Sune Sørensen, GGP Group presentation at Spare Parts 2013
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Sune Sørensen, Director Spare Part & Service, GGP Group presentation at Spare Parts Business Platform 2013
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Sune Sørensen, GGP Group presentation at Spare Parts 2013
- 1. GLOBAL GARDEN PRODUCTS GROUP 1 Sune Sørensen Director Spare Part & Service GGP Group Stockholm, Sweden February 8th, 2013
- 2. This image cannot currently be displayed. About GGP GROUP GGP (Global Garden Products) is a leading manufacturer of lawn mowers and a wide range of powered garden equipment. With 1100 employees and a turnover of more than EUR 430 million, it gathers over 75 years of market experience in its well known consumer brands - Stiga, Alpina, Mountfield, Atco and Castelgarden – and it represents a first choice partner for the OEM and Private Label industry. p. 2
- 3. This image cannot currently be displayed. Products p. 3
- 4. This image cannot currently be displayed. Production A manufacturing network with four production plants in Italy, Sweden and Slovakia, strategically well located in Europe, backed up by a strong facility in China, ensures both competitive costs as well as the highest flexibility to respond to customers’ demand. From “designed to target” up to overall marketing and service excellence, GGP’s competence is one of the widest and deepest in the industry. Castelfranco Italy Campigo Italy Guangzhou China Poprad Slovakia Tranås Sweden p. 4
- 5. This image cannot currently be displayed. GGP Production and Subsidiaries This image cannot currently be displayed. GGP Subsidiaries GGP Production GGP Spare Part WHs TRANÅS POPRAD GUANGZHOU CASTELFRANCO CAMPIGO p. 5
- 6. This image cannot currently be displayed. The value chain p. 6 Manufacture Subsidiary Distributor DIY chains Dealers Dealers DIY shops Consumers
- 7. This image cannot currently be displayed. Presentation overview • Simplified classifications of the presented companies. p. 7 High seasonallity Low seasonallity Consumer goods Professional products Claas Eurocoptor Alstom GGP Electrolux
- 8. This image cannot currently be displayed. Aftermarket trends in the garden industry • 1. Increased attention from the dealers on the aftermarket since the crisis in 2009. • 2. Spare part pricing is becoming international. • 3. Cross boarder sales has increased helped by the Internet. • 4. High focus on B2B dealer portals. • 5. Delivery time requirements have increased from 3-4 day to 24/48 hours delivery. • 6. Differentiated logistic services requested. • 7. High focus on reducing the logistic costs. • 8. The Chinese Challenge. • p. 8
- 9. This image cannot currently be displayed. The three main logistic cost elements p. 9 Warehousing handling costs Stock value (working capital) Freight costs There is a strong relationship among the three cost elements.
- 10. This image cannot currently be displayed. How to reduce the logistic costs? • Complete new range of robotic GGP mowers were to be introduced on the market one year ago, but no space for additional logistic costs. • Only A and B parts to be stocked to reduce the number of new SKUs plus to reduce the warehouse space occupied. p. 10
- 11. This image cannot currently be displayed. How to reduce the logistic costs? • In the past GGP would have stocked 100% of the components at the spare part stock – ideally available from the product launch. • • With the new method only 38% of the components were stocked. Hereof 3% have never been sold and 4% are now obsoleted. The rest are active and available on stock. p. 11
- 12. This image cannot currently be displayed. Products and parts lifecycle Launch Machine phase-out Part obsloteted Phase-in Phase-out
- 14. This image cannot currently be displayed. Available until stock is zero No longer available Spare part to be substituted Spare part NOT to be substituted X7 X8 X6 X9 Part still active Scrap Phase-out phase
- 15. This image cannot currently be displayed.
- 16. Spare PPaarrttss MMaatteerriiaall SSttaattuuss Creation of a new Code Update master data in SAP Cost calculation X3 Spare part managed with/without stock Spare part for a machine discontinued Spare part available up to stock zero (stop purchasing) Spare part will be replaced after stock be at zero Spare part replaced by a new one Spare part discontinued Current Situation New Situation X1 X2 X4 X5 X6 X7 X8 X9 29 39 ‘ ‘ 11 12 19 Description
- 18. VGI-022414-096-20100451-GE1-k Global Garden Products – The aftermarket Spare parts lifecycle Creation Available Scrap Phase-in Phase-out
- 19. VGI-022414-096-20100451-GE1-k Available Scrap Creation of a new code Update master data in SAP Cost calculation Spare part managed with/without stock Spare part for a machine discontinued Spare part available till stock 0 (stop purchasing; no later substitution) Spare part will be replaced after stock 0 (stop purchasing, substitution after stock is consumed) Spare part replaced by a new one Spare part discontinued Creation Spare parts lifecycle
- 20. VGI-022414-096-20100451-GE1-k On stock No stock Creation of a new code X1 Update master data in SAP Cost calculation Spare part managed with/without stock Spare part for a machine discontinued Spare part available till stock 0 (stop purchasing; no later substitution) Spare part will be replaced after stock 0 (stop purchasing, substitution after stock is consumed) Spare part replaced by a new one Spare part discontinued X2 X4 X5 X6 X7 X8 X9 Y1 Y2 Y3 Y5 Y8 Y9 X3 Y4 Spare parts lifecycle
- 21. VGI-022414-096-20100451-GE1-k Creation of a new code Update master data in SAP Cost calculation Spare part managed with/without stock Spare part for a machine discontinued Spare part available till stock 0 (stop purchasing; no later substitution) Spare part will be replaced after stock 0 (stop purchasing, substitution after stock is consumed) Spare part replaced by a new one Spare part discontinued On stock No stock X1 Y1 X2 X4 X5 X6 X7 X8 X9 Y2 Y3 Y5 Y8 Y9 X3 Y4 Parts on stock Spare parts lifecycle
- 22. VGI-022414-096-20100451-GE1-k On stock No stock Creation of a new code X1 Update master data in SAP Cost calculation Spare part managed with/without stock Spare part for a machine discontinued Spare part available till stock 0 (stop purchasing; no later substitution) Spare part will be replaced after stock 0 (stop purchasing, substitution after stock is consumed) Spare part replaced by a new one Spare part discontinued X2 X4 X5 X6 X7 X8 X9 Y1 Y2 Y3 Y5 Y8 Y9 X3 Y4 Parts in pricelist Spare parts lifecycle
- 23. Thank you!