2014 Investor & Analyst Day

Jim RowanChief Operating Officer, Dyson

May 21, 2014

RECALL ANALYST DAY 2013. . .

TRANSFORMING A GLOBAL FLOOR CARE COMPANY SUPPLY CHAIN

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Jim RowanChief Operating Officer

Dyson

Jim Rowan

The Complexity Equation

(u + m) x h

c= g

The Complexity Equation

• Understanding Complexity

• Managing Complexity

• Harnessing Complexity

The saying goes;

“The early bird catches the worm”, however “the second

mouse gets the cheese”.

“Designing a supply chain that is fast and effective, yet

protects against unforeseen risks is no longer a

differentiator, it’s now essential”

UNDERSTANDINGCOMPLEXITY

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Start with a fairly simple supply chain…

The eight V’s of Complexity

VICINITY

VOLUME

VARIATION

VELOCITY

VOLATILITY

VISIBILITY

VALUE

VIRTUE

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…Now increase Volume and Variation

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…increase Velocity and Vicinity

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…now Volatility, and Value

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I’m sure you get the picture

Com

ple

xity

8V’s

If we don’t understand and

managed complexity, then it will

manage us!

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May

21,

2014

MANAGINGCOMPLEXITY

Ash Clouds

Supply Constraints

People Skills

Quality

Reliability

Global Financial Crisis

Logistics

Product Mix

Mass Customisation

Legal & IP Issues

Bird Flu

Product Cycle

Time Reductions

Political Instability

Corporate

Social Responsibilities

Bull Whip EffectCurrency & FX Risk

Emerging Markets

Conflict Minerals

Retail vs. Online

Increased Competition

Floods

Tsunami

Commodity prices

Lets take a closer look at the eight V’s

VICINITY

VOLUME

VARIATION

VELOCITY

VOLATILITY

VISIBILITY

VALUE

VIRTUE

VOLUME

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VOLUME

MACHINES

COMPONENTS

OWNERS

DISTRIBUTORS2B

VARIATION

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VARIATION

PRODUCT MIX

DEMAND

TECHNOLOGY

PERSONALISATION`

VOLATILITY

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VOLATILITY

NATURE

INFLATION

MARKET

COSTS

VISIBILITY

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VISIBILITY

INFORMATION

TRENDING &FEEDBACK

DEMAND SUPPLY &CONSUMPTION

CONTINGENCYPLANNING

VALUE

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VALUE

QUALITY &RELIABILITY

TECHNOLOGY &PERFORMANCE

WARRANTY

AFTERMARKETSERVICE

VELOCITY

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VELOCITY

CAPACITY,RAMP SPEED

FEWERTOUCH POINTS

LIFECYCLE

TIME TOMARKET

NPI EOL

IN-LIFE

VICINITY

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VICINITY

RIGHT TIME

RIGHT PLACEPHYSICAL & VIRTUAL

VALUE DRIVERSIN EACH MARKET

RIGHT PEOPLE INTHE RIGHT PLACE

VIRTUE

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VIRTUE

PEOPLE

COMMUNITY

ENVIRONMENT

DESIGN

HARNESSINGCOMPLEXITY

Supply Chain Top 25 Proof Point

RANK COMPANY123

456789

10111213141516171819202122232425

AppleDellP&G

Research In MotionAmazon.comCisco SystemsWal-Mart StoresMcDonald’sPepsiCoSamsungThe Coca-Cola CompanyMicrosoftColgate-PalmoliveIBMUnileverIntelHPNestleInditexNikeJohnson & JohnsonStarbucksTesco3MKraft Foods

2010 2011

Source: Gartner, The Gartner Supply Chain Top 25 for 2010s & 2011s

RANK COMPANY12345678

910111213141516171819202122232425

AppleP&GCisco SystemsWal-Mart StoresDellPepsiCoSamsungIBM

Research In MotionAmazon.comMcDonald’sMicrosoftThe Coca-Cola CompanyJohnson & JohnsonHPNikeColgate-PalmoliveIntelNokiaTescoUnileverLockheed MartinInditexBest BuySchlumberger

Year 1 – Top 10Year 2 – Top 5

Now Even Better

Wireless

Better Info Integration

“Sense & Respond” not “Sense & Replan”

Virtual, Vertical & Physical

a final thought…

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Sales Finance Marketing Product Dev

Transportation Manufacturing Forward Logistics Reverse Logistics Customer Support

What if we moved from a backward looking fragmented process using outdated information………

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Sales Finance Marketing Product Dev

Transportation Manufacturing Forward Logistics Reverse Logistics Customer Support

Harnessing complexity to drive value?

…. To a real-time wireless world of sense and respond sharing one data set !

What If…

Rather than Supply Chain always pushing back on Complexity

We said …. We got you covered

…BRING IT ON!!!

TAKE EVERY ORDER OFF THE STREET!