nulogy webinar: how to become a co-packer supplier of choice
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N U L O G Y W E B I N A R
How to Become a Co-Packer Supplier of ChoiceJon Hayward, General Manager of Bonded LogisticsStuart Doherty, VP of Customer Success of Nulogy
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TO D AY ’ S A G E N D A
Introductions & State of the Contract Packaging IndustryContract Packagers: Selling on Value vs PriceHow Contract Packagers Create Value4 Key Ways That Bonded Pac Creates Value• Inventory Management• Product Traceability• Real-time Visibility • Continuous ImprovementSummary and Q&A
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WE WILL SEND THE RECORDING!
W E B I N A R : H O W TO B E C O M E A C O - PA C K E R S U P P L I E R O F C H O I C E
CONFIDENTIAL // 2015
CONFIDENTIAL // 2015
NULOGY CUSTOMER SUCCESS
Focus Areas● Your Trusted Advisor● Liaison into Product Management Organization● Maximize ROI● Expanding and responding to new business
How?● Success Plan Reviews, Joint Business Reviews● Dedicated focus on understanding your business● Support in RFP response process● Strategic Feature Advancement● New PackManager/QCloud integration opportunities● Consulting Engagements - Workflow Optimizations
The integration of Technology, Marketing, Sales, Professional Services, Training and Support into a relationship product.
CONFIDENTIAL // 2015
NULOGY XCHANGE 2015
• Supply chain thought leadership, product unveils, co-pack workshops, and peer-to-peer exchange of ideas and best practices
• Attended by industry leaders like Kellogg, Norbert Dentressangle, Menasha Packaging, and more
Be on the lookout for us to release details about Nulogy xChange 2016!
CONFIDENTIAL // 2015
STATE OF THE CONTRACT PACKAGING INDUSTRY
Of brands outsource packaging, labeling, assembly and kittingof products
30% 76%Of brands are increasing their use of outsourced related services
$25,000,000,000In the US, packaging services growth has grown from $12B over the last 5 years
Source: State of Contract Packaging Services, 2015
CONFIDENTIAL // 2015
Today’s industry shifts & opportunities are being shaped by:
1. 13% industry growth compounded growth annually
2. Industry undergoing consolidation through acquisition
3. Increased average revenue range of co-packers
SHIFTS IN THE CONTRACT PACKAGING INDUSTRY
Source: The State of the Contract Packaging Industry Report 2015
CONFIDENTIAL // 2015
MEET THE EXPERT
Jon HaywardGeneral ManagerBonded PacBackground:• 25 years in packaging,
manufacturing, and distribution• Grew Bonded Pac by double digits,
Y/Y• Leading Bonded Pac into new
vertical markets• Member of Contract Packaging
Association
CONFIDENTIAL // 2015
BONDED PAC
• Division of Bonded Logistics, a premier 3PL provider established in Charlotte, NC in 1972
• Help clients identify and implement cost effective packaging solutions
• Core services include kitting, POP displays, shrink-sleeving, liquid-filling, light assembly and rework
• Double-digit annual growth the past three years
• Opened 218,000 sq ft Charlotte facility in 2013
• Access to 12 storage and distribution facilities with over 1.8 mm sq ft
VA L U E V S P R I C E
- Journal of Business-to-Business Marketing
“ “Value in business markets is the worth,
in monetary terms of the economic, technical, service and social benefits a customer firm receives in exchange for the price it pays for a market offering.”
CONFIDENTIAL // 2015
EDUCATE YOUR CUSTOMERS ON PRICE
• Important to understand “unit price” vs. “total delivered price”
• The unit price is the price of a product without taking into consideration exterior elements
• The total delivered price is what at a customer pays when considering all costs involved in addition to the unit price
• A value-in-use model provides an “apples-to-apples” comparison to your competitors offering while revealing hidden costs
CONFIDENTIAL // 2015
VALUE-IN-USE MODEL
Floor Cleaning Kit
Delivered cost of kit:
Competitor Bonded Pac 33oz Bottle 1.20 0 Customer supplies a filled bottle to competitor, Bonded fills bottle33oz Bottle Delivery*** 0.035 04oz Bottle Delivery* 0.008 0 In both cases, Customer supplies 4 oz bottle Shipment back to Dist. WH** 0.20 0Unit Price of Kit?? 3.20$ 4.41Total Cost 4.64$ 4.41$
Savings per Kit 0.23$
Shipping Calculations
*4oz Bottle Delivery to Competitor **Kit Shipment from Competitor to Distribution ***33oz Cartridge Delivery to Competitor Cost/load 375.00$ Cost/load 375.00$ Cost/load 375.00$ Eaches per Pallet 4608 3393 per pallet 72 33oz per pallet 408Pallets per shipment 7 Pallets per shipment 26 Pallets per shipment 26Cost to ship each bottle 0.008$ Cost to ship each Kit 0.200$ Cost per cartridge 0.035$
$4.64
$4.41
$4.25 $4.30 $4.35 $4.40 $4.45 $4.50 $4.55 $4.60 $4.65 $4.70
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WM710013393
Competitor
Bonded Pac
• Quantifies all costs involved and not just the unit price
• Tells a very different story when considering all costs involved beyond unit price
• Difference in total cost vs. competitor looks small but adds up to major savings
H O W C O N T R A C T PA C K A G E R S C R E AT E VA L U E
Expandability Speed of Delivery
Continuous Improvement
Real-TimeVisibility
Flexibility
Inventory Management
Variety of Services
Brand Preservation &
Traceability
CONFIDENTIAL // 2015
4 KEY WAYS THAT BONDED CREATES VALUE
Inventory Management
Product Traceability
Continuous Improvement
Real-TimeVisibility
CONFIDENTIAL // 2015
VALUE CREATION: INVENTORY MANAGEMENT
Inventory Management
Product Traceability
Continuous Improvement
Real-TimeVisibility
CONFIDENTIAL // 2015
INVENTORY MANAGEMENT
High Value Co-Packers…
• Procure raw materials on customer’s behalf
• Provide visibility within co-packer’s facility
• Protect and accurately account for inventory
• Manage finished-good inventory levels
• Store and distribute finished goods
CONFIDENTIAL // 2015
INVENTORY ACCURACY
• Schedule cycle counts according to customer’s ABC analysis
• Create cycle-count for select items using PackManager system
• Count product and verify location
• Fix inventory discrepancies
CONFIDENTIAL // 2015
VENDOR MANAGED INVENTORY
• Vendor Managed Inventory (VMI) is a replenishment arrangement where the supplier either monitors the customer's inventory with own employees or receives stock information from the customer
• The vendor then refills the stock automatically, without the customer initiating purchase orders
• Priority Lists is a collaborative way to manage vendor inventory
CONFIDENTIAL // 2015
MANAGING INVENTORY LEVELS
Sales & Marketing
Co-Packer
Top Management
Finance
Lower Cost Opera-tions
Max Customer Ser-vice
Higher Inventory Turns
Low Delivery CostsLess Holding CostsHigher Inventory
Turns
No BackordersSame Day Shipping
Lots of Inventory
Large Lot ProductionNo Rush Orders
Flexible Schedule
CONFIDENTIAL // 2015
PRIORITY LIST FOR FINISHED GOODS
Key
LAST UPDATED Wednesday, June 24, 2015
Less than 2 weeks inventory
Between 2-4 weeks inventory
4-6 weeks inventory
Notes
Weeks of Supply-In
Stock
Weeks of Supply-
Stock+In Production + In
transit Item # / Project DescriptionMonthly Ave
ForecastStock in WMS
Total on Order
Total in Production
E-Sales 0.0 0.0 AT0002424-A Product A 500 0 #N/AE-Sales 0.9 1.0 WM700018159-A Product B 3,500 780 1560 104E-Sales 1.2 1.2 WM700058002-A Product C 400 120 #N/AKitting 1.3 1.3 WM710013380 Product H 4,340 1450 5120Kitting 1.4 1.4 WM710013359 Product I 8,944 3102 13376E-Sales 1.5 1.5 WP500351001-A Product D 150 56 #N/A
Liquid Fill 1.8 1.8 WM760051001 Product V 9,254 4104 12500Liquid Fill 2.2 2.2 WT760051161 Product W 7,309 4072 5000
Kitting 2.3 2.3 WM710013417 Product J 136 78 #N/AE-Sales 2.5 2.5 WM700018172-A Product E 1,150 724 #N/AE-Sales 2.5 2.8 WM700058001 Product F 18,138 11512 10080 1208Kitting 2.9 2.9 WM710013399 Product L 782 568 #N/AKitting 1.9 3.0 WM710013427 Product M 25,065 12212 13540 2500 3968Kitting 3.4 3.4 WM710013393 Product N 15,153 12908 10000
Liquid Fill 4.0 4.0 WP500350001 Product AD 29,418 29106 13400Kitting 4.0 4.0 WM710013385 Product O 2,268 2256 2000
Liquid Fill 4.1 4.1 WM700061003 Product AE 566 576 344Kitting 4.4 4.4 WM710013442 Product Q 1,268 1394 1500Kitting 4.5 4.5 WM760061001-A Product R 150 168 #N/AKitting 3.8 4.6 WM710013358 Product S 31,701 30204 39714 6000Kitting 4.7 4.7 WM710013402 Product T 39 46 #N/AKitting 4.9 4.9 WM710013405 Product U 7,015 8584 8980E-Sales 5.0 5.0 WM700018174-A Product G 1,250 1560 #N/AKitting 6.2 6.2 WM700018182-A Product AG 100 156 #N/AKitting 6.5 6.5 WT760051163 Product AH 1,584 2592 4456
Liquid Fill -0.1 15.3 WP510051003 Product AF 1,300 -40 5000 5000Liquid Fill 19.8 19.8 WM700051191 Product AE 631 3128 960
Kitting 21.8 21.8 WM700061005 Product AE 390 2128 #N/AKitting 22.0 22.0 WM710013432-A Product AE 700 3846 #N/AKitting 22.0 22.0 WM700058009 Product AE 106 584 1000
Regular production - listed below are the SKUs that need to be produced in order to stay current with demand
Bonded Pac Priority List Inventory is
Negative Mandatory Action Required
Assume Desired Inventory Level 2-6 weeks
Weeks of Supply Calculated from Forecast
• Eliminates the need to create daily POs for every product and every run
• Colors help to denote importance
• Don’t have to monitor stocking levels
• See issues well in advance
VALUE CREATED WITH INVENTORY MANAGEMENT
Limits amount on hand, reduces working capital
Minimizes stock-outs
Reduces physical inventories
Better manufacturing efficiencies
CONFIDENTIAL // 2015
VALUE CREATION: PRODUCT TRACEABILITY
Inventory Management
Product Traceability
Continuous Improvement
Real-TimeVisibility
CONFIDENTIAL // 2015
PRODUCT TRACEABILITY AND RECALL
• Product Traceability assigns lot numbers and expiry dates to sourced and produced product
• Track lots and expiries from receipt, through production and shipments
• Requirement in Chemical, Food, Medical and Pharmaceutical verticals
• Perform a recall within seconds, using PackManager’s Recall Report
CONFIDENTIAL // 2015
RECALL REPORT
• Simply enter in lot code number
• Produces reports with lists of shipments to track where everything went
• Can drill down further to see packing slips of shipments
CONFIDENTIAL // 2015
RECALL REPORT
• Simply enter in lot code number
• Produces reports with lists of shipments to track where everything went
• Can drill down further to see packing slips of shipments
VALUE CREATED WITH PRODUCT TRACEABILITY
Preserving your customer’s reputation is a huge part of helping them build brand equity
Easily find and isolate questionable products
Reduces the impact and exposure of recall situations
CONFIDENTIAL // 2015
VALUE CREATION: PRODUCTION VISIBILITY
Inventory Management
Product Traceability
Continuous Improvement
Real-TimeVisibility
CONFIDENTIAL // 2015
REAL-TIME VISIBILITY
• Visibility reshaping perception of warehouse as four-wall fixed, immovable force
• BLI Glass Warehouse Initiative designed to provide complete visibility and transparency through WMS and cloud computing
• Customer portals allow immediate access to inventory as well as what’s happening on the production floor
CONFIDENTIAL // 2015
PAC CUSTOMER PORTAL & REPORT
• Requires log-in credentials
• Provides real-time data
• Surface level reporting to fully customizable reports
CONFIDENTIAL // 2015
PAC CUSTOMER PORTAL & REPORT
• Requires log-in credentials
• Provides real-time data
• Surface level reporting to fully customizable reports
CONFIDENTIAL // 2015
BLI CUSTOMER PORTAL
• Requires log-in credentials
• Tabs for actions, reporting and tools
• Run reports for inventory, minimums, and SKU’s
• Ability to hyperlink to specific SKU inventories
CONFIDENTIAL // 2015
BLI CUSTOMER PORTAL
• Requires log-in credentials
• Tabs for actions, reporting and tools
• Run reports for inventory, minimums, and SKU’s
• Ability to hyperlink to specific SKU inventories
VALUE CREATED WITH REAL-TIME VISIBILITY
Instant access to production floor and warehouse
Data collected provides information for customers to plan and grow business
Helps predict future needs for client through data studies on packaging, warehousing and
transportation
CONFIDENTIAL // 2015
VALUE CREATION: CONTINUOUS IMPROVEMENT
Inventory Management
Product Traceability
Continuous Improvement
Real-TimeVisibility
CONFIDENTIAL // 2015
“You can’t fix what you can’t measure.”
OUR PHILOSOPHY ON CONTINUOUS IMPROVEMENT
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CONFIDENTIAL // 2015
KEY PERFORMANCE INDICATORS
• Our KPIs help to measure, act, and report on progress on specific goals to success
• Easy way to keep track of continuous improvement and share with customer
• Monitors functions such as quality, safety, and financials
• We use KPI Bowling Chart and monitor monthly
CONFIDENTIAL // 2015
CONTINUOUS IMPROVEMENT – KPI BOWLING CHART
` 2014 FY Actuals Recorder2014 FY Target 2014 Plan vs Actual JAN FEB MAR APR MAY JUN
SAFETY88.8 92 YTD Plan 92 92 92 92 92 92
Matt 94 YTD Actual 94 100 94 94 93 914 3 or less YTD Plan
Jon 1 YTD Actual 0 0 0 0 1 011 6 or less YTD Plan 0.2 0.4 0.6 0.8 1.0 1.2
Jon 3 YTD Actual 1 1 0 0 0 1 5.2 YTD Plan 5.2 5.2 5.2 5.2 5.2 5.2
Matt 8.2 YTD Actual 22.2 26.7 0.0 0.0 0.0 0.0
HUMAN RESOURCES66% 17 YTD Plan 2 7 2 5 0 1
Jon 11 YTD Actual 2 6 1 2 0 0New 24 YTD Plan 2 2 2 2 2 2
Mary 19 YTD Actual 7 2 7 3 0 0
INVENTORY99.50% 99.6% YTD Plan 99.6% 99.6% 99.6% 99.6% 99.6% 99.6%
Matt YTD Actual 100.0% 99.1% 99.6% 99.9% 99.8% 99.9%Record YTD Plan 15,000 15,000 15,000 15,000 15,000 15,000
Matt 8,343 YTD Actual 3,333 3,527 9,499 21,242 9,333 4,682
QUALITY 5 >900 YTD Plan 900 900 900 900 900 900
Lynn YTD Actual 925 925 925 925 915 915 Record YTD Plan
Lynn 8 YTD Actual 7 5 12 2 18 5
Productivity102 105 YTD Plan 105 105 105 105 105 105
Carlos 106 YTD Actual 98 106 110 112 117 9383 87 YTD Plan 87 87 87 87 87 87
Carlos 94 YTD Actual 93 93 92 95 91 98
Financials12,477,000 -$ YTD Plan
Jon -$ YTD Actual75% YTD Plan
Kara 88% YTD Actual2,175,000 -$ YTD Plan
Jon -$ YTD Actual2,528,000 -$ YTD Plan
Jon -$ YTD Actual
Sales/Marketing/Project Management6 6 YTD Plan 1 1 1 1 1 1
Bill 8 YTD Actual 2 2 0 0 3 1120 YTD Plan 10 10 10 10 10 10
Mary 77 YTD Actual 12 16 13 11 10 15 6 YTD Plan 6 6 6 6 6 6
Kara 4.2 YTD Actual 4.0 4.2 4.1 3.7 4.0 5.4
Cycle Count Accuracy
Manager Prof Dev/Training Activities (cum)
Cartridges produced per man hour
Defects per Million (DPMO) Opportunities
AIB Audit Score
Monthly Quality Catches
Housekeeping Audit Score
Number of OSHA Reportable Injuries
OSHA (TRC) Total Reportable cases/100 equ workers
Performance Reviews On-time (within 30 days)
Number of Property Accidents
• Provides progress on different categories
• Work with client to set goals and ranges
• Countermeasurement sheet coordinates action
CONFIDENTIAL // 2015
CONTINUOUS IMPROVEMENT – KPI BOWLING CHART
` 2014 FY Actuals Recorder2014 FY Target 2014 Plan vs Actual JAN FEB MAR APR MAY JUN
SAFETY88.8 92 YTD Plan 92 92 92 92 92 92
Matt 94 YTD Actual 94 100 94 94 93 914 3 or less YTD Plan
Jon 1 YTD Actual 0 0 0 0 1 011 6 or less YTD Plan 0.2 0.4 0.6 0.8 1.0 1.2
Jon 3 YTD Actual 1 1 0 0 0 1 5.2 YTD Plan 5.2 5.2 5.2 5.2 5.2 5.2
Matt 8.2 YTD Actual 22.2 26.7 0.0 0.0 0.0 0.0
HUMAN RESOURCES66% 17 YTD Plan 2 7 2 5 0 1
Jon 11 YTD Actual 2 6 1 2 0 0New 24 YTD Plan 2 2 2 2 2 2
Mary 19 YTD Actual 7 2 7 3 0 0
INVENTORY99.50% 99.6% YTD Plan 99.6% 99.6% 99.6% 99.6% 99.6% 99.6%
Matt YTD Actual 100.0% 99.1% 99.6% 99.9% 99.8% 99.9%Record YTD Plan 15,000 15,000 15,000 15,000 15,000 15,000
Matt 8,343 YTD Actual 3,333 3,527 9,499 21,242 9,333 4,682
QUALITY 5 >900 YTD Plan 900 900 900 900 900 900
Lynn YTD Actual 925 925 925 925 915 915 Record YTD Plan
Lynn 8 YTD Actual 7 5 12 2 18 5
Productivity102 105 YTD Plan 105 105 105 105 105 105
Carlos 106 YTD Actual 98 106 110 112 117 9383 87 YTD Plan 87 87 87 87 87 87
Carlos 94 YTD Actual 93 93 92 95 91 98
Financials12,477,000 -$ YTD Plan
Jon -$ YTD Actual75% YTD Plan
Kara 88% YTD Actual2,175,000 -$ YTD Plan
Jon -$ YTD Actual2,528,000 -$ YTD Plan
Jon -$ YTD Actual
Sales/Marketing/Project Management6 6 YTD Plan 1 1 1 1 1 1
Bill 8 YTD Actual 2 2 0 0 3 1120 YTD Plan 10 10 10 10 10 10
Mary 77 YTD Actual 12 16 13 11 10 15 6 YTD Plan 6 6 6 6 6 6
Kara 4.2 YTD Actual 4.0 4.2 4.1 3.7 4.0 5.4
Cycle Count Accuracy
Manager Prof Dev/Training Activities (cum)
Cartridges produced per man hour
Defects per Million (DPMO) Opportunities
AIB Audit Score
Monthly Quality Catches
Housekeeping Audit Score
Number of OSHA Reportable Injuries
OSHA (TRC) Total Reportable cases/100 equ workers
Performance Reviews On-time (within 30 days)
Number of Property Accidents
• Provides progress on different categories
• Work with client to set goals and ranges
• Countermeasurement sheet coordinates action
VALUE CREATED WITH CONTINUOUS IMPROVEMENT
Allows co-packers to foresee negative trends and take action
Saves the client money as continue to get more productive and reduce our costs
Continuous improvement efforts only demonstrate value if you make them visible
to your customer
CONFIDENTIAL // 2015
WEBINAR SUMMARY
80% of future revenue will come from 20% of current customers. How are you becoming the co-pack supplier of choice for that 20%?
Inventory Manageme
nt
Product Traceability
Continuous Improvement
Real-TimeVisibility
W E B I N A R : H O W TO B E C O M E A C O - PA C K E R S U P P L I E R O F C H O I C E
Q&A
www.nulogy.comTel: +1.888.685.6491
Thank You
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