2. Suppl y C hai n
Pr of essi onal s
Supply Chain costs account for 50% or more of
your cost of goods sold (COGS).
A 5% cost reduction in your COGS is
equivalent to increasing sales by 15 to 20%
80% of time is spent on managing the daily
routine tasks and NOT on reducing your
spend.
Any cost savings are direct dollars to the
BOTTOM LINE
The PLANC Group 2
3. Pr oven P f or m
er ance
The PLANC Group has over 30 years of highly
successful strategic purchasing and supply
chain management experience.
Over $100 million in direct cost savings for
Major Tier 1 automotive manufacturers
Extensive network of suppliers to provide best
value solutions
Long term and short term purchasing
strategies that provide stability and
competiveness
The PLANC Group 3
4. W Pur chasi ng i s
hy
I m t ant
por
Profit-Leverage Effect
A $100,000 increase in sales generates an $8,000 increase in profits (assuming an
8% margin)
A $100,000 reduction in material costs will generate a $100,000 increase in
profits.
A $1,250,000 increase in sales generates the same increase in profits as a
$100,000 reduction in materials costs (in this example)
THEREFORE, in this example, the Profit-Leverage Effect is . . .
$1,250,000
= 12.5
$100,000
4
5. Suppl y Chai n I nt er act i on
pmac
The PLANC Group 5
6. What w do.
e
Combine synergies of the individual business units
Leverage the group spend and distribute the savings
Provide high level market intelligence and guidance
Source difficult parts
Support new program launches – tooling, automation,
components, steel
Evaluate spend and introduce new opportunities
Compliment, support and empower YOUR purchasing group.
Review document risk and propose alternatives
What w ar e N T.
e O
We are not a replacement to your staff
We are not supplier reps or distributors
The PLANC Group 6
9. Sam e of C m t i es
pl om odi
avai l abl e
Logistics Steel
Weld consumables Safety Supplies
Chemicals Fasteners
Office Supplies Waste Management
Tooling LTL
Packaging Temporary Labour
Plastics Metals
Automation Lubricants
Scrap MRO
Rubber Travel
Uniforms Capital acquisition
Containers robots, lasers etc
The PLANC Group 9
10. O her Ser vi ces
t
Alternative manufacturing solutions
Off Shore vendor
Supplier / Customer negotiation
Lean Manufacturing reviews and
recommendations
Project Management
Contract development
Full purchasing support
Access to all existing contracts negotiated by
The PLANC Group.
The PLANC Group 10
11. Cont act Us
The PLANC Group
Burlington Ontario
Paul Balliu
905-484-2899
pballiu@gmail.com
Thank you.
The PLANC Group 11