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ICTS Newfield is one of the leading Consumption, Supply Chain and Retail Consultancy firms in Europe; focused to help customer to increase their results thru the implementation of Best Internationa Practices thru the Chain of Value of the Company
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© 2009 ICTS Newfield Global BV
Enhancing profitability through a fundamental reduction of Losses and Out of StocksCredentials presentation
Madrid , June 2009
© 2009 ICTS Newfield Global BV
ICTS Newfield is the leading international firm in Risk and Loss Prevention
ICTS Newfield has been serving clients world wide in Risk and Loss Prevention and OOS reduction for the last21 years. As an international niche player, we are the sole Loss Prevention organization able to deliverpowerful high-value solutions to leading companies in almost every geography thru more than 180experienced consultants in USA, Europe, Latin America and Middle East
ICTS Newfield provides solutions for reduction of risks to business goals and assets of our clients:
- Loss reduction - Information security
- Stock-outs reduction - Security Strategy re-engineering
- Redefinition of Loss Prevention Strategy - Business ethical practices review
- Implementation of advanced Loss Prevention Tools - Security costs reduction
- Certification in Loss Prevention - Preventive Business Intelligence
- Design of Scrap recovery programs - Outsourcing (BPO) of LP processes
ICTS Newfield is the firm of reference in loss and OOS reduction for retail companies. We have gainedexperience serving leading companies like Ahold, Alliance Healthcare, BodyBell, Carrefour, CBD, Champion,C&A, Coop, Eroski, K-mart, Líder, Makro, Marionnaud, Marks & Spencer, Sendas, Unide …
ICTS quotes in Nasdaq since 1996. ICTS Newfield qualified for the ISO 9000 certification for consultingservices
…Credentials
1
© 2009 ICTS Newfield Global BV
Selected references of ICTS Newfield in Loss Prevention and Risk Reduction for the last 10 years
World Bank
2
…Credentials
ICTS Newfield Global has operated in Europe since 1986
© 2009 ICTS Newfield Global BV
Client Example : Carrefour España
Client Benefits:
Pilots savings of 14% in perishables and 16% in the rest of sectors
PoS tools implemented in 30 Hypermarkets
Identified savings of € 47 million in stock losses
Loss reduction targeted in a 32% along a 3,5 years period Best European practice implemented trough a BPO (Business Process
Outsourcing) program
Project’s main objectives
Project’s main activities
ICTS Newfield has achieved sustainable results in all Loss Reduction programs performed for our clients
Major Change Management initiative focused in all related processes ( from supply to PoS)
Implementation of an advanced Score Card of losses able to identify loss drivers throughout the organization
Implementation of a Business Intelligence tool ( LP Watcher) aimed to detect and correct risk profiles ( inefficiencies and fraud) in the cashier line
Development and Implementation of action plans in pilot stores and DC’s
Roll-out of the initiative in several waves for the rest of the stores
Re-engineering and implementation of new processes for High Risk products (HRP)
Training of 3.000 employees during the first five months
…Credenctials
3
…generating sustainable results
© 2009 ICTS Newfield Global BV
ICTS Newfield has achieved sustainable results in all Loss Reduction programs performed for our clients
…Credentials
Project’s main objectives Client example : Makro
Client benefits ( € ):
Profits increased by nearly € 5 Mils during the project life
Sustainable reduction of losses by 24%
Increase EBITDA to targeted levels Reduction of operational losses, both known and unknown, with
special focus in fresh products Extension of LP processes to the new logistic platforms Development of an integrated Loss Prevention culture
Implementation of 23 “Quick Wins” measures to build success patterns in the project
Focus in 50 HRP, with re-engineering of process from logistics through cashier line
Implementation of 50 action plans in three waves during an 18 months period.
Development of a brand new Loss Prevention department in the client organization
Deployment of specific Loss Prevention KPI’s suited to client needs
Communication Plan to ensure floor-shop personnel commitment to the success of the initiative ( news letters, communication materials, motivation plan…
Training of 2.800 employees for two months
Project’s main activities
4
…generating sustainable results
© 2009 ICTS Newfield Global BV
ICTS Newfield has achieved sustainable results in all Loss Reduction programs performed for our clients
…Credentials
Project’s main objectives Client Example: FCC Logistics
Client Benefits :
40% reduction of unknown losses
and 10% reduction of breakages
and damages
Increase Company’s operational excellence through a significant and consistent reduction in losses and operational damages
Re-engineer LP processes
Project’s main activities
New claims management process implemented
New procedures to manage High Risk Stores traffic were designed and implemented
Permanent monitoring tools and procedures were implemented to control exceptions
Involvement plan to ensure field participation (awareness campaigns, incentive plans, etc.)
New procedures of trucks tagging, SL reviews, segregation of multi-destination loading control and trucks control
Introduction of LP KPIs in company’s success indicators
Training of 500 employees within 2 months
5
…generating sustainable results
© 2009 ICTS Newfield Global BV
ICTS Newfield has achieved sustainable results inall Loss Reduction programs performed for our clients
…Credentials
Project’s main objectives Client example : Carrefour Brasil
Client benefits ( US$):
Profits increased by nearly € 200 Mils during the project life
Reduction of unknown losses by 50% in a three years period
Development of an integrated Loss Prevention culture
Redefinition of the Loss Prevention strategy as well as the Security Plan
HRP circuit redesigned and implemented across functions and processes
Development of LP tools to monitor performance and deployment of specific Loss Prevention KPI’s
Development of a brand new Loss Prevention department in the client organization
Communication Plan to ensure floor-shop personnel commitment to the success of the initiative (news letters, communication materials, motivation plan…)
Massive change management initiative across functions and formats (hyper, super and discount)
Training of 20.000 employees for four months
Project’s main activities
6
…generating sustainable results
© 2009 ICTS Newfield Global BV
ICTS is implementing advanced LossPrevention concepts in the industry, including RFID
ICTS Newfield has been supporting a leading European logistics service provider toanalyse and select the areas where new frontier concepts in Loss Prevention will startadding real value to their customer businesses
…Credentials
SH
IPP
ING
DO
CK
S
HRP ReceptionVIDEOCAM
CELLULARS MP3/PHOTO
1. HRP storage
2. HRP shipments
4. Waiting area
RAMDOM VERIFICATION
3. Inventory Take over
PORTABLE READER
PORTABLE READER
HRPHRPRESTRICTED AREARESTRICTED AREA
RFID READER + PRINTER
5. Truck loading
LAPTOPS
Flow of HRP with RFID implemented RFID PROCESS
A
B
D
C
E
RFID TAGGING
READING
PRINTING
READING
Our approach to the initiative is based upon practical andreal-life experience, and is focused in operations whereavailable technology will deliver a quantum leap inshrinkage levels, amongst other relevant operationalefficiencies.
A joint team has assessed several Business Cases forcustomers from retail, telecom, luxury goods and pharmaindustries to develop pilot projects in 2006 for all theseindustries. Most of the pilots deal with High Risk Productslogistics, where ICTS Newfield has recently attainedsignificant experience.
ICTS Newfield has developed a methodology that addresses the 25 key benefits where RFID technology will addvalue to the operations of 3PL's logistic providers, manufacturing and retail industries, mainly by reducing itsloss figures. This RFID calculator also take into account all costs involved in the operation of the newtechnology.
The project also identified changes that needed to be executed in processes, stock control techniques andaccount strategy. As a key deliverable, our team has performed an in-depth reality-check of technology andcosts involved. Major improvements will arise in further down stream integration, when pilot RFID receptioncontrols in selected stores begin to show a full recovery of investments along the entire supply chain: fromsupplier through retailer cashier line
7
© 2009 ICTS Newfield Global BV
FORMAT # STORESMAIN
PROYECTBENEFITS ACHIEVEDSALES
(MM€)
1,2CostReduction
30% of cost reduction
3,3 194LossReduction
Reduction of lossesabove 30%
488LossReduction
33% reduction of unknown losses,25% of cost reduction
34LossReduction
24% reduction of losses
540% reduction of unknownLosses and 10% reduction of damages
4,1
1,5
24
Selected references of ICTS Newfield in Loss Prevention and benefits achieved
Hypermarket &Supermarket
Supermarkets
Hipermarket &Supermarket
Cash&Carry
3PL Logistic Operator
93
…Credentials
3500 LossReduction
18Pharmacies 10% of loss reduction
LossReduction
8
In all Loss Reduction projects, targets were achieved and frequently exceeded
© 2009 ICTS Newfield Global BV
FORMAT # STORESMAIN
PROYECTBENEFITS ACHIEVEDSALES
(MM€)
1,2CostReduction
29% of cost reduction
350LossReduction
10% of loss reduction
102LossReduction
50% of loss reduction
238Integrity improvement inThe Purchasing Department
1
2
0,5
Selected references of ICTS Newfield in Loss Prevention and benefits achieved
Supermarkets
Household & Electric appliances
Several
Fashion
93
…Credentials
Integrity
100 LossReduction
2Supermarkets. Hipermarket &DIY
35% of loss reduction
9
In all Loss Reduction projects, targets were achieved and frequently exceeded
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