Market trends analysis

Transcription

1 3 7.5% 7.5% 7.5% 80% 10% 4% 2% 2% 2% 50% MRO Inventory Management 5% 50% Market trends analysis 45 0% 135 1

2 Thank you For your cooperation filling the Questionnaire: identifying the most costly challenges within the manufacturing supply chain 2

3 Market trends on MRO inventory management A growing number of 3 7.5% advanced manufacturing companies 7.5% recognize that integrated inventory 80% 2% management 10% partnership with a 2% 4% 2% professional service provider 50% can generate substantial 5% savings, reduce 50% complexity and help to concentrate 45 resources on core business operations. 0% 7.5% 135 3

4 MRO Facts and Figures - suppliers Up to % suppliers 60%

5 MRO Facts and Figures SKU s s of Parts 5

6 MRO Facts and Figures Spending $500billion a year consumption in the United States alone 6

7 Supply chain 24/7 MRO Facts and Figures Spending 3 And it s GROWING! 7

8 MRO Facts and Figures Spending The amount of annual spend for a typical company is significant. Or More 15% Of Total spend 8

9 MRO Facts and Figures Spending 5% - 10% Of the inventory is a Dead inventory Increases year over year 9

10 Maintenance MRO Management Challenge.. Finance MRO Engineering Purchasing management is a challenge Your TCO increase 10

11 STDEV Avg Executive Executive Director CEO EVP Assistant VP CEO Chairman VP VP VP Strategic purchasing Mgr. CEO VP Sourcing Director Board member GSEF Questioner results analysis 1 What is your company s Annual Revenue? 3 2 How much inventory do you estimate your company holds? 3 Approximately how many vendors are involved in supplying your inventory? 4 Approximately how many SKU's (part numbers) does your company s inventory include? 5 How much of a priority is inventory consolidation to your company? 6 How much impact would a consigned inventory have on your company? 7 How much of a priority is reducing purchased inventory costs to your company? 8 "Dead inventory" is typically defined as inventory that has not been used over the past 18 months - a How much of your total inventory would you estimate is dead inventory? b How important is it for your company to reduce your dead inventory? 9 How likely would you/your company be to use an external operational resourceto manage your inventory? Scoring Scale 1-5 Results

12 1 2 GSEF Questioner results analysis 3 >60% Scored 4 or 5 for Consolidation Dead Inventory Almost 50% Scored 4 or 5 for Consignment Unit Cost reduction

13 Common solutions Complementary ways to simplify & reduce cost of MRO Internal Software Resources Extra FOCUS VMI Vendor Managed Inventory JIT, TSM Consignment Super Supplier Tool set Capacity MRO inventory, Engineering & Maintenance scope are outsourced Consign, consolidate & COMMIT to KPI s (operational, $$$)

14 Inventory Management Solutions About UTi-IMS UTi-IMS is the inventory management solution provider to some of the world s top high-tech manufacturers Established in 2004 under the name EMA Bringing benefit across industries semiconductor fabs & microelectronics manufacturers advanced production facilities A wholly-owned subsidiary of UTi Worldwide, a global company with annual revenues of $4.6B 14

15 Part of a Comprehensive Global Network AFRICA 67 Offices & Facilities in 7 countries 44 Logistics Centers in 1 country Ireland Oregon Boise Boston AMERICA 70 Offices & Facilities in 9 countries 53 Logistics Centers in 3 countries California Phoenix New Mexico Texas Israel China Malaysia ASIA 94 Offices & Facilities in 17 countries 46 Logistics Centers in 7 countries Costa Rica Singapore EUROPE 132 Offices & Facilities in 26 countries 38 Logistics Centers in 13 countries 15 UTi Revenue by Region

16 UTi IMS: Unchaining Inventory A unique solution to manage inventory for global companies Consolidated consignment for MRO and spare part inventory from a streamlined single source Pay for parts at time of consumption 16

17 A Superior Customer Experience Substantial savings Free cash flow Increased competitiveness Reduced complexity Unmatched 360 service 17

18 The UTi-IMS Promise Delivering benefits across the organization Reduced Cost of Inventory Reduced Complexity Reduced Transaction Costs Reduced Overhead Alternate Sourcing Volume Discounting Original Part Manufacturers Material Cost Reduction Consolidate 000s of Suppliers into 1 Supplier Access to a Global Virtual Warehouse Simplify Repair Loops Ensure High Quality Working with 1 Currency Local Procurement Net Reduction in Bank Charges PO Costs Logistics Costs Transaction Costs Inventory Holding Costs Obsolescence Risk Cash-to-Cash Cycle Pay on Consumption Reduction of Inventory Overhead Costs Ability to Redeploy Capital V 18

19 Working Together A Unique Methodology Saving money & increasing cash flow Unmatched 360 service Inventory optimization & advanced IT Transparency Universality Substantial savings AND increased free cash flow (FCF) with pay-onconsumption from global supplier network Close to the customer, continually increasing value Specialized tools and advanced models to optimize inventory A true partnership based on an open books model Fits any customer, any volume, and MRO activity in any geography 19 Skip

20 Saving Money & Increasing Cash Flow UTi-IMS implementation saves money from day 1 Cost Saving factors: Increased free capital, reduced inventory financing cost Reduced operation cost (transaction cost) Reduced incremental dead inventory Reduced unit cost: economies of scale, direct & alternate sourcing Your purchasing team can add value on real commercial activity, and get great deals for the company 20 Skip

21 360 Service 24/7 service to production, procurement and engineering teams an integral part of operations, dedicated to the client site cost-focused and transparent integrated simply within the pre-existing operation deep understanding of production requirements, engineering sensitivities and procurement constraints 21 Skip

22 Inventory Optimization & Advanced IT "Practice makes perfect 100's M inventory units over many years developed various algorithms and support systems to ensure efficient inventory management Worldwide activity enables us to balance inventory, shift inventory where needed, and support machine downs & shortage events Advanced IT platform ensures high operational performance and accuracy 22 Skip

23 Transparency Our pricing is transparent only one charge a flat percentage paid for any consumed part Willingness to work in "open books" method We represent you, and our cost-saving model ties our benefits to yours 23 Skip

24 Universality We can serve you in any location, leveraging the worldwide reach of UTi Working with 1 Currency Local Procurement (vs. import/export) Our methodology and services are appropriate for any industry Full scope - no cherry picking 24 Skip

25 Results IMS implementation with typical client Free Cash flow EOH $ Z.B% (Average) Risk DOI (linear) Cost saving 12 Pre Implementation Implementation process Maintenance

26 The UTi-IMS Customer Experience Operation performance availability Operation performance Year to Year savings Cost saving Cash flow Cost of inventory 26 Before Implementation IMS Sustain

27 WW31 13' WW36 13' WW41 13' WW46 13' WW51 13' WW4 14' WW9 14' WW14 14' WW19 14' WW24 14' WW29 14' WW34 14' WW39 14' WW31 13' WW36 13' WW41 13' WW46 13' WW51 13' WW4 14' WW9 14' WW14 14' WW19 14' WW24 14' WW29 14' WW34 14' WW39 14' WW31 13' WW36 13' WW41 13' WW46 13' WW51 13' WW4 14' WW9 14' WW14 14' WW19 14' WW24 14' WW29 14' WW34 14' WW39 14' SIN Operational Performance 16.00% SIN Zero Bin $1,800,000 SIN Inventory Value 14.00% 12.00% 10.00% 8.00% 6.00% 15.72% ZB Goal MSA ZB AVG Linear (MSA ZB AVG) $1,600,000 $1,400,000 $1,200,000 $1,529, % 2.00% 0.00% 2.07% $1,000,000 $800,000 EOH Singapore $600,000 $400,000 $200,000 $0 $323,651 Linear (EOH Singapore) 25.00% 20.00% 20.82% SIN High Risk HR Goal 15.00% MSA HR AVG 10.00% Linear (MSA HR AVG) 5.00% 0.00% 0.77% 27

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29 With a little data and a few mouse clicks, instantly show your these handy calculators savings and the expected cost of working with us. 29

30 We ll honor transform the projected reality. Contact us your results and will cash flow and start saving money savings into now to free up your today! 30