Bill Stankiewicz Bosch

Bosch Siemens Home Appliances Ltd

A Global success story

How UK logistics continues to support
the business growth

BSH HOME APPLIANCES LTD

1967: Foundation of BSHG

Robert Bosch GmbH Siemens AG

50% 50%

BSH Bosch und Siemens Hausgeräte GmbH

BSH HOME APPLIANCES LTD I Slide: 2

1967: Foundation of BSHG

Joint Venture 50/50 Bosch-Siemens Hausgeräte GmbH

Optimize synergies: Home appliances portfolios of Bosch
and Siemens

Maintain position as the top German home appliances
manufacturer


Corporate Development

13 factories
3 factories in Germany in Germany, Greece, Spain
Companies 7 Companies 41
Employees14.000 Employees23.000
Sales0.5 billion EUR Sales3.3 billion EUR

BSH – Third-Largest Manufacturer of Home Appliances Worldwide
Number 1 in Germany and Europe
Number of brands: 14

Number of employees:
~ 38,000 worldwide*
Sales in 2006
> 8.3 billion EUR*
Number of companies:
~ 70 in 43 countries
Number of factories:
45 in Europe, the U.S.A.,
Latin America and Asia**
40 Millions of produced home appliances*
A global sales and customer service network * 2006 ** 2007


1967 Product Portfolio

2007 Product Portfolio


Logistics in 1967 …. From small beginnings


BSH Logistics Coverage 2007


475
500 439
437 428
450 384
400 352
324
£m 350 294
UK Sales 300
in £m
250
200
2000 2001 2002 2003 2004 2005 2006 2007


Major developments in UK logistics 2000 - 2007

Transport Planning Software
National Platform Network
Warehouse Management System
Logistics Management System
New build Warehouse
Contractual Partnerships

Continuous Development

Introduced Paragon Planning software
Reduced contractors from 15 to 5
Developed In house Booking system
Integrated our SAP with Transport Planning
Changed operating hours to fit with the planning cycle


Selected four contractors to create a National Network
Introduced a Postcode Delivery Matrix for the first time
Massive reduction in lead time, 10 days – 3 days
Frequency of delivery increased to 2/3 times per week
Operation moves to 24hr working for the first time

Reliable, consistent service begins

Introduced SAP Warehouse Management system
Brought control and discipline
RF Scanning integral
New Warehouse layout
Accuracy greatly improved

Training paramount
Must achieve buy in from everyone
Nearly killed all involved …. Particularly me !

Business agrees to invest in Warehousing
Developer and site chosen that fit best
Inbound requirements played a big part
Early selection allowed design changes
Proactive developer was key to success
Appointed Consultants to assist with Project
Did not change our business processes

Very successful go live

Consolidated Transport operations with one Partner
Major player in the Industry to support our business
A long courting period .. But getting to know each other now
Expertise and assets to offer
Competitive pricing
Long term gain sharing
Building an infrastructure for the future
Confident that our marriage will last


Environmental Impact During the Product Lifecycle
4 – 9% * *depending on product
Production and usage
(Consumption of raw materials,
energy and water)

< 0,5%
Raw materials Distribution
Non-ferrous metals, (energy consumption
steel, plastic and harmful emissions)
glass, others

90 – 95%
*
< 0,5% Usage (consumption of water,
Disposal energy and chemicals)
(energy consumption)


Potential Savings, Energy and Water Consumption

Dishwashers Washing machines Electric cookers Refrigerators and freezers
per wash cycle per kg of laundry Energy consumption as per 100 L in 24 h
12 place settings Boil wash/colors 60° per EN 50304
1) 2) 3)
1.74 28.1 0.27 21.2 1.10
kWh Lit. kWh Lit. kWh 0.76 0.53 0.76
1.05 0.17 0.57
12,0 7.0 kWh kWh kWh
kWh kWh kWh 0.22
Lit. 0.11 0.19
Lit.
kWh kWh kWh
1990 2007 1990 2007 1990 2007 1990 2007 1990 2007 1990 2007 1990 2007 1990 2007

– 31%
– 37%
– 40%

– 57%
– 67% – 61%
– 75%
1)
Refrigerator 2) Freezer 3) Fridge-freezer – 79%
Source: BSH; As of 1st quarter 2007


Milestones in BSHs Commitment to the Environment and Society

BSH Corporate Department for Approval of globally valid occupational health
Environmental Protection set up and safety guidelines

First BSH Environmental Report BSH signs up to the UN’s Global Compact

Pioneering role in discontinuing use Code of Conduct of the European Committee
of CFCs/HFCs in Europe of Domestic Equipment Manufacturers CECED
signed
Approval of a binding environmental policy
throughout the group, establishment of an
environmental management system Introduction of the plant oil stove
in the Philippines
Introduction of the BSH Business
First BSH factory validated according to Conduct Guidelines
the new EU Eco-audit and Management
Scheme (EMAS) BSH participates in the “Energy
Efficiency” initiative of the German
Production of the country’s first Electrical and Electronic Manufacturers’
CFC-/HFC-free refrigerators in China Association (ZVEI)


Awards Recognizing Commitment to the Environment

The Bundesverband der The BSH/Environmental Report Dr. Robert Kugler, as a member
Deutschen Industrie e.V. (BDI), is ranked as the best German of the Management-Board, is voted
Germany’s industry federation, publication Eco Manager of the Year 2002
awards its environmental in its sector by Capital magazine by the environmental
innovation prize to Product foundation of WWF Germany
U.S. Environmental Protection
Environment Analysis (World Wide Fund for Nature)
Agency (EPA) honors BSH with
and by the German business magazine
Enviromental Award
Capital

The cooling appliances factory An environmental prize is awarded
in Chuzhou (China) is elevated to BSH Continental
to the ranks of “Environmental Eletrodomésticos Ltda., São Paulo
High Tech Enterprises” (Brazil) by the Federação
by the China Environment das Indústrias de São Paulo
Science Association (FIESP) for its implementation of
Agenda 21


Awards Recognizing Commitment to the Environment

Federation of German Industries (BDI) Dr. Kurt-Ludwig Gutberlet
2003/2004 Award for the Environment receives the B.A.U.M
for the project “Consistent international special
National Prize of the implementation 2003/2004 “Environmental prize 2006 for years of
Spanish Ministry of the of innovative technology and Corporate Responsibility” exemplary commitment
Environment “Premio and environmental standards in report awarded first place in to the enviroment
Nacional Empresa y manufacturing cooling appliances its sector in Capital magazine’s rankings of
Medio Ambiente 2003” in China” 150 sustainability
reports

Environmental prizes
awarded by the Federação das
Indústrias de São Paulo (FIESP)
for the project
“Aqua Viva” and the project
“Environmentally friendly
refrigeration appliance”


Environmental protection – integrated into all
areas
“For us, developing energy-efficient and environmentally friendly home
appliances is an issue of central importance. In doing so, we not only
secure our competitiveness and safeguard the jobs of our employees,
but also make a telling contribution to conserving resources and
protecting the environment.”

Dr. Kurt-Ludwig Gutberlet
Chairman of the BSH Board of Management


Bill Stankiewicz Bosch

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