Transcription
2015 INVESTOR ANDANALYST CONFERENCESupply ChainOptimizationMark HolifieldExecutive Vice PresidentSupply Chain & Product DevelopmentSupply Chain Transformation ContinuesEnable Direct Fulfillment & Delivery Connecting Store to Website and Website to StoreSupply Chain Synchronization Connecting Merchandise From Supplier to Shelfto Customer Connecting Activities to Cost Efficiency22015 INVESTOR AND ANALYST CONFERENCE
Connecting Network Infrastructure- Rapid Deployment Centers- Stocking Distribution Centers- Bulk Distribution Centers- Direct Fulfillment Centers- Stores- Interline Distribution Centers2015 INVESTOR AND ANALYST CONFERENCE3Canada Distribution NetworkCalgary, AlbertaVaughan, OntarioRDC/SDCRDC/SDCCalgary, ABRDC – January ’16 Go LiveSDC – March ’16 Go LiveVaughan, ONRDC – LiveSDC – December ’15 Go LiveCalgary RDC & SDC On Track For 2016 OpeningRDC Rapid Deployment Center SDC Stocking Distribution Center42015 INVESTOR AND ANALYST CONFERENCE
Strengthening Our Interconnected CapabilitiesPro DeliveryDirectFulfillment CentersBig & Bulky DeliveryTHD StoresVendorsFlat Bed DeliveryParcel DeliveryVendor DeliveryGlobal View ofTransportation AssetsGlobal View ofInventory & Fulfillment Channels52015 INVESTOR AND ANALYST CONFERENCEBuy Online Ship to Store (BOSS) via RDCShipping CostDirect toCustomerDirect to Store BOSS via RDC DFC6 RDCStore2015 INVESTOR AND ANALYST CONFERENCE
Number of DeliveriesGrowth of DeliveryTotal Interline DeliveryStore DeliveryAppliance DeliveryOnline Delivery2014A2015F2016T2017TDirect-to-Customer Volume Continues to Grow With Our Expanded Capabilities72015 INVESTOR AND ANALYST CONFERENCEEnhanced Delivery CapabilitiesImproved SchedulingBODFS EnablementStore SimplificationEnables a new way tobuy bulky productsEasier for THD associatesto schedule deliveries2 HourWindowAvailableCustomers know whenthey’ll get their order82015 INVESTOR AND ANALYST CONFERENCE
New Direct Fulfillment CentersTroy Township:Q3 2015Perris:Locust Grove:Q3 2014Q1 2014New Mechanized DFCsEnable Sales GrowthSpeed To Customer92015 INVESTOR AND ANALYST CONFERENCESupply Chain Transformation ContinuesEnable Direct Fulfillment & Delivery Connecting Store to Website and Website to StoreSupply Chain Synchronization Connecting Merchandise From Supplier to Shelfto Customer Connecting Activities to Cost Efficiency102015 INVESTOR AND ANALYST CONFERENCE
Our Supply Chain Evolution1979-20082008-20142015 “Infrastructure” Phase“Optimization” PhaseSYNCSupplierSupplierRDC2015 INVESTOR AND ANALYST CONFERENCE11Synchronize Flow From Supplier to Shelf“Infrastructure” PhaseInbound TransportationSupplier DCPartially FullTruckManufacturing PlantRapidDeploymentCenterTransport 1 - 5 DaysStoreReceived 1 - 4 DaysShip 2-10 DaysTotal Lead Time - 11 Days122015 INVESTOR AND ANALYST CONFERENCE
Synchronize Flow From Supplier to Shelf“Optimization” PhaseInbound TransportationSupplier DCRapidDeploymentCenterFull TruckManufacturing PlantShip Same Day Next DayLoad Stack PalletsTransport Actual TransitTimeLoad Full Trucks Multi-stopStoreReceived Same DayShip Direct OpportunitiesTotal Lead Time - 5 days2015 INVESTOR AND ANALYST CONFERENCE13How We Are Doing It“Engineered Flow Ship HoursShipDayShipTimeTransitTime DaysArrivalDayArrivalTimeWorkDayShiftHoursIB LTDaysMon7am – 9pmTue3pm0.7Wed7amWed5am – 3:30pm2.3Lead Time (days)Supplier Ships Next DayVolatile, 6-12 daysStable 3 daysFiscal WeekEngineered Flow Shortens and Stabilizes Lead Time142015 INVESTOR AND ANALYST CONFERENCE
Connecting End to EndSync Engine Optimizes:InboundTransportSupplierRapid DeploymentCenterOutboundTransport Balanced shipping labor Lowest rate Balanced labor capacity Lowest rate Inventory from closestshipping location Full truckloads Balanced conveyor &equipment capacity Full truckloads Multi-stop pick-up Balanced lane capacity Optimize inbound withoutboundStore Minimize pack up / packdown Balanced lane capacity Minimize inventorytouches & footsteps Optimize outbound withinbound Planned freight flow2015 INVESTOR AND ANALYST CONFERENCE15Reduce Logistics Cost Through ProductivityInbound Productivity2013A2015F2018TCube Utilization of Inbound TrailersLabor Productivity2013A2015F2018TCartons Per Labor Hour (RDCs)16Outbound Productivity2013A2015F2018TCube Utilization of Outbound Trailers2015 INVESTOR AND ANALYST CONFERENCE
Supply Chain Competitive tServiceto Stores &CustomersDeliverables of a Best in Class Supply Chain172015 INVESTOR AND ANALYST CONFERENCE
2015 INVESTOR AND ANALYST CONFERENCE Our Supply Chain Evolution 11 Supplier Supplier RDC SYNC 1979-2008 2008-2014 2015 “Infrastructure” Phase “Optimization” Phase 2015 INVESTOR AND ANALYST CONFERENCE Total Lead Time - 11 Days Synchronize Flow From Supplier to Shelf “Infrastruct
