Global Supply Chain. Joel Baxter President & General Manager. Financial Community Presentation
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1 Global Supply Chain Joel Baxter President & General Manager
2 Global Supply Chain Why? One Focused Organization Leverage Systems, Tools & Processes Share Best Practices Worldwide
3 What This Accomplishes Drive Customer Satisfaction Enables Accelerated Growth Cost Reduction
4 Research & Development Planning Global Procurement End-to-End Supply Chain Customer Service Manufacturing Distribution Transportation Customer Supplier Factory Distribution Transportation Customer Drive Continuous Improvement
5 People Systems, Tools & Processes Satellite-Level Control Chart for Work Cap % to Sales Individual Value Subgroup 0 Moving Range Qyr Q2'99 UCL= Mean= LCL= Q4'01 UCL= R= LCL=0
6 Engineering Resource Centers Supply Chain Global Procurement Finance Operational Excellence Human Resources Research & Development Environmental Health & Safety Quality Information Technology
7 Service 2012 A Record Year! North America Cost Savings Fleet Safety Quality
8 Safety Recordable Rate North America GSC NA Industry Average
9 Sustainable Processes First Pass Quality North America
10 Service & Working Capital % to Sales NA Service Working Capital % to Sales
11 Net Fixed Assets (MM $) North America ( 12 vs. 08)
12 Sustainability Pounds to Landfill Sustainability Savings lbs MM $
13 Operational Excellence Savings North America MM $ Sustained Improvement
14 Operational Excellence Savings Global Opportunities MM $ NA ROW
15 Engineering Resource Centers Supply Chain Global Procurement Finance Human Resources Research & Development Environmental Health & Safety Quality Information Technology
16 Benefits of Global Procurement Greater Buying Leverage Global Visibility Portfolio Simplification Improved Working Capital Management
17 Raw Material Actions Alternate Supply Internal Development Efficiency Projects
18 TiO 2 Sulphate vs. Chloride Efficiency Projects High Hide Latex
19 Resin/Latex Internal Development S-W Controlled Production (lbs.) Manufacture Control External Suppliers Achieving Balance
20 A Typical Coatings Product est. vs Industry * Resins/Latex (40%) 4 6% Acrylic (Latex Paints) Alkyd (Oil Paints) Epoxy (Epoxy Paints) Pigments (34%) -8-4% Titanium Dioxide Pigments Paint Fillers Extenders Containers (10%) 3 4% Metal or Plastic Solvents (6%) 4 5% Additives (10%) 3 4% This represents the average cost range for the Coatings Industry. It does not reflect the cost for an individual Coatings Company - this cost could be lower or higher based upon company size, market position, etc.
21 Engineering Resource Centers Supply Chain Global Procurement Finance Human Resources Research & Development Environmental Health & Safety Quality Information Technology
22 First VPP Technical Site
23 New Product Launches
24 Stage 1 Concept Definition Stage 2 Technology Assessment Stage 3 Technology Development Stage 4 Commercialization Environmentally Favorable Application Performance Color Productivity Enhancement
25 Global Business Management System Leveraging Best Practices, Tools & Processes Around the World Accelerate Profitable Growth
26
27 U.S. & Canada Facilities SW Plants (8) SW DSCs (8) Comex Plants (8) Comex DSCs (8)
28 Mexico Facilities SW Plants (3) SW DSCs (5) Comex Plants (8) Comex DSCs (6)
29 Benefits Purchasing Leverage Operating Efficiencies Technology Transfer
30 Summary Focused Global Supply Chain Organization Leveraging Systems, Tools & Process Accelerate Continuous Improvement Deliver Best in Class Service
31 Break
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