ABC Breakfast Club m Solar: Opret politikker for ind- og udfasning


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ABC Breakfast Club m Solar: Opret politikker for ind- og udfasning

  3. 3. ABC Breakfast Club- IndkøbsoptimeringSolar stock policy<br />
  4. 4. 2008-05-13<br />Solar A/S- Company presentation<br />
  5. 5. Solar in short 2009<br />Solar is one of Northern Europe’s leading technical wholesalers<br />Listed on NASDAQ OMX Copenhagen<br />EUR € 1,431m m revenue - 3,175 people <br />7 countries - 12 central warehouses - 156 Drive-Ins<br />Electrical, heating, plumbing and ventilation components and solutions <br />
  6. 6. Solar in 7 European countries<br />Solar Norge ASHeadquarters located in Gardermoen.One central warehouse.Three regions and twenty-five drive-ins.CED Jan Willy Fjellvær.<br />Solar Polska Sp. z o.o.Headquarters located in Lodz.One central warehouse.Five regions and seventeen drive-ins.CED Dariusz Targosz.<br />Solar Sverige ABHeadquarters located in Gothenburg.Three central warehouses.Four regions and fourty-five drive-ins. CED Kjell Svensson.<br />Solar Danmark A/SHeadquarters located in Vejen. One central warehouse.Three regions and twelve drive-ins.CED Søren Larsen.<br />Solar Deutschland GmbHHeadquarters located in Neumünster.One central warehouse.Six regions and twenty drive-ins. CED Jens Andersen.<br />P/F Solar FøroyarOne warehouse and one sales office located in Thorshavn. Manager Finn Jørgensen.<br />Solar Nederland BVHeadquarters located in AlkmaarThree central warehouses.Six regions and nineteen drive-ins.CED Frans Soulier.<br />
  7. 7. Aurora in 4 European countries<br />Headquarters located in Ballerup, Denmark. <br />One central warehouse.<br />Four national companies.<br />CED Pauli Joensen.<br />Aurora Group Danmark A/S,Denmark<br />Aurora Group Norge AS, Norway<br />Aurora Group Sverige AB, Sweden<br />Aurora Group Finland Oy, Finland<br />
  8. 8. Solar's 2009 revenue in € million<br />The Faroes<br />3.9<br />Aurora<br />50.5<br />The Netherlands<br />371.1<br />Poland<br />22.5<br />Denmark<br />355.7<br />Finland<br />15.4<br />Germany<br />147.4<br />Sweden<br />262.2<br />Norway<br />210.4<br />
  9. 9. Refreshed group strategy 2010-2015“#1 in Technical Wholesale”<br /><ul><li>The group strategy is designed to ensure a significantly increased performance and a continued development of Solar’s position as the number 1 technical wholesaler within electrical, heating, plumbing and ventilation material.</li></li></ul><li>Marine & <br />Offshore<br />Installation<br />Cables<br />Lighting<br />Industry<br />Heating, Water <br />& Sanitation<br />Renewable energy<br />Security<br />Communication<br />Ventilation<br />Solar’s business areas are within:<br />Electrical - HVAC&R - Plumbing - Renewable Energy<br />
  10. 10. Solar delivers products and solutions to customers within:<br />Utility <br />and<br />Infrastructure<br />Marine<br />and <br />Offshore<br />Residential <br />and<br />Commercial<br />Buildings<br />Industry<br />Public Sector<br />
  11. 11. Central warehouses and distribution<br /><ul><li>Central warehouses are placed in each country.
  12. 12. Late order cut-off on e-orders.
  13. 13. Orders are executed the same day.
  14. 14. Flexible distribution setup.
  15. 15. Extensive quality control. </li></li></ul><li>Solar head office<br />Solar central warehouse<br />Solar Drive-In<br />Solar Denmark<br />
  16. 16. 2008-05-13<br />Solar A/S- Indkøbsoptimering via Stock Policy<br />
  17. 17. Stock policy<br />
  18. 18. Roles and responsibilities (Headlines)<br />Scope :<br /><ul><li> Definition of communication between Purchasing Department, Market Department and Sales Department.
  19. 19. Definition of responsibility split.
  20. 20. Definition of roles.</li></ul>Responsibility<br />Product :<br /><ul><li> The Purchase Department is always responsible for the Service Degree
  21. 21. Supply Chain owns the logistical part of the contract whereas Market Department owns the commercial part.
  22. 22. Supply Chain and Market Department have a joint responsibility to look at the purchase from a total cost </li></ul> focus perspective<br />Process :<br /><ul><li> The Purchase Department will always take the lead to avoid threatening write down, stock exceeding, 0-sales.
  23. 23. Purchase has the responsible role of optimizing the inventory but the market department / Product Management is a very important stakeholder, who has an important role in making sure that the stock can be optimized. </li></li></ul><li>Roles and responsibilities (Headlines)<br />New articles :<br />The following must be in place before purchase will take the new article in for replenishment:<br /><ul><li>A written return agreement must be made with the supplier to make sure that articles can be returned – e.g. if sales do not reach expected levels or an article does not sell at all.
  24. 24. Monthly sales forecast figures for the first 6 month must be available. The numbers must have been registered and documented by the market and sales departments.
  25. 25. The article must be correctly created in our ERP system with all necessary data according to Master Data Management code of practice. </li></ul>An article must prove that it has a “life” before the purchase department will take over the responsibility. <br />The definition of an article “life” is when there is:<br /><ul><li> Equal to or more then 8 picks in the last 9 month
  26. 26. Sales figures in 3 month or more of the last 9 month
  27. 27. A “storage date” that is created within the last 9 month</li></li></ul><li>Roles and responsibilities (Headlines)<br />Phasing out articles with a previous life:<br />When articles no longer meet the requirements of “life”, then the purchaser must act and have a dialogue with the market and/or sales department to establish actions for the article.<br />Articles that meet the below criteria are defined as not having “life”:<br /><ul><li> Less than 8 picks over the last 9 months
  28. 28. Sales figures in less than 3 of the last 9 months
  29. 29. A “storage date” older than 9 months
  30. 30. Articles marked as “campaign”, “seasonal” or “customer specials” are not governed by the above mentioned rules</li></ul>In addition, the following guidelines apply:<br /><ul><li> If there have been 0 sales over the last 6 months, then the purchase department can remove the article from stock.
  31. 31. “Campaign” or “seasonal” articles without sales for 12 months will be discontinued.
  32. 32. “Customer specials” without sales for 12 months must be invoiced for the articles or the customer must pay a fee matching write down for keeping the articles in stock.</li></li></ul><li>Communication (Headlines)<br />Communication :<br />Vendor<br />Inventory owner<br />- Supply Chain<br />Product owner <br />- Market<br />Market responsible<br />- Sales<br />Information / Recommendation / Meeting<br />Communication model<br /><ul><li> Marketing
  33. 33. Forecast
  34. 34. Phase out
  35. 35. Backorder
  36. 36. Replace of existing product
  37. 37. New product
  38. 38. First purchase
  39. 39. Replace of existing product
  40. 40. Product information (Data, purchase history)
  41. 41. Validation
  42. 42. Phase out
  43. 43. New product
  44. 44. Forecast
  45. 45. Campaign
  46. 46. Season times + Items
  47. 47. Replenishment
  48. 48. Service degree outbound
  49. 49. PLC
  50. 50. Phase out
  51. 51. Remove from Inventory
  52. 52. Backorder</li></ul>The model indicates the communication flow needed to ensure an optimized inventory<br />
  53. 53. Communication (Phase Inn)<br />SSA<br />Service degree outbound<br />Backorders<br />Phase out<br />Stock exceeding<br />New articles<br />PLC<br />Scrap / WD / 0 – Sales<br />Forecast<br />Campaigns<br />Projects<br />Yellow to green<br />Action list with responsible person and deadline<br />” Early warning meetings”<br />Meeting structure between Supply Chain and Market<br />Supply Chain / Market meeting per month / 14 day / week <br /><ul><li> Meetings must be held to fit the need based on local market conditions.
  54. 54. Meetings should as a minimum be conducted at least once per month. </li></ul>Example<br />
  55. 55. Roles and responsibilities (Headlines)<br />It is important to state that the purchase department must not argue why an article should be discontinued, but that product management is responsible for determining why an article should be kept in stock even though the article does not have "life". <br />Product management is responsible for determining which articles must be carried in stock, and the purchase department is responsible for maintaining a healthy and optimised stock.<br />
  56. 56. Classification<br />Month 2<br />Month 1<br />Month 3<br />Month 4<br />Month 5<br />The double ABC code is calculated on a monthly basis, using 3 months' ongoing data – this means that there will always be one new month's data together with two known months' data.<br />Double ABC classification<br />Classification per business area (HWS, ventilation, electrical products)<br />When moving into a new business area, classification should be kept separate for that area until turnover to some extent equals the existing business area. <br />
  57. 57. Product Life Cycle <br />Sales<br />PLC<br />CC<br />Focus<br />Write Down<br />BB<br />Balance<br />AA<br />AA<br />Stock building<br />Back order<br />BB<br />Stock exceeding<br />CC<br />Time<br />Product Life Cycle awareness<br /><ul><li> If an article changes colour within the ABC classes – pay attention. </li></li></ul><li>KPI’s<br />99%<br />97%<br />88%<br />18<br />9<br />6<br />88%<br />97%<br />99%<br />5<br />8<br />14<br />88%<br />97%<br />99%<br />3<br />4<br />6<br />High Frequency<br />Low Frequency<br />High Frequency<br />Low Frequency<br />High Cos t value<br />High Cos t value<br />Low Cost Value<br />Low Cost Value<br /> 1. Service degree KPI<br /><ul><li>Service degree must always be 97% on average.
  58. 58. The service degree must be 99% of all AA articles and should also be 99% on BA and CA articles.</li></ul>2. Stock turnover KPI<br /><ul><li> Stock turnover must be ≥ 10 times on average before 2012
  59. 59. Stock turnover must be ≥ 12 times on average before 2015</li></li></ul><li>Drive In Stock<br />As a general rule, all articles in the drive-ins must be defined as “Green” articles at the CW. All articles in drive-in stocks are controlled by the purchase department. Automatic replenishment must apply based on automatic re-order points. A fixed assortment must be accepted.<br />The local Product Management will define the assortment.<br />The central purchase department are responsible for the purchase (replenishment) to all Drive in’s<br />KPIs for drive-ins must be the same as for the overall stock.<br />
  60. 60. Return Policy<br />Returns from Drive - In<br /><ul><li> Supply chain owns the Drive - In stocks
  61. 61. The purchase Department can recall articles that are not selling or is stock exceeding (Not for articles in a fixed assortment like Solar Plus etc).
  62. 62. The purchase department owns the parameters for Drive - In replenishment.</li></ul>Returns to suppliers<br /><ul><li> A written return agreement must be made with the supplier to make sure that new articles can be returned.
  63. 63. Purchase for projects or campaigns must have a return agreement on a possible remaining level that exceeds normal sales according to article classification and rules under section of KPIs. </li></ul>General return rules<br /><ul><li> Articles that are not green at the central warehouse cannot be returned to a central warehouse or Drive - In – this goes for both customer and Drive - In returns. Individual exceptions may be made if special terms have been agreed with a customer.</li></li></ul><li>Purchasing<br />3 weeks sales<br />6 weeks sales<br />8 weeks sales<br />10 weeks sales<br />7 weeks sales<br />4 weeks sales<br />17 weeks sales<br />13 weeks sales<br />8 weeks sales<br />High Frequency<br />Low Frequency<br />High Cos t value<br />Low Cost Value<br />Guidelines for the maximum quantity to have in stock to keep up with the KPI’s on stock turnover. <br />MRP calculation per double ABC class<br />Purchase change of mindset<br /><ul><li> Focus on doing purchase based on the right mindset
  64. 64. Not buying more lines, but buying more focused
  65. 65. Understanding the importance of having the right focus</li></li></ul><li>Spørgsmål?<br />