COOPERATION PROPOSAL

Transcription

1 Global sourcing Mateusz Borowiecki, CEO, OptiBuy 9 Feb 2011 COOPERATION PROPOSAL Dubai, 28 November 2018

2 AGENDA Feb 2011

3 OptiBuy s COMPANY PROFILE OptiBuy is an international consulting company specializing in procurement management. We offer a wide range of excellent procurement solutions, using our global network of offices, indepth market knowledge and extensive set of IT tools. Headquarters: Warsaw, Poland Year established: 2005 Offices: Kielce, Berlin, Prague, Hangzhou Team: 45+ consultants

4 AGENDA Feb 2011

5 Order processing cost WHAT IS VMI? Evolution of inventory management High BMI (Buyer Managed Inventory) CMI (Co-Managed Inventory) VRI (Vendor Replenished Inventory) VMI (Vendor Managed Inventory) Low Buyer Decisions made by: Supplier

6 WHAT IS VMI? VMI (Vendor Managed Inventory) also known as SMI (Supplier Managed Inventory) one of the logistics management mechanisms. It involves optimization of the supply chain operation as a result of the purchaser s inventory management performed by the manufacturer, who decides on the time and volume of delivery, while ensuring full availability of products. Buyer Delivery documentation + Invoice Minimum stock levels Sales information + Quantity of stock Supplier

7 WHAT IS VMI? Foundations of VMI Effective inventory management Logistics costs reduction Inventory levels reduction Supply chain integration Exchange of information Cooperation key to success Remote access to collected data

8 VMI usage across Europe ECR Europe conducted a research concerning the degree of VMI usage in Europe (2014). Switzerland is the undisputed leader in VMI adaptation. VMI is the dominant method of inventory management in FMCG retail in Switzerland (estimated over 75%). VMI is widely used in Germany and France (estimated 50%). Other countries report much lower degree of VMI usage. Austria and Italy estimate usage at 10-25%, other countries at less than 10%.

9 AGENDA Feb 2011

10 Step by step VMI implementation Assessment of business needs Be mindful of VMI advantages, as experienced by other companies. Use savings calculator to estimate gains & losses.* Identify risks of VMI implementation and plan mitigation strategies and actions. Develop and present a business case for top management & board; ensure their full support and engagement. *

11 Step by step VMI implementation Implementation timetable VMI Project % comp Assessment 50% Business plan 75 Plan 40% Team & timetable 25 Target 60% Products 90 Suppliers 80 Inventory 40 Contract 40% KPI & contract signing 60 System implementation 45% Process mapping 10 EDI 10 Roll out 5 Test 5 Employee training 5 Go-Live 5 Assessment Designated employee Plan Designated employee Target Designated employee Target Designated employee Target Designated employee Contract Designated employee Milestone Roll out Roll out Designated employee Designated employee Roll out Designated employee Roll out Roll out Roll out Milestone

12 Step by step VMI implementation Selection of products categories & supplier

13 Inventory levels Step by step VMI implementation Contracts Measurements of effectiveness Inventory levels MAX MIN Time

14 Step by step VMI implementation Contracts Measurements of effectiveness Inventory levels Supplier Buyer Inventory levels Efficiency Cost reduction Increase in sales Customer s satisfaction

15 AGENDA Feb 2011

16 Key success/failure factors B MUTUAL TRUST QUALITY OF BUSINESS RELATIONSHIPS PARTNERS INVOLVEMENT B ACCURACE OF DATA (INVENTORY & SALES) T RELIABLE IT SOLUTION BASIC PRODUCT INFO I PROCESSES MODIFICATION & STAFF TRAINING EXTENSIVE SUPPORT OF THE BOARD EXPERIENCED & DEDICATED PROJECT MANAGER T I

17 AGENDA Feb 2011

18 Implementation example Spare parts warehouse L Oreal

19 OptiBuy L Oreal Spare parts warehouse Cooperation based on extensive experience, advanced tools and methods with the support of designated plant oficer Monthly and annual delivery reports Delivery analysis & supplier s assortment variation optimization

20 OptiBuy L Oreal Vending machines Unlimited access to personal protection equipment, 24/7 Registry of every dispensed PEE item 35-45%

21 Contact details Mateusz Borowiecki CEO OptiBuy Sp. z o.o. ul. Jana Kazimierza Warsaw Poland Tel mateusz.borowiecki@optibuy.com