OMRON OMRON OCB-EU CONTINUALLY EVOLVING Managing the “W” Effect! Managing the “W” Effect! Mark Jones Chief Operating Officer and Managing Director Omron Electronic Components Europe
OMRONOMRONOCB-EU
CONTINUALLY EVOLVING
Managing the “W” Effect!Managing the “W” Effect!
Mark Jones Chief Operating Officer and Managing Director
Omron Electronic Components Europe
OMRONOMRONOCB-EUPresentation contentPresentation content
CONTINUALLY EVOLVING
What is the “W” effect?Impact on ManufacturersThe Changing CustomerPost recession supply chainPost recession supply chain
relationshipsManaging the future
OMRONOMRONOCB-EUOmron’s Global Business Omron’s Global Business
CONTINUALLY EVOLVING
Healthcare business (Medical equipment and
i )
Other2,3%
Industrial Automation Business (Control equipment, FA systems)41 9%services)
10,2%
Social systems business (t t ti it )
41,9%
(transportation, security)12,7%
Automotive Electronic
Gross Sales
JPY 627.2billion
Components Business (Automotive electronic equipment)13 1%
Electronic Components Business (Electronic components)19 8%
billion
13,1% 19,8%
OMRONOMRONOCB-EUOmron Sales CompositionOmron Sales Composition
CONTINUALLY EVOLVING
OMRONOMRONOCB-EUOmron Group consolidated SalesOmron Group consolidated Sales
CONTINUALLY EVOLVING
-18%%
OMRONOMRONOCB-EU
CONTINUALLY EVOLVING
The “W” EffectThe “W” Effect
OMRONOMRONOCB-EUThe “W” effect!The “W” effect!
CONTINUALLY EVOLVING
Recession Injection Correction RecoveryGrowth
RestockingGovernment incentives Market correction
TimeFY08 FY09 FY011 FY010
OMRONOMRONOCB-EU
CONTINUALLY EVOLVING
Impact on ManufacturersImpact on Manufacturers
OMRONOMRONOCB-EU
CONTINUALLY EVOLVING
35% Global Business Downturn 35% Global Business Downturn Production Capacity reduction – how to
d t h t t d d?respond to short term demand? Economies of scale/reduced volumes
Cession of “non core” products and Cession of non core products andactivities
P d ti t f / t i l Production transfer/materialsmanagement
Technology re-think
OMRONOMRONOCB-EU
CONTINUALLY EVOLVING
The Changing CustomerThe Changing Customer
OMRONOMRONOCB-EU
CONTINUALLY EVOLVING
B i Vi ibilit d f tBusiness Visibility and forecastAsset ManagementAsset ManagementProduction locationServices OutsourcingN l h i iNew supply chain services
requirementsrequirementsTotal Cost Management
OMRONOMRONOCB-EU
CONTINUALLY EVOLVING
Post Recession Supply chainPost Recession Supply chainPost Recession Supply chain Post Recession Supply chain relationshipsrelationshipspp
OMRONOMRONOCB-EUConsequences of DownConsequences of Down--turnturn
CONTINUALLY EVOLVING
Short term Focus, especially asset Short term Focus, especially asset management
Shareholders not customers!! Shareholders not customers!!Manufacturer becomes Distributor Asset Management preferable to Customer Asset Management preferable to Customer
Management
Difficult to manage short term demand Reliance on Manufacturer Reliance on Manufacturer Planning and forecast disruption P / i t t i l t t !! Poor/non existent service = lost customer!!
OMRONOMRONOCB-EUPost recession relationshipPost recession relationship
CONTINUALLY EVOLVING
Manufacturer/distributor: Seamless closerManufacturer/distributor: Seamless, closer relationship! Rationalization of suppliers/interdependency Rationalization of suppliers/interdependency Time and target management Tools and added value services development
Web/brand shopsDeep linkingProject managementj g
Responsiveness to the ‘faceless customer’( id i th “W” ff t!!!!!)(considering the “W”effect!!!!!)
OMRONOMRONOCB-EUEven Global Customer Management!Even Global Customer Management!
CONTINUALLY EVOLVING
OMRONOMRONOCB-EU
CONTINUALLY EVOLVING
Benefits from the “W” effectBenefits from the “W” effect
OMRONOMRONOCB-EU
The benefits of the recessionThe benefits of the recessionManufacturerManufacturer
CONTINUALLY EVOLVING
R + Skill li Resource + Skills pooling product innovation product innovation new technologies Quality and cost
Redundancy – pruning the tree!! Redundancy – pruning the tree!! Seamless supply chain y
development!
OMRONOMRONOCB-EUSome examples!Some examples!
CONTINUALLY EVOLVING
OMRONOMRONOCB-EUResource and skills poolingResource and skills pooling
CONTINUALLY EVOLVING
OMRONOMRONOCB-EUManaging the future Managing the future -- togethertogether
CONTINUALLY EVOLVING
OCB Factory OCB
Purchasing
OCB Factory
POA Sales
Customer
•POS Sales growth
•POS budgeting / market identification
Support to distribution SALES Customer
Distributor
•Support to distribution SALES
•Contacts with the end customer
•Window of Services
•Market Knowledge
OMRONOMRONOCB-EU
CONTINUALLY EVOLVING
““Th f t i iti i ll f thTh f t i iti i ll f th““The future is exciting, especially for those The future is exciting, especially for those who can change!!who can change!!
Thank you for your attentiony y
Mark Jones