埃森哲-PPG工业物流评估项目建议书-201505

RFPResponsetoPPGlogisticsAssessmentMay2015StatementofconfidentialityAccentureispleasedtosubmitthisproposaltoPPG.

Whilethisproposalisnotmeanttoconstituteaformaloffer,acceptance,orcontract,thisproposalisfurnishedwiththeexpectationthatwewouldprovidetheservicesspecifiedbytheRequestforQuote(RFQ)accordingtothetermsofacontracttobenegotiatedandagreedtobytheparties.

ThisproposalisproprietarytoAccentureandtheinformationcontainedhereinisconfidentialandprovidedsolelyforthepurposeofevaluatingAccenture’sproposedservices.

WithoutthepriorwrittenpermissionofAccenture,thisproposal,eitherinwholeorinpart,mustnotbereproducedinanyformorbyanymeansordisclosedtoothersorusedforpurposesotherthanPPG’sinternalevaluationofAccenture’sproposedservices.Itmaynotbedisclosedtoanythirdparty(otherthantoPPG'sthirdpartyadvisorsthataresubjecttoconfidentialityagreementsandhaveaneedtoknowforthepurposesofevaluatingtheAccentureproposal),exceptasexpresslyauthorizedbyAccentureineachcase.

ThisdocumentwaspreparedontheinstructionsandinformationgivenbyPPGandaccordinglynoresponsibilityisacceptedforanyinaccuracyorerrororanyactiontakenornottakeninrelianceonthisdocument.

TheselimitationsarenotinanywayintendedtorestrictcontinuingbusinessdiscussionsbetweenPPGandAccenture.

Totheextentthatthisproposalmakesreferencetotrademarksthatmaybeownedbyothers,theuseofsuchtrademarksisnotanassertionofownershipofsuchtrademarksbyAccentureandisnotintendedtorepresentorimplytheexistenceofanassociationbetweenAccentureandthelawfulownersofsuchtrademarksAgendaProjectbackgroundandobjectivesOurPOVandproposedprojectapproachProposedprojectteamWhyAccentureAppendixASISunderstandingofPPGCoatingBusinessinChinaPPGChinaCoatingbusinesshas7SBU.EachSBUhasitsownoperationandsupplychainteamBothlogisticsfacilityandlogisticsoperationteamofeverySBUareindependenttoeachother!Currentlythereare30warehouseslocatedat23cities!PPGChinaIndustrialAutomotiveAerospaceArchitecturalPMCRefinishPackage?factory?factory?factory?factory?factory?factory?factory?customer?customer?customer?customer?customer?customer?customer?NDGWHS?DGWHS?NDGWHS?DGWHS?NDGWHS?DGWHS?NDGWHS?DGWHS?NDGWHS?DGWHS?NDGWHS?DGWHS?NDGWHS?DGWHSConfusionoflogisticsmanagementLogisticsmanagementImprovementLogisticsVendorsCapabilitiesServicemodelCustomerfeatures&networkservicelevelOrderfulfilmentmethodDiversifiedlogisticsenvironmentLegislationsSBUbusinessexpectationsProductfeaturesFactorynetworkBesidesthedecentralizedlogisticsmanagement,PPGalsoisfacingthechallengesfromdemandingclientrequirements,Chinadiversifiedlogisticsenvironment,andtheconstraintsoflogisticsvendorsProjectobjectivesIndustrialAutomotiveAerospaceArchitecturalPMCRefinishPackageLogisticsAssessmentEstablishadetaileddiagnosismethodofourwarehousequantityandcostIdentifyopportunitiesDefineactionplan

Howmanywarehousesshouldbereducedto?Thelocation,theareaandthetotalwarehousecostshouldbeidentify.OverallsupplychaincostfromPPGplantoclientreductionshouldbeidentify.StrategyforPPGChinawarehouseinthefuture.Identificationoffootprintopportunities

OutcomesKeyQuestionsPPGwouldaskconsultantsupporttoacceleratethelearninginamethodicalway,gainbenchmarksandtoidentifyquantifiableopportunitiestoaction.OurunderstandingabouttheProjectScopeInScopeOutofscope BusinessUnitGeographyFunctionNetworkOtherPPGSBUsinChina7SBU,including:Industrial,Automotive,PMC,Aerospace,Refinish,Architectural,PackagingChinaMainlandDistributionmanagementforFinishedGoodsAllWarehousesfor7SBU’sfinishedgoods:DGWarehousesNon-DGWarehousesBondedWarehousesManufacturingSupplyChainDistributionSupplyChainRawMaterialWHSFinishedGoodsWHSPlantCustomersRawMaterialSupMarketSalesandDistributionInformationSystemInScopeOutofScopePlantinboundandrawmaterialmanagementPlantPlantwarehouseConsignmentWarehouseOutofScopeoverseasThisprojectwillfocusonPPGChina7SBU’sfinishedgoods,consideringSBU’soperatingmodel,businessprojection,clientsegmentationwithservicerequirements,logisticsmanagementandlegal&

EHScompliancerequirementsAgendaProjectbackgroundandobjectivesOurPOVandproposedprojectapproachProposedprojectteamWhyAccentureAppendixBasedonAccenture’sSCMexperienceandunderstandingPPGsituation,hereinitiatebelowHypothesisfortheassessmenttoopportunitiesAssessmentHypothesisinitialthinkingScenariosAssessmentPotentialopportunitiesWhatifnobigchangeWhatifcentralizedlogisticsS&PWhatifintegratedlogisticsservicesProductflowsegmentation&networkContracttermsAlternativetransportationsStrategicsourcing&procurementsynchronizationStrategicsourcing&procurementStrategicsourcing&procurementOveralloptimizationsDC#reductionPricing/risktocostLowercostshippingvendors,alliance,riskcontrol,etc.Reducingcomplexityvendors,alliance,riskcontrol,etc.vendors,alliance,riskcontrol,etc.OperationalexcellenceThisprojectProposedprojectapproachLegislationComplianceServiceLevelLogisticscostASISandChances(6weeks)RoutMap(4weeks)7SBUbusinessASISandTOBEBusinessrequirementtologisticsLegislationsimpactCurrentproductflowLogisticscostbaselineLogisticsmodelingLogisticsS&PLogisticsvendorsKeyfindingsHypothesisandassessmentQualitativeandquantitativeanalysisInitialrecommendationtofootprintOwnershipdiscussionProjectcharterInitialsuggestionofImplementationapproachTransformationroutemapExecute&MonitoringCoachingDeliveringPMOChangemanagementEtc.20152016-2018WorkshopsforpossibleopportunitiesQuickwinsList&prioritiesBlueprintkeyfeaturesBlueprintownershipsRisk&mitigationFootprint(4weeks)Baseonprojectunderstandingandhypothesis,heresuggesta16weeks3phaseswork,whichwouldbeajourneyofvaluerecognitionundertheactionablerecommendations,AccenturealsowishtobeapartnertosupportvaluerealizationTools&AssetsIllustrationWhatisit?Whatdoesitbring?LogisticsModelingLogisticscostmodelingDCnetworkmodelingQuicklyunderstandbaselineQuantitativeanalysisofscenariosSupportthedecisionmaking7-steps

SourcingMethodologyProven,pragmaticstrategicsourcingmethodologybuiltovertimeandthrough1000sofstrategicsourcingengagementsAcceleratetheexecutionofthe3PLsourcingprocessReducerisk3PLsourcing

toolsetAsetoftoolsandassetstosupportRFPprocesses,includingRFPdocumentation,evaluationcriteria,negotiationbook,3PLsitevisitchecklist,RFPprocesstrackingtool,etc.EnsureeffectivesourcingprocessLogisticsBenchmarkingDatabaseoflogisticsprovidersinChinaDatabaseofchemicallogisticsmanagementEnhancethescenariosdevelopmentLeverageLesson&learntILSmodelPointofviewoncapabilitiesrequiredtooperateanintegratedlogisticssolutionQualitativeanalysisofscenariosSupportthedecisionmakingKeySuccessFactorsStrongfocusontheprojectobjectiveandvaluesRigorousstatusandmilestonemanagementSignificantinvolvementofPPG’sLeadershipHypothesisandactionablerecommendationsCompletedatacollection&accuratedataprocessingProjectSuccessCollaborationProjectManagementSolutionApproachCollaborativeprojectmanagementbyPPGGroupandSBUsInrespondtothecomplexityoftheproject,AccenturesuggestsPPGtofocusonthebelowfactorstoassureprojectsuccess.PartneringwitharightconsultingfirmistheplusfortheprojectbyaddingtheprojectwithprofessionalprojectmanagementskillandmethodologyAgendaProjectbackgroundandobjectivesOurPOVandproposedprojectapproachProposedprojectteamWhyAccentureAppendixProposedprojectorganizationFacilitatesuccessofprocessProvideobjectiveadviceChallengethinkingBringperspective/expertiseLeadprojectwithinPPGAssureaccesstodata/informationOrganize/manageresourcesProvidepushwherenecessaryOrganizeandmanageProvideexpertiseChallengethinkingProvidebestthinkingAssistindefiningcurrentsupplychainperformanceParticipateindefiningopportunities/scenariosFacilitateworkshopsProvidebestpracticeProvideknowledgeChallengethinkingParticipateininformationcollectionanalysispreparationofdiscussiondocumentsAccesstointernalinformationActivelyparticipateinformulationofoptions,presentingtomanagementStructure/managequalititativedatacollectionandanalysisProvideexpertiseFacilitateteamwork,communicationStructure/preparediscussiondocumentsPPGChinaAccentureRoleProjectorganizationSteering

CommitteeProject

ManagementAccentureSpecialistGroupPPGSpecialistGroupSponsorprogress/directionReview/discussoptionsandtrade-offsMakedecisions*FTEs:FullTimeEquivalentsAccentureQualityProjectTeamAccentureChina:3-6

FTE(teammember)PPG:2-7

Supporters(20-100%)BringingtogetherthebestpeoplewiththerightskillsetsandexperiencefrombothPPGandAccenturetoaddressthesupplychainstrategychallengewillgreatlyensurethesuccessoftheinitiativeConsultantteamConsultantRoleParticipationtime(workingdays)AmountAssessmentBlueprintRoadmapHelenWangpartner15(onsite+remote)15Jerrypartner3(onsite+remote)3DengQinSME5(onsite+remote)5MeiGangueProjectmanager30202070JefferyHouTeammember302020

70C2Teammember3030C3Teammember3030C4Teammember3030Totalworkingdays：248Toensuretheprojectquality,wewillbuildaconsultantteamwithsolidlogisticsprojectexperienceswhoarefamiliarwithChinapracticeandcouldprovideactionablesuggestionsAgendaProjectbackgroundandobjectivesOurPOVandproposedprojectapproachProposedprojectteamWhyAccentureAppendixAccenture’svaluetoPPGAccenturebelievesthatouruniquecapabilitiescaneffectivelysupportPPGtoachieveprojectsuccessbypoweringtheprojectwithrigorousprojectmanagement,provenmethodologyandtools,andthebestteamChinaExperienceChemicalIndustryKnowledgeUniqueCapabilitiesValueMindsetAppendixGeneralintroductionofAccentureChinaSelectivecredentialsAccenture’steamintroductionAccentureIntroduction

OverviewAGlobalFortune500companyWithapproximately300,000peoplewith150officesin52countries,generatinganetrevenueofUS$22billionIn2001,AccenturebecameapubliccompanyandbegantradingsharesontheNewYorkStockExchange,underthesymbolACNAccentureservesapproximately4,000clientsthatspanthefullrangeofindustriesaroundtheworldWeserve96oftheFortuneGlobal100,two-thirdsoftheFortuneGlobal500andgovernmentagenciesaroundtheworldOfourtop100clientsinfiscalyear2008,basedonrevenue,99havebeenourclientsforatleast5yearsand87havebeenclientsforatleast10yearsRatedbyForresterResearchastheleadingSupplyChainConsultingfirmintheworldAccentureIntroduction

AccentureChinaOverviewAccenturehasmorethan

10,000peopleworkinginGreaterChina,withofficesinBeijing,Shanghai,Dalian,Guangzhou,HongKong,Taipei&Chengdu:HongKong(1989)Taipei(1989)ShanghaiManagementConsulting(1993)ShanghaiBPO(2003)ShanghaiTechnology(2004)Beijing(1994)DalianTechnology(2002)AsiaPacificSharedServicesCenter(2003)Dalian-BPO(2004)GuangzhouMgmtConsulting(2004)GuangzhouTechnology(2006)ChengduBPOCenter(2009)BeijingShanghaiTaipeiHongKong

DalianGuangzhouChengduBPO=BusinessProcessOutsourcingWeareaPartnerofChoiceforLeadingCompaniesacrosstheWorldandinChinaWebelievesincreatingvalueforourclients,helpingthemimprovetheirmanagementstandardsaswellascompetitivenesstooutperformtheirpeers.Westrivetobecomealong-termandloyalpartnerofourclients.

Accentureisalong-termpartnerofchoicetotheworld’sleadingcompanies:4050%80%FortuneGlobal100clients.923/489Top100clientbasearelongtermpartnersforatleast10yearsMorethanthree-quartersoftheFortuneGlobal500clients.SOEsaccountfor80%ofourtop100clientsMorethanhalfofclientbasearelongtermpartnersChineseFortune500clientsWearealsoalong-termpartnerofchoicetoChineseenterprisesandgovernments:ThoughtLeadership:Accenture’schemicalsexperienceisreflectedinourworld-classthoughtleadershipViewallofourchemicalsthoughtleadershipat/

chemicalsorvisitthe

ChemicalsExecutiveSeriesmicrosite.AccentureisaleaderinSCMconsultingandservicesareaSource:SupplyChainServicesProviders,Gartner,2011.Accenturehasbeenrankedasanindustryleaderinsupplychainandvisionexecution.GartnerBestfitforglobalsupplychaintransformationsForrester“BestSupplyChainPartner”(2012)AccentureIntroduction

CombinationofChemicalindustry&SCMCapabilityinChinaSelectedSCMEngagementsOurChemicalClientsinGreaterChinaAppendixGeneralintroductionofAccentureChinaSelectivecredentialsAccenture’steamintroductionLCCSourcingfromAtoZ

_oneGlobalLeadingOil&GasCompanyinChinaTheclientisanO&Gmajorworkinginmorethan100countriesacrossupstream,downstreamandpetrochemicals.Theclientrealizesmorethan25billion€spendannuallyTheclienthasdecidedtoderivemorevaluefromitspurchasingthroughanalyzing/testingaLowCostCountrySourcingapproachTheclienthashistoricallyfacedannualsignificantpriceincreasesduetoover-dependenceonlimitedsupplybaseandscarcityofsupplyTheclienthasnopriorexperienceofanystructuredLCCsourcinginitiativesBusinessSituationConductmarketresearchofthegloballogisticsservicemarketLeadtheRFPeventwithselectedsuppliersthroughAribaSupportnegotiationoflogisticscontractsfortheclienttohaveitsownlogisticscapacitiesifrequiredandnotrelyonlocalsuppliersSupport3rdpartyinspectionservices(producttesting,supplierauditswhenIPOisoverloaded)InitiatebenchmarkoftheIPOprogramwithmajorcompetitors,partners&MNCsinChinaAccentureApproachContractsignedwithinternationalfreightforwarders:3RFQsupportedwithmain3rdpartyinspectionservicescompaniesMNCLCCpracticesbenchmarked:10+industryleadersprovidinginsightsintoChinasourcingbestpractices,lessonslearnedandsuppliercapabilitiesResultsandBenefitsLogisticsRFPdocumentsLogisticsRFPevaluationgrid3rdpartyinspectionRFPdocumentsLCCsourcingriskmitigationplanIndirectSourcingOptimizationProject

_oneGlobalLeadingChemicalCompanyinChinaOurclient,asaleadingmanufacturerincoatings,chemicalsandpharmaceuticals,afteritsM&Awithaformerpaintingcompanyiscurrentlyestablishingaglobalprocurementorganizationstructure.Globalprocurementroles&responsibilitiesareinplacewhilelocalrolesandprocessesneedtobeinstalledafterM&ADatasituationonindirectspendforourclient’scommercialandoperationalsiteswithinAPACwasunclear.BusinessSituationWorkedwithclienttoselect19sitesinChinaasscopeofNPRspendanalysisOrganizedspenddataanalysisprojectteamtocoordinatewith19selectedsitesfordatapreparation&collectionInterviewedwithkeypersonsofeachvisitedsitetounderstandthecategoryspendsituationCleanedandanalyzedalltheNPRspenddatacollectedandsentforsitesreviewInextendphase,projectteamrevisited9sitestocollectmoresupplierandcategorydataforfurtherdetailedanalysis,consolidatedthedatafromtheintegratedcompanyintoChinadatabase,andconductdetaileddataanalysisonChinalevelConductedeaseofimplementationsurveytoidentifythepotentialsavingopportunities,andest.therationalsavingpotentialsProposedroadmapforpotentialsavingrealizationAccentureApproachTotalestimatedspendofindirectsourcingis1,407MRMB,whichincludes1,007MRMBfromourclientitself19sitesand400MRMBfromintegratedcompany.Thesavingopportunityexiststomoreeffectivelysourcespendof1,106MRMB.Thisspendisdividedinto7commoditygroupsand49categories.2,874suppliersintotalwereidentifiedApproximately10%potentialsavingopportunitiesisestimated.Afterextrapolationtototalest.spendof1,407MRMB,potentialsavingcanbeapproximately140MRMB.Developedhighlevelsavingrealizationroadmapandlistedkeyinitiatives.ResultsandBenefitsFinancialAnalysisStructureCloseLoopSavingOpportunityEstimationLogisticsMgmtServiceDesign&PartnerSelection_oneGlobalLeadingOil&GasJVCompanyinChinaTheclientisthejointventurewithalocalleadingoil&gascompanyLogisticsteamisarelativelynewandinexperiencedorganizationBasedonthegloballogisticsstrategy,ourclientisgoingtoimplementanewlogisticsstrategywhichincludesexecutinga3rdpartyLMScontractCurrently,mostoftheclient’slogisticsactivities(~80%)areSecondarylogisticswhichisnotcontrolleddirectlybytheclient.ThecurrentsecondarylogisticsservicesaremostlyincludedinthedrillingandotherservicecontractsandsafetyleveloftheoperationisalsonotsatisfactoryAlackofcostandperformancevisibilitymadeaclearcaseforchange.Mostofthelogisticsoperationissubcontractedtolocalcarriers(mostofwhichareJVpartnerrelated),whichleadtoissuesbothinHSSE&overallperformanceBusinessSituationDesignedanoperatingmodelwhichenablesasingleLMSpartnertojointlyworkwithclient’slogisticsteamtomanageLogisticsoperationacrossvarioussitesWorkedcloselywithclient’scategoryandProjectteamtodevelopedProjectspecificbusinesscaseandfutureimplementationplanSupportedtheGlobalCategoryteamintheirframeworkagreementpartnerssourcingexercise,especiallyproviding4PLexpertisethroughthetechnicalassessmentsAccentureApproachOperatingmodelconcept(people,metrics,systems)definedandsignedoffbythebusinessBuiltthebottomuplogisticsbusinessdemandestimationmodelBuiltcustomizedcommercial4PLmodelBestinclasscommercial4PLmodeldevelopedandimplementedSupportin4PLpartnerscreening&selection,developedChina4PLsupplierlonglistDevelopedChinamarketassessmentandRFIquestionlistDevelopedRFIevaluationcriteria&scoringtemplatesResultsandBenefitsChinaMarketAssessmentLogisticsOperatingModelCaseforChangeProcurementTransformation

_oneLeadingChineseChemicalCompanyTheclientisalarge,state-ownedchemicalcompany.Asoneofthelargestchemicalmanufacturersinitshomecountry,thecompanyoffersacompleteproductportfolioincludingcoal-basedmulti-generationandcleanenergyproducts,rubberandplastic,finechemicalsandchemicallogisticsandengineeringservices.withannualturnoverofoverRMB32BCentralizedprocurementmanagementhasbeenestablishedataninitiallevel.Amoredetailedgovernancestructureandclarityofstrategicdirectionwasrequiredinordertobuildoutasustainableandvalue-creatingprocurementfunctionAlthoughmultiplesourcingeffortswereunderway,therewerenostandardisedandagreedmodelstodeterminecostsavingsthatwouldbeacceptedthroughouttheorganizationAlackofcomprehensivecorporateandbusinessunitKPIsfromwhichtomeasureprocurementeffectivenessBusinessSituationAccenturedefinedandimplementedprocessescoveringvariousaspectsofsourcingi.e.spendinganalysis,categorystrategydefinition,supplieridentification&qualification,RFxandContractNegotiation.Managementimprovementinclude:KPIdesign,costsavingcalculationmodeldesign,procurementgovernancemodeldesign,procurementroadmapdesign,Categoriesofstrategicsourcingincluded:Cable,Bearing,Pump,Transmitter,DCS(DistributedControlSystem),Motor,Controlvalve,Manuelvalve,Motiveseal,StaticequipmentAccentureApproachDefinedprocurementmanagementroadmapandgovernancemodeloncorporationlevelDevelopedKPIlistandcostsavingcalculationmodelIdentified145shortlistsuppliersfor10categorieswithaveragecostsavingof10%(from982suppliersoriginally)AssistedclientinenhancingskillstoconductstrategicsourcingindependentlyResultsandBenefits29SpendingAnalysisSourcing&ProcurementAssessmentFrameworkSourcingOrganizationGovernanceModelIPOLogisticsModelOptimizationCredential

_ALeadingGlobalLabel&WireCompanyinChinaTheClientisagloballabel&wirecompanyinChina,lookingtogrowitsIPObusinessinChina.AsitbegandevelopingandevaluatingitsIPOlogisticsmodel,theyfoundtwomajorissues:expensivelogisticscostandhighinventorylevelwithbigshareofobsoleteinventory.Specifically,theclientengagedAccenturetoanswerthequestions:whethertheyneedIPODCinChina,andifyes,wherethisDCshouldbelocatedandwhatkindofoperatingmodelisstrategicfitforthem.BusinessSituationInordertoaddresstheClient’squestions,Accenturedevelopedananalysisapproachandsuggestionsthatincludedas-isassessmentforitsIPOlogisticsoperationmodel,gapanalysisandto-berecommendation.Accentureconductedcomprehensiveanalysisforbonded/non-bondedDCoptionsperclientssituationtoconcludebestoptionforclienttoadopt.Furthermore,Accentureproposedquickwinsforkeyissuestohelptheclientrealizecostsavingandservicelevelenhancementquickly.AccentureApproachThroughAccentureassessmentframeworkandbenchmarking,Accenturehelpedtofindkeyissuesfromeveryaspectsoflogisticsoperationfortheclient.Thenbasedonthat,Accentureproposedquickwinsaccordingly,incl.invoicingauditingprocessenhancementtoavoiddoublepay,re-negotiatelogisticsratesforimmediatecost,optimizewarehouselayouttoenhanceefficiencyandetc.AccentureteamhelpedtodevelopTO-BEIPODCanalysisapproachtoconcludeIPODCpositioningrecommendation,togetherwithnextstepsforimplementation.TheproposalwellhelptheclienttounderstandkeyconsiderationsforitsIPOlogisticsstrategyinChina,soastobeinlinewithitsIPOstrategyinChina.ResultsandBenefitsAs-IsAssessmentFrameworkDCOperationCostSimulationToolIPOLogisticsModelDesignMethodologyBondedandNon-bondedPracticebenchmarking30ServicePartsNetworkOptimizationandInventoryMgmt

_AleadingAutomobileJVcompanyinChinaWithrapidbusinessgrowthincludingsparepartssalesanddealer’sexpansionplan,Client’scurrentsparepartslogisticsnetworkandoperationneedstobeimprovedinordertomeetthesebusinessdevelopmentrequirements.Ontheotherhand,improvingendcustomer’ssatisfactionisanothervisioninClient’ssparepartsstrategy,whichalsorequiresanoptimizedlogisticsnetworkandinventorymanagementmechanismtosustainthisvisionandstillkeepcostadvantage.BusinessSituationThewholeprojectwasgoingtodesigntheoptimizedlogisticsnetworkandinventorymgmtbasedonathoroughAs-IsassessmentandatailoredTo-BedesignmethodologyAs-IsassessmentisbasedonAccenture’slogisticsassessmentframeworkRouteoptimization(PromoteDailyOrderDailyDelivery):basedonClient’scurrentnetwork,wedevelopedtailoredmethodologytooptimizedeliverysolutionforeachDealer(MilkRun/X-docking)Define3PLoutsourcingstrategyforpartslogisticsconsideringbothChina3PLmarketfeaturesandclient’sbizcharacters.LogisticsnetworkdesignisbasedonAccenture’snetworkoptimizationmethodologywithtailorednetworkmodelingtool.InventoryManagementOptimization:developedtailoredmethodologybasedoninventorysegmentationprinciple.AccentureApproachDealerDistributionOptimization(basedoncurrentdistribution)Forcurrent7warehouses,re-configuredeachone’sdealers’coverage,anddesigneddeliverysolutionsforeachdealer(X-docking/MilkRun)Followourproposal,clientcanreducedistributionleadtimefrom5daysto29.1Hours.LogisticsNetworkOptimizationProposelogisticsnetworkmodeluponclient’sbizfeaturesandIdentifiedNo.ofwarehousethelocationofeachwarehousetogetherwitheachwarehouse’sR&R.Basedonproposedlogisticsnetwork,clientcanachieve22.94MilRMBsavings(-12%)InventoryManagementOptimizationOptimizedClient’ssparepartsinventorystructureatdealerandownwarehouses.Followourproposal,clientcanreduceowninventorylevel36.5%,whileDealerinventoryportfoliocanbesimplifiedby77%.ResultsandBenefitsAs-IsAssessmentFrameworkWarehousingCapacitySimulationModelTransformationRoadmapLogisticsNetworkDesignApproachInventoryOptimizationMethodologyRouteOptimizationTool31AppendixGeneralintroductionofAccentureChinaSelectivecredentialsAccenture’steamintroductionBackgroundWithover24yearsofexperience,JerryPalmerisaManagingDirectorbasedinChina.HeholdsaBachelorofScienceinIndustrialandSystemsEngineeringfromTheOhioStateUniversityCollegeofEngineeringfromMarch1991Jerryisaprogressive,results-orientedseniorexecutivewithaproventrackrecordofsuccessindevelopingandimplementingclientfocusedbusinessstrategies,assemblinghighpoweredteamsanddeliveringsustainedvalueforclientsClientengagementpartner:JerryPalmerAreasofExpertiseLeadership&Executiveinfluence,

Mergers&Acquisitions,BusinessStrategyDevelopmentandImplementation,valueassessment,DigitalstrategyandnewbusinessdevelopmentIndustryExperience

ChemicalsIndustrialGaseEnergyChemicalsNaturalResourceIndustrialDistributionHealthcareProjectExperienceClientaccountleadership:Deliveredhighvaluebusinesstransformationinitiativesattheworld’sleadingorganizations.Developedandmaintainedseniorlevelbusinessrelationships.Builtanddevelopedcross-functionalteamsconsistingofAccentureassociates,clientsandthirdparties.ServedasclientaccountleadwithglobalresponsibilityataGlobalAgricultureCompany.Ledanumber