www.bobst.com
BOBST Spares Supply Chain Transformation Program
ISLA Conference - Hamburg, May 17th 2017
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 2
BOBST
www.bobst.com
xx
• …
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 4
BOBST companies & global networkAt a glanceHeadquarters in Switzerland• 11 Production facilities• 50 Local entities• 3 industries served:
• Folding Carton• Corrugated Board• Flexible Material
• 5’000 employees• CHF 1,3 billion turnover
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 5
SERVICESVISION - MISSION
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 6
BU Services Vision & MissionHigh quality is our motivation
Bobst Services are perceived as the benchmark in our industry
We are passionate about delivering world class services for world class machines
VISION MISSION
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 7
DSF/PCR
Management team BUS
BU Services Organization
FFG/DRO LAM GRV, C&L FLX VAC
Market/Front office
Customers
Customer Loyalty
SCM & Operations
Sales & Marketing
R. Indermühle
BU Services
S. März
T. Robert
J. Laran R. Peltier E. Martin W. Liechti P. Oglietti M. McInulty P. Atherfold
Business Controlling
L. Danis
AssistantE. Stacherinvitees
C. Falk
WF Services
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 8
RSM
FSTTSS
1710036
2317
27312218
2172
149412
58
654212
Service OrganizationUnique global service network
• 12 BOBST Services Centers• 24 Local Entities• 9 spare parts warehouses ww• 6 second level support locations
• 18 000 machines to support• 550 000 order lines delivered/year• More than 800 technicians • More than 12 000 man years
of experience
Spare Parts ExpertsRegional Service MgrField Service TechnicianTechnical Service Support
SCM 207
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 9
BOBST SPARES SUPPLY CHAIN : STARTING FROM A COMPLEX SITUATION
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 10
Serving extended Life Cycle prime productMachines serviced over 40 years
50% of parts sales on machines older than 15 years20% of parts sales on machines older than 25 years
0%
10%
20%
30%
40%
50%
60%
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100%
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18<1
970
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2013
Spar
es sa
les M
CHF (
2013
)
Machine construction year
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 11
0
5'000
10'000
15'000
20'000
25'000
1 10 100 1'000 10'000
Num
ber o
f par
ts
# orderlines in last 10 years
Part order frequency distributionSlow-movers integral part of spares business
• 55% of part numbers are ordered less than once every 2 years
Source: analysis on BSA portfolio between 2004-2014
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 12
HOW CAN WE TRANSFORM A SPARE PARTS SUPPLY CHAIN?
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 13
Agree a way to measure service level internally and with your customers
CustomsInventory Transport
ON TIME SHIPPED CONTRACT EXW : BOBST RESPONSIBILITY
Warehousing
ON TIME DELIVERED CONTRACT EXW : CUSTOMER RESPONSIBILITY
Order management
Inventory availability is the % of customer’s ordered line available on stock when the order is received
Spare parts inventory availability is representing 90% of the final customer service level
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 14
Targeted Service Levels: a basis to define the overall supply chain strategy
SITUATION PREMIUM CARE PLUS CARE WITHOUT CONTRACT VIP
24/75 DAYS / WEEK 8:00 AM TO 8:00 PM
ET5 DAYS / WEEK 8:00 AM
TO 8:00 PM ET5 DAYS / WEEK 8:00 AM TO
8:00 PM ET
PRIO 1 PRIO 1 PRIO 1 PRIO 1CALL BACK TSS within 1 hour within 1 hour within 1 hour within 1 hour
FST DISPATCH within 24 hrs within 24 hrs within 24 hrs within 24 hrs
SPARE PARTS DISPATCH (OUT OF STOCK) within 24 hrs within 24 hrs within 24 hrs within 24 hrs
PRIO 1 PRIO 1 PRIO 2 PRIO 1CALL BACK TSS within 1 hour within 1 hour within 24 hours within 1 hour
FST DISPATCH within 24 hrs within 24 hrs within 5 days within 24 hrs
SPARE PARTS DISPATCH (OUT OF STOCK) within 24 hrs within 24 hrs within 48 hrs within 24 hrs
PRIO 3 PRIO 3 PRIO 4 PRIO 3CALL BACK TSS within 3 hours within 3 hours within 24 hours within 3 hours
FST DISPATCH within 5 days within 5 days within 10 days within 5 days
SPARE PARTS DISPATCH (OUT OF STOCK) within 48 hrs within 48 hrs within 5 days within 48 hrs
PRIO 4 PRIO 4 PRIO 5 PRIO 4CALL BACK TSS within 24 hours within 24 hours within 48 hours within 24 hours
FST DISPATCH within 10 days within 10 days within 15 days within 10 days
SPARE PARTS DISPATCH (OUT OF STOCK) within 5 days within 5 days within 10 days within 5 days
WARRANTY CASES FOLLOW THE SAME PRIORITIESMACHINES LESS THAN 20 YEARS CONSIDERED
MACHINE DOWN
MACHINE NOT DOWN
OTHER REQUESTS
HEALTH AND SAFETY
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 15
Clear business targets set since the beginning to stay focus on them
•Costs: Decrease by 8% direct purchasing costs on parts
•Process: Increase process efficiency and reduce by 7% SCM staff worldwide
•Customers: Increase distribution performances while harmonizing them for all technologies creating an integrated supply chain to match 95% of parts delivered on time
•Suppliers: Improve suppliers performance and match with 80% of parts received on time
• Inventory: Increase spare parts availability to 85% - 95% depending on the sites while reducing stock levels (minus 3 MCHF from 2013 to 2016 with ISO turnover hypothesis)
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 16
Set a global transformation program addressing all leverages: slice the elephant !
Integrated Supply Chain Management
Global integrated inventory planning Centralized strategic planning Local operational planning
Lower stock level Optimize availability
Global sourcing policies Unified practices across PL’s
Reduce suppliers lead-times Reduce purchasing cost
Define global SCM processes Implement optimized SCM
processes & systems
Improve process efficiency Reduce reaction time
Inventory planning
Sourcing management
Process & Systems
optimization
Logistic Network
Assess the current logistic network Design a new logistic network
Speed up parts delivery Reduce logistic cost
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 17
PROCESS AND ORGANIZATION TRANSFORMATION: FROM INTERNAL ORIENTATION TO CUSTOMER ORIENTATION
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 18
StockPlanning
CU
STO
MER
BOBS
TSE
RVI
CE
CEN
TER
STOCKPLANNING& QUALITY
LOGISTICS
EXTE
RN
AL
VEN
DO
RS
OR
DER
FU
LLFI
LMEN
T
INTE
RN
AL
VEN
DO
RS
SPECIAL PROCUREMENT
STANDARD PROCUREMENT
Order management Sourcing & Planning
Organizational design: based on thesupply chain book of standard
URGENT DESK
Process & Systems
optimization
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 19
Organization and system core model
Sourcing
Strategic Planning
Logistics
SCM
Customer Services
Projects
Operational Planning
Warehouse mgmt.
Logistic Provider
Local PL
Central SCM
Process & Systems
optimization
ONE SINGLE SAP SOLUTION WW
SIXNERGY
1. Standardize processes
2. Simplified invoicing for parts
3. Same distribution network
4. Service Level global follow up
5. Severity Scheme implementation
6. Supply Chain efficiency improvements
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 20
From silos to functional expertise and operational focusBUSV Group supply chain organization
Head ofBUSV Supply
ChainArnaud Zuber
Head ofStrategic PlanningHiring in progress
Head ofCustomer Service
Jean Chavanne
Head ofSourcing
Arnaud Zuber (a.i.)
Supply Chain Analyst
Benjamin Rubattel
Supply Chain Operations DSF/PCR
Hervé Lepivert
Supply Chain Operations FFG/DRO
Jean Chavanne
Supply Chain Operations
FLXStefan Werning
Supply Chain Operations GRV/C&L
Alessandro Dusio
Supply Chain Operations
LAMSimon Dick
Supply Chain Operations
VACPaul Gardner
13 BCCCustomer Service
Head ofBUSV Supply Chain
& OperationsJulien Laran
Process &
Systems optimizat
ion
Head of LogisticTBD
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 21
LOGISTIC NETWORK EVOLUTION: FROM LOCAL WAREHOUSES TO REGIONAL HUBS
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 22
Current Logistic network
ManufacturingDistribution
Lausanne50’000 SKU94% avail.630 suppliers
Lyon21’000 SKU92% avail.400 suppliers
Roseland31’000 SKU87% avail.240 suppliers
Bielefeld4’000 SKU72% avail.318 suppliers
San Giorgio1’200 SKU40% avail.377 suppliers
Singapore8’200 SKU82% avail.6 suppliers
Logistic Network
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 23
BOBST will subcontract all activities related to warehousing and parts distribution in the world. The ownership and management of stock will remain under BOBST full responsibility
2017 20162018
New Logistic NetworkA sequenced implementation Logistic
Network
APAC results :
• Availability: from 70 to 90%
• Costs of slow moving: -30%
• Parts delivery time: -50%
• Stable global costs
• Customer’s costs: -40%
• Turnover: +10%
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 24
INVENTORY PLANNING TRANSFORMATION: FROM LOCAL INVENTORY PLANNING TO CENTRAL STRATEGIC PLANNING
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 25
Integrated Inventory ManagementCentralized planning
Local planners America
Local planners Asia
Worldwide strategic planning function
Local planners Europe
Inventory planning
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 26
• Stable global service parts inventory• Improved parts availability from stock• +19% volume increase absorbed with same structure
Demonstrated resilienceSupply Chain Performance
Location KPI 2013 2016 Est Var
Lausanne INV (CHF) 38.6 37.3 -3%
Fil l-rate 90% 92% + 2 pts
Orderlines 247'000 306'000 + 24%
Lyon INV (EUR) 9.9 11.4 15%
Fil l-rate 92% 93% + 1 pt
Orderlines 83'000 102'000 + 23%
Roseland INV (USD) 30.3 30.2 0%
Fil l-rate 78% 82% + 4 pts
Orderlines 173'000 189'000 + 9%
Inventory planning
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 27
SOURCING FUNCTION IMPLEMENTATION : HOW TO PUT OUR SUPPLIERS IN A CENTRAL ROLE
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 28
Sourcing directCombining cost and performance
Created a BUSV Sourcing organization• Standard sourcing: drive stock
replenishments and manage supplier base: cost / efficiency orientation
• Rapid sourcing: support Urgent Desk and source non-stock items: performance orientation
• Polyvalent suppliers identified for mechanical parts
• Time & Material approach• High reactivity requested
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014 2015 2016 2017
Savi
ngs (
with
car
ry o
ver)
MCH
F Target
Actual/Plan
Sourcing management
12% savings on direct material and 85% OTD
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 29
Introduction of new packaging slution• Replaces wooden crates• One box can be adapted to several volumes• Speedy inspection by Customs• 0.6 MCHF savings on packaging & 0.3 MCHF savings on transportation
(BSA savings/year)• Deployed to other sites
Sourcing indirectPackaging: think carton and not wood! Sourcing
management
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 30
SUPPLY CHAIN TRANSFORMATION KEY SUCCESS FACTORS
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 31
Head of Supply Chain & Operations
J. LARAN
Sourcing Implementation
M. BRETONIERE
Program Controlling
L. DANIS
Program Risks Management
E. VASSALLI
Program Change Management & Training
M. OCAK
Integrated Inventory Planning
A. ZUBER
Logistic Distribution Network
C. GODINOU
Process & Systems
R. ZARAIP. SAVARADJ
Web Fed Service Up
F. ROCH
3 FTE 3 FTE 3 FTE 2 FTE5 FTE
0.4 FTE
0.1 FTE
0.1 FTE0.7 FTE
Design a dedicated project organization Highly skilled and empowered people
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 32
Set a realistic implementation planning agreed with all stakeholders
2015
CIM new version “Tactics”
New inventory sizing for APAC area (85% availability)
Centralized inventory management
Web Fed inventories planning with enhanced availability (60% ROT –70% FKG)
New SCM process and organization core model in Lausanne / San Giorgio
Purchasing costs reduction (1.4MCHF direct / 0.4 MCHF indirect)
New Sourcing team implementation and coaching
Suppliers monitoring implementation
Digital printing process and IT industrialization
IT evolutions for APAC logistic network
Commercial lead-times upload for customers
Full automated inventory planning for Web Fed
APAC and AMERICAS replenishment centralized per PL
New SCM process and organization core model in Bielefeld
Purchasing costs reduction (3.5MCHF direct / 0.7 MCHF indirect)
Suppliers monitoring implementation sheet fed (KPI / Meetings / Escalation process..)
External polyvalent sources for urgent orders Sheet Fed
APAC logistic network GOLIVE (Singapore CW)
IT evolutions for AMERICAS logistic network
SCM Process and ECC evolutions for Web Fed and Sheet Fed
AMERICAS logistic network GO LIVE
Installed base implementation for inventory planning
Purchasing costs reduction (5MCHF direct / 0.7 MCHF indirect)
Suppliers monitoring implementation web fed (KPI / Meetings / Escalation process..)
External polyvalent sources for urgent orders Web Fed
IT evolutions for EMEA logistic network
2016 2017
EMEA logistic network GO LIVE
Call for tender for new Advanced Planning System for spare parts
Direct costs saving program for Web Fed
EMEA logistic network post GO LIVE support
SCM organization fully functional with core model implemented in all PL
New SCM Services (Repair / Standard Exchange / Loan…)
2018
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 33
BUSV Transformation initiatives: How Transformation Program cover our customers feedback? (based on NPS Score)
Source: https://bobst.Satmetrix.com, November 15th 2016
BUSV TRANFORMATION INITIATIVES
N° Action Driver Score 2014 Score 2015 Satisfaction
Score 2016Response
2016SUPPLY CHAIN
CUSTOMER PORTAL
PEOPLE DEVELOPMENT
KNOW HOW MANAGEMENT
MOBILE FST
L1/L2 TICKETING
SIMPLIFIED INVOICE
1 Overall Satisfaction with Interaction 7,68 7,85 7.90 1763 X X X X X X X2 Professionalism 8,33 8,43 8.51 1549 X X X X X X X3 Technical Ability satisfaction 8,25 8,36 8.40 1523 X X X X4 Time to Resolve request 7,54 7,8 7.67 1275 X X X X5 Initial contact with Helpdesk 7,74 7,84 7.87 1222 X6 Time to qualified Call Back 7,56 7,63 7.66 1184 X7 Time for Part to arrive 7,55 7,63 7.73 1040 X X8 Time to Identify part 7,57 7,81 7.83 993 X X X X9 Performance of the Equipment 7,87 8,02 8.01 297 X X10 Reliability of the Equipment 7,73 7,83 7.83 292 X11 Time to Resolve problem 7,31 7,56 7.72 282 X X X X12 Time for Engineer to arrive 7,35 7,21 7.34 252 X X X13 Time to get in contact with right person 7,77 8,09 7.49 205 X14 Engineer arrived on time 7,96 8,07 8.03 76 X15 Fulfilled Training Expectation 7,52 7,32 7.98 54 X X X16 Accuracy of delivery time 7,6 7,21 7.22 40 X X X17 Quality of Info prior to delivery 7,26 7,34 7.89 38 X X X X
Transfo Program
30 - XXX
Supply Chain Rolling 365People Development 365
Customer portal 365L1/L2 Rolling 365
An automatic set of KPI to track and share our Bobst performance.
Monthly report based on a specific set of KPI, PI & I
Follow closely the results and communicateCustomer satisfaction: share it !
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 34
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 35
•Costs: Decrease by 8% direct purchasing costs on parts: 12% achieved
•Process: Increase process efficiency and reduce by 7% SCM staff worldwide: 20% achieved
•Customers: Increase distribution performances while harmonizing them for all technologies creating an integrated supply chain to match 95% of parts delivered on time: 93% achieved
•Suppliers: Improve suppliers performance and match with 80% of parts received on time: 85% achieved
• Inventory:
• Increase spare parts availability to 85% - 95%: 80% - 94% achieved
•Reduce stock levels (minus 3 MCHF from 2013 to 2016 with ISO turnover hypothesis): Same stock level with 20% volume increase / 25% turnover increase
Follow closely the results and communicateMain achievements
BU SV Transformation Program – Kick off | Julien Laran | © BOBST | 17/05/2017 | PAGE 36
Support your project team !This is key to make it happen
www.bobst.com
Thanks a lot for your attention !