Tony Trewhella – Deloitte PartnerJason Makins – Senior Manager

Inventory Optimization and Supply Chain Momentum

Contents

1. Context

2. Fletcher Buildings Case Study

3. Deloitte Inventory optimization App

4. Q&A

The entire supply chain is challenged … across all industries…

Why is supply chain planning important to our clients?

• To understand this, we need to consider that today’s businesses have to

compete in fast-paced and demanding markets where an important

differentiator is excellent service at optimal cost. This drives our clients to

focus on improving the availability of their products and services, reducing

the time it takes to respond to customer demand and its associated costs

What are some of the challenges faced by our clients?

• The challenges associated with supply chain planning are broad and affect our

clients across all sectors. The scope covers an entire business, from sales and

marketing through to delivery and fulfilment of a customer’s order. The

benefits of effective planning can therefore be great, increasing revenue

through improved market share, increased sales, and reduced costs

associated with excessive inventory holdings

Fletcher Building

Optimizing segmentation analysis and stock calculation in Anaplan

Fletcher Building overview

• Fletcher Building Limited is one of the largest listed companies in New Zealand, with a market

capitalization of over NZ$4.8 billion. The company was split from Fletcher Challenge in 2001,

formerly New Zealand's largest business and multinational.

• With 18,750 people in 40 countries globally and over 50 businesses operating under the

Fletcher Building banner, the company is Australasia's largest building materials supplier.

Inventory management is an area of the supply chain where multi-$M benefits can delivered very quickly….

Common challenges encountered include:• Lack of appropriate inventory KPIs to drive

desired inventory management practices• Not segmenting inventory by means of

contribution margin and demand volatility can lead to higher than necessary safety stock and replenishment levels

• Inventory management operating in isolation of account level demand and promotional planning, resulting in unexpected and adverse impacts on inventory holdings and long-term costs

• Significant volume of inventory data and the complexity of the analysis required to review inventory levels, identify trends in inventory use to establish a baseline for optimizing replenishment levels

Why Anaplan

Our segmentation analysis and stock calculation solution in Anaplan

SUPPLYCHAIN

InventoryOptimisation

SUPPLYCHAIN

AssetManagement

Demonstration

Q A

Driving a new age ofconnected planning