scott sheldon, llc – company overview

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INDUSTRIES CASE STUDIESHOME OVERVIEW


“I started this company because I witnessed

firsthand how client expecta8ons were not

being met by the larger, more expensive

consul-ng firms. Projects were late, over

budget or poorly executed.

My goal was to deliver something be;er.”

—Sco; Spyker Founder of SCOTT SHELDON, LLC

“I started this company because I witnessed

firsthand how client expecta8ons were not

being met by the larger, more expensive

consul-ng firms. Projects were late, over

budget or poorly executed.

My goal was to deliver something be;er.”

—Sco; Spyker Founder of SCOTT SHELDON, LLC

“If you cross an engineer, with a

technologist, add some business

savvy and give them a personality

– that’s us.”

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WHO IS SCOTT SHELDON?


Operations!Tune-Up!

Technology!Roadmap!

Development!

WMS/TMS !Implementation!

Technology !Integration!

Supply Chain!Strategy!

Enterprise !Implementations!

Network!Optimization!

STRATEGIC

TACTICAL

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PARTNERSHIP MODEL

Customers vary in size and complexity; their goals define the partnership.

Our partnership model has built longstanding and trusted rela=onships with customers

Inventory!Optimization!

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SCOTT SHELDON OVERVIEW

»  Delivering the right-‐size of solu4on

»  Blending opera4onal experience with technology needs and capabili4es

»  Providing only seasoned industry professionals with mul4ple skill sets

»  U4lizing rapid methodologies built on years of real-‐world experience

»  Building long-‐term rela4onships based on trust and value

Our single objec4ve is to improve our customers Supply Chain effec4veness by:

Operations!Tune-Up!

Technology!Roadmap!

Development!

WMS/TMS !Implementation!

Technology !Integration!

Supply Chain!Strategy!

Enterprise !Implementations!

Network!Optimization!

STRATEGIC

TACTICAL

7

PARTNERSHIP MODEL

Customers vary in size and complexity; their goals define the partnership.

Our partnership model has built longstanding and trusted rela=onships with customers

Inventory!Optimization!

4

SCOTT SHELDON OVERVIEW

»  Delivering the right-‐size of solu4on

»  Blending opera4onal experience with technology needs and capabili4es

»  Providing only seasoned industry professionals with mul4ple skill sets

»  U4lizing rapid methodologies built on years of real-‐world experience

»  Building long-‐term rela4onships based on trust and value

Our single objec4ve is to improve our customers Supply Chain effec4veness by: STRATEGIC

TACTICAL


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Reduce total supply chain costs and enterprise risk

Guaranteed Results

OPERATIONS!

STRATEGY!TECHNOLOGY!

CORE COMPETENCIES!

OUR COMMITMENT IS TO YOU!

Extend the lifecycle of technology investments

Op;mize working capital and physical assets

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Design and implementa/on of supply chain strategies that improve our customers compe//ve posi/on while reducing global cost and risk.

EXECUTION

STRATEGY

TECHNOLOGY

Tac/cal projects that drive immediate financial benefit and efficiencies within the manufacturing, distribu/on, and transporta/on func/ons.

Implementa/on and support of leading supply chain soBware applica/ons and data capture technologies to op/mize and enforce efficient business processes.

CORE COMPETENCIES


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Industrial and Manufacturing

Healthcare

Consumer Products and Retail

INDUSTRIES WE SERVE

A billion new consumers by 2020

Increasing complexity of products, supply chain and sales channels

76 million baby boomers adding to increasing growth of industry

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HEALTHCARE

»  76 million baby boomers adding to increasing growth of industry

»  Healthcare reform acts

»  Contain cost while maintain pa;ent care

»  Collabora;on between hospitals, physicians, manufacturers, distributers and payers

»  Growing emphasis on Electronic Health Records

»  Consumer access »  Increasing number

of informed consumers

INDUSTRY TRENDS SUPPLY CHAIN CUSTOMER DEMAND

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Industrial and Manufacturing

Healthcare

Consumer Products and Retail

INDUSTRIES WE SERVE

A billion new consumers by 2020

Increasing complexity of products, supply chain and sales channels

76 million baby boomers adding to increasing growth of industry

9

HEALTHCARE

»  76 million baby boomers adding to increasing growth of industry

»  Healthcare reform acts

»  Contain cost while maintain pa;ent care

»  Collabora;on between hospitals, physicians, manufacturers, distributers and payers

»  Growing emphasis on Electronic Health Records

»  Consumer access »  Increasing number

of informed consumers



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CONSUMER PRODUCTS & RETAIL

»  A billion new consumers by 2020

»  Consumers going green

»  Impact of demographics on consump<on pa=erns

»  Increasingly vola<le input costs

»  Labor shortages in emerging markets

»  Focus on inventory posi<oning and turnover

»  Rise of the digital consumer

»  Focus on value »  Retail demand

and pricing pressures

SUPPLY CHAIN CUSTOMER DEMAND INDUSTRY TRENDS

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INDUSTRIAL AND MANUFACTURING

»  Increasing complexity of products, supply chain and sales channels

»  Produc9on, employment and inventories growing

»  Sustainability through waste and energy use reduc9ons

»  Increasing informa9on technology investment to drive cost reduc9on

»  “Perfect order” fulfillment

»  Supply chain ability to keep up with changes in consumer demand (forecas9ng)


10

CONSUMER PRODUCTS & RETAIL

»  A billion new consumers by 2020

»  Consumers going green

»  Impact of demographics on consump<on pa=erns

»  Increasingly vola<le input costs

»  Labor shortages in emerging markets

»  Focus on inventory posi<oning and turnover

»  Rise of the digital consumer

»  Focus on value »  Retail demand

and pricing pressures

SUPPLY CHAIN CUSTOMER DEMAND INDUSTRY TRENDS


Global Healthcare Co

Custom

er: Glob

al Healthcare C

o Industry:

Healthcare P

roject: Glob

al Netw

ork O

ptim

ization Duration: 2 M

onths

Customer said: Analyze our distribution network to determine the optimal number of and locations for our distribution centers in North America, EMEA, and APAC.

The engineers at Scott Sheldon said: We can do that.

Project background: Customer had many small distribution locations across North America, EMEA, and APAC. Network grew through acquisition and locations were typically close to hospitals and/or urgent care facilities. A high percentage of customer shipments were parcel or air freight.

Client expectations:To meet the project goals, Customer required a service provider that could develop, execute and manage a holistic cost reduction strategy that would retain service levels while reducing the number of distribution facilities.

The “Ah Ha” moment:The Scott Sheldon team analyzed historical shipping data and determined that many of the customer locations did not require the volume of shipments that they were receiving. This finding was consistent across various countries within the study. The

shipment patterns established early during the sales process were more of a convenience than a strict requirement. This key finding indicated that a hub-and-spoke network model could achieve the desired results for Customer.

Action:The engineers at Scott Sheldon applied our Network Optimization Methodology and executed in a 3-step approach:1 – Data analysis: Review of customer shipping history, volumes, centroid analysis, labor rate assessment, and transportation structure.2 – Location assessment: With potential locations identified, we applied demographic data and local/state gov’t incentives.3 – Applied business intelligence: Such as customer contracts, supplier locations, facility exit costs, etc.

Result:High-level hub and spoke models were delivered to Customer for further assessment and detailed reviews with legal and financial teams. Customer moved forward into the planning stages of a migration to the hub and spoke model including the assessment of 3PL options for specific countries and regions.

We get it.

Rubbermaid said: Implement a best practices model that will yield 5% -10% in cost reduction within the next two years.


Project background:Rubbermaid initiated a project to standardize warehouse management operations across 8 of its North American locations. In addition to the system, Rubbermaid sought to establish new business processes based on best practices that would reduce inventory and lower operating costs.

Client expectations:The expected ROI on this project was a 5% - 10% reduction in supply chain spend over a two-year time frame. Rubbermaid sought a service provider who could offer both outside expertise and a high degree of flexibility of scope in order to match the demands of an aggressive time line developed to align with the corporate implementation of SAP.

The “Ah Ha” moment:Our initial investigation consisting of interviews and systems audit revealed a lack of common processes and metrics across sites and the need for global design services.

Action:Scott Sheldon leveraged our Global Design methodology to identify improvement levers, manage the overall program and accommodate an aggressive time line. Our Global Design methodology streamlines implementation as it sets and enforces standard operating procedures, system configurations, metric measurement, and financial reporting.Our supply chain engineering team managed all program planning, systems design, implementation, support, and program/project management activities. These responsibilities included the setup of a program team, executive level communications, budget management, change management processes, and risk management. Additional responsibilities included the integration of various sortation systems and the implementation of an integrated RFID solution.

Result:The project was successfully completed in 28 months and exceeded the expected benefits; each location documented productivity improvements over 10%, helping align Scott Sheldon as a long-term partner.

We get it.

Rubbermaid

Custom

er: Rub

berm

aid Ind

ustry: C

PG

-Plastics P

roject: Glob

al WM

S R

ollout D

uration: 24 Months

“As in all projects, there are stressful times due to business commitments and workload. But the Scott Sheldon team members stayed the course and were supportive throughout the entire project. It was a true pleasure getting to know Scott and his team and I strongly recommend them as a supply chain consulting partner.”

Dave Hartzell - Director of Logistics, Newell Rubbermaid


Igloo said: Improve our distribution efficiency and capacity issues before the seasonal rush begins.


Project background:Igloo Products Corporation contracted with Scott Sheldon to identify and implement improvements within their distribution and manufacturing operations. After an initial one-week assessment, a project road map was developed containing projects grouped into 3 categories: quick hits, tactical, and Strategic.

The “Ah Ha” moment:The ah-ha moment came when we began looking at how operational spend compared to industry standards and the seasonal revenue trend. Also, the operational metrics were very low compared to industry standards.

The Action:Scott Sheldon deployed our Warehouse “Tune-up” and Network Optimization methodologies to gain a quick hit in Igloo’s distribution operations in line with their seasonal time line. Quick hits included identifying basic operational metrics and implementing

a scorecard, consolidating same-customer shipments

to a single building, ensuring multi-pallet handling at all times, and workload balancing.

These methods yielded recommendations in the areas of facility layout changes, process and system improvements, operational metrics, and facility locations. Since Igloo has a seasonal business model, it was imperative to implement as many improvements as possible before the seasonal ramp-up started.

Result:Projects that were implemented before season started delivered 75% of the total projected savings – well ahead of schedule and additional facility and system enhancements have been identified as “post-peak” improvements for 2010.

We get it.

Igloo

Custom

er: Igloo Prod

ucts Industry: P

lastics M

anufacturing Project: O

perations Tune-U

p D

uration: 3 Months

“Scott Sheldon helped us identify tangible distribution cost savings and developed a detailed roadmap to achieve the results. With several projects now behind us, we’ve come to appreciate the ‘soft’ deliverables we get — integrity, trust and imagination — along with bottom line results.”

Vincent Rosales - Director of Distribution and Logistics, Igloo Products

Supply Chain Engineers!

Consultants consult. Engineers do.!Supply Chain Engineers!

Consultants consult. Engineers do.!Supply Chain Engineers!

Consultants consult. Engineers do.!

We Get It!

scott sheldon, llc – company overview

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technology needs

total supply chain costs

chain eec4veness

scott sheldon overview

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enterprise risk

customers inventory

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