Brambles Limited · ASX:BXB
Brambles — Investor Day (October 2007)
47 slides from Brambles's investor day presentation, Oct 26, 2007
Slide 1: CHEP Operations Review
CHEP OPERATIONS REVIEW ORLANDO, FLORIDA 26 OCTOBER 2007
Slide 2: Information Systems at CHEP
INFORMATION SYSTEMS AT CHEP DONNA SLYSTER SVP, IS and CIO
Slide 3: CHEP's World Class Systems
CHEP’s WORLD CLASS SYSTEMS • Integrated Software Platform – SAP & Business Warehouse – Portals – Siebel – Manugistics – Factory Management System / ePASS – RFID • Supply Chain Scope – Almost 1M trading partners globally – >320K EDI files per month – >90 Terabytes of data • Focus areas – Real time ac
Slide 4: SAP & Business Warehouse
CHEP’s WORLD CLASS SYSTEMS SAP & BUSINESS WAREHOUSE Handles transactional processing for Finance, Sales & Distribution, Logistics, Asset Tracking (Stocks and Flows), Operations, Purchasing, Pricing and Invoicing • Single SAP system globally C E F • Robust business warehouse • Workflow tools (SRM & E
Slide 5: Portals – Actionable Information 24x7
CHEP’s WORLD CLASS SYSTEMS Portals – Actionable Information 24 X 7 PORTFOLIO PLUS: Place orders, report movements, view online reports and invoices and perform Customer Agreed Transactions (CAT) • 40k+ Customers globally • 47% of Orders • 31% of Movements • Enabler for European GM and Ford contract
Slide 6: Portfolio Plus - Future Release
PORTFOLIO PLUS - FUTURE RELEASE Account Dashboard: Latest position & 3 month KPIs 6
Slide 7: Portfolio Plus – Future Release
PORTFOLIO PLUS – FUTURE RELEASE Account Summary: Master data, Invoices, Customer Care 7
Slide 8: Siebel Customer Relationship Management
CHEP’s WORLD CLASS SYSTEMS Siebel Customer Relationship Management: Call Center, Sales Funnel Tracking (Miller Heiman), and Account Audit Tracking • Used globally by sales team • Improved customer responsiveness • Reduced the sales cycle & improved the close ratio • Enabled standardized processes (a
Slide 9: Manugistics
CHEP’s WORLD CLASS SYSTEMS Manugistics Enables sophisticated optimization of service center & logistical spend to meet customers needs on time and at the lowest possible cost. • Continual strategy modelling to optimize for new customers, TPMs and service centers • Daily planning based on customer de
Slide 10: Factory Management System
CHEP’s WORLD CLASS SYSTEMS Factory Management System • Provides real time plant data collection, metrics, monitoring & reporting • Installable at service centers and TPM locations • 33 FMS installations globally ON TIME PRODUCTION IS CRITICAL FOR ON TIME CUSTOMER DELIVERY 10
Slide 11: EPASS Solution Danbro Canada
EPASS SOLUTION DANBRO CANADA EPASS will deliver a best in class lean supply chain process that reduces operational lead time, eliminates waste and achieves transaction information. • Functionality – Appointment scheduling – Dock and yard management • Key Elements 7 89 1 1 6 0 1 – Portal appointment
Slide 12: EPASS Inside the Plant
EPASS Inside the Plant Delivery # Door Number Status Vehicle ID % Complete Time in Yard Minutes at Dock Remaining time 12
Slide 13: RFID Technology Leadership
CHEP’s WORLD CLASS SYSTEMS RFID Technology Leadership MIT Field Test Wal-Mart USA/ USA DOD Global RFID Tag INDUSTRY CHEP, P&G, Unilever Mandates (Gen1) Available (Gen2) As the supply chain adopts MIT Auto ID CHEP RFID Track & Trace RFID, Omniview Florida Pilot Pallet Initiative Application CHEP is r
Slide 14: Global Scale: Delivering Superior Customer Service
GLOBAL SCALE Delivering Superior Customer Service • World Class Scalable Solutions • Operational Excellence – IS initiatives return > $15M BVA • Customer Satisfaction – Actionable information, Supply chain monitoring, and tools – Making CHEP easier to do business with CHEP IS UNIQUELY POSITONED TO P
Slide 15: CHEP Systems Technology
CHEP SYSTEMS TECHNOLOGY We run it as a business • Basic assumptions – Meet business requirements BVA CUSTOMER SATISFACTION – Deliver on time everyday COST QUALITY – Operate at the right cost ASSET PRODUCTIVITY TECHNOLOGY INNOVATION • Real focus: adding competitive advantage 1 CHEP – BVA improvement
Slide 16: CHEP USA Network Optimization
CHEP USA NETWORK OPTIMIZATION RAMON GENEMARAS – SVP, SUPPLY CHAIN
Slide 17: Objectives
OBJECTIVES • Meet customers’ expectations – Enable growth – On time delivery – Quality & cost efficiency • Drive network flexibility and adaptability to customer demands – Location, scale and mix of operating facilities • Achieve supply chain cost efficiency by optimizing: – Transport – Service Cent
Slide 18: Network Modeling Process
NETWORK MODELING PROCESS • Idea generation – Customers and suppliers – Cross functional • All people, all levels • Identify variables – Economic dynamics (Transport Cost, Fuel, Supply/Demand) – Building lease renewals – ETPM, DTPM opportunities – Annual validation of Plant volumes and capacity requi
Slide 19: Network Optimization: Support Customer Initiatives
NETWORK OPTIMIZATION Support Customer Initiatives • Growth Plans – New Distribution Centers & production sites – New product lines or lane expansions – Acquisitions and consolidations • Supply Chain Improvement Programs – Customers’ network optimization – Relocation or remix of existing DCs – Cycle
Slide 20: Process Map
PROCESS MAP Ideas / Filter Define Start up and Corrective Analysis Decision Control Strategy Opportunity Project Plan Contingency Actions Project Plan Network Manugistics Intervention NWS Model List Control Document Ideas / Corrective Strategy Decision Actions 2 - 6 Weeks 6 - 9 Months 20
Slide 21: Manugistics Planning Module
MANUGISTICS PLANNING MODULE Modeling Characteristics • CHEP Network – 21,000 Customer locations between Ds and Es – 330,000 Transport lanes possibilities – 195 pallet processing centers (SC, ETPM, DTPM) – Best operational cost adjusted for regional labor • 1.8M Decision Variables • Why More Variable
Slide 22: Manugistics Planning Module
MANUGISTICS PLANNING MODULE Validate Entire Network With One Change 1.8M Decision Variables + 200K Iterations DTPM1 E1 CHEP SC D2 E2 ETPM Dn En Modeling Process Node Optimum Cost Optimum • Incorporate change • Service Center • Volume throughput • Update cost and volume • ETPM • Transportation cost •
Slide 23: Minimize Supply Chain Costs
MINIMIZE SUPPLY CHAIN COSTS (Transport + Service Centre) Optimal • Isolate change and $ Costs OTP = 97% compare network Total $ solution Costs • Cross functional Operational $ discussion Costs • Ensure lower overall CHEP Supply Chain cost is Transport $ Costs achieved PSC Network Current Network • M
Slide 24: Optimization Example
OPTIMIZATION EXAMPLE Central and Southern California Fresno, CA Major Produce Demand • Historically sourced from Northern or Southern CA • Heavy demand in Fresno and Salinas Market • Reduction in miles while Improving service • Validated savings +$1.2M Los Angeles, CA • Model suggested 3 Plants in L
Slide 25: Implementation Process
IMPLEMENTATION PROCESS • Inputs – Cost benefits and revenue impacts – Volumes requirement – Growth, customer satisfaction, quality implications • Outputs – Annual estimated savings – Confirmation of equipment needs and cost – Start date, sign up with customer – Risks and opportunities • Steering Com
Slide 26: Implementation Timetable
IMPLEMENTATION TIMETABLE Average of 24 weeks • Site Sizing and Selection (~16 weeks) – Market analysis and building lease negotiations – Tenant Improvements, Permits, & Certificate of Occupancy (For DTPM/ETPM locations this phase only 4 weeks) • Select Equipment and Plant Operator (~20 weeks) – Gain
Slide 27: CHEP USA Plant Network
CHEP USA PLANT NETWORK Total of 41 nodes to be added in 2 years FY06 to FY08e Nodes Additions SC Plants 13 DTPM 4 ETPM 24 TOTAL 41 BENEFITS • Strategic site positioning surrounding our customers • Significant reduction in Average Haulage Distance • Lower distances driving environmental sustainabilit
Slide 28: Total Supply Chain Cost
TOTAL SUPPLY CHAIN COST THE REAL MEASURE OF SUCCESS Supply Chain Cost per Issue (Indexed to FY05 Base) 105.0% 100.0% 100.0% 98.7% 95.0% 95.9% 90.0% FY05 FY06 FY07 28
Slide 29: Summary
SUMMARY • Network Optimization is the heart and soul of Supply Chain Excellence • The complexity and dynamic nature of our business requires highly sophisticated information tools and process • ETPM and DTPM have significantly improved the network optimization possibilities • Dedicated Supply Chain
Slide 30: Innovation & Technology Leadership
INNOVATION & TECHNOLOGY LEADERSHIP MATT PHELPS - SENIOR VICE PRESIDENT, PROCESS TECHNOLOGY AND PRODUCT ENGINEERING
Slide 31: Structured for Innovation
STRUCTURED FOR INNOVATION Dedicated CHEP Engineers Innovation Center in each region State of the art equipment Varied backgrounds: New product testing and - Military development - Automotive Customer testing and product benchmarking - Plastics Remote access by customers globally 24/7 - Packaging 42
Slide 32: Invent Once; Apply Everywhere
INVENT ONCE; APPLY EVERYWHERE • Important partnerships – Open door policy – With customers • Application engineers and industry trade groups – With suppliers: open door policy – With CHEP functions • Operations • Marketing • Asset Productivity • Logistics – With CHEP global leadership • Quarterly pr
Slide 33: Outcomes: Perfect Plants
OUTCOMES Perfect Plants • Best practice sharing started three years ago • Harvested 49 years of company experiences • Resulted in Generation 1 plant design – Deployed in 28 locations globally • Efficient stack painting • Automatic Digital Inspection (ADI) – Patent pending – Superior inspection accur
Slide 34: Perfect Plant
PERFECT PLANT Equipment origins 34
Slide 35: Outcomes: Perfect Plants Generation
OUTCOMES Perfect Plants Generation 2 • Highly automated • Australia – Operating at Erskine Park – Next plant in design phase • Europe – Prototype machines in trial – Deployment in FY08 35
Slide 36: Outcomes: Global Container
OUTCOMES Global container • Global hunt for best suppliers, technology • Adopt lessons learned from CHEP’s past – Best folding ratio – Most durable hinges and latches – Most product friendly • Resulting container launched 2004 – Lower cost, better volume, less weight, shorter height • Technology app
Slide 37: Outcomes: Blue Guardian
OUTCOMES Blue Guardian • New impact guard for forklifts – Started with obscure industry item – Improved by CHEP for durability, cost, safety • Redirects impact energy to center block or stringer • Protects products and pallets – 40% reduction to lead board damage • Over 10,000 units to be deployed a
Slide 38: Outcomes: Pallet Innovation
OUTCOMES Pallet innovation Before CHEP • “White wood” stringer design • Inconsistent quality • Low top deck coverage • 2-way/limited 4-way entry • Limited product protection 38
Slide 39: Outcomes: Pallet Innovation
OUTCOMES Pallet innovation Innovation 1958 1970s 2000 2007 39
Slide 40: Outcomes: Hybrid Pallet
OUTCOMES Hybrid pallet • Use materials where they Charpy Impact / Unit Cost vs. Material Technology Impact Energy/Unit Cost perform best 1800 1600 1400 – Stiffness 1200 1000 800 – Impact resistance 600 400 200 0 – Compression Aluminum Softwood Hardwood Polypropylene Pultrusion HDPE Plastic (BIC) Com
Slide 41: Hybrid Pallet Planned for 2008
OUTCOMES Hybrid pallet planned for 2008 • Stepped corner blocks – Allows thicker lead board – Distributes force throughout pallet • Top deck – Smaller gaps – Better corner support – Clinch nails – Screw for repair • Composite block materials – >200% increased nail retention – >150% improved impact p
Slide 42: Outcomes: China Plastic Pallet
OUTCOMES China Plastic pallet • Uses a hybrid combination of materials to deliver superior value to CHEP and our customers • Polyethylene top deck – impact strength • Polypropylene bottom deck –stiffness • PP/EVA snap pins - toughness • Steel tubing - stiffness • Elastamer grommets - friction 42
Slide 43: Better Pallets Around the World
BETTER PALLETS AROUND THE WORLD 43
Slide 44: Summary
SUMMARY • Progress so far – Global infrastructure drives innovation for CHEP and our customers – Perfect Plants - Generation 1 – Best in class wooden and plastic pallets – Best in class folding containers • Continuous improvement – Perfect Plants - Generation 2 and beyond – Hybrid pallet technology
Slide 45: Disclaimer statement
Disclaimer statement The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrict
Slide 46: Contact details
Contact details Michael Sharp Vice President Corporate Affairs michael.sharp@brambles.com +61 (2) 9256 5255 46
Slide 47: CHEP Equipment Pooling Systems
CHE EQUIPMENT POOLING SYSTEMS