How to reduce cost tied up in your supply chain Dermot Connolly - - PowerPoint PPT Presentation

How to reduce cost tied up in your supply chain

Dermot Connolly Head of Business Development

A member of one of the largest and fastest growing technology distribution & supply chain management businesses in Europe In business for over 30 years DCC Technology (Exertis) $3 billion turnover per annum

Who We Are Part of DCC plc, a FTSE 100 company with combined annual sales of

• ver $16 billion

Exertis Supply Chain Services is a leader in materials supply chain design & operation; delivering cost, capital & complexity optimisation for our global clients

A FTSE 100 listed company Headquartered in Dublin, Ireland Separate divisions focused

• n Technology, Energy &

Healthcare Operations in 15 countries Sales of $16bn per annum 10,500 employees

Our Parent Company

six continents

Where We Are

global operations We have and spanning partnerships

Why Are We Here? Traditional Logistics

Integrated Supply Chain Management

The ‘Now Generation’ Customer

• Is Tec

ech S Savvy vvy

• Is Global a

and nd Mul ultic icul ultural

• Demand

nds I Ins nstant G Gratification

• Desir

ires a an n Omni ni-cha hanne nel O l Option

• Exp

xpects Product Q Qualit ity & & Ser ervice

• Expe

pects N New Produ duct I Inno nnovation

Lac ack o k of Liquidity Excess & ss & Obsoles escen ence e Inaccurate te Fo Foreca casts

5 x 5 x Rs Rs:

• Product
• Cost
• Place
• Time
• Quality

Oper erati tional Fo Focus

So Who Is Affected? Sm Small ll, y young f firms

Require operational & transaction efficiency Need to focus on brand building & NPD

Large ge, m matur ure c compa pani nies es

Need to deliver customer intimacy Ensure operational effectiveness

3P 3PLs

You Are!

The Trend…

Sales = es = V Pr Prof

• fit =

= S Cash = sh = R

Warehousing Costs Freight Costs Cash Tied Up in Inventory Inventory Holding

Working Capital Days by Sector (2016)

Pay on Consumption Model

Our Solution

Engineering Design Inventory Financing Logistics Kitting & Inventory Postponement Materials Procurement Services Supplier Management Supplier Sourcing / Selection

End to End Process

Inventory Hubbing Global Distribution

Bottom Line Benefits

Best value materials Reduced inventory mgmt.

• verheads & materials

supply chain costs Materials supply matched with demand Release of cash tied up in stock Consolidated supply base Managed material sourcing, procurement & fulfilment

Minimising Cost Optimising Capital Reducing Complexity

Watch the video:

https://www.youtube.com/watch?v=r4RlFXHHgFU&t=3s

Case Study Examples

Inv nvent ntory F Financ ncing & Ma Materia ials ls Mgm Mgmt.

Problem em High growth US based co. struggling with cost & complexity

• f supply network from Asia to US.

Solut lutio ion Materials Planning, Procurement and Sub-assembly. Result ult $1 Million drop to bottom line.

Ma Materia ials ls Plannin ing & Procurement

Problem em Complexity and cost of managing 130 global suppliers into one factory production site. Solut lutio ion A single interface Global Materials Management & Inventory Financing Solution. Result ult Significant year-on-year working capital improvements. Problem em Large, mature multinational company challenged with managing many suppliers with small spend. Solut lutio ion Global Procurement and Materials Mgmt - 150 suppliers reduced to 1 across 5 manuf. locations in Europe & US. Result ult Operational restructuring, improved working capital, stock off balance sheet.

“Managin ging t g the T Tail” l” (Comple lexit ity Mgm Mgmt)

Thank you

for listening

Any Questions?