New organisational model to strengthen Nobia
(Thomson Reuters ONE) - Nobia is to change its working methods and organisation. Production and sourcingwill be co-ordinated to capitalise on Nobia's size, whilst positioning theGroup's brands to more clearly meet customer demands. A new organisation will beintroduced on 1 April, which will also mark the beginning of a change processthat will take a number of years and result in a stronger Group. "It should be perfectly natural for European kitchen buyers to choose one ofour brands. To achieve this goal, we must deliver a competitive range ofkitchens and position our brands more clearly," says CEO Preben Bager. "Our aimis to increase both growth and profitability by capitalising fully on Nobia'seconomies of scale in both its markets and its supply chain."The change programme will provide the Group with a basis from which to reattainits financial targets.Commercial - attractive offerings and distinct brandsThe cornerstones of the new organisation are the brands and business-to-businessconcepts which, as previously, will have the primary responsibility for theirprofitability. Attractive offerings will be developed for each target group andNobia's brands will be more clearly positioned within their markets. A smallnumber of brands will be prioritised for international growth, whereas otherbrands will be regional or local supplements."We are developing the brand portfolio and giving each brand the well-definedassignment of strengthening its position within the framework of severalscalable concepts. Some brands will receive a broader assignment and others maybe slightly repositioned to strengthen and clarify Nobia's overall marketposition. Furthermore, our B2B customers will be offered tailor-made solutionswith a whole range of brands and service levels," says Preben Bager.Operations - efficiency throughout the entire value chain: range, production,sourcing and logisticsIn order to achieve economies of scale, each of the brands' functions forsourcing, logistics and production will be gathered in one common organisationand a new central unit for range and product development will be created. Inorder to increase efficiency and decrease assortment width, the number ofproduct platforms will be reduced. This means that the brands will make use ofthe same kitchen carcasses and fronts (cabinet doors, drawer fronts, etc.) to amore significant extent and the total number of articles in the Group will bemore than halved. An exception will be made for Poggenpohl, which will continueto be responsible for its entire value chain.The new organisation will enable significant efficiency enhancements inproduction, sourcing and logistics. The number of suppliers will decline andpurchasing volumes with each supplier will increase. Sourcing from low-costcountries will rise to 12 per cent by 2012, up from the current level of 1.5 percent. Production will continue to be co-ordinated to fewer and larger productionunits. In the past year, the number of plants was reduced from 20 to 16, andwill continue to be reduced gradually."Co-ordination will result in an attractive range of products and more productdevelopment at a lower cost. Based on an active dialogue with customers, we willlead the market in the best way that only Europe's largest kitchen specialistcan," says Preben Bager.Transitional organisationTo achieve the desired results, Nobia will replace the current organisationalstructure with a two-part organisation: an operational division encompassingrange, production, sourcing and logistics, and a commercial division structuredaccording to brand and customer segment. The company's Executive Committee willcomprise the President and CEO, Chief Commercial Officer, Chief FinancialOfficer and Chief Operations Officer. In addition to these senior executives, anadditional 15 individuals will be part of Group management."In parallel with our internal change process, we will ensure that we maintainthe momentum of our operations and retain the highest level of delivery qualityto our customers. The change process is scheduled to be in place from 2010 to2014. Once the process has been completed, we will have a world-class Nobia,"says Preben Bager.The change programme will be presented in greater detail at tomorrow's CapitalMarkets Day in Stockholm. The slides from the presentation will be availableatwww.nobia.com
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Datum: 15.02.2010 - 03:02 Uhr
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