How to reduce cost tied up in your supply chain Dermot Connolly - PowerPoint PPT Presentation

How to reduce cost tied up in your supply chain Dermot Connolly Head of Business Development

Who We Are Exertis Supply Chain Services is a leader in materials supply chain design & operation; delivering cost, capital & complexity optimisation for our global clients A member of one of the largest and fastest growing technology distribution & supply chain management businesses in Europe Part of DCC plc, a FTSE 100 In business for over 30 years company with combined annual DCC Technology (Exertis) $3 billion turnover per annum sales of over $16 billion

Our Parent Company Separate divisions focused Operations in on Technology, Energy & 15 countries Healthcare Sales of $16bn Headquartered in per annum Dublin, Ireland A FTSE 100 10,500 employees listed company

Where We Are We have global operations and partnerships spanning six continents

Why Are We Here? Traditional Integrated Supply Logistics Chain Management

The ‘Now Generation’ Customer Inaccurate te Foreca Fo casts Oper erati tional 5 x Rs 5 x Rs: Fo Focus • Product • Cost • Is Tec ech S Savvy vvy • Place • Is Global a and nd Mul ultic icul ultural Excess & ss & • Time • Demand nds I Ins nstant G Gratification Obsoles escen ence e • Desir ires a an n Omni ni-cha hanne nel O l Option • Quality • Exp xpects Product Q Qualit ity & & Ser ervice • Expe pects N New Produ duct I Inno nnovation Lac ack o k of Liquidity

So Who Is Affected? Sm Small ll, y young f firms You Are! Require operational & transaction efficiency Need to focus on brand building & NPD Large ge, m matur ure c compa pani nies es Need to deliver customer intimacy Ensure operational effectiveness 3P 3PLs

The Trend… Working Capital Days by Sector (2016) Warehousing Freight Costs Costs Sales = es = V Prof Pr ofit = = S Cash = sh = R Inventory Cash Tied Holding Up in Inventory

Our Solution Supplier Engineering Materials Procurement Kitting & Inventory Supplier Sourcing Management Design Services Postponement / Selection Pay on Consumption Model End to End Process Global Inventory Inventory Logistics Distribution Financing Hubbing

Bottom Line Benefits Watch the video: https://www.youtube.com/watch?v=r4RlFXHHgFU&t=3s Minimising Cost Optimising Capital Reducing Complexity Consolidated Best value materials Materials supply supply base matched with demand Reduced inventory mgmt. Managed material sourcing, overheads & materials Release of cash tied up procurement & fulfilment supply chain costs in stock

Case Study Examples “Managin ging t g the T Tail” l” Materia Ma ials ls Plannin ing Inv nvent ntory F Financ ncing (Comple lexit ity Mgm Mgmt) & Procurement & Ma Materia ials ls Mgm Mgmt. Problem em Problem em Problem em Large, mature multinational company Complexity and cost of managing High growth US based co. challenged with managing many suppliers 130 global suppliers into one struggling with cost & complexity with small spend. factory production site. of supply network from Asia to US. Solut lutio ion Solut lutio ion Solut lutio ion Global Procurement and Materials Mgmt - A single interface Global Materials Materials Planning, 150 suppliers reduced to 1 across 5 manuf. Management & Inventory Procurement and Sub-assembly. locations in Europe & US. Financing Solution. Result ult Result ult Result ult $1 Million drop to bottom line. Operational restructuring, improved Significant year-on-year working working capital, stock off balance sheet. capital improvements.

Thank you for listening Any Questions?