3. Introduction Bekaert
3
- Founded in 1880 by Leo Leander Bekaert in Zwevegem, Belgium
- Customers in 120 countries and in the most diverse industry sectors
- Global manufacturing platform
- Almost 30 000 employees worldwide
- Combined sales of € 4.4 billion (2016)
- Consolidated sales of € 3.7 billion (2016)
- Listed on Euronext® Brussels – BEL20®
- Recent M&A 2015/2016: Pirelle Steel Cord, Arrium Ropes Australia, Bridon
-
4. Bekaert core competences
4
- Main raw material is wire rod:
• a steel wire about the thickness of a finger
• in a wide range of compositions and grades
• our annual purchase volume totals 2.5-2.8 million tons
- We manufacture all kinds of wire products
• by drawing wire rod through dies of diminishing sizes
• subjecting it to heat treatments of various kinds
- These wires can be
• bunched into cables and cords
• drawn into ultra-thin fibers
• woven or knitted into cloths
- Depending on the application, suitable high
technological coatings are applied to steel wires,
cords and cables, or other materials
1 µm6.5 mm
A human hair = 50 µm
From traditional coatings to
advanced coatings
8. 2016 Highlights
8
- Consolidated sales of € 3.7 billion (+1%) and combined sales of €
4.4 billion (-1%)
- Underlying EBIT of € 305 million (8.2% margin), up 32% vs € 231
million (6.3%)
- EBIT of € 260 million (7.0% margin) compared with € 219 million
(6.0% margin)
- Underlying ROCE of 11.8% compared with 9.1%
- EPS: € 1.87 compared with € 1.82
13. Bekaert restricted information13
Fit for Growth
In Bekaert, our strength comes from outstanding people, our global footprint and local reach, and our
position as a profitable, global company. We believe there is still room for growing more, and performing
even better!
Fit For Growth is our response to how we can become and remain the best in class!
Focus
on operational processes
Focus
on Functions
14. Bekaert restricted information14
What is the ambition of F4G ?
- Intrinsically motivate people to always be the best, and never be satisfied:
be irrepressible.
- Inspire people and retain & attract the right talent that is focused on insight
and content driven tactical or strategic tasks and subsequently accelerated
in their development.
- Drive a highly engaged organization that proactively connects outside the
hierarchical structures (cooperating with the business platforms, plants, etc.)
and also connects outside Bekaert.
- Support Bekaert’s growth ambition from EUR 4B to EUR 5B without
increasing Selling, General & Administrative spend.
- Build and embed capabilities that actively support growth through
strengthening the Mergers & Acquisitions, Business Development and
Innovation engines.
- Change the focus of activities from operational to more insight and content
driven tactical/strategic tasks.
Heads
15. Bekaert restricted information15
What functions will we transform with F4G ?
F4G covers 13 functional streams and 6 transversal streams. The program
is expected to run 2-3 years.
Functional Streams
Finance
HR
Engineering
Commercial back offices
IT
Purchasing
Business Development
Communication
Legal
M&A
Transversal Streams
Program & Project Management
Cultural & People
Process
Systems
Information Management
Supply Chain
Master Data
Growth Engines
Technology (R&D)
Innovation
16. Supply Chain
F4G OBJECTIVE
FOR SUPPLY CHAIN
2017 PLANS
Become a real demand driven supply chain, able to sense and shape demand by
reacting to real-time signals from customers, suppliers and employees. The
ultimate goal is to ensure the best service through responsiveness, while also
balancing inventory and cost.
1
2
Having a well-defined organization and processes in place, as they are
the foundation of building a responsive and coordinated supply chain,
leveraging scale to achieve the necessary agility in capturing demand
signals efficiently and effectively
Optimize our inventories by setting the right inventory
levels and parameters to support an optimal service
degree
16
17. 17
The supply chain team gathered in Barcelona for the Ambition workshop with the
mission to define a global roadmap for the X+5
Ambition workshop
DRAFT
Intro by Matthew
Fit for Growth Program Recap
& Globally defined initiatives
canvas
Supply Chain of the
Future Example
Cases
Discussions on
Example cases
Supply Chain Baseline
Break-outs to define
roadmap and quick
wins
16:15
17
18. Why: SC and SCE
Yield : Balance Service, Cost and Cash
▪ Service
• Reduced lead times resulting in increased sales
• Balance mix based on capabilities, capacity and profit
• Optimized extended supply chain: KSA, VMI
▪ Cost
• Lowest cost to serve: production cost + transport cost + tax and duties
• Lowest cost to supply: material cost + transport cost + tax and duties +
production cost variance
• Optimized extended supply chain: KSA
▪ Cash
• Optimaized stock levels
• Increased asset utilization
▪ >>> ROCE support
18
Motivation : Co-drive
19. Business Strategy
Longterm
Master Scheduling
Demand
Planning
MidtermShortterm
Purchase
Detailed
Scheduling
& Planning
Order intake
& promising
(Order to Cash)
Supply Chain Strategy
Sales & Operations Planning (S&OP)
Transport
planning
Material
Planning
Levels
Process
Warehousing
PLAN
FUL
FILL
SOURCE MAKE DELIVER
Inventory
Planning
DRAFT
Execution and Control
Out of scope of the Supply Chain work stream
Customer Centricity
SC and SCE – What – Content: Framework
19
20. Best In Class
• Real time & E2E visibility incl. automated control tower
• In depth E2E collaboration with customers & suppliers incl. demand sensing
• Effective business intelligence incl rapid response scenario planning & multi echelon
inventory optimization
• Integrated operating model incl. centralized and automated supportive functions
• Smart Supply chain segmentation incl. service differentiation
Leading
• E2E governance is running effectively with clear and followed decision making rules
• Efficient processes and approaches leading to execution excellence
• E2E ownership of processes, collaborative cross disciplinary efforts
Advanced
• E2E governance model established, with gaps in adherence and decision making rules
• Standardized processes and high level process adherence
• Proper organization established, roles & responsibilities set-up
• Systems and tools support most of supply chain processes
Basic
• Governance framework defined but not fully implemented
• Some standard processes, but gaps in process discipline
• Organization and R&R defined but gaps in execution
• KPIs exist but are not carried by the organization, some standardized reporting
• Systems and tools support for specific areas
Lagging
• No governance framework defined, no clear focus
• Few standardized processes
• Roles & responsibilities unclear
• No KPIs set up, limited ad hoc and unstandardized reporting
• Systems and tools are not supporting supply chain processes
1
2
3
4
5
Current
maturity
Getting the
basics right
Bekaert’s maturity curve
Becoming best
in class
SC and SCE – What – Level: Best In Class
20
21. DRAFT
Deliver superior value to our existing and potential customers
Strategic alignment of
the organization
Focus on service level and balance cash and cost
Define global / regional / local SC capabilities and ensure the
right interactions with the business / region (matrix)
Focus on service level
Empower SC as a co-driving
function
2
3
Focus on customer centricity1
Put organization and governance structure in place that is
focused on value realization and monitoring
Governance/Monitoring
Performance8
Performance
improvement
Perform more value added activities. Ensure the right
resources for strategic and tactical processes.
One global process template with minimal modularization
IT & Tools as enabler to realize efficiency gains
Lean co-driving
function
Reinforce strategic and tactical
processes
Focus on automation for efficiency
gains
High degree of standardization
and simplification
5
6
7
Organize planning activities to the highest appropriate level of
centralization
Maximize use of scale and
centralize accordingly4
SC and SCE – What – Key Design Principles
21
22. Review status of large
contracts
FunctionalSupplyChainPlanning
Release demand & supply to
DRP (allocation)
Run DRP (allocation)
Compare projected stock to
safety stock
DistributionRequirement
Planning
Manage customer
segmentation
ServiceStrategy
Portfolio Review Phase In
(NPI) / Phase Out
Estimate future SC capacity
Review service catalogue
Evaluate existing capacity
and analyze gaps
NetworkStrategy
Conduct network design
Select scenario based on
financial implication
Optimize flow-path
Determine future SC network
Establish rules for
collaboration
Manage demand & supply
Analyse & improve
collaboration
CustomerCollaboration
Obtain baseline forecast by
customers
BaselineForecast
Capture & integrate input
from customers
Establish rules for
collaboration
Manage demand
Analyse & improve
collaboration
Intercompanydemand
Capture & integrate input
from sales (incl. contract
info)
Capture & integrate input
from marketing
Capture & integrate new
product forecast
Consolidate baseline forecast
input
Capture & integrate input
from S&OP to agree on
consensus forecast
Review enriched forecast
ForecastEnrichment
Cleanse historical data
Prepare data & manage
segmentation
Review statistical parameters
& models
Generate statistical forecast
SC Strategy Inventory PlanningDemand Planning Master Scheduling DSP (Detailed Scheduling &
Planning)
Materials Planning S&OP
Capture & integrate input
from customers
Prepare data & manage
segmentation
InventoryTargets
RawMaterials&FinishedGoods
&VMI
Calculate &
set stock policies and
inventory targets
Implement stock policies
Implement stock targets
Gather regional unbalances
Analyse gaps
Understand implications
GlobalS&OP
Run scenarios
Gather input,
Prepare budget & follow-up
Budget
Gather inputs from finance
Analyse gaps
Review assumptions, risks &
opportunities to balance
demand and supply
Run scenarios
RegionalS&OP
Define regional unbalances
Capacity/ProductionPlanning
(RCCP)
Review & resolve exceptions
Run capacity / production
planning
Analyse outcome
Check component
availability
Create detailed schedule
Review & resolve exceptions
Scheduling
Convert to production orders
Communicate on order
changes
OrderMgmt.
Verify PO & contract
Actuals
consult
Monitor production actuals
Load inputs & run raw
material plan
Validate & publish raw
material plan
Generate long term raw
materials forecast
RawMaterialPlanning
Review & resolve exceptions
Capture & integrate input
from customers
Establish rules for
collaboration
Manage demand & supply
Analyse & improve
collaboration
SupplierCollaboration
Load inputs & run raw
material plan
Validate & publish raw
material plan
Translate production plan to
raw mat. plan
Review & resolve exceptions
Resolve rush orders (and
other exceptions)
SC and SCE – How – Process
22
23. 23
Purchasing Manex SCE
Organization:
Integrated
matrix in to
the regions
• Central organization for main
categories
• Central organization for
purchasing processes
• Regional dotted functional
lines
• Recruiting, succession
planning, training, … steered
centrally
• Central organization of global
& regional BMS coaches
• Central organization per region
(architectures)
• Local BMS coaches dotted
functional line towards the
regional BMS architecture
• Recruiting, succession
planning, training, … steered
centrally
• Central organization for supply
chain concepts, processes and
tools
• Business platform and regional
dotted functional lines
• Recruiting, succession
planning, training, … steered
centrally
Result:
Shared
targets
Purchasing KPI dashboard
• Financials (wave tool)
• Procurement excellence
• Supplier relations
• Sustainability
Shared targets with regions
• Financials future state (wave
tool),
• Plant KPI (GPD)
• Way-of-working and other
playbook progress
• Shared RR 2020 target
SCE KPI dashboard
• Financials (inventory)
• SCE KPI (OTD, etc.)
• SCE process ownership:
design, pilot, implementation
Process
Ownership:
processes
designed and
implemented
• Purchase-to-pay process
(from request to order to
accounts payable, up to
shared services)
• BMS (Way-of-
Working, playbooks)
• MES
• Automation…
• Standardized Master data
• Planning processes, including
inventory optimization, demand
and supply allocation external
and intercompany flows
• Logistics & warehouse
management, …
SC and SCE – How – Organization – 3 aligned functions
24. SCE as a Centre of Excellence: drive functional performance and support the business enabling global,
regional and local teams to take better decisions and to focus on value added activities
• Design, implement and upgrade SC concepts, processes and
tools which are run by the business
• Enable sharing and implementation of best practices
• Enforce consistency of SC tools
• Coordinate adoption of SC tools
• Prepare and conduct trainings
Role Key Activities Key Deliverables
• System functional requirements
• Process documentation
• Playbooks
• Best practices (internal + external)
• Training and user manualsProcess Ownership
Service Provider
Governance
• Run analytics to provide business intelligence insights
• e.g. footprint impact on business development, M&A activity,
other strategic scenario’s
• Run continuous improvement analytics
• e.g. run statistical forecasting, target setting for inventory
optimization, define and run planning parameters
• Strategic scenario’s
• Statistical forecast
• Planning Parameters Optimization
• Inventory targets
• Planning tool optimization
Master Data
• Set-up SC metrics, KPIs, including baseline targets, and
reporting
• Monitor and control metrics, KPIs and reporting (identify
gaps between targets and actuals)
• Consolidate SC metrics, KPIs and reporting
• Consistent master data
• Escalation list
• Provide data requirement guidelines
• Ensure data consistency
• KPI dashboard
• Reports
• Gap analysis
SC and SCE – How – Organization – SCE central
24
25. Roll-out
2022
Transport
optimization 3.0
2021
Detailed design
2020
Priority
area
25
Roadmap X+5
2017 2019
Process & Organization
Getting the basics right Becoming best in class
!
MDM is a key prerequisite to
implement initiatives
71
Transport optimization 2.0
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
2018
Fast prototyping
Transport optimization 1.0
Inventory optimization 2.0
Playbook
Forecasting 2.0Forecasting 1.0
Talent development
Value realization
L2 Process
R&R, sizing
Org. structure
Job descr.
Master & Detailed scheduling 1.0 Sched 3.0Scheduling 2.0
Control Tower 1.0
PROJECT FLOW
Example project
Mobilize Define to be
& tools
Pilot Implement Monitor
Process & Organization implementation Refresh
Supply Chain Strategy
Warehousing
Current roll out
Control Tower 2.0
Refresh
S&OP 2.0S&OP and Operational Review 1.0Current roll out
KEY
Opportunity areas
Automation
and tool
development
Demand and
analytics
driven supply
chain
Foundation
Effectiveness
& Efficiency
Talent
development
Integrated
operating
model
Inventory optimization 1.0Central inventory scan
25
26. SCE 2017: Dashboard
Result: shared targets ⒷⒷⒷⒷ
Cash: Inventory optimization: free up cash
FG: target: 15 mio€ - status: X mio€
WR: target: 15 mio€ - status: X mio€
stock management with increasing sales
Service: On time delivery:
monitoring
Cost: Optimal allocation savings:
monitoring
Enable KSA: WR 3 months rolling forecast
on regional level: EUR - NAM - CN
Organization: Integrated matrix ⒷⒷⒷⒷ
Build a center of excellence
• Build a SCE forum
• Capture external excellence through SCM
World, external fora, peer connection
• Capture internal excellence through
playbooks, best practices and follow up of
regional initiatives
• Build standard metrics Ⓒ: Service follow-
up through OTD or alternative
• Integrate all excellence in CQA Ⓓ
Deployment of excellence
• Map organization matrix -> F4G
• Work out first version for job description
& training curriculum
• Deploy playbooks
Processes design, pilot and roll-out
Master data ⒹⒹⒹⒹ
• Learning stop on scope approach Ⓙ
• Product hierarchy: upgrade ISW and SSW Ⓓ
• Production:
Wire Satellite: BSV ○, ZwHiCa , Qingdao Ⓩ,BVB,CR,Dramix
RR design optimal set up & pilot China
Production planning ⓅⓅⓅⓅ
• For ①complex set-up and ②flow diversity set-up: optimize process, design tools
Ⓑfor basic and advanced planning with implementation in pilots
Manual planning in Satellite: ZwHiCa, BSV, Qingdao
Advanced planning in Satellite: ZwHiCa
• For ③repetitive mass production: Define concept and process Ⓦ
• Implement shop floor material management parallel with BMS
S&OP ⒸⒸⒸⒸ
• Optimize process , design tools , roll-out:
Wire M+3: NAM ISW Ⓡ; NAM SSW Ⓡ; CN BQWP Ⓩ; CR
Wire Q+6: NAM ISW+SSW Ⓡ
RR M+3: global SNP roll-out Ⓦ;EURWR allocation Ⓑ
RR Q+6: global Ⓦ
BP Q+6: Dramix Ⓝ
Inventory ⒷⒷⒷⒷ- Roll-out playbook BP,RR WR Eur & CN, NAM,Latam F4G
Metrix ⒸⒸⒸⒸ- Design and roll out service parameters
26
Legend: SC LT members in the lead: Ⓑ: Bart Bogaert; Ⓒ: Celien Deguffroy; Ⓓ: Brigitte Desmet; Ⓝ: Nicolas
Gevaert; Ⓡ: Rod Ady; Ⓦ: Wim Lasuy; Ⓩ: Ada Zhu; Ⓟ: Pieter Seyns; Ⓙ:JanQuagebeur.
