Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

53
Sonoco Packaging Solut -End-to-End Supply Chain Solutions – c © 2001 by Sonoco by Nando Galazzo , Supply Chain Director, Sonoco Chairman, Global Supply Chain and logistics council, Conference Board Europe Brad Weller , Director Sonoco Packaging Solutions tm October 1, 2001, Berlin, Germany

description

Berlin Presentation, End-to-end supply chain solutions, a focus on packaging adding value in the chain

Transcript of Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Page 1: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Sonoco Packaging Solutionstm

-End-to-End Supply Chain Solutions –

c © 2001 by Sonoco

by Nando Galazzo, Supply Chain Director, Sonoco Chairman, Global Supply Chain and logistics council, Conference Board Europe

Brad Weller, Director Sonoco Packaging Solutionstm

October 1, 2001, Berlin, Germany

Page 2: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Agenda

Credentials Supply Chain thoughts Sonoco Packaging Solutions Implementation Models Get started ! SPStm case studies

Page 3: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

CREDENTIALS

CREDENTIALS

Page 4: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Sonoco Global Packaging

285 operations32 countries/5 continents17,000 employeesCustomers - 85 countriesTurnover - US$2.8 billion

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 5: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Sonoco Packaging Portfolio

Pack Center

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 6: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

“Only Perceptive, Adaptable and Innovative packaging companies can get closer to their customers and markets by developing extended enterprises & supply chain

partnerships”.All others …

will just be passengers during the journey

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 7: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Sonoco’s Traditional Value Drivers …

Recycling&

Reclamation

Paper TubeMechanics

&Design

SonocoSonocoValueValue

DriversDrivers

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 8: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Sonoco’s Traditional Value Drivers …

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Product

Service

ServiceProduct Dependent Model• Defends existing position• Protects existing margins• Builds barrier to competition

Limitations• Commodity model• Value extraction is limited• Costs justified on product margin• Short life time for incremental benefits

Page 9: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Sonoco’s Traditional Value Drivers …

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Product

Service

ServiceProduct Dependent Model• Defends existing position• Protects existing margins• Builds barrier to competition

Limitations• Commodity model• Value extraction is limited• Costs justified on product margin• Short life time for incremental benefits

Products Sourcing W. Housing Pac Center Logistics Products

Supply Chain Driven Model• Products are pushed or pulled• Fully defined value• Sustainable over time• Non-product Dependent

Possibilities• Higher point of entry (food chain)• Multi-site scalability• Long-term activity• Diversification of income portfolio

Consultancy / Implementation

Page 10: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Pack Center Concepts

Six SigmaInventory

Management Systems

Recycling&

Reclamation

Paper TubeMechanics

&Design

SonocoSonocoValueValue

DriversDrivers

Sonoco’s journey to add value …

SonocoProprietary

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 11: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Evolution: from products…

Paper Textile Film / Tape Specialty

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 12: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Paper PackagingFilm Packaging

Evolution: …to packaging…

Paper Textile Film / Tape Specialty

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 13: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Paper PackagingFilm Packaging

Evolution: …to services…

Paper Textile Film / Tape Specialty

Pack Design ReclamationSupply Chain

                    

                  

ProcurementLogistics

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 14: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Pack Center Concepts

End-to-EndSupply Chain

Management

Six SigmaInventory

Management Systems

Recycling&

Reclamation

Paper TubeMechanics

&Design

SonocoSonocoValueValue

DriversDrivers

Sonoco’s extended enterprise …

SonocoProprietary

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 15: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Sonoco’s extended enterprise …

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Consultancy Design /Graphics

Sourcing JIT /VMI

PackCenter

PlanningScheduling

W.H.Mgmnt.

Distribution ReturnRecycleRefurbish

Gillette US

Gillette UK

Cryovac

Whirlpool

MFE US

MFE Europe

3M Europe

= assessments

= implementations

DuPont Europe

Page 16: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

• Global scale and infrastructure• Supply Chain Management• Packaging Solutions• Customer Relationships• Operational integration / Pack-Centre management

• Resources & Scalability• Consulting Methodology• Venture Capital• IT & B2B Integration• Previous project• Client experience

• Resources & Scalability• Consulting Methodology• Venture Capital• IT & B2B Integration• Previous project• Client experience

Offering experience through partnership

SonocoPackagingSolutions

SPS

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 17: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

SUPPLY CHAIN

THOUGHTS

Page 18: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Competitive Pressures in the Supply Chain

Global competition& industry

consolidation

Global competition& industry

consolidation

Shorter productlife cycles

Shorter productlife cycles

Speed of technologychange

Speed of technologychange

More demanding customers

& shareholders

More demanding customers

& shareholders

Environmentalrisk and issues

Environmentalrisk and issues

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 19: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

No company, on its own, has the ability to dominate the future … without:

A vision that creates growth & wealth Accelerating the speed of change Executing and sustaining improvement New partnerships that manage complexity

Competing through collaboration

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 20: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Managing for change & performance

ACCESSACCESS…

access to economies of scale access to know-how access to technology and innovation access to new collaborative models

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 21: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

An evolution toward greater collaboration

Su

pp

ly C

hai

n P

erfo

rman

ce

Partnership & Trust HL

H

Coordination

Collaboration

Transactions

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 22: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Areas of desired collaboration

OptimisationOptimisation

Co-asset andLabour

management

Co-asset andLabour

management

Smartpackaging design

Smartpackaging design

ERP systemsERP systems

SynchronisationSynchronisation

Inventory andWC management

Inventory andWC management

Outsourcing &JIT Kit DeliveryOutsourcing &JIT Kit Delivery

OptimisersOptimisers

End-to-endPackaging solutions

End-to-endPackaging solutions

Productionplanning

Productionplanning

Multi-use/reuse/returnable

Multi-use/reuse/returnable

The emergingPackaging webMarket place…

The emergingPackaging webMarket place…

1

2

3

4 InformationTechnology

Supply ChainRe-engineering

& implementation

Pack CentreManagement

Packaging &

GraphicsDesign

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 23: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Therefore…

Sonoco has developed and implemented end-to-end supply chain solutionsend-to-end supply chain solutions for its customers around the world … called

SPSSONOCO PACKAGING SOLUTIONS

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 24: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001
Page 25: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

innovative

customized

collaborative

scalable

profitable

SPSSONOCO PACKAGING SOLUTIONS

3pl

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 26: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

3pl used to be mainly about sub-contracting warehouse and distribution services …

3rd party 4th party logistics

Tomorrow’s 4pl will sit in the middle of the value chain, drawing products or components from all parts of the network as available …

managing product assembly or packaging …

and then handling the distribution to individual customers by the fastest and most efficient route.

Financial TimesOctober 2000

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 27: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

4plwith a

difference

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 28: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Extended enterprise asset management

sourcing & information management

Pack-centres / packaging operations

Packaging materials planning & inventory management

Packaging materials sourcing, procurement, leverage

Sub-contracting warehousing & distribution

Transportation management - outbound / reverse logistics 3pl

Low

Su

pp

ly C

hai

n S

cop

e

Intensity

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 29: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

design, development, & engineering support

Packaging material life-cycle management:

Return,, Re-use, Recycle

Logistics sourcing & information management

Pack-centres / packaging operations

Packaging materials planning & inventory management

Packaging materials sourcing, procurement, leverage

Sub-contracting warehousing & distribution

Transportation management - outbound / reverse logistics

Med.

4pl

Su

pp

ly C

hai

n S

cop

e

Intensity

3pl

Low

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 30: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Enterprise asset management

Packaging design, development, & engineering support

Packaging material life-cycle management:

Return, Refurbish, Re-use, Recycle

Logistics sourcing & information management

Pack-centres / packaging operations

Packaging materials planning & inventory management

Packaging materials sourcing, procurement, leverage

Sub-contracting warehousing & distribution

Transportation management - outbound / reverse logistics

High

SPS

Med.

4pl

3pl

Low

Su

pp

ly C

hai

n S

cop

e

Intensity

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 31: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Keeping the Strategic … Outsourcing the Tactical

Customer Supply Chain

MarketingFinished Goods

Planning

Factory Planning

Manufacturing Distribution

Package Planning

Packaging MaterialsProcurement

Systems & PlanningIntegration

3rd Party Logistics

Pack Product

Outsourced Supply Chain Activities to Sonoco

Vision is Critical - for instance

Reverse Logistics

Page 32: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Implementation

   

MODEL

Page 33: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

The Methodology

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 34: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Plan

SO

NO

CO

S

up

pli

ers

MakeDeliver DeliverSource

Customers

Yo

ur

Cu

sto

me

r’s

Cu

sto

me

rs

DeliverMakeSource Source

SONOCOSONOCO

DELIVERSOURCE MAKE

• Finished Goods

Warehousing

• Shipping & Outbound

Logistics

• Procurement Pack

• Inbound Logistics

• Inventory Management

• Optimized Core & packaging Design

• RETURN PROGRAMME

COLLABORATIVESYNCHRONIZED

OPTIMIZED

CUSTOMER

Integrated Packaging Design & Life Cycle Management

Vision of an Extended enterprise

Page 35: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Activities -Event Driven Processe Map

Level 4

Business Processes -Event Driven Process Map

Level 3

Process Scenarios -Value Chain Diagram

Level 2

Drilling Down to Levels of Detail

Enterprise Processes

Level 1

*

Applying a Tool Frameworkto Support Supply Chain Modeling

AS- IS Assessment

Page 36: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

TO - BEImplementation

SCOR Methodology Employs a Top-Down Approach

*

Material Flow View Identify Roles within the logical flow Establish product responsibility Analyze for performance to select

scenarios Analyze Basisof

Competition Business Scenario View

Role-based Scenarios Collaborations/Biz Documents Encapsulation of process detail

ConfigureSupply-Chain

Process Definition View Consistent Modeling Link to public protocol definitions Bounding events

AlignPerformance

Levels, Practices, and Systems

Process Specification ViewImplement

Supply-Chain Processes and

Systems

Objective of this work: Align Scenario Implementation with SCOR Methodology …

Page 37: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

GET

   

                       

               

-ED!

Page 38: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Think Big, Start Smart, Scale Fast

2002 2003 2004

Per

form

ance

2

Leverage resources

and experience

Start Smart First Plant Implementation

3

Vision

1Think Big

2001

Scale Fast

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Source: Accenture

Page 39: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Think BIG

Because…nothing short of a step-change will keep you ahead of the competition

Because…packaging touches every aspect of your supply chain

Think Big

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Think packaging

Page 40: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

PackagingSupplyChain

Package Procurement

InventoryManagement

ReclamationReuse

Recycling

PackageFilling

PackagingMachinery

Engineering PackagingMaterials

GraphicsManagement

PackageDesign/

Engineering

Think Big

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 41: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Silver Bullets

Quick Wins

StrategicStep Changes

Value AchievementLow

High

High

Eff

ort /

Ben

efit

Building the Treasure Map

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 42: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Assess Performance Attributes

Benchmark Performance

Prove Scenarios

Design Supply Chain Model

Optimize

Start SMARTStart Smart

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 43: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Assess Benchmark Prove Design

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 44: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Implementation Cycle

Assessment CycleOpportunitiesPre-ScreeningPrioritisation

SPS Education & Presentation

Pre-AssessmentLetter of Intent for

Implementation

FullSupply ChainAssessment

Final Presentation and Contract

End

Implementation

Project Planning

Solution Design,Developmentand Validation

Start-up Deployment

and Transition

Continuous Operation

Benefits Tracking

and Sharing

Adjustments and Subsequent Phases

Project overview

Page 45: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Implementation Cycle

Assessment CycleOpportunitiesPre-ScreeningPrioritisation

SPS Education & Presentation

Pre-AssessmentLetter of Intent for

Implementation

FullSupply ChainAssessment

Final Presentation and Contract

End

Implementation

Project Planning

Solution Design,Developmentand Validation

Start-up Deployment

and Transition

Continuous Operation

Benefits Tracking

and Sharing

Adjustments and Subsequent Phases

• Define Offering andSPS Supply Chain Management Program

• Team of 3-4• 2 days per site• High level discovery• Opportunity pockets• Value extraction • Prepare LOI (?)

• Resource aligned• Project Scope & KPI’s• Steering Committee• Resource ID’d• Assess SOP’s

• Team of 4-6 for 1-4 weeks• Process and Financial Analysis• AS-IS Mapping • Stakeholders & Implementation Issues/barriers• TO-BE Mapping (game changing)• Recommendations & Implementation roadmap

• Milestones• Timing • Resources• Plan / Metrics

• Joint team formed• Duration depends on scope & complexity• QA review

• 2-6 months depending on scope complexity site, equipment, & systems• Change management

• Daily management of operations

• Assess delivered value• Quarterly performance review

Project overview

Page 46: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

To pick the fruit Leverage resources and experience

Scale FASTScale Fast

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 47: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Infrastructure = reusable capabilities

1 2 3 5STARTSMART

8

SCALEFASTNth

MitsubishiEurope

yourcoPlant 1

It’s not about one site, it IS about leverage and speed It is not about a fad, it IS about improving the business It’s not about going for change, but it IS about going dollars

Insights:

Acceleration

GilletteN.America.

WhirlpoolN.America

MitsubishiN.America

yourcoPlant 20

6

GilletteEurope

7

3M

Page 48: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

CASE

STUDY

Page 49: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

SPS Europe - Global Film Manufacturer

SPS Solutions Reorganised pack matl. planning & purchasing SAP - Inventory control Re-engineered packaging supplier base Return & refurbishing with on-site service

provider Selected 3PL for warehousing, dispatch,

transport Reduction of Carrier Base from 40 to 6

Key Bottlenecks Logistically Independent Production Units - Duplication

of Logistics Activities and Costs Lack of Collaborative Planning between Manufacturing

and Packaging Replenishment Inventory Accuracy and Visibility Network of Past Relationships Size of Carrier Base vs. Synergies Interfaces and Transaction Processes - use of SAP

Cost Reduction Achieved of 11% Logistics

8% Procurement

9% Warehousing

17% Return / Recycling

20% Core Cutting (JIT)

30%

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 50: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

SPS Europe Implementation Example - Major Film Company

Source Make Deliver

Dis

pat

chCustomer Prod 2

Customer Prod 1

Prod LINE 1

Prod LINE 2

Prod LINE 3

Prod LINE 4

Prod LINE 5

Prod LINE 6

CONTAINERS MILKRUN

Con

sig

nm

en

t W

are

hou

ses Cus

tom

ers

FIN GOODSWarehouses

Son

oco

Refu

rbis

hin

gO

pera

tion

Third PartySuppliers

Sonoco Plants

Managed by Sonoco

PLAN

Managed by Sonoco and Outsourced to 3PL

12

3

4

53

3

FIN GOODSWarehouse

Page 51: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

SPS Europe – Global Tape Manufacture

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

ConvertingOutsourcing

High

Low High

KaizenLeanPh. 1

DPOU

Speed of Implementation

Co

st

Op

tim

isati

on

/ O

pp

ort

un

ity S

ize

KaizenLeanPh. 2

ScrapReduction

PurchasingLeverage

PackagingCycle Ph. 2

PackagingCycle Ph. 3

Page 52: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Experience & success in 4 areas

Conclusion. What makes SPS so different ?

Ability, desire, and culture to implement & partner– Gain sharing (accountability)– Co-asset management– Resource sharing & leveraging

Outsourcing &ContractManagement

Supply chainRe-engineering& Implementation

IT integration& interfaceoptimization

PackagingDesign &Manufacturing

SPS

CredentialsCredentials

Supply Chainthoughts

Supply Chainthoughts

SPSSPS

ImplementationModels

ImplementationModels

Get Started !Get Started !

Case StudiesCase Studies

Page 53: Brad Weller_Nando Galazzo Packaging Solutions Presentation Berlin 2001

Changing the way

the world sees

PACKAGING

Sonoco Europe s.a.Boulevard du Souverain, 100 box 3

1170 Brussels – BelgiumTel: +32 2 663 45 40Fax: +32 2 675 02 25

www.sonoco.com