare Parts Business Platform 2013TRANSCRIPT
GLOBAL GARDEN PRODUCTS GROUP
1
Sune Sørensen
Director Spare Part & Service
GGP Group
Stockholm, Sweden
February 8th, 2013
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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
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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
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GGP Production and Subsidiaries
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GGP Subsidiaries
GGP Production
GGP Spare Part WHs
TRANÅS
POPRAD
GUANGZHOU
CASTELFRANCOCAMPIGO
p. 5
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The value chain
p. 6
Manufacture
Subsidiary Distributor DIY chains
Dealers Dealers DIY shops
Consumers
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Presentation overview
• Simplified classifications of the presented companies.
p. 7
Highseasonallity
Lowseasonallity
Consumergoods
Professionalproducts
Eurocoptor
Alstom
Claas
Electrolux
GGP
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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
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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.
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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
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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.
p. 11
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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
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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
Update master data in SAP
Cost calculation
Spare part managed with/without stock
Spare part for a machine discontinued
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)
Spare part replaced by a new one
Spare part discontinued
Creation of a new code
Creation
Spare parts lifecycle
VGI-022414-096-20100451-GE1-k
Update master data in SAP
Cost calculation
Spare part managed with/without stock
Spare part for a machine discontinued
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)
Spare part replaced by a new one
Spare part discontinued
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
Update master data in SAP
Cost calculation
Spare part managed with/without stock
Spare part for a machine discontinued
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)
Spare part replaced by a new one
Spare part discontinued
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
Update master data in SAP
Cost calculation
Spare part managed with/without stock
Spare part for a machine discontinued
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)
Spare part replaced by a new one
Spare part discontinued
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