supply chain and sourcing_procurement raising rev 2

BR MKT – DANIELE CALIXTO – Feb, 2014 © ESSILOR – Essilor Brasil – Communication – Marketing - 2014BR MKT – DANIELE CALIXTO – Feb, 2014

REV 2 ...MATURITY LEVEL OF

SUPPLY CHAIN &SOURCING & PROCUREMENT ?AND HOW TO RAISE THE BAR

At Optical SegmentBy Reinaldo Leopoldo

Supply Chain &Sourcing and Procurement

DMAIC CONCEPT

DEFINE ANALYSEIMPROVEMEASURE ANALISE IMPROVE CONTROL


AGENDA External x Internal Concepts

Same Segment Other Segment : Automotive, Health Care, Mixed B to B

with B to C Model Adherence Timing Proposal Center of Excelence Model Priorities on Projects Standard Improving Projects Implementation LEAN & Six Sigma

GS Sales Regions and Sales Organizations

Region NAFTA:

USACanadaMexico

Region Latam:

South- and Central America

Region Oceania:

AustraliaNew Zealand

Region Direct Export:

Africa (incl. S.Africa)Middle EastRussiaIndia

Region Asia:

PRC - Japan - Korea - Asean*

*Asean includes Malaysia, Singapore, Thailand, Vietnam, Indonesia, Philippines

Regions Europe:

See previous Slide

Generic Model for SO : Customer Operations (1)

Customer Operations Manager

Customer Care

Supply ChainLogistics Procurement

Equipment

Consumables

Spares

Forecast maintenance

MRP , Call Off and Inventory management

Order FF Equipment

Order FF Consumables

Customer, Contract and price maintenance

Goods for resale

Services

CommoditiesProduct Master data

Country level ( for consumables, when still available )

XXXXXICS HQ

GS OPERATIONS : REGION LATAM

XXXXXSCM HQ

XXXXXXProd HQ

R.LEOPOLDOLATAM OPS Dir

XXXXXX Proc HQ

XXXXXVP Global OPS

XXXXXLogistics HQ

XXXXXXOPS Mgr Brazil ZZZZZZZ

SPV SCM LATAM

XXXXXOPS Mgr Chile

XXXXXXOPS Mgr Arg

XXXXXXOPS Mgr Col

XXXXXXXOPS Mgr Ven

ZZZZZZZZSPV Proc. LATAM

ZZZZZZZZZSPV CCC LATAM

7

S.C.M. Team

May 2008

8

B.D.P.On Supply Chain

Distribution

S.C.M. B.D.P. InitiativesAmericas B.D.P. StructureB.D.P. on S.C.M. Activities

Foreign Trade Procurement Planning

9

9 work packages, each with defined owners & action plans

S.C.M. Improvement ProjectWork Packages

5.0 Supply Chain Improvements

Reinaldo Leopoldo

5.1 SOP

Processes

Glauceane Cordeiro

5.2 Demand

Forecasting:

Domestic & LA

Cris Maia & Acacio Abrunhosa

Inter companyAcacio Abrunhosa

5.3 Scheduling

& Molds

Forecasting& Supply

Luis Justen &

Marcos Morais

5.4 Inventory Health

& Finished Goods

Luis Justen&

Luciana Bade

5.5 Service Level

Acacio Abrunhosa&

Tereza Quintella

5.6 Organization

& Culture

Acacio Abrunhosa &

Sebastião Rodrigues

5.7 Procurement

Paulo Duriez&

Jose Carlos Lisboa

5.8 Freight &

Distribution

Fernando Grillo

5.9 Importation

& Exportation

Paulo Duriez

10

GENERAL HILIGHTS - STEERING TEAM UPDATING

•

RL

11

GENERAL HILIGHTS - STEERING TEAM UPDATING

•

RL

Responsible Month Fev Jan Dec Nov Oct Sept Aug

Result 1,0 3,0 3,0 3,0 1,0 2,0 8,0Dif. -80% -40% -40% -40% -80% -60% 60%Result 6,0 6,0 5,0 4,0 6,0 5,0 6,0Dif. 0% 0% -17% -33% 0% -17% 0%Result 9,0 6,0 6,0 8,0 7,0 6,0 7,0Dif. -10% -40% -40% -20% -30% -40% -30%Result 0,0 1,0 1,0 1,0 0,0 1,0 0,0Dif. -100% -80% -80% -80% -100% -80% -100%Result 2,0 2,0 2,0 1,0 2,0 1,0 2,0Dif. -33% -33% -33% -67% -33% -67% -33%Result 20,0 20,0 19,0 19,0 20,0 19,0 19,0Dif. 0% 0% -5% -5% 0% -5% -5%Result 35,0 36,0 33,0 36,0 37,0 30,0 37,0Dif. -13% -10% -18% -10% -8% -25% -8%Result 5,0 3,0 5,0 5,0 5,0 3,0 5,0Dif. 0% -40% 0% 0% 0% -40% 0%Result 20,0 20,0 22,0 27,0 25,0 27,0 23,0Dif. -26% -26% -19% 0% -7% 0% -15%Result 0,0 0,0 0,0 0,0 0,0 0,0 43,0Dif. -100% -100% -100% -100% -100% -100% 115%Result 34,0 25,0 37,0 28,0 38,0 34,0 32,0Dif. -24% -44% -18% -38% -16% -24% -29%Result 6,0 7,0 6,0 17,0 7,0 5,0 7,0Dif. -50% -42% -50% 42% -42% -58% -42%Result 10,0 11,0 10,0 14,0 9,0 11,0 12,0Dif. -17% -8% -17% 17% -25% -8% 0%Result 1,0 3,0 1,0 2,0 2,0 2,0 1,0Dif. -67% 0% -67% -33% -33% -33% -67%Result 5,0 5,0 7,0 6,0 6,0 5,0 4,0Dif. 0% 0% 40% 20% 20% 0% -20%Result 3,0 6,0 4,0 4,0 2,0 3,0 5,0Dif. -40% 20% -20% -20% -60% -40% 0%Result 1,0 14,0 4,0 1,0 1,0 5,0 8,0Dif. -80% 180% -20% -80% -80% 0% 60%Result 82% 68% 88% 72% 75% 75% 76%Dif. 11% 26% 5% 21% 18% 18% 17%Result 88% 87% 92% 88% 93% 93% 93%Dif. 5% 5% 0% 4% -1% -1% -1%

GERAL - J&J Consumer - 2010 PERFORMANCE - Geral

6

10

Carrier

CarrierETD x ETA - Marítimo - A, E e Merc/Santos

ETD x ETA - Marítimo - Asia / Santos

Pick-up Real x ETD - Aéreo

Pick-up Real x ETD - Marítimo

Pick-up Real x ETD - Rodoviário

5

Baseline

3

20

PHASE

ETD x ETA - Aereo

5

1

2

2

12

27

20

40

ETD x ETA - Marítimo - AMER / Itajaí

3

DI Register x Customs Clearence

ETA x DI Register - Aéreo

4

ETD x ETA - Rod - Merc/SJC

4

ETD x ETA - Marítimo -EURO / Itajaí

ETD x ETA - Marítimo - Asia / Itajaí

3

3

Broker

4 Broker

ETA x DI Register - Marítimo

ETA x DI Register - Rodoviário

3

Broker 5

Carrier

Carrier

12

3

RoadTransportation

45

Broker

56 Local Transp. / MAM

5

5

3

Carrier

Carrier

Customs Clearence x Delivery a J&J (MAM)

2

3

3

Cardo Agent

Cardo Agent

Cardo Agent

Cardo Agent

Pick-up Request x Pick-up Real

Delivery a J&J X Factory Nec JPML 92%

7 Delivery a J&J X Factory Nec (Sem Pedidos Delay + MAM + DPA) JPML 92%

6 Customs Clearence x Delivery a J&J (DPA) Local Transp. / DPA 5

7

Phases Name Target FEB/10 JAN/10 Dec Nov Oct Sept Aug-2 17 12 8 9 9 1

-166,67% 466,67% 300,00% 166,67% 200,00% 200,00% -66,67%14 12 13 13 12 7 10

366,67% 300,00% 333,33% 333,33% 300,00% 133,33% 233,33%0 0 0 0 0 0 1

-100,00% 0,00% -100,00% -100,00% -100,00% -100,00% 0,00%0 0 4 2 0 1 0

-100,00% -100,00% -20,00% -60,00% -100,00% -80,00% -100,00%1 1 0 0 1 0 0

-90,91% -100,00% -100,00% -80,00% -100,00% -100,00%0 0 0 0 0 1 0

-100,00% -100,00% -100,00% -100,00% -80,00% -100,00%5 5 2 2 3 2 2

150,00% 150,00% 0,00% 0,00% 0,00% -33,33% -33,33%2 2 3 2 - - -

-33,33% -33,33% 0,00% -33,33% - - -13 28 33 24 28 21 20

-50,00% 7,69% 26,92% -7,69% 21,74% -8,70% -13,04%14 16 18 17 - - -

-46,15% -38,46% -30,77% -34,62% - - -7 7 7 7 7 7 8

0,00% 0,00% 0,00% 0,00% -12,50% -12,50% 0,00%3 3 3 3 2 3 6

0,00% 0,00% 0,00% 0,00% -33,33% 0,00% 100,00%3 9 15 5 8 7 10

-40,00% 80,00% 200,00% 0,00% 60,00% 40,00% 100,00%2 1 1 2 3 3 4

-93,10% -50,00% -50,00% 0,00% 0,00% 0,00% 33,33%3 2 1 1 2 2 2

0,00% -33,33% -66,67% -66,67% 0,00% 0,00% 0,00%2 3 4 3 4 2 2

-33,33% 0,00% 33,33% 0,00% 100,00% 0,00% 0,00%1 2 2 1 1 2 2

-66,67% -33,33% -33,33% -66,67% -50,00% 0,00% 0,00%5 3 1 1 0 1 1

400,00% 200,00% 0,00% 0,00% -100,00% 0,00% 0,00%87% 70% 80% 82% 89% 84% 88%

-5,61% -24,03% -12,62% -10,49% 2,68% 8,00% 4,00%97% 83% 96% 93% 96,00% 95,00%

5,84% -10,00% 4,43% 1,09% 4,35% 3,26%

KPI - Dasboard - Import - Argentina

Shipping x Arrived - Road

Shipping x Arrived - Air - America

LPT6(Phase 60)

LPT7(Phase 70)

LPT2(Phase 20)

LPT3(Phase 30)

LPT4(Phase 40)

LPT5(Phase 50)

Shipping x Arrived - Ocean - America

D.I. Register x Clearance - Ocean

2

92%

3

1

D.I. Register x Clearance - Road

Clearance - Factory Arrival

5

2

JJ Necessity x JPML Delivery

3

3

Estimated Pick-up x Real Pick-up Road 0

Real Pick-up x Shipping - Air

Arrived x D.I. Register - Air

Arrived x D.I. Register - Ocean

Arrived x D.I. Register - Road

7

D.I. Register x Clearance - Air

Estimated Pick-up x Real Pick-up - Ocean 3

3

Real Pick-up x Shipping - Road 0

5

Real Pick-up x Shipping - Ocean 5

26

LPT1(Phase 10)

Estimated Pick-up x Real Pick-up - Air

JJ Necessity x JPML DeliveryWithout P.O. Delay

LPT7(Phase 70) 92%

Shipping x Arrived - Air - Europe 3

Shipping x Arrived - Ocean - Europe 26

3

Governance Process Element: LATAM Assessment - Calendar

M T W T F S S M T W T F S S M T W T F S S1 1 2 3 4 5 1 2 3

2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 109 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 1716 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 2423 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 3130 31

M T W T F S S M T W T F S S M T W T F S S

1 2 3 4 5 6 7 1 2 3 4 5 1 28 9 10 11 12 13 14 6 7 8 9 10 11 12 3 4 5 6 7 8 915 16 17 18 19 20 21 13 14 15 16 17 18 19 10 11 12 13 14 15 1622 23 24 25 26 27 28 20 21 22 23 24 25 26 17 18 19 20 21 22 2329 30 27 28 29 30 31 24 25 26 27 28 29 30

31

M T W T F S S M T W T F S S M T W T F S S

1 2 3 4 5 6 1 2 3 4 17 8 9 10 11 12 13 5 6 7 8 9 10 11 2 3 4 5 6 7 814 15 16 17 18 19 20 12 13 14 15 16 17 18 9 10 11 12 13 14 1521 22 23 24 25 26 27 19 20 21 22 23 24 25 16 17 18 19 20 21 2228 29 30 26 27 28 29 30 31 23 24 25 26 27 28 29

31 30

M T W T F S S1 2 3 4 5 6

7 8 9 10 11 12 1314 15 16 17 18 19 2021 22 23 24 25 26 2728 29 30 31

NOVEMBER

MAY

AUGUST

DECEMBER

JUNE JULY

SEPTEMBER OCTOBER

MARCH APRIL

T E X

T

Colombia (MS – System)• Import Operation• Export Operation

Brazil (MS – System)• Import Operation• Export Operation• Duty Drawback

Operation

Argentina (MS – System)• Import Operation• Export Operation

Latin America Operation

Paraguay and Uruguay• Import System• Export System

Peru, Ecuador and Venezuela• Import System• Export System

Target Efective Target Efective Target Efective Target Efective Target Efective Target Efective Target Efective9,37 9,02 8,9 10,27147186 10,86 4,19952381 4,96

275% 261% 256% 311% 334% 68% 98%27 28 27 28 27 23 23

4% 4% 0% 4% 0% -15% -18%12 10 9 6 6 5 3

-25% 11% 13% -14% 0% -17% -50%38,5 38,73 37,56 39,84541126 41,99 7,537142857 8,55952381

1000% 1007% 973% 1038% 1100% 115% 145%$54.178,17 $47.598,70 $59.030,81 $67.129,32 $66.048,75 $49.237,72 $58.007,78

-36% -44% -31% -21% -22% -42% -32%$497.284,66 $397.481,43 $466.062,67 $494.966,62 $439.513,77 $381.375,94 $469.880,73

50% 20% 40% 49% 32% 15% 42%$214.056,65 $213.450,91 $213.450,91 $218.527,55 $191.065,13 $191.065,13 $191.065,13

2% 0% 0% 2% -11% -11% -11%$8.914,06 $463,34 $96,01 $0,00 $2.382,17 $0,00 $8.025,66

-7% -81% -98% -100% -41% -100% 233%$8.464,01 $18.045,12 $7.986,36 $4.999,90 $5.494,32 $2.240,94 $4.231,44

34% 185% 26% -21% -13% -65% -33%$9.043,65 $9.524,29 $10.437,74 $10.575,24 $9.293,23 $8.695,51 $6.250,59

44% 76% 99% 107% 88% 76% 23%$87.508,71 $73.596,72 $72.088,88 $97.018,01 $63.700,16 $56.443,36 $64.636,84

-3% -12% -11% 26% -17% -27% -16%$0,00 $0,00 $0,00 $0,00 $0,00 $0,00 $0,00

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

2,5 2,5

$85.159,36 $85.159,36

$331.944,41

$214.215,47

Penalties $0,00

$213.450,91

$10.623,86

$90.401,24

$0,00

$12.844,69

$6.300,00

$90.385,41

2,5 2,5

2727

2,5

27

Performance by Head 2,5

Head Counts

2,5

2826 27

AGP 15

Overtime

$192.739,65

$13.994,89

3,5Total Performance

Revenue

KPI´s 2008 Average Janeiro/09 Março/09 Julho/09Junho/09Abril/09 Maio/09

68

3,53,5

16 6

3,5

7

3,5

6

$79.815,70

27

Telefone

$326.600,75 $331.944,41

$85.159,36Revenue by Head

$5.400,00

Travel Expenses

Salary*

$6.340,00

$213.450,91

$331.944,41

$85.159,36

$0,00

$6.340,00

$209.521,39

$9.572,10

$83.416,36

$2.412,00

$6.340,00

$5.250,00

$331.944,41

Third Parties*

Fevereiro/09

27

9

3,5

$85.159,36

$81.385,20 $77.024,32

$0,00

$4.045,33

$0,00

$214.215,47

$4.045,33

$6.340,00

$5.100,00

$0,00

3,5

2,5

$85.159,36

$331.944,41

$6.340,00

$4.950,00

$77.024,32

$214.215,47

$331.944,41

$0,00

$2.412,00

$6.340,00

$4.950,00

$4.045,33

$77.024,32 $77.024,32

$0,00

$5.100,00

$331.944,41

$214.215,47

$2.412,00

$6.340,00

3,5

$85.159,36

Dashboard

Finance Review


DEFINE

SUPPLY CHAIN STRUCTURE..

SC ROUTINES

SOURCING & PROCUREMENTSTRUCTURE

.

.SP ROUTINES

REINALDO LEOPOLDO


DEFINE

SC AGENDA:.Sales

.Inventory.Services

.New Products .Deals

.etc

SP AGENDA:.Total Cost Optimization

.Working Capital Improvement.Complexity Reduction

REINALDO LEOPOLDO


DEFINE


SC ROUTINES

SOURCING & PROCUREMENTSTRUCTURE

.

.SP ROUTINES

REINALDO LEOPOLDO

Inside / Outside Analisys: January 2015

Inside or Outside To give more visibility for the SC and SP

Routines Standard Improving Projects ImplementationRaise the bar concept Fast Improvements with Sustainable Routines LEAN & Six Sigma Implementation To create knowledge Centers : CE Crucial Partnership with FI and IT To identify Non Compliant Practices and

Implement a Compliant Enviroment SC and SP Routines Outside Brazil Region wise to incentive convertion project Implementation of Fast Line with WW To use Group sinergy. Ex : MX

Unite BR with Latam

Manage IT

Lean concept at LatAm Labs

BR LAPAS

DEFINE

BRAZIL

Productivity at BR Labs

It is not an Operations Area

Wide Supply Chain Management Concept & Its Pillars A

PlanningStrategy

1 - NORTH

2 - MEXICO

3 - SOUTHER CONE

4 - BRAZIL

DProcurement

BForeign Trade

Supply Chain andSourcing & Procurement

ZStandardization

CTransport Wareh

W1 6 Sigma 2 LEAN

Wide Supply Chain Management Concept & Its Pillars A

PlanningStrategy

1 – NORTH

2 - MEXICO

3 - SOUTH

4 - BRAZIL

DProcurement

BForeign Trade


ZStandardization

CTransport Wareh

W1 6 Sigma 2 LEAN X X

Routines, Agendas & Objectives and StrategiesA

PlanningStrategy

1 - NOCCA

2 -MEXICO

3 - SOUTHERN CONE

4 - BRAZIL

DProcurement

BForeign Trade


ZStandardization

CTransport Wareh

W1 6 Sigma 2 LEAN

1.To Name the Forecasts and exception Releases2. Volume Consensus2.Forecast Accy3. Fast Lane Process4. Safety Stock Concept revision 5. SOP Agenda well Known and conected

Objectives and Strategy TBD

Objectives and Strategy TBD

3 Pillars Concept

Regional Structure - Latam

242424

ELAC office

LATAM Headquarters

* NOCCA: North Cone of South America, Caribbean and Central America

SC and S&P LATAM : RL

S&OP LATAM CYCLE Regional

1 - MEXICO CYCLE

2 - NOCCA

3 - SOUTHERN CONE

4 - BRAZIL

APlanningStrategy

DProcurement

CTransport Wareh

BForeign Trade

SC Centers of EXCELLENCE


252525


SC and S&P LATAM : RL

CONNECTING REGION SC INTO WW SUPPLY CHAINLA

TAM

SC


262626

ELAC office

LATAM Headquarters


SC & PROCUREMENT LATAM : RL

1 - MEXICO CYCLE

2 - NOOCA

3 - SOUTHER CONE

4 - BRAZIL

APlanningStrategy

DProcurement

CTransport Wareho

BForeign Trade

SC Centers of EXCELLENCE


DEFINE


SC ROUTINES

SOURCING & PROCUREMENT STRUCTURE

.

.SP ROUTINES

REINALDO LEOPOLDO

PROJECTS PRIORITIES

PROFILES :

28

<>

PROJECT II HQ SCM CONECTIVITY & SOP - A PROFILE : SC

29

<

PROJECT III LUPAS PARA LEITURA – A PROFILE : MIXED

30

<>

PROJECT IV….C RETAIL DEVELOPMENT

PROFILE : MIXED

31

<>

PROJECT V MORE PROFESSIONAL PROFILES - APROFILE : NETWORKINGVIE + MANAGERS

32

<>

PROJECT XI US DC FOR ASIA PRODUCTS MIA OR TAMPA PROFILE : SC

33

<

34

SC – S&P LATAM : TEAM & RLJan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez Jan Fev Mar Abr Mai Jun

20162015

GENERAL PLAN

EP 1 st

SC & SP

Better utilization of ASIA Platform SP Structure Disclosure, Hiring,Trainig Plan or the SP team

SCWW SC ROUTINES Better Connectivty

Strategics Lupas Project

OG SC

EP1st

BRAZIL TEMPORARYDRP >

Freelog> EDAM

KEY REGIONAL BID SUPPORT With HQ and RCA evaluation

Thank You very much

supply chain and sourcing_procurement raising rev 2

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