SCOPE East

Orlando, April 2010

CK Leung

Schick-Wilkinson Sword

An Energizer Company

Energizer Holdings, Inc. (ENR) is a consumer goods company operating globally in

the broad categories of household and personal care products. We currently offer

solutions in portable power, lighting, wet shave and personal grooming, skin care,

feminine care and infant care.

Manufacture & Distribute system and disposable shave products for men and women

Market in > 140 countries

World # 2 in wet shaving

Acquired Edge in 2009

> 1 B revenue

2005 2010

Supply Chain

Strategy?

Lead time

Forecast accuracy

Inventory

Flexibility and Responsiveness

Cost

Customer satisfaction

Demand driven

fragmented systems around the world

NA AP EU LA

Plan

ERP

Plan Plan

ERP

ERP

ERP

Strengthen the demand planning organization

Apply lean, pull and postponement strategies in different manufacturing locations

Integrate demand and supply planning processes

Improve the Global and Regional S&OP processes

Implement Global instance of MGX and SAP

Revisit the Sourcing strategies

Regional Demand Planning function established

Clarified Forecasting accountability

Aligned Performance Measures

The scope:– Single instance of Manugistics and SAP in all

regions

Common Systems

NA AP EU LA

Plan

ERP ERP

Project Team

Steering Committee

ExecutiveSponsors

Project Management

Team

Procurement Finance Production Demand Fulfillment S&OP

Process Owners & User Community

Project Approach– Design Phase

• Dedicated team members• 6 months

– Implementation Phase• 4 regions• 18 months

Process Design– Manugistics (demand & fulfillment)– SAP– 6 months

Virtual Factory

Overview of Supply Planning - Integrated with ERP

Inte

gra

ted

Pla

nn

ing

3.1

WIP Capacity

Planning

3.2

Packaging

Capacity

Planning

WIP and

Packaging

Master

Production

Schedule

Material Planning

and Detail

Capacity Planning

2.3

WIP

Replenishment

Planning

Latest Forecast

2.1

Market

Replenishment

Planning

2.2

Plant Packaging

Replenishment

Planning

Latest

Production

Plan at

Integrated

Planning

4.1

(FG) Deployment

Planning

Updated

Production

Plan based

on Planning

Results

Production

Execution

4.2

Deployment

Execution

Next Cycle can be started after

this point

Remark:

WIP in Manugistics: Interplant Components

and all WIP that shares Capacity with them.

ERP

OTC

Regional Global

RSOP & GSOP

RSOP & GSOP– The way to drive business forward– Local Regional Global– Discipline– Right focus– Leadership– Education & Training

17 implementations world-wide– North America, Asia, Europe & Latin America

Over 150 Colleagues/Consultants involved– Local user led project structure

Aggressive implementation plan– 24 months from design to going live

Global Governance Team– Members came from existing users around the

world

Roles & Responsibilities– Provide supports to fellow/new users– To identify improvement opportunities– To evaluate and approve change requests on

business– Maintain policies and procedures– Ensure compliance– Resolve Global Vs Local process conflicts

In 2007, all systems went live successfully...

but, this was not the end...

Energizer acquired Playtex

Integration began

Project Sunshine provided a robust platform for new business migrations

not that easy, though...

Resources

System Capacity

Change Management

Communication

Integration Vs Improvement

Understanding of the New Business

Timeline Pressure

All set and done in 9 months!

Thanks to the

Global

Governance

Team !

OK, time to revisit our strategies...

Product Life Cycles– newly launched Vs declining products

Customer Preferences– high end products

– low cost products

– cosmetics

Competition Situations

Market Economic Situations– developed markets

– emerging markets

Sales Channels

Political Environment and Regulations– import duties / restrictions

Supply chain opportunities and risks– shift in costs

– new materials / technologies/ suppliers

– other interruptions

There is no one size fits all

solution!

Whatever solutions we

have developed, they will

be changed later !

30

We have to be agile in

order to survive the ever

changing environment !

Agility is the ability to:– provide a broad range of products cost-effectively– respond to customer demands and marketing

events in the shortest possible time without increasing total cost

– accommodate volume variations without increasing total cost

– anticipate market dynamics and implement winning strategies

Create Value under

the Continuous Changing Environment31

Superior Services Cost

SpeedWorking Capital

Flexibility

Productivity

>98%

Customer Segmentation

Cost to serve

Demand sensing

Inventory Optimization

Customer & Supplier Integration

Supply Chain Visibility

Flexible sourcing strategies

Design for Agility

Risk Management

Strategic Supply Chain Management– Transformation is a process keep transforming– Knowing the purposes is of paramount importance– Define the supply chain(s) and view it holistically– Define/redefine core competence– Off-shore + Near-shore– Finance is our alliance Where is the real money?– Choose the right mix of performance measures

People– Education, Education & Education– Rewards drive behaviors– Never take away the ownership– Collaborate, not compromise– The best training program Sharing

Process– Invest enough resources to develop the right

processes– There is no “one size fits all” solution– The best practice the practice fits us most and

delivers results

IT Systems– Most of the time, it’s not their fault– Process drives IT specifications– Customization Vs Standardization– Enabler Vs Cost center– Pick the right modules, not all– There is no magic button