Quality Management
Global Sourcing
Private Brands
Logistics
Agenda
2
Source: Strategy & Development
Company Facts
Stores
OBI Key Facts
Social Responsibility
Employees
Approximately 42,000 employees
OBI Group Holding SE & Co. KGaA
€ 7,0 billion in sales Founded in 1970
Market leader in Germany
40 product categories ranging from tools, sanitary installation, garden furniture and
iron ware
Average store size approximately 10-12,000 sqm
More than 50,000 SKU available online at Obi.de
OBI is “Top employer in Germany 2015”
OBI reached highest marks in the criteria: career possibilities, primary and
secondary benefits, work life balance & employee development
OBI supports:
German Hospice association for children since 2007
Children First association since 2002
“People first” bracelet sale since 2005
Children Sponsorship in Southeast Asia
OBI is a member of the Business Social Compliance Initiative (BSCI)
Financial 2015
~ 650 stores in 11 European Countries
~350 stores in Germany
2.5 million customers / week
Up to 50-60,000 products in each store
Company Facts: OBI as a Retailer
1995
CZ
1999
CH
1997
PL
1991
IT
1996
AT
1994
HU
2003
BIH
1998
SL
2003
RU
First OBI-store openings in Europe
3
Source: Strategy & Development
2015
SVK
Company Facts: International Store Network
4
Source: Strategy & Development
CZ (33)
CH (10)
PL (46)
IT (54)
AT (80) HU (29)
BIH (1)
SVK (13)
RU (27)
DE (353)
SVN (8)
• Market leader in the German DIY
retail industry and no. 3 in Europe
• 42.000 employees
• In total ~650 stores
OBI stores of the latest generation have an average of sales area between
10-12,000 sqm
An OBI store has an average product range of 50-60,000 products
One of our main features, which distinguishes us from competitors are our
integrated “Garden centers”
The outward appearance of our OBI stores is marked by the orange front and
the big entrance
Company Facts: OBI Store Formats
XS
S
XL
M
L
5
Source: Strategy & Development
More than 50,000 articles online at Obi.de
Online Shop available in
Germany
Austria
Poland
Hungary
Czech Republic
Italy (planned in 2016)
Slovakia (planned in 2016)
Switzerland (planned in 2016)
Pick & Collect (buy online, pick up at the store) in
Germany, Austria and Russia
New project “XXL-Range” in preparation
Company Facts: OBI Online Shop / E-Commerce
6
Source: Strategy & Development
Quality Management
Global Sourcing
Private Brands
Logistics
Agenda
7
Source: Strategy & Development
Company Facts
8
Global Sourcing: Company Structure
OBI Group Holding SE & Co. KGaA
OBI Real
Estate
OBI Group
Sourcing (OGS) OBI Stores
OBI Stores
Germany
OBI E-
Commerce
OBI
Stores
International
Sourcing of
products
Assortment ranges
Promotional items
Asia & ROW
Quality
Management
Quality management
for all private label
products
Corporate affairs on
all quality
management related
issues (legal /
sustainability / code
of conduct)
Private Brand
Marketing
Development of
private label
concepts for private
label products
Three Corporate Responsibilities
Source: Strategy & Development
Ø Countries
> 20%
Ø GE/ AT
> 30%
Global Sourcing: Overview
7 bn € total sales p.a.
Private label of OBI
represents 1.8 bn €
OBI sales
Strategic importance of private label products Sourcing network
Shanghai Sourcing Office
Hong Kong Sourcing Office
Ho Chi Minh City Sourcing Office
Warsaw Sourcing Office
India
South America
Agent offices Own offices
The sourcing offices fulfil the following tasks:
Merchandising
Quality Assurance
Logistic
Administration
Share of Private label
sales from total OBI sales
9
Source: Strategy & Development
Private Label: LUX/EM
Private Label: Third Party
Sourcing volume p.a.:
1% of total volume
Product categories:
Decoration, hardware & textiles
Global Sourcing: Volumes and Product Categories
Sourcing volume p.a.:
1% of total volume
Product categories:
Garden tools, garden aids
Sourcing volume p.a.:
78% of total volume
Product categories:
Power tools, hardware, garden
machines, air treatment,
electrical, lighting, sanitary,
decorative, garden & events
Europe
Sourcing volume p.a.:
20% of total volume
Product categories:
Flooring & timber, tile products,
shelves, storage, household
Greater Asia
India South America
10
Source: Strategy & Development
Living / Decoration
Household
Decoration
Lighting
Electro
Garden
Garden Furniture
BBQ
Pottery
Garden (Power) Tools
Heating / Cooling
Christmas
11
37%
8%
12%
37%
Global Sourcing: Product categories
Source: Strategy & Development
Technic
Hand Tools
Hardware
Power Tools
Building / Projects
Building
Sanitary
Product categories within all OBI countries
Quality Management
Global Sourcing
Private Brands
Logistics
Agenda
12
Source: Strategy & Development
Company Facts
13
Full Flexibility: With our
flexible supply chain
management we are able to
realise the most efficient
goods flow to the OBI stores
The global sourcing entities
provide about 23,000
assortment SKUs and 2,000 –
3,000 promotion SKUs
In total, the global sourcing
entities ship approximately
25,000 TEU p.a.
We operate a network
consisting of multiple
warehouses across Europe
with a total capacity of
160,000 pallets, 200,000 sqm
warehouse and 7
transshipment platforms
Facts
Logistics: Overview
Source: Strategy & Development
Logistics Network
Cross docking Central warehouse Transshipment
Logistics tasks
Design, Administration, Development, Optimization of the whole Supply Chain
Management of all related logistics tasks from source to stores
Stock Management: Order management, promotion processes
14
Logistics: Supply Chain Management
Demand
Management
Disposition Supplier Port of
departure
Destination
port
Regional
warehouse
Store
End-
consumer
Warehouse
E-Commerce
Source: Strategy & Development
Warehouses
Own operated and external managed
warehouses
Buffer warehouses
Inbound Logistics
Sea freight
Air freight
Road transport
Transshipment
Cross Docking
Outbound Logistics
Anchorday-deliveries
Direct road transport
Road transport via Cross Docking
Quality Management
Global Sourcing
Private Brands
Logistics
Agenda
15
Source: Strategy & Development
Company Facts
16
Quality Management: Three main segments
Quality development From quality requirement
to mass production
Quality control From production till
delivery to stores
After Sales Service • Repair service network
across Europe
• Customer hotline
• Spare part handling
Facts
Around 700 factories worldwide
Over 10,000 quality inspections a year
Quality Management
Source: Strategy & Development
17
Quality Management: Components
Creating technical specifications
Supporting suppliers in cases of legal/standard research
Supporting supplier’s service
Technical checks in own labours
After sales service incl. repair/spare part service
Membership of Business Social Compliance Initiative (BSCI)
Validating suppliers and factories
Quality systems
Ethical & environmental standards
Pre Product Testing
Testing and approving products and packaging
During Product Inspection
Monitoring mass production by own staff or third party
Pre Shipment Inspection / Incoming Quality Control
Quality control inspections & shipment release
Quality
Management
Department
Factory &
Social Audits
PPT
DPI
PSI / IQC
Source: Strategy & Development
Result: „Good“ (1,6)
Result „Good „ (2,3)
gut
(1,6)
18
Quality Management: Feedback from the Market
Source: Strategy & Development
Quality Management
Global Sourcing
Private Brands
Logistics
Agenda
19
Source: Strategy & Development
Company Facts
20
High Price Point (HPP)
Medium Price Point (MPP)
Low Price Point (LPP)
OBI Private brands offer all DIY customers OBI EXCLUSIVE products and solutions at a very good price / performance ratio
according to their individual needs, capabilities and financial possibilities.
Umbrella brand „OBI“ with core values: Trust, reliability, competence, value for money
Private Brands: Three Major Segments
Source: Strategy & Development
OBI
Private
Label:
Active
Portfolio
Highly valuable design: product & packaging
Premium in quality, packaging, product equipment & design
for the ambitions clients at an attractive price-performance ratio
Smart alternative to leading products / brands in specialized trade
Highly emotional
Only in selected product groups
21
Private Brand Hierarchy
HPP
MPP
Key Attributes
Modern, state of the art Mainstream in a nice way
Quality reassurance by OBI
Very attractive price performance ratio as a smart and nice
alternative to leading manufacturer brands in DIY business
Reliability in well known quality standard of manufacturer brands
Basic, modern & reliable DIY products in good OBI quality
Full year / full season availability
Permanent, very attractive price positioning
Key DIY product(s) only available in the major DIY categories
LPP
Private Brands: Price / Quality Levels
Source: Strategy & Development
Private Brands: Communication Tools
Catalogues & Leaflets
Advise-videos & Product-videos
PB motives PoS Posters, Ads & Online
22
Source: Strategy & Development
Ads, Mailing & Newsletter
Our premium range for ambitious clients, who look for extraordinary design and excellent quality
„Premium in Quality, Function und Design. The best which we can offer, of course with an OBI price advantage“
Special: Only for selected product groups
Competitive environment: DIY store and traditional trade
Private Brands: Premium Range – OBI Selection (HPP)
23
Source: Strategy & Development
Our brand for all, who look for manufacturer brand quality at an attractive price
Mainstream in a nice way
Modern, state of the art
Reliability in well known quality standard of manufacturer brands
Quality reassurance by OBI
Private Brands: OBI Brand (MPP)
24
Source: Strategy & Development
25
Paints
Decoration
Ceramics
Electric
Car
Storage
Houseware
Plants
Flowers
Seeds
Fertilizer
Mulch
Plant
Devices
Garden
furniture
Sun-protection
BBQ
Fire places
Plant-pots
Christmas
decoration
Lighting
Light
objects
Bathroom
furniture
Tabs
Seats
Toilet
Shower
accessories
Sanitary
accessories
Outdoor &
indoor
lighting
Spots
Light
Objects
torches
Private Brands: OBI Brand (MPP) - Segmentation
Source: Strategy & Development
The exclusive technic brand at OBI for hobby DIYer and technically ambitious clients
LUX Tools is our brand for hand- and power-driven tools including corresponding accessories
More than 90 years in experience and millions of products sold prove the outstanding trust in the brand
Modern / state-of-the-art / very attractive price performance ratio
Smart alternative to leading A-Brand competition
Private Brands: LUX TOOLS (MPP)
33
Source: Strategy & Development