The chief operations officer discusses strategies for growth including expanding product assortments, placing new products in markets, relaunching an energy brand, and penetrating new distribution channels. Manufacturing initiatives include establishing new factories in different countries for new categories, pursuing multi-sourcing and local sourcing, and moving production out of China with smarter and more automated factories. Direct shipping models to customers and consumers will also be integrated. Sourcing principles emphasize high growth, expertise, and multi-sourcing key categories between incumbent and challenger suppliers.

2. The Future is Now
Fall17 GTM
The Future is Now
2016 Supply Summit
Ruben Inofuentes
CHIEF OPERATION OFFICER

3. FEWER-DEEPER-BETTER ACT WITH URGENCY, ACT NOW!
THE FUTURE STRATEGIES
REBUILD/ READY TO GROWTH MAXIMIZE THE CORE
LEVERAGE ALL #NEVERBEENDONE

4. 1. Consumer right assortments marketplace wide
2. Get Running Bags Placed in all markets
3. Re-Launch Hyperfuel across all markets
4. Penetrate Jordan Distribution
5. Create 2X plan with key customers
6. HO17 New Categories
FA17 SALES INITIATIVES

5. 19
15,596
N. ASIA
2
257
AMERICAS
5
1953
SE. ASIA
27+/-
Factories
8+/-
Countries
18K+/-
Workers
5
ENI-JR286 MANUFACTURING LANDSCAPE
> >

7. OPERATION INITATIVES
TRANSITION
 New Factories in Different Countries for New Categories
 Multi-Sourcing, Local Sourcing
 Moving “out” of China
 “Smart” Factories
INTEGRATION
 Direct Ship to Customer DC
 Direct Ship to Retailers
 Direct Ship to Consumers
TRANSFORMATION
 Agility
 Flexibility
 Customization
 Automation

12. Sourcing Principles
• High growth, high expectations, high expertise
• 7 COE suppliers have ~80% overall sourcing volume
• Key categories and product lines are multi-sourced
• When multi-sourced, Incumbent has 75% of the total volume. Challenger
has remaining 25%.
• Challenger can topple Incumbent through Innovation, agility, price and
quality