Agenda
- Global Process Improvement Plan Development Timeline
- Our Process
- How We Get There …
- Supply Chain “Core Competence “ Strategy
- Our Goal
- Associated Costs
- Implementation Schedule - Wave 1
- Team Process
- Process Improvements
- Risks
Our Process
Scope
Total cost of goods and services associated with $300,000,000 supplier spend at Acquire
Purchasing Team Approach
- Spend analyzed by Commodities/Services
- Analysis Worldwide
- Cross-Functional Teams to Implement
EVA Driven
- Purchase Price
- Logistics
- Packaging
- Warranty
- Transaction Costs
- Working Capital
End Results
- Lower Net Material Cost – OEM & Service
- Reduced Operating Expenses
- Lower SG&A Costs
- Lower Working Capital
Our Goal
Since we purchase $300 million of goods and services at Acquirer … material procurement and supply chain management must be a “core competence” at our NewCo.
Goal: At least $20 million of savings realized in year one ...