Amer Sports, Inc. · NYSE:AS
Amer Sports — Investor Day (May 2009)
26 slides from Amer Sports's investor day presentation, May 28, 2009
Slide 1: CMD 2009 Supply Chain & IT integration
CMD 2009 Supply Chain & IT integration Vincent Wauters, Senior Vice President May 28, 28 2009
Slide 2: Disclaimer
Disclaimer • Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncerta
Slide 3: Supply Chain & IT integration
Supply Chain & IT integration
Slide 4: Reason to Change
Reason to Change 1. Drive inventory down and service level up. 2. Develop centralized and integrated Supply Chain. 3. Harmonize supply chain processes, tracking and tools. 4. Set global Distribution and Transportation (D&T) ownership. 5 Set “Lean 5. Lean and Operations” Operations global practice. p
Slide 5: We are here to do what? Make a break through!
We are here to do what? Develop Amer Sports global supply chain and IT platforms to leverage best practices, synergies, to be more agile, more efficient together as One team. Make a break through! Lead SC & IT from holding to integrated management.
Slide 6: Development logic
Development logic All “Supply Chain” covered Physical flows: • Up stream: Supply planning, Operations and Sourcing • Down stream: Distribution & Transportation Information and financial flows: • Transparency – Manageability – Control (IT - Finance) Scalable logic • Immediate control, end game vision
Slide 7: Structure logic
Structure logic Community of practice (Functional reporting line) 1. Supply Chain 2. Lean & Operations Excellence ⇒ Road map - process/tools - tracking set by function ⇒ Detailed strategies – execution - management by brand Shared services ((Direct reporting g line)) 1. IT: AS Global IT platform g A
Slide 8: Accountability
Accountability SVP Supply Chain & IT V Wauters Wilson Atomic/Salomon HG Precor Salomon SG Arc'teryx Mavic Suunto Supply Chain Supply Chain Supply Chain Supply Chain Supply Chain Supply Chain Supply Chain SC Process Expert Lean & Operations Excellence AS IT AS SAP AS Infrastructure AS Applications Se
Slide 9: Talents
Talents Amer Sports VP IT Amer Sports ASO dir. Location Munich Location Hong Kong • German national • French national • MBA from Kellogg Business School • 20 years ears man manufacturing fact ring and ssupply ppl chain in Salomon • 15 years experience in Supply Chain • Adidas / ASO development since
Slide 10: Road map and tracking
Road map and tracking Organization Accountability and talent Road map Tracking 1. IT Global team – global system Savings enabled by SAP recorded in related 9 9 9 business functions 2. Global sourcing 9 9 Q3 3. D&T Q3 Q4 Q3-Q4 4. Supply pp y chain p practice 9 9 9 5. Lean and operations practice Q3 Q
Slide 11: Difficulties mastered are opportunities won
Difficulties mastered are opportunities won won. I am an optimist. It does not seem too much use being anything else. Winston Churchill
Slide 12: Information & Communication vision and targets
Information & Communication vision and targets g 2012 Agile Integrated, real-time ICT set-up Global real-time visibilityy of Sales SC & Service Levels 2011: Americas G1 implemented in N. America & East Europe 2010: EMEA G1 implemented in Continental Europe 2009: Pilot G1 proof of concept in Nordics
Slide 13: Global ONE = business transformation
Global ONE = business transformation => > Global system and process harmonization program SPONSOR BUSINESS IT EXPERT OWNER EXPERT SALES T. Ehrnrooth Order To Cash Plan To Deliver CM V. Wauters Procure To Pay D&T J-M Pambet J-M. R&D Id To Idea T Product P d t P. Byrne FINANCE P. Paalanne Finance STRA
Slide 14: Program management: discipline and control
Program management: discipline and control Very structured methodology with clear sign-off gates for next stage PMO as the key authority over all projects • Realistic capacity planning from the start • Project inter-dependencies and critical path management • Every time project status overview and e
Slide 15: Amer Sports Sourcing
Amer Sports Sourcing Roadmap 2012: GSO worldwide Global Sourcing Organization • 4 sourcing opportunities: FW, APP & ACC, Equipment, Electronic • 1 finance service dept Start sharing sourcing organization for 2011: Hardgoods 3 - Equipment (Wilson, Winter Sports, Mavic) worldwide 4 - Electronic (Suunt
Slide 16: GSO integration step 1
Footwear Apparel & Accessories Cycling Team Sports Wilson Mavic 4% 1% Team Sports 2 % Snowboard 7% Wilson 12 % Rackets Tennis 4% 13 % Bonfire Salomon 8% 38 % Outdoor 75 % Arc’Teryx 36 % GSO integration step 1 • One AS Sourcing leader per category (transversal across all brands) • 40% of all group pu
Slide 17: Key benefits and financials
Key benefits and financials 1. Bring professionalism to drive and support growth (sourcing and product development) New leaders: Footwear from Salomon; Apparel from outside (20 years Nike experience) 2. Bring extra negotiation power generated by cross-brand sourcing integration p neutral in 2011 3.
Slide 18: SC vision and targets
SC vision and targets 2012 Integration Integrated SCM focused on customer service, cost efficiency DSI = 120 Agility and asset turnover. Supply planning service centers by business segment. External integration with customers and suppliers. S&OP as a core business management process. G1 2011 Process
Slide 19: What has changed
What has changed: • Creation of Supply Chain community of practice • Bottom up, documented Supply Chain plans • One set of numbers synchronized with Finance 1. Clear structure and accountability 2. One program 3. One incentive
Slide 20: 1. Clear structure and accountability
1. Clear structure and accountability SVP Supply Chain & IT Wilson Atomic/Salomon HG Precor Salomon SG Arc Arc'teryx teryx Mavic Suunto V Wauters Supply Chain Supply Chain Supply Chain Supply Chain Supply Chain Supply Chain Supply Chain Sc Process Expert ASWO Brand SC: Supply Chain accountable for b
Slide 21: 2. One Program / 3. One incentive
2. One Program: • Targets / stretch by brand and regions • Common 17-point reduction program • Monthlyy ”deep p dive” call with each brand => Action driven (Who, What, How much, When) => Harmonized tracking (DSI,E&O,LF%) => Global monthly communication of results 3. One incentive: • Brand and region
Slide 22: P-100 DSI action plan and first results
P-100 DSI action plan and first results Action plan: 1. Sell out of slow moving inventory -20M 20M 2. Complexity & Cogs reduction, agility gain -20M 3. Demand planning, modelling of sales forecast -15M 4. Supply planning, open to buy, inventory management -10M 5. 5 Cogs reduction educt o -5M 5 -70M
Slide 23: Programs for Supply Chain global sustainable improvement
Programs for Supply Chain global sustainable improvement 1. Program 100 (supply planning & inventory management) => > Harmonized global inventory management management, tracking and communication => Harmonized global service management, tracking and communication 2 Program Sigma (cross brand 2. bran
Slide 24: Two new corporate roles
Two new corporate role: 1. Amer Sports Lean and Operations Excellence (June) 2. Amer Sports Distribution and Transportation (May) Accountability: 1. Creation of Amer Sports global practice / shared platform organization 2. Develop cost and service trackability 3. Drive immediate productivity and ser
Slide 25: 09 Key milestones
09 Key milestones 9 G1 scope, titiming, i resource plan, l fifinancial i l Q1 9 P100 Inventory and service tracking 9 SC&IT Department announcement and kick off 9 D&T and Lean and Operations leader recruited Q2 9 SC&IT monthly communication in place – SC&IT Intranet • G1 Nordic Pilot (May 25th); Jap
Slide 26: Accountability – Talent – Roadmap – Tracking
Accountability – Talent – Roadmap – Tracking