Graco 2007 Annual Report Download - page 19

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Shared Services
As part of our efforts to leverage
One Newell Rubbermaid, we have
made signicant progress in unifying
the shared activities across the com-
pany. We have improved efciency
and reduced costs by centralizing
at the corporate level certain adminis-
trative functions including cash
management, accounting systems,
order processing, billing, credit,
accounts receivable collections,
data processing and legal functions.
These shared services concentrate
technical expertise in one location,
making it easier to communicate,
observe overall business trends and
manage the company’s businesses.
The transition of services to the
Shared Service Center in Europe is
approximately 90 percent complete,
and we are expanding the scope of
shared services in the United States
and Latin America.
SAP Implementation Company-Wide
SAP is our choice for an enterprise
resource platform to be implemented
across all of Newell Rubbermaid.
SAP will be a key enabler to achieving
company-wide productivity and
optimization opportunities within
shared services, global sourcing,
supply-chain management and
indirect spending. Initially launched
in 2007, SAP will be rolled out over
a ve-year horizon to minimize com-
plexity and assure standardization.
Distribution and Transportation Optimization
2005 2007 3-Yr Vision
Number of Distribution Centers 96 80 ~50
Utilization Rate ~68% 74% >90%
Average Size (sq ft) 145K 170K >350K
SAP Implementation Timing
’07 ’12’11’10’09’08
North America (three waves)
Europe
Rest of World
SHARPIE
RUNS
SAP.
SAP – Newell Rubbermaid successfully
launched SAP within Office Products –
North America in 2007.
A shared multi-branded distribution center ships
innovative products to a diverse base of customers
around the world.
17
SAP® is a registered trademark of SAP Aktiengesellschaft.
Sharpie Runs SAP
We have invested the required resources
to ensure the successful rollout of SAP.
Its launch in October 2007 at our North
American Office Products business unit
went extremely well. This initial go-live
is a significant step forward in our rollout
of SAP. The launch has provided a solid
base of experience to reapply as we
implement this best-in-class business-
process enabler across the organization.