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3rd supply chain leaders forum 2014 case from danfoss power solutions

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Danfoss Power Solutions is a world leader in hydraulic components and
electronic controls that power and propel the equipment that builds our
world. We provide know-how in motion across a wide array of industries
– including construction, agriculture, material handling and more

Read more at - http://www.danfoss.in/

Published in: Engineering
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3rd supply chain leaders forum 2014 case from danfoss power solutions

  1. 1. Danfoss Power Solutions September 2014 | 1 3rd Supply Chain Leaders Forum 2014 Case from Danfoss Power Solutions powersolutions.danfoss.com
  2. 2. Danfoss Power Solutions September 2014 | 2 Danfoss in brief  80 years of experience within energy-efficient technologies  Solutions ready to combat climate and power challenges  Global competence center for energy efficiency – rooted in Southern Denmark  The Bitten and Mads Clausen Foundation holds the majority of shares in Danfoss
  3. 3. Danfoss Power Solutions September 2014 | 3 Danfoss facts and figures Sales - 2013 33,628m DKK Number of employees globally 22,463 EBIT 10.8% Free Cash Flow 3,527m DKK Equity 11,443m DKK Factories, globally 59 in 18 countries Sales companies, globally 58 in 46 countries Top 3 Markets U.S., Germany & China
  4. 4. Danfoss Power Solutions September 2014 | 4 DBS Business structure - Group
  5. 5. Danfoss Power Solutions September 2014 | 5 Danfoss Business System (DBS) Programs and Cross Program Activities DBS Programs  FPP – Procurement  DPP – Production  SMP – Sales & Marketing  PDP – Product development Cross Program Activities  Complexity Reduction  Lead Time Reduction Up to 20% Reduction of supply chain complexity since 2011 Up to 38% Reduction of supply chain lead time since 2013
  6. 6. Danfoss Power Solutions September 2014 | 6 The DBS Approach We believe in the close relation between practice and performance – therefore we want to share best practices across the company The DBS approach is to set the directions, build the needed capabilities in the organization and follow-up to ensure results are sustained
  7. 7. Danfoss Power Solutions September 2014 | 7 Cross program activities Standard set-up of governance structure for initiative development and roll-out Divisional roll-out Team of Corp. DBS and Div. Rep. DBS Corporate project team Functional Board Divisional management Reference team Div. Subject matter experts and managers Executive committee Initiative
  8. 8. Danfoss Power Solutions September 2014 | 8 3rd Supply Chain Leaders Forum 2014 Case from Danfoss Power Solutions powersolutions.danfoss.com
  9. 9. Danfoss Power Solutions September 2014 | 9 Business segment Danfoss Power Solutions  Danfoss Power Solutions is a world leader in hydraulic components and electronic controls that power and propel the equipment that builds our world. We provide know-how in motion across a wide array of industries – including construction, agriculture, material handling and more From Opportunity to Order <1 day Our product configurator provides: - fast configuration - spare part price and lead time - feasibility check
  10. 10. Danfoss Power Solutions September 2014 | 10 Hydrostatic transmissions Orbital motors © Blue Graphics Concept Danfoss Electronic components Steering solutions PVG Open circuit axial piston pumps Know-how in products
  11. 11. Danfoss Power Solutions September 2014 | 11 Danfoss Power Solutions factories Sales - 2013 10,989m DKK Number of employees globally ~6,300 Top 3 Markets U.S., Europe & China Easley, SC Nordborg, Denmark Haiyan, China Považská Bystrica, Slovakia
  12. 12. Danfoss Power Solutions September 2014 | 12 The market  Global OEMs driving trend in machine industry  High efficiency, specialized products/innovation and “Best in Class” Supply Chain  Distribution channel – Availability and flexibility is key  “Traditional” industry  Forecast up to 1 year out  Order lead time typically around 6-12 weeks  OEMs carry significant parts inventory Total 6B DDK $534; 46% $355; 30% $85; 7% $200; 17% Total LISV Market in 2013 Europe Americas APAC China
  13. 13. Danfoss Power Solutions September 2014 | 13 Customer Values Value for Distributors and Specialists  Flexible and configurable platform of options  Short Lead Time  Responsive sales processes in the market Value for large OEMs  Efficiency/Productivity  Innovative Systems  Product Lifecycle Management  “We do business the same way you do”  Competitive price Common Value  Product Lifecycle Management/Support for after market business  Application know-how  Quality  On time delivery
  14. 14. Danfoss Power Solutions September 2014 | 14 Cases  Innovate to Differentiate  Customer example - Palfinger
  15. 15. Danfoss Power Solutions September 2014 | 15 Most sold Proportional Valve in the world Danfoss PVG  PVG platform design launched in April 1988  Platform allows for continuous improvement of value proposition  Global market +6bn DKK  Danfoss market share +20% - Clear market leader in most segments Load Independent Spool Valves The valve is designed to manage different pressure and flow needs at the same time Lifting and turning with a crane at the same time
  16. 16. Danfoss Power Solutions September 2014 | 16 GMM 2014 Interfaces are the heart of any platform They must be:  Defined to support the customer’s need for variants and our need to differentiate  Strictly managed  Stable over time Clear differentiation – One platform – Modular build
  17. 17. Danfoss Power Solutions September 2014 | 17 One platform – Modular build – Late dedication Sold as parts - Distributors End customer lead time = 1 day Sold as complete valves – OEMs Individually configured End customer lead time = 10 days
  18. 18. Danfoss Power Solutions September 2014 | 18 Global accounts and large OEMs Small and medium size OEMs Distribution Strong value proposition for all customers  Best machine controllability and best cost  Short lead time and high on time delivery - no customer inventory  Cost optimized valve solutions  Wide product portfolio  Reduced fuel consumption and increased work efficiency GMM 2014
  19. 19. Danfoss Power Solutions September 2014 | 19 Sales & Marketing: • Platform allows 1/3 of PVG sales to be modules for distributor assembly • High flexibility to provide new valve configurations Operations: • High volume on key modules - 50% of material value from Low Cost Countries • High quality & short lead times • Maintenance simplified due to modular design New Product Development: • One global platform • Highest performance in the market • Lower risk projects & faster time to market Platform/modularity Benefits across the value chain GMM 2014
  20. 20. Danfoss Power Solutions September 2014 | 20 33% 67% Distribution OEM Sales Innovate to Differentiate BU PVG Sales 2013 – Distributors with own Assembly
  21. 21. Danfoss Power Solutions September 2014 | 21 Cases  Innovate to Differentiate  Customer example - Palfinger
  22. 22. Danfoss Power Solutions September 2014 | 22| 22

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