Presented by:

Steve Sigrist

VP Sales Operations & Supply Chain, Newell Rubbermaid

Creating an Effective Linkage

between Sales, the Customer,

and the Supply Chain.

April 2010

About Newell Rubbermaid

» We are a global marketer of consumer and

commercial products that touch the lives of

people where they work, live and play.

» Headquartered in Atlanta, GA

» Approximately 23,500 employees worldwide

» NYSE: NWL

» 2009 Net Sales: $5.6B

» Aligned into 3 Major Business Segments

3

Business Segments

3

Office Products

Tools, Hardware & Commercial Products

Home & Family

ERP Implementation

November 2007

April 2008

July 2009

April 2010

5

Creating an Effective Linkage between Sales, the Customer,

and the Supply Chain.

Strategic Planning

Business Planning

Executive Sales and

Operations Planning (S&OP)

Master Production Scheduling

(MPS)

Detailed Planning &

Execution Systems

VOLUME

MIX

MRP, Plant scheduling, Supplier

scheduling, transport scheduling, etc…

Fo

reca

sti

ng

&

Dem

an

d p

lan

nin

gC

ap

ac

ity/ in

ve

nto

ry p

lan

nin

g

Integrated Business Model (example)

Strategic Planning

Business Planning

Executive Sales and

Operations Planning (S&OP)

Master Production Scheduling

(MPS)

Detailed Planning &

Execution Systems

VOLUME

MIX

MRP, Plant scheduling, Supplier

scheduling, transport scheduling, etc…

Fo

reca

sti

ng

&

Dem

an

d p

lan

nin

gC

ap

ac

ity/ in

ve

nto

ry p

lan

nin

g

Integrated Business Model (example)

Strategic Planning

Business Planning

Executive Sales and

Operations Planning (S&OP)

Master Production Scheduling

(MPS)

Detailed Planning &

Execution Systems

VOLUME

MIX

MRP, Plant scheduling, Supplier

scheduling, transport scheduling, etc…

Fo

reca

sti

ng

&

Dem

an

d p

lan

nin

gC

ap

ac

ity/ in

ve

nto

ry p

lan

nin

g

Integrated Business Model (example)

9

Point of Sale

Performance at the

Customer

Internal Incentives

“Buyer Behaviors”

Competitive Skus

Gains Or Losses

General Market Data &

Direction

Recent Competitive

Gains or Losses

GBU Promotional

Schedule or Launch

Positive or Negative

Feedback About

Market Conditions

Store Disruptions (due

to resets, changes,

etc.)

Private Label Impact

Level of Markdown

Support Provided to

Customer

Syndicate Data Results

/ Key Indicators

Current Inventory

Position or Weeks of

Supply Considerations

Customer Buying

Plans – Open to Buy

$’s

Changing Retail Price

Points in the

Marketplace

Positive or Negative

Feedback About

Market Conditions

Customer Rebate

Programs

Customer Event

Schedules

Unexpected Customer

Events

Sales Results at Other

Customers

Recalls / Returns

Impact

Consumer Insights

(Market Basket)

Customer CPFR or

Forecast Data

Current or 1st Week

Deployment Trends

Impact of Store

Openings or Closings

Margin vs. Top Line

Initiatives for the Buyer

/ Retailer

Customer Department

Performance Data

Impact of Key End-

User or Fashion

Trends

Impact of Current

Supply Chain

Constraints

Demand Anticipation

Based on the Buyer’s

Current Goals

Fineline Performance

Data

Competitive Chain

Performance or

Response Plan

Impact of Direct Import

Programs

Payment Terms

ConsiderationItem Performance Data

Seasonal Volume

Spikes. End of

Season Impact.

Minimum Order

Quantities, Packs,

Packs Size, etc.

Customer Operating

Structure Changes

Line Reviews &

Schedule

Evaluation of Sales

Results at Other

Customers

Impact of Supply

Shortcomings

Current Performance Market ForcesCustomer

Organization

Buyer-Specific

Behaviors

Manufacturer

Developments

Dem

an

d In

pu

ts &

Sig

nals

10

What’s in it for me?

Creating An Effective Linkage

11

Sales

The Customer

Supply Chain

Creating An Effective Linkage

12

Sales

The Customer

Supply Chain

Growth!

Linkage Enabler

Creating An Effective Linkage

13

Sales

The Customer

Supply Chain

Suspected

Opportunities

Linkage Enabler

Creating An Effective Linkage

14

Sales

The Customer

Supply Chain

Issue

Resolution

Linkage Enabler

Benefits of An Effective Linkage

15

Sales

The Customer

Supply Chain

Growth!or

Accelerated Growth

and Profitability

The Reward

Requirements…

16

Confidence…In Your Methodology for

Identifying & Solving Problems

In Your Ability As An Operator

In Your Ability To Give Them A

Situational Assessment

In Your Ability to Communicate

In Your Ability to Prepare Them

to Communicate

What The Customer and the Sales

Teams Want from Supply Chain…

What Supply Chain Wants from

The Customers & Sales Teams…

Insight…Key Operating Performance

Measures & Initiatives

Insight on Inventory Position

and Current Strategy

Key Demand Developments

Customer Compliance

Requirements

Where We Suspect There Are

Productivity Opportunities

17

How Do You Do This?

My Pillars of Supply Chain Excellence

Speed

Manage Variations Root Cause Analysis

Customer Alliances

Order Flow: What’s Open, What’s Late,

What’s Not Meeting Customer Expectations

Improved Transportation Productivity

The Perfect Order: Better Insight to the Factors

Impacting The Key Customer Service Metrics

Supply Chain Linkage (3 Current Focus Areas)

Order Flow: What’s Open, What’s Late,

What’s Not Meeting Customer Expectations

Improved Transportation Productivity

The Perfect Order: Better Insight to the Factors

Impacting The Key Customer Service Metrics

Supply Chain Linkage (3 Current Focus Areas)

Order Flow

develop an improved and more informed perspective on the developments, root

causes, required response plans, timing off issues, and resource support needs.

What Are the Open Orders / Key Dates?

What Orders We Are Expecting?

What Orders Are Late? What’s at Risk of Being Late?

Are We In-Sync with the Expected Replenishment Cycle?

What Are the Supply vs. Demand Considerations?

Improved Order Flow Management = Builds Confidence

Leverage the Improvements with Best Practice Sharing

Ben

efits

On

go

ing

Exa

min

atio

n

Order Flow

2.) Get These in Sync…

Rate of

Sale

Case

Pack Qty’s

1.) Eliminate Variability…

Increases to Lead TimeLate Shipments Fill Rate Shortcomings

Lead to..

Increased Need for Safety Stock

P.O

.S. E

xec

utio

n

Less T

han

100%

Store Receipt

Unforeseen Volume

Count Difficulty

Clerical Error

Timing

Damaged

In Transit

Other Vendors

Labor

Shortage

Order Entry

Discontinued Item

EDI & Order Errors

Sku Set Up

Item Maintenance

Vendor Fill

Rate Issue

Merchandise Planning

Low Priority

Limited

Resources

Other

Priorities

Not Planned

In Backroom

Over Inventory

Marking Errors

Wrong Location

Store Service

Labor

Availability

Wrong

Focus

Personnel

Capabilities

Training

Gap

Wrong

Dept. Location

Not Set

To POG

Product Placement

Packaging Errors

Wrong Count

In System

Difficulty to Access

Multiple

Locations

Label Errors

No Entry

Late Entry

Insufficient

Time

Damaged

at StoreCommunication

Insufficient

Qty

Damaged

Package

Pricing Errors

Serv

ice L

evel

Less T

han

100%

Logistics Elements

Carrier Related

Plant to DC

Lead Time

DC Out of Stock

Dock Capacity

AvailabilityAppointments

Schedule

Peak

Period

Load Packaging

Damaged

Transit Time

DC Turn Time

Order Receipt

Discontinued Item

EDI & Order Errors

Processing Time

Inaccurate Qty’s

Batch Processing

Delays

Manufacturing

Capacity Issue

Quality Issues

Supplier Related

Raw Materials

Allocation

Machine Staffing

Order Fulfillment

“Rush” Order

Keying Errors

Order Backlog

Staffing

Label Errors

WMT N/RPick Error

Inventory

Position

Manu. Forecast

ForecastNo

Forecast

Forecast

Errors

POS Errors

Pack Qty –

Not to R.O.S

Unforeseen

Demand

Weather

Related

Plant

Disaster

Theft

Miscellaneous

Limited or No

Contingency Plans

Labor Strike“World

Events”

Over In

ven

tory

Po

sitio

n

Supply Chain

Visibility

Replenishment

Market Related

Demand Signal

Promotional Miscue

Order Flow Execution

Promo Vehicle Size

Store Stratification

Promo Timing

Market Environment

Competitive Options

Competitive Retailers

Price Inelasticity

Wrong Items

Store Execution

POS Inattention

Bullwhip Impact

Extended Lead Time

EDI & Order Errors

System Settings

Missed Store Group Qty’s

Not Recognized

Recognized Late

Misaligned Incentives

Misinterpreted

No Consensus

Demand Evaporation

Timing

Forecast Bias

Pack/Carton Size

Low Priority

No Attention

Suspected Non-Issue(s)

PI Impact

Count Errors

Order Flow: What’s Open, What’s Late,

What’s Not Meeting Customer Expectations

Improved Transportation Productivity

The Perfect Order: Better Insight to the Factors

Impacting The Key Customer Service Metrics

Supply Chain Linkage (3 Current Focus Areas)

Transportation Productivity

Transportation Productivity

Shipping Dock Door

Full

EmptyAdd

53’ T

raile

r

Transportation Productivity

Shipping Dock Door

Full

Benefits:

• Productivity

• Accurate Picks

• Improved Lead Time

• Reduced Freight

Empty

53’ T

raile

r

Cu

be o

r Mile

ag

e

No

t Op

timiz

ed

Order Cycle

Replenishment

Settings

DC Load Plan

Ship Day

Schedule

Order Profile

Item or Display

Profile

Resources

Policies

Seasonal Profiles

Promotions

Inventory/POS

Load Scheduling

Timing

Collaboration

Routing/Appts

Constraints Specifications

Spatial Mgmt

Double Stack

Structural Integrity

Weight

JIT/DI?

Level Load

Missed Appointments

Reefers

Allocation

OUTL/Ceiling

Min/Floor

Rounding

Pallets/Layers

LT Settings

Productivity

Pooling?

Co-Loading

Frequency

OTR/Rail?

Order Flow: What’s Open, What’s Late,

What’s Not Meeting Customer Expectations

Improved Transportation Productivity

The Perfect Order: Better Insight to the Factors

Impacting The Key Customer Service Metrics

Supply Chain Linkage (3 Current Focus Areas)

Serv

ice L

evel

Less T

han

100%

Logistics Elements

Carrier Related

Plant to DC

Lead Time

DC Out of Stock

Dock Capacity

AvailabilityAppointments

Schedule

Peak

Period

Load Packaging

Damaged

Transit Time

DC Turn Time

Order Receipt

Discontinued Item

EDI & Order Errors

Processing Time

Inaccurate Qty’s

Batch Processing

Delays

Manufacturing

Capacity Issue

Quality Issues

Supplier Related

Raw Materials

Allocation

Machine Staffing

Order Fulfillment

“Rush” Order

Keying Errors

Order Backlog

Staffing

Label Errors

WMT N/RPick Error

Inventory

Position

Manu. Forecast

ForecastNo

Forecast

Forecast

Errors

POS Errors

Pack Qty –

Not to R.O.S

Unforeseen

Demand

Weather

Related

Plant

Disaster

Theft

Miscellaneous

Limited or No

Contingency Plans

Labor Strike“World

Events”

33

Where to start….

34

Improved Ongoing Performance

Proactive Solutions

Smarter Deployment of Resources

Better Follow-Up Data

Better Communication

Improved Reaction Time

Improved Operational Knowledge

Prioritized Request for Response

Operational Improvement “Stair Steps”

Understanding What We Need to Look At / What We Need to Manage

Improved Visibility Foundational

Requirements

Action

Steps

Targeted

KPI’s

35

Improved Ongoing Performance

Proactive Solutions

Smarter Deployment of Resources to Remedy Issues

Better Follow-Up Data

Better Communication

Improved Reaction Time

Improved Operational Knowledge

Prioritized Request for Response

Operational Improvement “Stair Steps”

Understanding What We Need to Look At / What We Need to Manage

Improved Visibility

Targeted

KPI’s

Stumble Factors…

» Multiple Data Sources

» Vast Amounts of Data

» Lacking Report Clarity

» Resource Constraints

» Time Constraints

» Different Audiences with Different Agendas

» Business Tools Are Not In Place to Solve the Challenges

36

The Objective…

» What Does the Desired End-State Look Like?

37

Easy to Use: It’s Not Disruptive Process

Can Be Easily Repeated!

Prompts Appropriate & Timely Corrective Action

Addresses the Right Topics / Answer The Right ?’s

Delivered in a Format Everyone Can Work With

38

How Do You Do This?

Examine Data & Reporting Processes

39

POS &

Inventory Data

Customer

Order Data

Order &

Shipment Data

Other

Sources

Collect, Analyze,

Manipulate, Chart, &

Add Insights

Collect, Analyze,

Manipulate, Chart, &

Add Insights

Collect, Analyze,

Manipulate, Chart, &

Add Insights

Collect, Analyze,

Manipulate, Chart, &

Add Insights

Excel, PowerPoint, or

Email

Excel, PowerPoint, or

Email

Excel, PowerPoint, or

Email

Excel, PowerPoint, or

Email

BI Tool or

Internal Process

BI Tool or

Internal Process

BI Tool or

Internal Process

BI Tool or

Internal Process

Action OutputAggregation

Streamline the Process

1.) Organize Data Sources (already done)

2.) Connect to Data Source

3.) Build Presentations in the Final Format

4.) Distribute / View Presentation

Bottleneck Potential

POS &

Inventory Data

Customer

Order Data

Order &

Shipment Data

Other

Sources

Select the Key Metrics

41

Determine The Format

42

43

Creating an Effective Linkage between Sales, the Customer,

and the Supply Chain.

Key Success Drivers

» Understanding of Customer Expectations

▪ What Do They Want To See?

▪ How Do We Distinguish Our Capabilities vs. Our Competitors?

» Understanding of Internal Challenges

▪ Where Do We Have Issues?

▪ What Data Can I Leverage?

» Understanding of the Technology Landscape

▪ Deployment with Legacy Operations & New Initiatives

▪ Avoiding Integration & More Complications (added cost & time)

▪ Determine What is a Feasible Investment and Realistic Return

Fo

r N

ew

ell

Rub

be

rma

id…

Questions