2. Excel Industries is now the fastest growing turf equipment manufacturer in the
industry. We have experienced significant growth over the last four years, nearly
quadrupling the company’s production volume and revenue with increased market
share. Excel Industries has been focused on building competitive advantages company-wide and working towards
a strategic plan that encompasses our growth plans in the coming years. In 2016, Excel is anticipating another
banner year of growth with new product introductions, market channel expansions, and increased market share
with our best-in-class product offerings.
One of Excel’s key organic growth components is our development of new innovative turf products. In addition to
our new turf products, we are developing a new medium duty utility vehicle that will provide ‘game changing’
features for work and play applications. To improve our New Product Development (NPD) and speed to market,
Excel has implemented a new NPD Phase Gated Process to better integrate the Excel Enterprise Team. In
accelerating our NPD process, a dedicated Research & Development (R&D) team was formed to increase
innovation that works in concert with the NPD Team in Engineering. To support this growth and product offering
expansion, the operations team is driving lean and continuous improvement processes through the newly aligned
product line value streams. This is driving ownership for each product from fabrication, weld, paint, assembly and
crating. The teams are responsible for various Key Performance Indicators (KPI’s) that improve efficiencies
throughout the build process. The enterprise is currently aligning to better support the value streams.
Excel is focused on being the supplier of choice for our distributors, dealers, and other key customers. Team Excel
is working on improving the ease of doing business with Excel and being agile in meeting our customer demands.
We are continuing to improve the Sales & Operations Planning (S&OP) process linking the sales forecasts, factory
capacity, and our supply base forecast horizons, to improve our ability to meet customer demand. These
improvements have provided Excel the opportunities to improve our warehousing, logistics, and order fulfillment
processes. The team’s efforts in addressing these areas have strengthened the overall linkage of the integrated
supply chain from raw material to delivery of the finished product and improved spare part availability to our end
customers. This is driving improved customer satisfaction and is a catalyst for our continued growth.
Excel Industries’ external supply chain is critical in our continued growth and in meeting our continuous
improvement objectives. We recognize the contribution and value our global supply base provides. Excel
understands that competition today is no longer company-to-company, but rather supply chain-to-supply chain.
The supply chain has been on a journey since 2012 to build a competitive advantage for Excel Industries and our
customers. The supply base has made significant progress with improvements in quality of over 60%, on time
delivery of over 50%, and overall reductions in supply chain costs. The SCM Team launched various strategies that
include the deployment of our Four Phased Supplier Relationship Management (SRM) strategies in supplier
selection, contracting, performance improvement, and integration of our growth suppliers with Excel Industries.
Excel Industries is never satisfied. Our objectives remain unchanged. Our strategies are consistent. Our SCM
processes are among the best. Most importantly, our people and the majority of our growth suppliers are capable
and committed. Together we will succeed in raising the bar from industry benchmark to world-class performance,
mutually benefiting all of us with the results.
Sincerely,
Brent E. Edmisten
Vice President of Global Supply Chain, Quality, Engineering, M.E., Tooling, & Logistics
E N H A N C I N G
SUPPLIER INTEGRATION
T O A C H I E V E M U T U A L S U C C E S S
Excel Industries is committed to integrity, respect,
trust, and excellence in our relationships with customers,
employees, suppliers, shareholders,
and the local community
3. E X C E L I N D U S T R I E S I S F O C U S E D O N
BUILDING A COMPETITIVE ADVANTAGE
Quality is the cornerstone of our focus
from the design of the product, to manufacturing,
to the final customer delivery. Providing excellent quality
from our suppliers and Excel’s Value Streams is critical to
meeting customer satisfaction and for our continued growth.
To separate our products from the competitors, Innovation
is a key enabler for our vision statement of “Providing Better
Products to Improve People’s Lives”. Excel’s R&D and New
Product Development (NPD) Teams are working to drive
innovation and provide customers with ‘Best in Class
Products’. The integration of our key suppliers into these
innovative products will be vital to meeting our strategic
product plans.
Speed to market for new innovative products and
overall Agility in meeting our ever changing
customer expectations are fundamental catalysts for
our continued successful growth. Our suppliers
support in improving responsiveness
and best in class production lead-times are
fundamental in meeting these requirements.
Best Overall Value is focused on the value equation
versus the overall cost that our customers expect. Excel is
working every day to reduce the cost of the product, which
includes material costs to be competitive in the global market
place. Value equation encompasses quality, innovation, cost,
with speed and agility. These essential areas are enhancing
Excel’s competitive advantage.
Integrating with our key suppliers to improve supplier
performance in the areas of quality, delivery, responsiveness,
technology, and reducing material costs are a company
imperative. Improved supplier performance is key for Excel
Industries to be globally competitive. This includes our
suppliers providing warranty and spare parts support to
meet our customer’s expectations after the sale.
World class companies continuously strive to provide total customer
satisfaction and improve shareholder value. Possessing truly
satisfied customers results in a growing business, increased market
share, and exceptional financial returns for shareholders.
There are many factors internally and externally that affect our capability to
provide customer satisfaction and shareholder value. Excel Industries is focused
on Four Key Strategies to align the company around delivering exceptional
customer satisfaction and shareholder value with our products and services.
Quality & Reliability (Meets & Exceeds Expectations)
Cost (Best Overall Value)
Delivery (Fulfills Customer Demands in a Timely Manner)
Service (Ensures Satisfaction of Ownership Experience)
All Businesses
Must Balance the Demands of Customers
and the Expectations of Shareholders
The Customer Demands Best Overall Value In:
Return On Investment (ROI)
Net Operating Profit (NOP)
Cash
Two Quality Brands.
One Exceptional Company.
The Shareholder Expects Financial Excellence:
I T A L L S T A R T S W I T H T H E
CUSTOMER AND THE SHAREHOLDER
Successful companies continue to strive in improving their products and services. Excel
Industries is focused everyday on building a competitive advantage to exceed customer
expectations, increased market share, & improving our overall global competitiveness.
4. T A K I N G P R I D E I N O U R P A S T
DEVELOPING OUR FUTURE
T H E A L L N E W
HUSTLER SUPER S
C O M I N G S O O N
HUSTLER UTV
Excel Industries has a proud past of developing innovative products and features that are recognized
in the turf equipment industry. Future innovations will continue to be a driving force in developing
new best in class products in the outdoor power equipment markets to maintain Excel’s leadership.
D E V E L O P I N G
NEW COMPETITIVE PRODUCTS
Excel Industries is focused on developing new innovative products to enhance
our competitive advantage in the global markets we serve. To drive innovation
and product development, Excel is implementing a step by step process from our
multi-year product plan to market introduction. The organization is utilizing a
NPD gated process to align product development and introduction.
Excel Industries Step-By-Step Development Process
5. E X C E L I N D U S T R I E S
SUPPLIER RELATIONSHIP MANAGEMENT (SRM)
Excel Industries has successfully implemented a four phased
approach to the Supplier Relationship Management (SRM)
process. The SRM process selects the best suppliers and
provides an approach to better integrate with companies
to be more competitive. Excel’s SRM process has been
a catalyst for transforming the overall performance
of the supply base in the areas of Quality, Delivery,
Cost, Speed & Agility, and Service. This process
drives the strategic plan for Excel’s Supply
Chain Management Team.
Supplier Rationalization
Determining the Best Suppliers
Establish Supplier Partnerships
Negotiating Contracts with Selected Suppliers
Increased Business with Strategic Suppliers
Performance Improvement
Quality Delivery Cost
Speed & Agility - Service
Integrate Suppliers into Value Streams
Early Supplier Involvement for New Programs
Supplier Managed Inventory
On-site Supplier Support & Value Added Activities
W O R L D C L A S S I N T E G R A T E D
SUPPLY CHAIN VISION AND MISSION
Our Vision for an Integrated Supply
Chain is one in which all elements in
the supply chain are linked by
common objectives, strategies,
processes, and data. Our
Team has been working
to deploy this vision across
the supply chain into an
integrated process which is end
customer focused, integrated end to
end, and Globally Competitive.
Our Mission is to facilitate the achievement
of Excel’s Objectives through our people,
processes, and suppliers. We must achieve world
class supply chain performance levels in quality,
total cost, responsiveness, and lean objectives.
Cost - Globally competitive supply
chain integrated to promote value
improvement
Speed & Agility - Focused on
meeting customer expectations with
products and services - world class
speed to market for new products
People - Developing talent and
capabilities that are end customer
focused
LEAN - Removing non-value
activities and waste from the supply
chain
Quality - World class products and
services across the entire supply chain
How A Globally Competitive Supply Chain Operates
Our Long-Term Objective is to
Compete Globally with World Class
Products and Performance
6. L E A N M A N U F A C T U R I N G T H R O U G H
VALUE STREAM ALIGNMENT
Safety - Zero is Possible
People - Engage to Empower
Quality - Zero Defects
Delivery - One Piece Flow
Cost - Zero Waste
TRUE North: Setting Expectations and Direction
INVENTORY OPTIMIZATION
Fulfillment of Demand
Linking the
Value Stream by
Product Line from
Raw Material to
Completed Unit
Precision
Laser Cutting
Excel Value Streams
State-of-the-art
Metal Forming Robotic Welding
Powder CoatingFinal Assembly
Finished Product
G L O B A L L Y C O M P E T I T I V E
WORLD CLASS OPERATIONS
Plan For Every Part
• Packaging and
Presentation
• Quantities
• Delivery Frequency
Strategies For
Implementation
• Material Presentation
• Developing Supermarket
levels
• Implementing Kanban
• Material Delivery systems
Information Flow
Using supplier
visualization & value
stream demand to
execute:
• Purchase orders
• Min/Max
• Kanban
Supermarket
Supplier Managed
Inventory (SMI)
2 Bin System
Parts moving
equipment (PME)
Parts Kit
Excel Employee
Our vision is to create a material and information flow system for a lean enterprise that
accelerates growth, profit, and enhanced customer satisfaction.
True North was developed to provide expectations,
direction, and ownership for all areas of Excel
Industries. Working together, we build strategies and
objectives along with continuos improvement actions
which moves us toward our desired future state.
7. E X C E L ’ S S U P P L Y C H A I N
IMPROVEMENT AND INTEGRATION TOOLS
Supplier Gateway Portal
Excel’s Supply Chain Management recognizes the
value of a robust e-commerce across the supply
chain. To integrate our Suppliers into our systems
and processes better, Excel has launched a web-
based Supplier Gateway Portal System. The
suppliers can access their performance scorecard
ratings with detailed reports, drawings or technical
data, and other key information to better integrate
with Excel Industries.
Non-Production SCM Focus
In addition to managing the costs associated
with Direct Material goods, Excel is addressing
the non-production costs of doing business.
The non-production SCM model is focused on
establishing a consolidated preferred supplier
base with an emphasis on long term
partnerships. This effort is being driven by the
SCM four phased process.
As part of our integration with suppliers,
Excel launched a web based software that tracks and
documents Material Cost Savings, Value Analysis &
Value Engineering (VAVE) Ideas, and Value Added
Activities. This integrated process allows suppliers
to provide cost reduction ideas and recognition for
adding value to Excel.
E X C E L I N D U S T R I E S
SUPPLIER PERFORMANCE SCORECARD
To drive the required improvements, Excel utilizes a Supplier Performance
Scorecard. The Supplier Performance Scorecard measures key performance
indicators and provides suppliers data driven feedback to Excel’s
performance criteria. The scorecard rating is used as a criteria for earning
new business and drives supplier performance improvements.
Excel Supplier Scorecard Criteria
8. Care about people
Deliver solutions for customer needs
Be passionate about beating the competition
Do the right thing
Be humble
Be open with employees
Have fun
STRATEGIC PRIORITIES
What We Will Work On:
• Total Customer Satisfaction
• Quality
• Material Flow / Presentation
• Cost Reductions
• Innovation
• Responsiveness,
Speed and Agility
Excel’s future supply chain will continue to build upon the
SRM four phase process as the framework to define,
contract, improve, and integrate a world class supply
chain. Our end state will be an ongoing enhancement of
our supply base, while continuing to drive our
supply chain as a key competitive
advantage for Excel Industries.
E X C E L I N D U S T R I E S
SUPPLY CHAIN JOURNEY
Excel has been
transformed from
three bids and a cloud of
dust transactional purchasing
group to a data driven
integrated supply chain.
PERFORMANCE METRICS
How We Measure Our Progress:
• Customer Satisfaction
• Quality
• Total Cost Equation (acquisition, logistics,
quality, material handling, inventory,
cycle time, & kitting)
• Inventory Optimization
• Material Availability
• Productivity
• Speed & Agility
Competition is no longer company to company… but supply chain
to supply chain. At Excel Industries, we’re building a globally
competitive advantage through supply chain integration.
9. P.O. Box 7000 • Hesston, Kansas 67062-2097 • Excelii.com
Excel Industries Supplier Gateway Website:
Supplier.Excelii.com
– Recognition For Performance Excellence –
2013 Kansas Governor’s
Exporter of the Year
2013 NAEDA
Dealer’s Choice Award
2013 Power Equipment Trade
Dealer’s Choice Award
K E Y S U P P LY C H A I N C O N TA C T S
J IM BURK E
Director of Quality Engineering, Manufacturing Engineering, and Tooling
MATT G ERLACH
Manager of Global Supply Chain Management
PAUL RAH N
Manager of Non-Production Supply Chain Management