Industrial Market, Regional Sales and Service
Presented by Vartan Vartanian
President Industrial Market, Regional Sales and Service
© SKF Group
Slide 0
8 April 2015
Regional Sales and Service
We realize full life cycle value for industrial
systems!
We increase customer productivity through:
Development and delivery of advanced
services and engineering products
Innovative industry-leading
integrated solutions throughout the
life cycle
Global reach through our regional
structure and authorized channel
partner network
The Power of Knowledge Engineering
© SKF Group
CMD 2013
Regional Sales and Service Business Structure
Regional Sales and Service
Industrial Market,
Focused
Industries
with
Strategic
Accounts
Solution,
Production,
Product
Development
Channel and Pricing
Management
with
distribution
Regional Sales and Service
with 23 SKF
Solution
Factory locations
7 Sales7Areas
with
Global Coverage
Regional
Areas
© SKF Group
CMD 2013
What we focus on
Working to improve customers’ productivity and sustainability around the world with a
focus on industrial segments such as Food and Beverage; Marine; Metals; Pulp and
Paper; and Mining
A global network – ease of access
Global distribution business
State-of-the-art supply chain management
Driving growth by leveraging SKF
technology platform offers as well as
SKF Solution Factory and Life Cycle
Management (AEO)
Operational excellence to drive profitability
and reduce total cost
Deliver proven value
© SKF Group
CMD 2013
Profitable growth
Industrial Market,
Regional Sales and Service
Agenda
Agenda
• Global business
• Focused Industries and strategic accounts
• Distribution
• How we achieve operational excellence
 Focused Industries and the Marine business
by Thomas Fröst, Director Focused Industries
 Solution, Production and Product Development
in the SKF Service business by Christian Gill,
Director Solution, Production and Product Development
• Key business message
Industrial Market,
Regional Sales and Service
Agenda
Global business
• Global business
• Focused Industries and strategic accounts
• Distribution
• How we achieve operational excellence
 Focused Industries and the Marine business
by Thomas Fröst, Director Focused Industries
 Solution, Production and Product Development
in the SKF Service business by Christian Gill,
Director Solution, Production and Product Development
• Key business message
RSS sales share and proportion by geography in 2012
Net sales MSEK:
25,329
Operating margin:
12.5 %
Numbers of employees:
6,479
Central East Europe &
Middle East Africa
39% of SKF Group’s
total net sales
China
S&SE Asia
West Europe
North Europe
Latin America
North America
© SKF Group
CMD 2013
1
2
Close to customers almost everywhere in the world
Countries with Regional Sales and Service Sales business unit
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CMD 2013
Regional Sales and Service - global business coverage
Industrial Distributors
Customized Seals
Marine
Headquarters
Marine
Sales Agents
Marine
Service Stations
© SKF Group
Slide 8
8 April 2015
Marine
System/product
development
Product service
division
Warehouses
Power
transmission
Remote
diagnostic services
Customized seals
SKF Solution Factory
Condition
monitoring centers
Regional sales and service in China
Sales Offices
Marine
Warehouses
Remote
diagnostic services
Distributors
Marine
Headquarters
SKF Solution Factory
Industrial Service
Center
Customized Seals
© SKF Group
Slide 9
8 April 2015
© SKF Group
Slide 10
8 April 2015
Industrial Market,
Regional Sales and Service
Agenda
Focused Industries
and strategic accounts
• Global business
• Focused Industries and strategic accounts
• Distribution
• How we achieve operational excellence
 Focused Industries and the Marine business
by Thomas Fröst, Director Focused Industries
 Solution, Production and Product Development
in the SKF Service business by Christian Gill,
Director Solution, Production and Product Development
• Key business message
Focused Industries and strategic accounts
Marine
OEM customers
examples
Pulp and Paper
Metals
Deliver SKF equipped solutions
Optimizing the
life cycle
Equip with SKF knowledge
© SKF Group
CMD 2013
Mining
Food and Beverage
End user customers
examples
Technology upgrade in wafer ovens
Wafer oven application in a bakery:
A challenge for the end-user
• Frequent re-lubrication required with costly high temperature
lubricants
• Limit to increase oven throughput, 446 °F near current grease
performance
SKF Solution
SKF integral wafer oven units
Customer value
• 5 years re-lubrication-free operation running 24/7, reducing 150
hours of labor and 88 lbs/yr/oven
• Increased productivity through elimination of 26 hours of planned
downtime
• Increased temperature, 50 to 59 °F, allowed higher speed and
increased throughput
SKF technologies improved reliability, cost control and safety
for a bakery group.
SKF contributed to the design and development of a new,
higher performing proving oven for the OEM supplier.
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CMD 2013
Optimizing the
life cycle
A full asset life cycle approach
Cost in the asset life cycle*
Deliver SKF equipped solutions
12 %
3%
Optimizing the
life cycle
35 %
50 %
Equip with SKF knowledge
* Source: Specht, G.; Beckmann, Ch.; F&E-Management. Schaeffer-Poeschel Verlag, Stuttgart 1996
© SKF Group
CMD 2013
Strategic accounts: The engines for profitable growth
• Deeper knowledge of customer and their
industry: Replication of solutions
• Stronger relationships
• More involvement in new projects:
Innovations
• More value creation and capturing through
full life cycle approach
© SKF Group
CMD 2013
 Accelerate profitable growth
Industrial Market,
Regional Sales and Service
Agenda
Distribution
• Global business
• Focused Industries and strategic accounts
• Distribution
• How we achieve operational excellence
 Focused Industries and the Marine business
by Thomas Fröst, Director Focused Industries
 Solution, Production and Product Development
in the SKF Service business by Christian Gill,
Director Solution, Production and Product Development
• Key business message
Net sales Industrial Distribution within 2012
Industrial Distribution
within SKF Group sales: 29 %
© SKF Group
CMD 2013
Industrial Distributors
Europe North
600 Branches
NAM
2500 Branches
China
250 Branches
Europe West
900 Branches
CEEMEA
900 Branches
S&SE Asia
550 Branches
LAM
400 Branches
Industrial Distribution Network
More than 6000* locations
* Numbers are Industrial Distributors owned branches, not including Certified Rebuilders and sub-distributors
© SKF Group
Slide 18
8 April 2015
Global programmes for stronger growth in
Industrial Distribution
• Channel Management:
Increase level of mutual engagement and joint activities
toward final customers
• Education:
Equip SKF and distributors' employees with arguments
to defend SKF value proposition
• Supply Chain efficiency:
Cost savings in supply chain and inventory level
optimization
• Differentiation:
Certified programs and Solution Factory
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CMD 2013
Channel management
Joint planning and acting
Understand
distributor drivers
Set the basics
Profitable growth with
Distributors
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CMD 2013
Process integration activities with distributors to
improve supply chain efficiency
Goals:
• Lower administration cost
• Optimize capital employed
• Reduce lost sales
• Improve service level
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CMD 2013
Through:
• IT Integration
• Inventory Management
• Collaborative forecasting
Industrial Market,
Regional Sales and Service
Agenda
How we achieve
operational excellence
• Global business
• Focused Industries and strategic accounts
• Distribution
• How we achieve operational excellence
 Focused Industries and the Marine business
by Thomas Fröst, Director Focused Industries
 Solution, Production and Product Development
in the SKF Service business by Christian Gill,
Director Solution, Production and Product Development
• Key business message
Delivering SKF value consistently
SKF Sales,
Customer
Service, SKF
Distributor
Challenges
Technology
• Raise energy efficiency
• Increase productivity
• Decrease maintenance
• Optimise designs
Customer
• Reduce cost
•…
Industries
Evaluation of
value
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CMD 2013
SKF Solution
Factory
Understanding sales operations to achieve operational
excellence in sales
100 %
Sales capacity
Activities not related to sales
Face to face time customers
Off times and trainings
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CMD 2013
Potential
sales capacity
Availability
Customer visits: A key to grow opportunities and success
Sales visits
Time
Time
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CMD 2013
Business won
‘Unbeatable’ Customer Service
A key role in driving customer satisfaction & loyalty
One of the Strategic Programs for 2016:
‘Enhance the role of Customer Service & unlock
the full potential’
Customer Service team in Indonesia
The overall objectives for Customer Service are to:
• Increase customer satisfaction, loyalty and
retention
• Contribute to growing sales above market
growth
• Reduce waste and effective use of resources:
“One Industrial Customer Service”
We want to ‘raise the bar’ going forward – to
further differentiate SKF in the marketplace
© SKF Group
CMD 2013
Customer Service team in Hungary
Latest innovative technologies
SKF
Machine
Condition
Indicator
SKF
Acoustic
Emission
Enveloping
SKF Static
Motor Analyzer
Baker DX
Hose reels
TLRC
and TLRS
Series
New range of
air-driven
hydraulic
pumps and oil
injectors
SKF FX
Bushings
SKF
Thruster
Monitoring
SKF
ChainLube
System 24
Servo
Actuator
SKF
Telescopic
pillar
SKF
Extended Life
plain bearing
SKF Extreme
temperature
bearings
BeyondZeroTM
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CMD 2013
Hydraulic
seals
Validating savings at industrial customers
SKF Documented Solution Program
Verified customer savings:
Verified savings in 2012:
24 billion SEK
4 billion SEK
Energy and sustainability calculations:
~ 1,000 verified cases of reduction in CO2
Total accepted/verified cases: ~40,000
Coming from more than 25 industrial segments
5 languages
51 currencies can be converted
© SKF Group
CMD 2013
© SKF Group
Slide 29
8 April 2015
Industrial Market,
Regional Sales and Service
Agenda
Key business message
• Global business
• Focused Industries and strategic accounts
• Distribution
• How we achieve operational excellence
 Focused Industries and the Marine business
by Thomas Fröst, Director Focused Industries
 Solution, Production and Product Development
in the SKF Service business by Christian Gill,
Director Solution, Production and Product Development
• Key business message
Key business message
• Driving profitable sales growth in all
7 Sales Areas
• Focused Industries will expand SKF
offerings and value propositions
• Growing distribution network as a key to
customers world wide
• Service business is a driver in the
asset life cycle management approach
• Strategic Accounts accelerating growth
• Innovations driving long term
sustainable profitable business
• Supply chain value will be continuously
increased
© SKF Group
CMD 2013