Stanley Black & Decker

Transcription

1 Stanley Black & Decker 2013 Investor Day Stanley Fulfillment System Steve Stafstrom Vice President, Operations CDIY & Emerging Markets

2 SFS A Customer First Approach SFS The Stanley Fulfillment System (SFS) Is Our Way Of Business SFS Is A Mindset, Innovating How All Work Gets Done To Deliver Value To Our Customer SFS Is More Than Manufacturing Or Operational Efficiency SFS Is Our Competitive Advantage SFS Propagates A Business Culture To Achieve World Class Excellence In Customer Satisfaction SFS Supports This Culture With World Class Processes And Systems SFS Provides The Necessary Tools To Achieve Our Business Objective Through The Involvement Of All Employees Creating Breakthrough Customer Value 2013 Investor Day 2

3 How SFS Works S&OP Demand And Supply Synchronization Capacity Planning And Decisions Operational Lean S1R1 Order-To-Cash Excellence Receivables Management Complexity Reduction SKU Efficiency Product Platforms Global Supply Management Strong Supplier Relationships Social And Environmental Responsibility 2013 Investor Day 3

4 The Proof WCT Fill Rates % 94% 96% 94% 93% 95% Waste Elimination Revenue ($B) Robust Service Levels Free Cash Flow ($B) $4.3 $4.1 $3.5 $7.5 $9.4 $10.2 $0.5 $0.4 $0.5 $0.9 $1.0 $ Growth Enabler $1B In Free Cash FCF Excludes M&A Charges & Payments 2013 Investor Day 4

5 Global SFS Leverage For The Emerging Markets

6 Global Process Local Customization Focus: High Service Levels Capital Efficiency Lowest Cost Mature Markets Focus: Emerging Markets Accommodate Growth Account For Geographic And Channel Complexity Provide For Rapid Scalability Organic Growth Initiatives The Emerging Markets Represent An Incremental $350M Organic Revenue Opportunity 2013 Investor Day 6

7 Global Learning Geographic Application S&OP Operational Lean Complexity Reduction Global Supply Management Order-To-Cash Excellence Local Organizational Capability Senior Leadership Led S&OP Maturity Assessment 70% 80% Local Production Distinct Footprint For New Markets Leverage Global Scale Technical Talent In Market Global Standard Metrics Global Product Platforms Aligned GSM Resources To GEM SBUs Local Procurement For Local Markets A Network To Support 5 Year Growth Plans Local Service Parts Network Learn From The Mature Markets Adapt To The Regions 2013 Investor Day 7

8 A Case Study Latin America

9 Enabling Growth At A Rapid Pace Latin America Best Practice S&OP Operational Lean Complexity Reduction Global Supply Chain Management Order-To-Cash Excellence Global Demand Planning, JDA Forecasting CDIY Process Deployed To All Countries Regional S&OP Brazil Plant Lean Kick Off DC Expanded In Miramar DC Consolidation In Mexico New DC In Brazil Global Standard Metric, Global Guidelines, And Best Practices In Place New Supply Chain Leader Planning At Source 2012 Fcst Accuracy from 20% to 46% Fill Rate improved from 91% to 96% DSI 89 to 77 Excess & Obsolete down 49% Double Digit CAGR Centralize Demand Planning Alignment With Financial Forecasts Technical Certifications Localized Manufacturing Lean Training And Framework SKU Management Rationalize Product Roads Move Supply Planning From Country-based To Region Center Of Excellence For S&OP DC Footprint Service Parts Strategy Customer Facing Scorecard Forecast Goal: 67% Fill Rate Goal: 98% DSI Goal: 70 Excess & Obsolete Goal: <5% Double Digit Revenue Growth 2013 Investor Day 9

10 Supply Chain Excellence Will Be A Competitive Differentiator Voice Of The Customer Assess Regional, Cultural, And Channel Uniqueness In The Market Design The Supply Chain To Match The Customer CTQs (Critical To Quality) Support The Culture Application Of Proven Global SFS Processes Provide The Tools For The Involvement Of All Employees Focus On Adding Value SFS Is The Way We Do Business 2013 Investor Day 10