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Integrated Supply SolutionsDelivering Lowest    Total Cost
Agenda/Expectations• AFFLINK the Organization• AFFLINK’s Integrated Supply Solutions  Program:  –   Vendor Consolidation  ...
Track Record
Packaging Solutions   AFFLINK is the largest distributionorganization in North America, delivering           “lowest total...
Who we are…                                    • 520 Distributor Locations                                    • $5+ Billio...
Globalization
AFFLINK Global Accounts                               Retail / Transportation / Other                                     ...
Who we are…• $5+ Billion Annual Sales, $1.5 Billion Packaging Sales• 520 Worldwide Locations, 170 Dedicated Packaging Loca...
Cost Drivers in Procurement ProcessAcquisition         Product            Vendor           Price                  Catalog ...
Current Procurement                          Single Location Sourcing                                      Distributor    ...
Cost Drivers in Procurement Process                   *Multiple Products, Multiple Locations*AcquisitionProduct       Vend...
Current Procurement                     Multiple Location Sourcing                   Orders   FMC 1     $                 ...
Integrated Supply Solutions
Procurement       Benefits                       AFFLINKFeatures                                         Solution         ...
FMC1                     DistributorFMC2                        Distributor              One   FMC3    Connection         ...
Application CostsCost-in-Use Improvement: Stretch filmIncrease Pre-stretch from 150% to 250%                  Current     ...
Application CostsStrapping Conversion - Steel to Polyester            Steel Std Duty          Polyester Size         ½ x ....
Lowest Total CostTotals for all products/processesStrapping Conversion   $132,432Stretch Process        $120,960Total     ...
How AFFLINK Reduces                                Application CostsCertified Packaging Specialists• Product Audit• Proces...
IntegratedSupplySolutions             CustomerValueProposition              b                    E-Commerce               ...
How AFFLINK Manages                                      OpportunityiSYS or Integrated SystemPowerful, Web-based, collabor...
Plant 1                    DistributorPlant 2                           Distributor                 One    Plant 3   Conne...
Integrated Supply Solutions…  Geographic Coverage  Proven E-Commerce Capabilities  Commitment to Supply Chain Excellence  ...
Integrated Supply Solutions
Multi-plant                                     Customer• TODAY’S CURRENT STATE –   Spend not leveraged nationally –   Hun...
WHY AFFLINK?• Packaging is our “Core” business  –   189 Packaging Locations  –   Flexibility of Servicing Locations “Natio...
TARGETING COSTS• ACHIEVING OUR “TARGETED” GOAL – Leverage overall spend with Afflink and set   baseline price against curr...
IMPLEMENTATION• ACHIEVING OUR “TARGETED” GOAL – 30-60 Day implementation period – Work by division to establish commonalit...
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National account presentation (2)

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Transcript of "National account presentation (2)"

  1. 1. Integrated Supply SolutionsDelivering Lowest Total Cost
  2. 2. Agenda/Expectations• AFFLINK the Organization• AFFLINK’s Integrated Supply Solutions Program: – Vendor Consolidation – Standardization – E-commerce – Continuous Improvement• Next Steps
  3. 3. Track Record
  4. 4. Packaging Solutions AFFLINK is the largest distributionorganization in North America, delivering “lowest total cost” to multi-unit customers. Integrated Packaging Solutions
  5. 5. Who we are… • 520 Distributor Locations • $5+ Billion Annual SalesProducts Market Segments• Industrial Shipping/Packaging • Building Maintenance• Safety Supplies • Manufacturing• Paper Products • Healthcare• Sanitary Maintenance • Retail Chemicals • Foodservice• Janitorial Products • Lodging• Food Service Supplies • Leisure• Healthcare Supplies • Food Processing• Office Papers • Transportation • Entertainment
  6. 6. Globalization
  7. 7. AFFLINK Global Accounts Retail / Transportation / Other National National Account Coverage Tom O’Connell Senior Strategic Account Leader 1400 AFFLINK Place Tuscaloosa, AL 35406 Manufacturing - West (205) 344-4152 E-fax: (305) 768-7920Rick Smith Voice Mail: (800) 222-5521 x 4152Strategic Account Manager Email: toconnell@afflink.com Manufacturing - Central2840 East Bay StreetPort Angeles, WA 98362 Manufacturing - East(360) 457-8623 Dan HeckE-fax (888) 726- 9931 Scott Kus Strategic Account ManagerVoice Mail: (800) 222-5521 x 4610 Strategic Account Manager 7557 Koby CourtE-Mail: rsmith@afflink.com 527 Essex Avenue White Lake, MI 48383 (248) 421-4425 Gloucester, MA 01930 E-fax: (800) 787-4945 (978) 281-4210 Voice Mail: (800) 222-5521 x 4604 E-fax: (208) 692-3744 Office Building / Maintenance Voice Mail: (800) 222-5521 x 4625 E-Mail: dheck@afflink. National E-Mail: skus@afflink.com Charlie Palmore Foodservice Healthcare Strategic Account Manager National National Office Building / Maintenance 2 Flower Tuft Court John Pizzola Daron Babcock The Woodlands, TX 77380 Strategic Account Manager Healthcare Development Manager (281) 362-7034 4809 Kensington Avenue 1400 AFFLINK Place E-fax: (281) 362-7034 Richmond, VA 23226 Tuscaloosa, AL 35406 Voice Mail: (800) 222-5521 x 4650 (804) 334-3060 (205) 345-4180 E-mail: cpalmore@afflink.com Efax: (804) 484-6290 Efax: TBA Voice Mail: (804) 261-4310 x Voice Mail: TBA 1310 E-mail: dbabcock@afflink.com E-Mail: jpizzola@afflink.com
  8. 8. Who we are…• $5+ Billion Annual Sales, $1.5 Billion Packaging Sales• 520 Worldwide Locations, 170 Dedicated Packaging Locations• Division of Performance Food Group •-Fortune: 100 Fastest Growing Companies • Fortune: 2nd Most Admired Company • Forbes: 400 Best Big Companies Products Services • Industrial Bags • E-commerce Your Way • Shrink & Stretch Film • Certified Packaging Specialists • Plastic & Steel Strapping • Factory Trained Technicians • Protective Packaging Products • Systems Integration • Corrugated • Package Design and Testing • Shrink & Stretch Equipment • iSYS-Integrated System • Safety Supplies • Equipment • Palletizing Equipment • Case Sealing & Erecting Equipment • Adhesive Application Equipment
  9. 9. Cost Drivers in Procurement ProcessAcquisition Product Vendor Price Catalog Purchase Search Selection Negotiations Maintenance Order $ $ $ $ Receiving Product presentations Interviews Proposal review Development Create Sampling/testing Proposals Cost analysis Product descriptions Mail, phone, Proposals Testing Product match up Pricing Updates fax, electronic Selection Set-up Follow –up considerationsPossession $ Inventory Dock time/space Space Match Receiver to P.O. Labor Reorder points Reconcile pricing/invoice/terms $ POD administration Number of days supply Payment authorization Storage Obsolescence, Pilferage Issue check Pa
  10. 10. Current Procurement Single Location Sourcing Distributor Distributor DistributorCustomer Distributor Distributor • Product Search $ • Price Negotiations $ Distributor • Purchase Orders $ • Order Placement $ • Invoices $ Distributor • Error Resolution $
  11. 11. Cost Drivers in Procurement Process *Multiple Products, Multiple Locations*AcquisitionProduct Vendor Price Catalog PurchaseSearch Selection Negotiations Maintenance Order $ $ $ $ $ $ $ $ $ $ $$ $ $ $ $Possession Receiving Inventory Payment $$ $$ $$ $$
  12. 12. Current Procurement Multiple Location Sourcing Orders FMC 1 $ Distributor $ $ $ $ $FMC 2 $ $ Distributor $ $$$ $ $ FMC 3 $ $ Distributor $ $ $ $ $ $ $ $FMC 4 $ $ $ $ $$ $ Distributor $ $ $ $ $ $ Distributor FMC 5 $ $ $$ $ $ $ DistributorFMC 6 $ $ $ $ $ Distributor FMC 7 Invoices
  13. 13. Integrated Supply Solutions
  14. 14. Procurement Benefits AFFLINKFeatures Solution •Leverage volume •National coverageVendor •National pricing •Local serviceReduction •Fewer orders/payables •Vendor •Fewer receivers relationships/leverageProduct •Leverage volume •Vendorcontact •Single knowledge •Less overhead dedicatedStandardization •Lower pricing potential •Market knowledge •Standard product quality •Best practice audits •Best practices •Customized catalog •Flexible electronic orderingE-Commerce •Accurate pricing •Best in-class e-commerceOrdering •Reduced ordering cost •Web ordering, EDI, KML, FTP •Electronic data history •Accurate invoices •Audit invoices for accuracy •Punch-out technologyE-Commerce •Electronic data history •Categoryinvoices – best •Process reviews References – bricks/clickReconciliation practices electronically (LOEB, EDI, •Reduced processing KML, FTP, e-mail, Excel) •Electronic reports – costs •Best practices budgeting comparative data •Billing your-wayContinuous •Consistent terms •Industry upgrades •Application cost reductionImprovement •Electronic invoices tracking •Application cost •Summary billing •Account service team reduction •Customized reporting •Quarterly review
  15. 15. FMC1 DistributorFMC2 Distributor One FMC3 Connection DistributorFMC4 Distributor FMC5 DistributorFMC6 Distributor FMC 7 Distributor
  16. 16. Application CostsCost-in-Use Improvement: Stretch filmIncrease Pre-stretch from 150% to 250% Current New 150% Stretch 250% StretchCost $43.08 $45.76Revolutions 10 10Cost/load $.421 $.232Loads/year 80,000 80,000Annual Cost $33,680 $18,560Savings/Plant $15,120 (55%) x 8 plants Total Savings = $120,960
  17. 17. Application CostsStrapping Conversion - Steel to Polyester Steel Std Duty Polyester Size ½ x .020 ½ x .030 Lbs sold 99,000 -0- Ft/Cl 2940 6500 Cl/Wt 100lbs 53lbs Cost/Cl $39.59 $50.65 Cost/Ft $.01346 $.00779SAVINGS =$16,554 (42%) x 8 Plants TOTAL SAVINGS = $132,432 Benefits: Reduces packaging costs Fewer coil changes Reduces cost of disposal Easier to handle Better packaging integrity Fewer back injuries
  18. 18. Lowest Total CostTotals for all products/processesStrapping Conversion $132,432Stretch Process $120,960Total $253,393
  19. 19. How AFFLINK Reduces Application CostsCertified Packaging Specialists• Product Audit• Process Audits • Downtime/uptime • Throughput • Automation • Time to market • Freight cost • Worker productivity• Continuous Improvement Recommendations
  20. 20. IntegratedSupplySolutions CustomerValueProposition b E-Commerce Distributors Preferred Suppliers Preferred Suppliers Cost Productivity Health & Image Savings Safety
  21. 21. How AFFLINK Manages OpportunityiSYS or Integrated SystemPowerful, Web-based, collaborative toolthat gathers detailed product-usage data,manages activity and drives resultsat each location.iSYS generates reports for eachlocation detailing:• Process improvement opportunities• AFFLINK activities• Cost savings
  22. 22. Plant 1 DistributorPlant 2 Distributor One Plant 3 Connection DistributorPlant 4 Distributor Plant 5 Distributor Plant 6 Distributor Plant 7 Distributor
  23. 23. Integrated Supply Solutions… Geographic Coverage Proven E-Commerce Capabilities Commitment to Supply Chain Excellence Customized Ordering/Reporting System Continuous Improvement Focused Implementation Model Proven Track RecordDelivering Lowest Total Cost
  24. 24. Integrated Supply Solutions
  25. 25. Multi-plant Customer• TODAY’S CURRENT STATE – Spend not leveraged nationally – Hundred’s of supplier’s nationally – Inconsistency of “Best Practices” – Multiple operating systems nationally – No reporting on spend at national level – Excessive inventory in many locations – Inconsistent terms and invoicing from suppliers
  26. 26. WHY AFFLINK?• Packaging is our “Core” business – 189 Packaging Locations – Flexibility of Servicing Locations “Nationally” – In Excess of $1.5 Billion in Packaging sales – Certified Packaging Specialists “CPS” – Focused only on “Cost Savings” – Cost Savings programs backed by iSYS
  27. 27. TARGETING COSTS• ACHIEVING OUR “TARGETED” GOAL – Leverage overall spend with Afflink and set baseline price against current pricing – Target product categories for “Standardization” – Leverage categories with supply partners – Identify best products & practices – Implement practices through iSYS – Monitor & Report “ongoing” progress
  28. 28. IMPLEMENTATION• ACHIEVING OUR “TARGETED” GOAL – 30-60 Day implementation period – Work by division to establish commonality of products – Establish template and best practices to be followed by remaining divisions – Monitor Ongoing Progress
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