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Supply Chain Insight Magazine The internal newsletter of CME Supply Chain Issue 8, May 2011

Image shot at Canon Expo 2010 (Paris) Press Area

June 20, 2011

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Editor’s Letter We’ve grown. The Supply Chain Insight has been our venue for highlighting our achievements, objectives and targets as a team and sharing them with the rest of CME. Back in 2007, this arrived on your desk as printed reading paper. Just as years passed we’ve grown stronger and better looking.

JORGE OBRADOR, EDITOR

We are happy to hear your opinion & suggestions, just send me an email.

Editorial Team: Richie Cuthbert Jyothi Pillai Ramona Guia Jorge Obrador Contributor: Kamiar Davariar

Now we are getting more interactive and have even more interesting issues of the Supply Chain Insight. Sure, we’ve revisited the back issues – from simple printed material to paperless-online distribution (see page 36-37) into a life-like flip magazine. I’d like to thank my colleagues for the motivation and encouragement that we can do more and better. That has been really helpful. This issue is particularly full of news around supply chain in CME and Canon Emirates and we are delighted to share it to you. Get to know the current updates in our team, initiatives and achievements – see page 22-24. We’re striving to give our best to support the business and to really make a difference. And on page 3 & 4, the message of Supply Chain Director, Richie Cuthbert gives us an insight of SCM’s direction this year and beyond. One of the CME highlights is the acquisition of new territories in East Africa where supply chain plays an important role. We’ll tell you the current requirements and new challenges for our team – see page 15. Supply Chain Insight will be around, giving you updates - that’s for certain. Until then, enjoy reading. June 20, 2011 2


contents 05 06

Directaction Celebrating Earth Day

08

ISO14001

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Nasnaa farq

13

Product safety

no compromise working the One Canon way ensuring Canon products are safe from radiation contamination

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East Africa:

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Going Beyond Earth Hour

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People:

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In Brief: Supply Chain Forum

Open for business; in full swing, exporting to east africa

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Show me the money!

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Snapshots

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Welcome back Jyothi & best of luck Mira

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Closer to customer

32

Reaching new heights

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Better than ever:

Cost-saving initiatives 2011 SCM kick off

glimpse of our previous issues

Meet the new supply chain professionals

Business Performance extended business support; inventory accuracy.

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Director’s message Dear colleagues Welcome to the latest issue of Supply Chain Insight. In this issue we’ll give you an insight into SCM’s direction for the year, covering some of the activities underway, as well as some of those that have already been completed. Under the framework of Canon EMEA we’re focusing on aligning our processes towards delivering a responsive, efficient, and agile supply chain, able to adapt to the demands of a developing business and increasing customer needs. It’s often said that change is the only constant, and quite possibly more so than anywhere else this is true within the EMBU territories, where we are continuously preparing the way for more growth, more territories, and more partners, in a region of frequently changing regulations and policies. In line with the SCM mission, we’re continuously seeking improvement in the processes that support our business, adapting the way we work to better support the sales teams and achieve business objectives, whilst ensuring compliance and a continued focus on cost management and quality. The supply chain team recently underwent a reorganisation, aimed at getting the best out of our people, recognising the valuable contribution that Canon’s employees make to the business. I would like to personally thank the entire team for their strong performance and continuous support – “Keep up the great work team!” Also, Congratulations to the Nasnaa Farq winners, whose dedication to their work and

remarkable performance continues to inspire all of us. Hope you enjoy reading this edition of a more interactive Supply Chain Insight. Richie Cuthbert June Supply 20, 2011 4 Director, Chain Management


Directaction Our direction and actions are in line with our kyosei philosophy, living and working together for the common good; and with the supply chain’s mission statement

To deliver excellence throughout the supply chain, acting as an advisor across the organization, providing timely and accurate information to support business objectives and exceed customer expectations, seeking continuous improvements in the systems and processes that support our business

CUSTOMER

Develop relationship with our Business Partners Support B2C/B2B Business recognizing uniqueness & similarities Measure and improve customer service levels

FINANCIAL

Support sales teams in achieving targets Actively reduce overall SC costs Improve SC Budgeting & reporting capabilities

LEARNING & GROWTH

Retain & Develop Top Performers Implement the San Ji Spirit in all we do Adoption of One Canon Academy trainings

PROCESS

Support development of Canon Emirates Supply Chain Maintain improvements in Spare Parts Management Review Distribution Model for African Territories

WORLD CLASS

Support implementation of Demand Driven Supply Chain Improve quality and efficiency of supply chain operations Focus on Environmentally friendly operations

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Celebrating Earth Day

In celebration of Earth Day & Regional Environment Day, Canon Middle East in partnership with Dubai Internet City and Emirates Wildlife Society-WWF organised an environment-themed photo gallery at DIC building No.9. The 15 photos exhibited are from Canon-WWF Photo Global Network. Alongside the exhibition volunteers from EWS-WWF were on site to help facilitate a bulb exchange programme for local residents and office workers to swap non-emergency bulbs with energy saving CFLs. The event was well-attended by DIC residents, green and photo hobbyists, and media. June 20, 2011

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June 20, 2011

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ISO14001: no compromise Canon is one of the few companies with the Global Certification for ISO14001, with more than 700 of our sites certified worldwide. As part of this certification, internal and external audits are conducted on an annual basis. In March 2011, Canon Europe had conducted an internal audit in CME & CE followed by an external audit during April. The successful outcome of these audits recognises the seamless environmental management system which CME operates.

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Canon Expo 2010 (Paris) environmental section

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nasnaa farq working the One Canon way Let’s congratulate our SCM colleagues who were recognised for their exceptional contributions in the Nasnaa Farq awards.

WINNERS Jasbeer & Jorge for The Defenders (March) Mira, Asma, Teheni, Munther, Yuni, Ayman Vishal for Big Band (March) Heston for Smooth Operator

Our culture reminds us how great we are in accomplishing assigned tasks. We use a variety of means to recognise our employees performance & contributions; Superhero’s in 2009, One Canon team in 2010, and Nasnaa Farq awards (we make a difference) for 2011. Nasnaa Farq gives us the opportunity to connect and work together better, to be more creative, and to be quietly confident in everything we do!

NOMINATIONS Mira, Anil & Yuni for Time Challengers (March) Sherif, Yuni, Asma, Mary & Saif for Saudi Wishers (March) Jyothi, Mateen & Wesam for All in Action (March) Jorge & Ghofran for Green People

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nasnaa farq in action at department meeting

project team

As communicated by our Managing Director, Anurag Agrawal, Nasnaa farq is CME’s slogan for 2011.

A project team was formed during the SCM team-building exercise.

SCM included Nasnaa farq section within the monthly department meeting where the SCM team present on a topic of their choice to identify and promote areas of improvement and added value for the business

This team has been tasked to deliver key proposals identified through the SCM brainstorming sessions; providing an opportunity for team members to reinforce Nasnaa Farq philosophy. SCM Nasnaa Farq Project Team: Lila Lounis, Kamiar Davariar, Heston Tavares, and Jorge Obrador.

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product safety Changing requirements

Amid the situation in Japan, several countries across the MENA region have taken precautions around radiation contamination where their first priority is health and safety of their consumers. Saudi Arabia is one of the first in the region that implemented precautionary measures on this issue, releasing a circular to all importers & exporters advising that all shipments to Saudi Arabia must be duly certified and in conformity with the international acceptable radiation limits; to which our products are certified! It’s expected, other countries in the region are likely to follow the trend. Kuwait and Lebanon have already advised of the adoption of this requirement. CME have contracted Intertek to perform products inspections

June 20, 2011

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Masai men walk the perimeters of their traditional land as they prepare to welcome tourists into their area for the first time, Masai Mara, Kenya, May 2010. Pastoralists all over Africa are seeing a major change in their way of life due to climate change and drought, overpopulation pressures and competition for increasingly scarce water and grazing resources. This group of Masai have decided to reduce their cattle numbers in favour of wildlife in order to draw in tourists who are a more reliable means of survival for this ancient tribal group.. Š Brent Stirton/Reportage by Getty Images. Canon Ambassador

East Africa: Open for business

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In full swing Let’s hear from Ramona Guia how the OM team is preparing to supply our new partners across East Africa. Order Management Team is all geared up for the challenge! A plan of action has been drafted on how to approach the new markets to ensure a smooth transition and successful business. We have aligned the team to take on the new customers in order for Area Management to know whom to contact as soon as the account is set up. We have ensured that Rwanda and Burundi have French speakers contacts, for smooth communication. A template is being prepared detailing countries requirement to ensure nothing is missed. We are assessing regulatory aspects across these territories. Upon receiving customers’ feedback, individual teleconferences will be set-up together with Area Management, to introduce the new OM account responsible. This will also be used as an opportunity to take the customer through the order and shipment process to ensure a smooth and efficient start to business. Looking forward to working closely with our Area Management team to support delivery of sales target for 2011 and beyond! June 20, 2011

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exporting to africa Product Conformity Programme for Exports to Kenya To assure Kenyan consumers of the quality and safety of goods, and to protect Kenyan manufacturers from unfair competition, the Kenya Bureau of Standards (KEBS), a statutory organisation of the government of Kenya, has implemented guidelines called the Pre-Export Verification of Conformity (PVoC) to Standards Programme. The primary objective of applying PreExport Verification of Conformity (PVoC) to Standards Programme is: •Ensure quality of products, health and safety •Protect the environment for Kenyans •Meet requirements of the PVoC

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exporting to africa Product Conformity Programme for Exports to Uganda (PVoC) Companies exporting to Uganda now require a Certificate of Conformity for products regulated under the Uganda Pre-Export Verification of Conformity to Standards Programme (PVoC). To assure Ugandan consumers of the quality and safety of imported goods, the Government of Uganda implemented from June 2010 a series of guidelines known as a Pre-Export Verification of Conformity to Standards Programme (PVoC). The PVoC verifies the conformity of all regulated products and enforces their standards. Compliance to PVoC requirements are applicable in addition to any existing import processes.

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Going Beyond Earth Hour at Gulf Print During Gulf Print event, Canon staff demonstrated their participation in the Earth Hour 2011 held last March by pledging commitment boards initiated by Emirates Wildlife Society-WWF We also set-up a paper waste management system and collected 200kg of waste approximately.

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Image from Gulf Print 2011 held in Airport Expo, Dubai

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People meet the new supply chain

professionals

Roxana Florina Supply Chain Specialist Roxana joins us from Standard Chartered Bank where her last assignment was Relationship Manager. She has over 09 years of experience in Media, Retail & Commercial Banking

Monica Sathyan Supply Chain Specialist Monica Sathyan joins us from Chalhoub Group where her last role was Sales Administrator. Monica holds an MBA in Marketing.

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Lila Lounis Supply Chain Specialist Lila joins us from Schlumberger, Algeria where she managed various roles within Supply Chain. Prior to joining her family in Dubai, she has worked in Libya for a year. Lila has over 08 years of experience in Supply Chain.

Maya Sakakini Supply Chain Specialist Maya Sakakini joins us from Goodyear where she was worked as Demand Planning Manager. Prior to joining Goodyear, Maya was with CME responsible for Spare Parts Management. Welcome Back Maya!

Donna Rose Leonipa Spare Parts Coordinator Canon Emirates Prior to joining Canon Emirates, Donna worked with National Food Products Company (Lacnor), as Demand Planner. Her main areas of expertise are forecasting & inventory control.

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In Brief

Getting ahead to Supply Chain Forum This year will hopefully see the return of the CME Supply Chain Forum; possibly attended by the EMEA Chief of Supply Chain Management, Perry Buenen. This will be the 5th such forum since its inception in 2005; providing the opportunity to share SCM objectives and direction with our partners – ultimately, to improve support towards their business. As usual, the SCM survey will be circulated prior to the forum, to obtain partner feedback & perception of CME SCM; providing us with valuable insight into areas of focus and improvement.

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Ferrari mechanics fully concentrated and ready for action just before Felipe Massa makes his pitstop. Belgium Grand Prix. 2008. Š Frits van Eldik. Canon Ambassador

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Business Performance extended business support SCM implemented time definite delivery of Spare Parts from JAFZA to CE Dubai and Abu Dhabi showrooms with the delivery lead-time of just four working hours.

Reinforcing the value of cost saving

Canon Emirates office at Al Thanya St., Sheikh Zayed.

Canon Emirates reinforced their cost savings initiatives for an added-value towards sustainable business. Process streamlining and efficient vendor management has been the biggest contributor to the cost savings.

4% savings were achieved against budget in Q1 and additional 5% is expected by Q2. June 20, 2011

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Business Performance inventory accuracy Effective Inventory Management plays a vital role towards sustainable business. The continued focus on inventory management ensures that we maintain one of the highest levels of accuracy across EMEA warehouses.

2011 Merchandise

99.73% Spare Parts

99.39%

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Canon was voted as Reader’s Digest Most Trusted Camera Brand for the

10

th

CONSECUTIVE YEAR. Readers voted Canon top in 14 out of 16 European countries for quality, excellent value, strong image and understanding customer needs June 20, 2011

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show me the money! Cutting the cost of growing our business Following the success of last year’s SCM cost savings competition, the team are once again focusing on possible areas of improvement towards achieving this years challenging target. Whilst Asma, Saif & Dennis were the last years champions, the playing field still open to see who will bag the award this year; fine-dining for two at Madinat Jumeirah. The aim is to challenge and bring the best in the teams creativity in identifying potential saving areas. Savings should be the result of strategy or initiative that contributes added-value to our business in the medium to long term.

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snapshots

2011 SCM Kick Off

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snapshots

snapshots

SCM Kick Off held at Le Meridien Airport Dubai. This was the first time the SCM Kick-off was extended to third party suppliers; DHL(Transport) & CWT(warehosuing). And, under the One Canon theme, CME called on the combined support of our two biggest service providers, towards achieving our targets and objectives; a collective goal and mutual success. It was indeed the perfect venue to network and talk about business opportunities, strategies and the shape of things to come. Or even just to sit back and enjoy the show. June 20, 2011 29


welcome back Jyothi & best of luck Mira! After successful delivery of SCM projects at Canon Emirates, our very own Jyothi Pillai is back in CME to take on a new challenge. Jyothi played an important role in Canon Emirates towards implementing several improvements in the CE Supply Chain; Consumables infrastructure, Transport Outsourcing, and Spare Parts centralisation. Mira will be moving to Canon Emirates to continue this good work and build upon the projects delivered to date. Her exposure to CME operations will certainly prove valuable to supporting her with this new challenge. We’re all with you Mira –Good Luck!

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closer to customers In the previous editions of Supply Chain Insight, we talked about SCM’s projects for Canon Emirates; and one of those is the Transportation & Consumables Project. This project was successfully implemented last year where the main objectives were improved distribution efficiency, outsourced transport team, and introduction of mobile stock units (MSU) in Dubai and Abu Dhabi region. It changed the way we do business with our customers. The mobile stock units are capable of receiving real-time orders through GPS, following which stocks are issued from the Units. This infrastructure coupled with achievement of the targeted 80% order fulfillment has enabled us to deliver FSMA orders within hours. Due to the faster response time, the feedback from business and customers alike have June 20, 2011 31 been very positive.


reaching new heights

We recently communicated some important changes to the SCM team. As we continue to challenge the team to reach new heights, take a look at how the team has grown and shaped in to support the growing business of Canon Middle East.

Asma Sultana Spare Parts Operations Supervisor

Kamiar Davariar Business Support Inbound Operations

Dennis Tawah OM Supervisor

Lila Lounis Supply Chain Specialist

Bruce Brewty CE Supply Chain Coordinator

Marella Obrador CE Supply Chain Coordinator

Donna Leonipa CE Supply Chain Coordinator

Mary Ojo Operations Management Specialist

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Heston Tavares Spare Parts Operations Planner

Maya Sakakini Supply Chain Specialist

Richie Cuthbert Director, Supply Chain Management

Jasbeer Fernandes Supply Chain Specialist

Mira Abu Aita CE Supply Chain Manager

Roxana Vasile Supply Chain Specialist

Jorge Obrador Regulatory Compliance & Environment Specialist

Monica Sathyan Supply Chain Specialist

Jyothi Pillai Supply Chain Operations & Quality Manager

Ramona Guia OM Supervisor

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Better than ever!

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take a glimpse of our previous editions

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FORTUNE Global 500: Canon was placed

216th in 2010 (2009: 190th) June 20, 2011

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Image shot on an EOS 600D on location around Andalucia, Spain.

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Š Frits van Eldik. Canon Ambassador Š Brent Stirton/Reportage by Getty Images. Canon Ambassador General/editorial caption: Masai men practise their traditional dances as they prepare to welcome tourists onto their land for the first time, Masai Mara, Kenya, May 2010. Pastoralists all over Africa are seeing major change in their way of life due to climate change and drought, over-population pressures and competition for increasingly scarce water and grazing resources. This group of Masai decided to reduce their cattle numbers in favour of wildlife in order to draw in tourists who are a more reliable means of survival for this ancient tribal group. Shot on EOS-1D Mark IV; EF16-35mm f/2.8L II USM Exposure 1/250, f/5.6, 16mm, ISO 100

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DID YOU KNOW... that Canon’s imageRUNNER ADVANCE C5000 series uses only 1.5W on stand-by mode

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Supply Chain Insight Magazine Issue 8