Presentation titleDenda New 38pt

Presentation subtitleDenda New 26pt

00 Month 0000 Denda New 16ptOne Canon, One Supply ChainPerry BuenenCanon Europe

2009Supply Chain Management 2

Agenda

• Introduction to Canon

• The challenge

• Supply Chain changes

• Approach

• Key Success factors

Canon global results2008

AMERICASNet sales $12,687 millionEmploying 10,738

EUROPENet sales $ 14,741 millionEmploying 11,000

ASIA & OCEANIANet sales $17,563 millionEmploying 108,329

Regional sales contributions2008

JAPAN21%

AMERICAS28%

OTHERS18%

EUROPE33%

2009Supply Chain Management 5

1977

1985

1987

1998

2005

1934

1961

1987

1995

2007

A world-leading imaging company

2009Supply Chain Management 6

Multiple Channel structure

Office

Corporate & International

Canon Business Centres

Reseller Partners

Professional Print

Industrial products

Emer

gin

g M

arke

ts

Serv

ice

Par

ts

Con

sum

erMass / Special Retail

Distributors

2009Supply Chain Management 7

Supply Chain Facts & Figures

• 25 Warehouse locations EMEA

• 2 Production facilities

Consumer:

• 30 M products & accessories

• 120 M consumables

Office

• 750 K products & accessories

• 2 M consumable

Service

• 21 M Spare parts,

4.5 M Order lines

2009Supply Chain Management 8

Agenda

• Introduction to Canon

• Current logistics Future Supply Chain

• The challenge

• Current logistics Future Supply Chain

– Approach

– Key Success factors

2009Supply Chain Management 9

Matching Channels with Supply

• Given the broad range of the product Portfolio separateSupply chains are requested

• Challenge is to achieve both:How to deliver Value add to the customer while remaining efficient?

2009Supply Chain Management 5

Co

nsu

mer

Office

Multiple Channel structure

Corporate & International

Canon Business Centres

Reseller Partners

Consumer ElectronicsEmer

gin

g M

arke

ts

Professional Print

Industrial products

Consumer Electronics

Tailored Multiple

Supply networks

Generic Single

Supply Chain

network

Tailored Multiple

Supply networks

Generic Single

Supply Chain

network

Strategic choice

High flexibility

Low cost

High flexibility

Low cost

2009Supply Chain Management 10

Agenda

• Introduction to Canon

• The challenge

• Supply Chain changes

• Approach

• Key Success factors

2009Supply Chain Management 11

Concerns in the Supply Chain…Effective but not Fully Optimized

SalesStock

DC

PDI

OM

Sales Stock DC PDIOM

Customer

CustomerRequirements

• Many Hand-Over’s

• Duplication of Activities

• Not always Predictable

Support Sales Efficiently

2009Supply Chain Management 12

Design Principles

1. Minimum interference between Supplier &

Customer

2. Eliminate process steps – company － cost

3. Align required Process steps

4. Adoptable Supply Chain thru shared resources

ServiceService EfficiencyEfficiency

• Process• Network• Inventory• Cost

• Predictable• Reliable• Transparent

VisibilityVisibility

Suppliers Canon Customers

Process AlignmentProcess Alignment

Suppliers Canon Customers

Seamless Supply Chain

2009Supply Chain Management 13

To enable change, parallel actions

• Optimize our Network!

• Optimize its Usage!

• Based on ‘On-Line Visibility’!

InfrastructureDistribution (Pre-)Install/Kitting Returns

ExecutionOM Logistics Service

VisibilitySystems / Tools

Ch

ann

el

SLA

2009Supply Chain Management 14

Area’s of Change

Organisation & Process•Single ownership•Consolidation of Functions•CIG – BIG Order mgt

integration

System & Visibility•Transparency End to End•External Customers &

Internal users •Tool to Balance input with

available capacity

Business Principles &Clear SLA’s

•End to End Measurement•Clear SLA•Standard versus Premium

Logistics Network•Consolidated/Shared•Multiple Value addedservice combined

• Inventory holding

2009Supply Chain Management 15

One E2E Supply Chain as an Enabler

Infrastructure

• Regional Structure– Limited number of hubs

– Shared network for different channels

– Limited port of entries

• Pre-Installation combined in DC’s

Management & Organization

• Functional inclusion– Order Management

– Pre-Delivery Installation

• Transparency

2009Supply Chain Management 16

Agenda

• Introduction to Canon

• The challenge

• Supply Chain changes

• Approach

• Key Success factors

2009Supply Chain Management 17

Key Success factors

• Clear Agreement with the Business

• Clear contribution to the overall Strategy

• Ability to Measure the actual effect

• Continuous sharing of factual progresswith all stakeholders

• Find the right Balance betweenEngagement & Direction

• Phased approach to enable clearachievable milestones within reach

Thank you