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Disclaimer
All forward-looking statements are Schneider Electric
managements present expectations of future events and are
subject to a number of factors and uncertainties that could
cause actual results to differ materially from those described
in the forward-looking statements.
11B of purchases
Manufacturing
260 plants
48 countries
Logistics
110 distribution
centers
~400,000 SKUs
Footprint
Simplification
Supplier concentration
Local supply chain
Lean Manufacturing
Continuous improvement
2004-2008
Schneider Electric - Investor Day Tailored Supply Chain February 22, 2012
Continuous improvement
2009-2011
Portfolio
Japan supply
chain crisis
businesses
+8%
+12%
Acquisitions:
Growth
Sharp
rebound
plants
-16%
distribution
centers
Footprint
Unprecedented
drop in sales
2008
2009
2010
2011
Schneider Electric - Investor Day Tailored Supply Chain February 22, 2012
500
400
~300m p.a.
~330 m p.a.
300
200
100
0
Sales
.
*
Schneider Electric - Investor Day Tailored Supply Chain February 22, 2012
Number of plants
2008
2011
New economies
Mature countries
26%
32%
39%
18%
41%
46%
Sales in new
economies
Cost of good
sold in new
economies
Simplification
Footprint &
Lean
Footprint &
Lean
Footprint &
Lean
Continuous
improvement
Continuous
improvement
Continuous
improvement
Schneider Electric - Investor Day Tailored Supply Chain February 22, 2012
10
Delivery
model
Customer satisfaction
Distribution
partners
Standard
products
Make
to Stock
Equipments
Make
to Order
Model 2
Systems
Configure
to Order
Model 3
Services
Engineer
to Order
Model 1
Direct
partners
End-users
Model N
Higher inventory
efficiency
Reduce bad inventory while
increasing good inventory
Better cash management
Schneider Electric - Investor Day Tailored Supply Chain February 22, 2012
11
Build best-in-class
planning process by
customer segment
Accelerate
IT capability
Align IT strategy with
supply chain
segmentation
strategy and targeted
process capabilities
Purchasing
Footprint
optimization
Supply Chain
flow re-design
Transportation
rationalization
Schneider Electric - Investor Day Tailored Supply Chain February 22, 2012
12
Inventory efficiency
Improve net
customer promoter
score
Reduce inventory
level by ~2 pts of
sales by 2014
Schneider Electric - Investor Day Tailored Supply Chain February 22, 2012
Productivity
Industrial
productivity
savings of 0.9bn
to 1.1bn by 2014
13