CFO's Perspective On Fast Data, Red Wing Shoe Company

1,015 views

Published on

Ralph Balestriere, CFO, Red Wing Shoe Company
CFO's perspective on fast data

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,015
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
21
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

CFO's Perspective On Fast Data, Red Wing Shoe Company

  1. 1. CFO’s Perspective on Fast Data Ralph Balestriere, EVP & CFO Red Wing Shoe Company
  2. 2. Our Brands
  3. 3. Company Profile • Founded 1905 – Red Wing, MN • Revenue – greater than $600 M • 2,300 employees world-wide • 3 USA Factories • Manufacturing Partners • China / Vietnam • Dominican Republic • Strong Distribution Capabilities • 50 States / 110 Countries
  4. 4. Global Work
  5. 5. Industrial
  6. 6. Work Garments
  7. 7. Heritage
  8. 8. Outdoor – Vasque / Irish Setter
  9. 9. USA Manufacturing
  10. 10. SB Foot Tanning
  11. 11. Distribution Centers
  12. 12. St. James Hotel
  13. 13. Insert “The Factory” video
  14. 14. 1905 1920 1934 1940 1953 2009 Oil King Steel Toe MobileFounded Pecos Garments Multichannel 2013+ An Innovative History
  15. 15. Perfect Storm 2009 - 2010: • Economic Global Recovery = Higher Demand Issues: • High backorders / Poor service levels to customers • High inventory / wrong inventory • Poor supplier relationships • Lack of E-commerce capabilities • Insufficient financial information SWOT Team Formed: • Over 200 pain points identified
  16. 16. Response: Strategic Solutions • Multichannel  E-Commerce  CRM  Point of Sale • Demand Planning • Warehouse Management System • Financial Capabilities Roadmap
  17. 17. Key Drivers Accommodate Retail Store Growth Fill Competitive Gap for Industrial Account Offering Fill Competitive Gap for Consumer Buying Options Implement CRM For Multichannel Customer Management © 2013 Copyrighted Material Multi-channel Drivers
  18. 18. Multi-channel Benefits
  19. 19. © 2013 Copyrighted Material Multi-channel Solution
  20. 20. Multi-channel Business Impacts Top-line Drivers:  Digital channel expansion – new B2B, B2B2C, and B2B online storefronts  Brick & mortar expansion – new Red Wing stores  Cross-channel access to inventory will improve working capital  Two $20 million tenders honored in the Middle East through a portal Bottom-line Drivers:  Contact Center Insights – Improve product & service offerings by analyzing customer cases in Saleforce.com  Field Personnel Access - Providing cases information to field personnel on mobile devices  Order to Cash sped up by two weeks through Middle East portal
  21. 21. + =CRM
  22. 22. CRM: Centralized Hub for Customer Information • 360° view of customers • Efficiencies in processes, reporting and communication • Integration to ERP, POS and e-Commerce platforms • Improve the RWS Customer Experience • Create a feedback loop for product information • One master file for account information
  23. 23. • Lead Tracking • Corporate Account Reports • Business Development Top Line • Vendor Compliance • Distribution Realignment • Shipping Issues • Cartons vs. Shrink wrap Bottom Line CRM: Business Value Delivered
  24. 24. • 5,000 Contacts added (Safety Directors, Buyers, etc.) • 2,600 incremental Leads added • 28,000 Cases added • 1,766 Shipping Cases – lead to root cause & solution • 683 - Shipping Shortage /overage • 110 - Wrong label • 382,000 Activities added CRM: Metrics
  25. 25. Demand Planning Background • Complex product lines servicing 6 brands • Explosion of SKU’s • Fashion factor • Multiple distribution sites Styles SKU’s Footwear 1,300 27,800 PPE Garments 2,100 239,000 Accessories 900 2,000 4,300 269,400
  26. 26. Demand Planning Issues • Poor inventory management • Highly manual – heavy volume in 500 page spreadsheet • Inaccurate forecasting • Turns close to 2X (Industry Average = 4X) • Excess discontinued / close-outs • Limited backorder visibility • Significant cash drain
  27. 27. • Implemented in 2012 • 6 months – implementation / training • $700k investment Investment • Better revenue forecasting capabilities • Discrete planning for big box customers • Speed to market Productivity Demand Planning Response
  28. 28. • Inventory turns doubled • 17% or $35 million reduction in inventory • Backorders reduced 50% • Debt reduction Financial Benefit • Acquisition in Scotland • Investment in Product Development Strategic Benefit Demand Planning (Value Delivered)
  29. 29. Financial Capabilities - Vision Graphic Source: Accenture - Transforming the finance function for high performance
  30. 30. Financial Capabilities - Roadmap 2014 Foundational Improvements Automation & Agility Data Governance Long-Range Capabilities Plans Platform Analyses Talent Development 2015 Scale & Advance Advanced Analytics Common Calendar Continue Automation Platform Upgrades Talent Development 2016-2017 Foresight Advanced Business Advisory Advanced Scenario Planning Advanced Portfolio Mgmt. Talent Development - Roadmap -
  31. 31. Financial Capabilities - Solution • Upgrade ERP System • Upgrade Financial Consolidation System or Research new solution 2014 - 2016
  32. 32. Results • Average sales growth 2010 – 2013 = 11% • Record profits – 2012 • Stock price increase CAGR 10% • Debt reduction • Acquisitions
  33. 33. Summary • Faster receipt of data with integrity • Faster, more educated financial decisions • Happier customers and employees
  34. 34. Questions?

×