Presented by: Steve Sigrist VP Sales Operations & Supply Chain, Newell Rubbermaid Creating an Effective Linkage between Sales, the Customer, and the Supply Chain. April 2010
Jan 15, 2015
Presented by:
Steve Sigrist
VP Sales Operations & Supply Chain, Newell Rubbermaid
Creating an Effective Linkage
between Sales, the Customer,
and the Supply Chain.
April 2010
About Newell Rubbermaid
» We are a global marketer of consumer and
commercial products that touch the lives of
people where they work, live and play.
» Headquartered in Atlanta, GA
» Approximately 23,500 employees worldwide
» NYSE: NWL
» 2009 Net Sales: $5.6B
» Aligned into 3 Major Business Segments
3
Business Segments
3
Office Products
Tools, Hardware & Commercial Products
Home & Family
ERP Implementation
November 2007
April 2008
July 2009
April 2010
5
Creating an Effective Linkage between Sales, the Customer,
and the Supply Chain.
Strategic Planning
Business Planning
Executive Sales and
Operations Planning (S&OP)
Master Production Scheduling
(MPS)
Detailed Planning &
Execution Systems
VOLUME
MIX
MRP, Plant scheduling, Supplier
scheduling, transport scheduling, etc…
Fo
reca
sti
ng
&
Dem
an
d p
lan
nin
gC
ap
ac
ity/ in
ve
nto
ry p
lan
nin
g
Integrated Business Model (example)
Strategic Planning
Business Planning
Executive Sales and
Operations Planning (S&OP)
Master Production Scheduling
(MPS)
Detailed Planning &
Execution Systems
VOLUME
MIX
MRP, Plant scheduling, Supplier
scheduling, transport scheduling, etc…
Fo
reca
sti
ng
&
Dem
an
d p
lan
nin
gC
ap
ac
ity/ in
ve
nto
ry p
lan
nin
g
Integrated Business Model (example)
Strategic Planning
Business Planning
Executive Sales and
Operations Planning (S&OP)
Master Production Scheduling
(MPS)
Detailed Planning &
Execution Systems
VOLUME
MIX
MRP, Plant scheduling, Supplier
scheduling, transport scheduling, etc…
Fo
reca
sti
ng
&
Dem
an
d p
lan
nin
gC
ap
ac
ity/ in
ve
nto
ry p
lan
nin
g
Integrated Business Model (example)
9
Point of Sale
Performance at the
Customer
Internal Incentives
“Buyer Behaviors”
Competitive Skus
Gains Or Losses
General Market Data &
Direction
Recent Competitive
Gains or Losses
GBU Promotional
Schedule or Launch
Positive or Negative
Feedback About
Market Conditions
Store Disruptions (due
to resets, changes,
etc.)
Private Label Impact
Level of Markdown
Support Provided to
Customer
Syndicate Data Results
/ Key Indicators
Current Inventory
Position or Weeks of
Supply Considerations
Customer Buying
Plans – Open to Buy
$’s
Changing Retail Price
Points in the
Marketplace
Positive or Negative
Feedback About
Market Conditions
Customer Rebate
Programs
Customer Event
Schedules
Unexpected Customer
Events
Sales Results at Other
Customers
Recalls / Returns
Impact
Consumer Insights
(Market Basket)
Customer CPFR or
Forecast Data
Current or 1st Week
Deployment Trends
Impact of Store
Openings or Closings
Margin vs. Top Line
Initiatives for the Buyer
/ Retailer
Customer Department
Performance Data
Impact of Key End-
User or Fashion
Trends
Impact of Current
Supply Chain
Constraints
Demand Anticipation
Based on the Buyer’s
Current Goals
Fineline Performance
Data
Competitive Chain
Performance or
Response Plan
Impact of Direct Import
Programs
Payment Terms
ConsiderationItem Performance Data
Seasonal Volume
Spikes. End of
Season Impact.
Minimum Order
Quantities, Packs,
Packs Size, etc.
Customer Operating
Structure Changes
Line Reviews &
Schedule
Evaluation of Sales
Results at Other
Customers
Impact of Supply
Shortcomings
Current Performance Market ForcesCustomer
Organization
Buyer-Specific
Behaviors
Manufacturer
Developments
Dem
an
d In
pu
ts &
Sig
nals
10
What’s in it for me?
Creating An Effective Linkage
11
Sales
The Customer
Supply Chain
Creating An Effective Linkage
12
Sales
The Customer
Supply Chain
Growth!
Linkage Enabler
Creating An Effective Linkage
13
Sales
The Customer
Supply Chain
Suspected
Opportunities
Linkage Enabler
Creating An Effective Linkage
14
Sales
The Customer
Supply Chain
Issue
Resolution
Linkage Enabler
Benefits of An Effective Linkage
15
Sales
The Customer
Supply Chain
Growth!or
Accelerated Growth
and Profitability
The Reward
Requirements…
16
Confidence…In Your Methodology for
Identifying & Solving Problems
In Your Ability As An Operator
In Your Ability To Give Them A
Situational Assessment
In Your Ability to Communicate
In Your Ability to Prepare Them
to Communicate
What The Customer and the Sales
Teams Want from Supply Chain…
What Supply Chain Wants from
The Customers & Sales Teams…
Insight…Key Operating Performance
Measures & Initiatives
Insight on Inventory Position
and Current Strategy
Key Demand Developments
Customer Compliance
Requirements
Where We Suspect There Are
Productivity Opportunities
17
How Do You Do This?
My Pillars of Supply Chain Excellence
Speed
Manage Variations Root Cause Analysis
Customer Alliances
Order Flow: What’s Open, What’s Late,
What’s Not Meeting Customer Expectations
Improved Transportation Productivity
The Perfect Order: Better Insight to the Factors
Impacting The Key Customer Service Metrics
Supply Chain Linkage (3 Current Focus Areas)
Order Flow: What’s Open, What’s Late,
What’s Not Meeting Customer Expectations
Improved Transportation Productivity
The Perfect Order: Better Insight to the Factors
Impacting The Key Customer Service Metrics
Supply Chain Linkage (3 Current Focus Areas)
Order Flow
develop an improved and more informed perspective on the developments, root
causes, required response plans, timing off issues, and resource support needs.
What Are the Open Orders / Key Dates?
What Orders We Are Expecting?
What Orders Are Late? What’s at Risk of Being Late?
Are We In-Sync with the Expected Replenishment Cycle?
What Are the Supply vs. Demand Considerations?
Improved Order Flow Management = Builds Confidence
Leverage the Improvements with Best Practice Sharing
Ben
efits
On
go
ing
Exa
min
atio
n
Order Flow
2.) Get These in Sync…
Rate of
Sale
Case
Pack Qty’s
1.) Eliminate Variability…
Increases to Lead TimeLate Shipments Fill Rate Shortcomings
Lead to..
Increased Need for Safety Stock
P.O
.S. E
xec
utio
n
Less T
han
100%
Store Receipt
Unforeseen Volume
Count Difficulty
Clerical Error
Timing
Damaged
In Transit
Other Vendors
Labor
Shortage
Order Entry
Discontinued Item
EDI & Order Errors
Sku Set Up
Item Maintenance
Vendor Fill
Rate Issue
Merchandise Planning
Low Priority
Limited
Resources
Other
Priorities
Not Planned
In Backroom
Over Inventory
Marking Errors
Wrong Location
Store Service
Labor
Availability
Wrong
Focus
Personnel
Capabilities
Training
Gap
Wrong
Dept. Location
Not Set
To POG
Product Placement
Packaging Errors
Wrong Count
In System
Difficulty to Access
Multiple
Locations
Label Errors
No Entry
Late Entry
Insufficient
Time
Damaged
at StoreCommunication
Insufficient
Qty
Damaged
Package
Pricing Errors
Serv
ice L
evel
Less T
han
100%
Logistics Elements
Carrier Related
Plant to DC
Lead Time
DC Out of Stock
Dock Capacity
AvailabilityAppointments
Schedule
Peak
Period
Load Packaging
Damaged
Transit Time
DC Turn Time
Order Receipt
Discontinued Item
EDI & Order Errors
Processing Time
Inaccurate Qty’s
Batch Processing
Delays
Manufacturing
Capacity Issue
Quality Issues
Supplier Related
Raw Materials
Allocation
Machine Staffing
Order Fulfillment
“Rush” Order
Keying Errors
Order Backlog
Staffing
Label Errors
WMT N/RPick Error
Inventory
Position
Manu. Forecast
ForecastNo
Forecast
Forecast
Errors
POS Errors
Pack Qty –
Not to R.O.S
Unforeseen
Demand
Weather
Related
Plant
Disaster
Theft
Miscellaneous
Limited or No
Contingency Plans
Labor Strike“World
Events”
Over In
ven
tory
Po
sitio
n
Supply Chain
Visibility
Replenishment
Market Related
Demand Signal
Promotional Miscue
Order Flow Execution
Promo Vehicle Size
Store Stratification
Promo Timing
Market Environment
Competitive Options
Competitive Retailers
Price Inelasticity
Wrong Items
Store Execution
POS Inattention
Bullwhip Impact
Extended Lead Time
EDI & Order Errors
System Settings
Missed Store Group Qty’s
Not Recognized
Recognized Late
Misaligned Incentives
Misinterpreted
No Consensus
Demand Evaporation
Timing
Forecast Bias
Pack/Carton Size
Low Priority
No Attention
Suspected Non-Issue(s)
PI Impact
Count Errors
Order Flow: What’s Open, What’s Late,
What’s Not Meeting Customer Expectations
Improved Transportation Productivity
The Perfect Order: Better Insight to the Factors
Impacting The Key Customer Service Metrics
Supply Chain Linkage (3 Current Focus Areas)
Transportation Productivity
Transportation Productivity
Shipping Dock Door
Full
EmptyAdd
53’ T
raile
r
Transportation Productivity
Shipping Dock Door
Full
Benefits:
• Productivity
• Accurate Picks
• Improved Lead Time
• Reduced Freight
Empty
53’ T
raile
r
Cu
be o
r Mile
ag
e
No
t Op
timiz
ed
Order Cycle
Replenishment
Settings
DC Load Plan
Ship Day
Schedule
Order Profile
Item or Display
Profile
Resources
Policies
Seasonal Profiles
Promotions
Inventory/POS
Load Scheduling
Timing
Collaboration
Routing/Appts
Constraints Specifications
Spatial Mgmt
Double Stack
Structural Integrity
Weight
JIT/DI?
Level Load
Missed Appointments
Reefers
Allocation
OUTL/Ceiling
Min/Floor
Rounding
Pallets/Layers
LT Settings
Productivity
Pooling?
Co-Loading
Frequency
OTR/Rail?
Order Flow: What’s Open, What’s Late,
What’s Not Meeting Customer Expectations
Improved Transportation Productivity
The Perfect Order: Better Insight to the Factors
Impacting The Key Customer Service Metrics
Supply Chain Linkage (3 Current Focus Areas)
Serv
ice L
evel
Less T
han
100%
Logistics Elements
Carrier Related
Plant to DC
Lead Time
DC Out of Stock
Dock Capacity
AvailabilityAppointments
Schedule
Peak
Period
Load Packaging
Damaged
Transit Time
DC Turn Time
Order Receipt
Discontinued Item
EDI & Order Errors
Processing Time
Inaccurate Qty’s
Batch Processing
Delays
Manufacturing
Capacity Issue
Quality Issues
Supplier Related
Raw Materials
Allocation
Machine Staffing
Order Fulfillment
“Rush” Order
Keying Errors
Order Backlog
Staffing
Label Errors
WMT N/RPick Error
Inventory
Position
Manu. Forecast
ForecastNo
Forecast
Forecast
Errors
POS Errors
Pack Qty –
Not to R.O.S
Unforeseen
Demand
Weather
Related
Plant
Disaster
Theft
Miscellaneous
Limited or No
Contingency Plans
Labor Strike“World
Events”
33
Where to start….
34
Improved Ongoing Performance
Proactive Solutions
Smarter Deployment of Resources
Better Follow-Up Data
Better Communication
Improved Reaction Time
Improved Operational Knowledge
Prioritized Request for Response
Operational Improvement “Stair Steps”
Understanding What We Need to Look At / What We Need to Manage
Improved Visibility Foundational
Requirements
Action
Steps
Targeted
KPI’s
35
Improved Ongoing Performance
Proactive Solutions
Smarter Deployment of Resources to Remedy Issues
Better Follow-Up Data
Better Communication
Improved Reaction Time
Improved Operational Knowledge
Prioritized Request for Response
Operational Improvement “Stair Steps”
Understanding What We Need to Look At / What We Need to Manage
Improved Visibility
Targeted
KPI’s
Stumble Factors…
» Multiple Data Sources
» Vast Amounts of Data
» Lacking Report Clarity
» Resource Constraints
» Time Constraints
» Different Audiences with Different Agendas
» Business Tools Are Not In Place to Solve the Challenges
36
The Objective…
» What Does the Desired End-State Look Like?
37
Easy to Use: It’s Not Disruptive Process
Can Be Easily Repeated!
Prompts Appropriate & Timely Corrective Action
Addresses the Right Topics / Answer The Right ?’s
Delivered in a Format Everyone Can Work With
38
How Do You Do This?
Examine Data & Reporting Processes
39
POS &
Inventory Data
Customer
Order Data
Order &
Shipment Data
Other
Sources
Collect, Analyze,
Manipulate, Chart, &
Add Insights
Collect, Analyze,
Manipulate, Chart, &
Add Insights
Collect, Analyze,
Manipulate, Chart, &
Add Insights
Collect, Analyze,
Manipulate, Chart, &
Add Insights
Excel, PowerPoint, or
Excel, PowerPoint, or
Excel, PowerPoint, or
Excel, PowerPoint, or
BI Tool or
Internal Process
BI Tool or
Internal Process
BI Tool or
Internal Process
BI Tool or
Internal Process
Action OutputAggregation
Streamline the Process
1.) Organize Data Sources (already done)
2.) Connect to Data Source
3.) Build Presentations in the Final Format
4.) Distribute / View Presentation
Bottleneck Potential
POS &
Inventory Data
Customer
Order Data
Order &
Shipment Data
Other
Sources
Select the Key Metrics
41
Determine The Format
42
43
Creating an Effective Linkage between Sales, the Customer,
and the Supply Chain.
Key Success Drivers
» Understanding of Customer Expectations
▪ What Do They Want To See?
▪ How Do We Distinguish Our Capabilities vs. Our Competitors?
» Understanding of Internal Challenges
▪ Where Do We Have Issues?
▪ What Data Can I Leverage?
» Understanding of the Technology Landscape
▪ Deployment with Legacy Operations & New Initiatives
▪ Avoiding Integration & More Complications (added cost & time)
▪ Determine What is a Feasible Investment and Realistic Return
Fo
r N
ew
ell
Rub
be
rma
id…
Questions