【正文】 s Methodology ?Customer Retention Methodology Illustrative Leveraging Assets ?Maximize asset utilization ?Bottling plant consolidation ?Warehouse consolidation ?Realize work synergies ?Fixed assets ?Capital expenditures ?Inventory ?Procurement ?Supply Chain Transformation ?Operating Asset Effectiveness Streamlining Product Portfolios and Networks ?Rationalize product offering and customer base ?Evaluate and implement optimal work strategy ?Product Offering ?Customer requirements ?Network cost and capacity ?Product Portfolio and Network Rationalization Methodology ?Operating Networks Integration . Kearney 4/1375C/Merger Integration 1083 19 _Macros 26 Rapid benefit delivery is feasible through integrating the operating work Manufacturing Capabilities ? What can be produced ? Where ? How does throughput vary by location and plant capability ? What are the capacity constraints Network Configuration ? Which are the costs of transportation, handling and inventory ? Which is the most cost efficient work configuration ? Are there cost synergies with other Dannon products Manufacturing Capabilities Network Configuration Several Iterations Local Market Requirements ? What are the market requirements ? What is the current/future petitive positioning ? What distribution channels are growing fastest Market Requirements 1 . Kearney 6/Document/. SKU tree 1 SKU 2 SKU 3 Proliferation Level A B C D E E F G H I ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 12 18 24 6 12 18 24 6 12 18 24 6 12 18 24 6 12 18 24 6 12 18 24 6 12 18 24 Resealable Classic Blue GBH Classic Resealable Compact Blue GBH Compact Resealable Classic White EBH Classic Resealable Classic White Mechanical Resealable Compact White EBH Compact Resealable Compact White Mechanical Resealable Classic White GBH Classic Menthol/Euca 1 1 1 28 4 1 2 2 3 2 1 1 3 Number of Variants Portfolio ? Which SKUs are offered ? Which specific product characteristics ? Which emerging technologies/petitive offerings ? How is product bundled and promoted SKU Tree 70A .T . K ea r n e y 6 / 98 .2 9 0 26 2 %3 7 % 3 5 % 3 2 %2 8 % 2 8 %2 1 %1 6 % 1 4 %10%S it e 1 0S it e 9S it e 8S it e 7S it e 6S ite 5S it e 4S it e 3S it e 2S it e 197%45%59%36%5 4 %6 9 %50%24%31%19%U p tim e E f f ic i e n c yO v e r a l l E f f ic i e n c y( = U p ti m e E f f ic i e n c y x % M P P )36 Current Sites: 4 Future Sites: 3 Current Sites: 8 Future Sites: 5 Current Sites: 2 Future Sites: 1 Current Sites: 1 Future Sites: 1 Current Sites: 3 Future Sites: 2 Current Sites: 2 Future Sites: 1 Current Sites: 2 Future Sites: 1 Current Sites: 1 Future Sites: 1 SKU 1 Key Assessments for Integrating Operating Networks . Kearney 4/1375C/Merger Integration 1083 19 _Macros 27 Which entity in the supply chain should develop a capability is determined by the business’ scale and strategic objectives Strategic Alliance ? Develop strong relationships with key supply chain partners that have the required capabilities ? Maintain very high levels of crossfunctional involvement InHouse ? Invest in resources and people to develop worldclass capabilities Outsource ? Outsource activity to capable provider ? Organize related activity to minimize transaction costs with outsourced provider Rationalize ? Depending on true switching costs and investment requirements either continue to develop capability inhouse or outsource High High Low Low Activity Strategic Importance ? How core is the activity? How ―entangled‖ is it with the rest of the anization? ? How critical is it to maintain control and involvement in the activity? ? Is the activity an area of petitive advantage today? In the future? Potential For Internal Capability Development ? In the short to mediumterm can the required capability be developed inhouse to be highly efficient and effective in an activity? . Kearney 4/1375C/Merger Integration 1083 19 _Macros 28 Differences in each pany have to be understood, and decisions made on both the operating model of the joint venture going forward – a formal process can help in facilitating this thinking Identify the Operating Model and Detailed Operating Structure and Characteristics of Each Firm Determine New Operating Model, and Appropriate Benchmarks Make the High Level Choices As to How the Company Operates Going Forward Step 1 Step 3 Step 2 Define and Align Support Functions Step 4 Holding Company Strategic Architect Operator Functional Strategy Financial Control Capital Allocation Resource Management Accountability Corporate Staff Size Autonomy Marketing Staff Placement DWNA/JV Partner Support Function Alignment Holding Company Strategic Architect Operator Functional Finance ? Accounts Payable ? P/L accounting ? Consolidation/ corporate reporting ? Tax ? Treasury ? Planning/budgeting Human Resources ? Benefits/administration ? Benefits planning ? Compensation planning B B C B B B B/O B/O B C C/B C C/B C B C/O C/O C/B C C C C C C C/O C/O C C C C C C C/B C/O C/O C C = Corporate B = Business Unit O = Outsourced ? Effective, fast ratio