Nikon Europe B.V. Marketing and SCM The undiscovered business relationship escf Eindhoven, 11 December 2009
Table of Content Introduction to Nikon SCM versus Marketing Contribution of SCM to Marketing Propositions & Discussion
Products of Nikon Corporation Consumer Products Photographic Equipment digital cameras, film cameras, accessories Nikkor lenses Sport Optics (Nikon Vision) Binoculars, field scopes, laser range finder, night search, magnifiers, rifle scopes, loupes, DigiScoping system Nikon Eyewear Eyeglass lenses (Essilor) Frames, Sunglasses, Loupes Industrial Products IC & LCD Steppers Microscopes & Measuring Instruments supporting technologies aiming to achieve higher precision in field such as biotechnology Surveying Instruments Construction and civil engineering, land surveying Precision Instruments & Optical Equipment supplying optical solutions in areas such as nanotechnology www.nikon.co.jp
Nikon Imaging Products D-SLR Compact-DSC Sport Optics
Nikon Customer Groups & Revenue PROFESSIONALS & BUSINESS USERS PROSUMERS & BUSINESS USERS CONSUMERS Nikon Europe Imaging market share % 12-24 mthslast 12 mths TOTAL Units 10.1 11.2 Value 16.7 18.1 D-SLR Units 36.2 34.7 Value 39.5 38.5 C-DSC Units 7.6 8.6 Value 7.3 8.8
Nikon Business Framework Centralization of Non-Sales activities To achieve cost reductions Centralize non core activities Centralization of inventory To achieve economic value by focusing on core activities De-centralisation of Sales Activities Focus on core activities Outsourcing Clear split central versus local Nikon Europe Business planning Support center Contract owners Logistics Marketing Services Distributor mgmt Systems National Sales Organization Sales Services Marketing
Current Supply Chain Model Customers Users (professionals, business users, prosumers, consumers) Channels ales Organization Retail chains, Electronic stores, Specialized Photo Shops, Internet Shops Distributors Spain, Italy, Greece, e.o. NSO (Flash Sales) Western Europe NSO (Non Flash Sales) Russia, Poland, Hungary, Czech) Logistics Bonded warehouse Kitting Marketing support Localization Logistic services Transportation mgmt FR DE, AU, SW, NL, BL Central Stock Nordi cs UK EE RU Inventory Venlo SAP Forwarders AMS/ ROT LON Factory Asia
SCM dashboard KPI s Logistic Cost Total As % per shipped unit As % per order As % per Sales Revenue Leadtime Inbound Outbound Customer orders Replenishments Kitting Complaints Stock Accuracy Process Reviews Qualitative process audits Improvement Program
Organization Supply Chain Management Nikon Europe National Sales organization Sales Admin Manager President GM Sales Demand mgmt SCM Manager Logistic Execution Analyst GM / President Sales mgmt Logistic Execution Report into Sales Line A flat organization European Collaboration Functional reporting of logistic coordinators to Nikon Europe Knowledge exchange Keep organization flexible No formalities Atmosphere of cooperation Keep headcount figures low Centralize but avoid dogmatic behavior Keep local knowledge
SCM Internal Playing Field Sales Accounting SCM Marketing Business Planning Service Cost
Table of Content Introduction to Nikon SCM versus Marketing Contribution of SCM to Marketing Propositions & Discussion
Marketing Mix 4 C s Customer Solution Cost to Customer Convenience Communication At the end, a customer wants high value, low total cost and high communication
Goal of SCM To eliminate the constraints of time, energy, and place in the delivery process of products It is the integration of information, transportation, inventory, warehousing and packaging
Summary Marketing versus SCM Marketing Make the products attractive to buy SCM A sales assurance center
SCM contributions to the 4 C s Good Process against fair cost & quality Low leadtime Localization 4 C s Customer Solution Cost to Customer Convenience Communication Fine Distribution Small orders to any location Communication IT integration Slot booking Customizatio n Bundling Campaigns Promotion Add stickers flyers to sales box
Pre- requisites for an effective cooperation between SCM and Marketing State of the art process execution Both for marketing as SCM Common goals Serving the customer Increase sales against a healthy margin A good relationship between Marketing & SCM