Dear colleagues,
In the last months, the GMB has been actively pushing for a stock reduction on a global scale, launching
several initiatives in order to give clear guidance to the countries. According to latest estimations,
Triumph will end FY 2015 with a stock level of approx. CHF 482m vs. an initial target of CHF 466m
(-3.3%). This result is mainly due to the missed sales expectations, the acceptance of postponing
reduction measures to 2016 and the still pending sales measures on slow-movers by certain countries.
Unfortunately, this result is not satisfactory and locks up Triumph's resources in an inefficient manner –
placing a heavy financial burden on the firm by binding the company's cash.
Therefore, the GMB has agreed upon a stock reduction of CHF 50m that must be achieved globally in
2016 (vs. Dec. 2015). This target will be set at highest priority on the GMB's agenda and will be
monitored closely by Markus Spiesshofer and Falco Weidemeyer. Based on our current estimation, the
CHF 50m reduction target would be split as follow: Europe (CHF ~26m), Asia (CHF ~14m) and Japan (CHF
~10). To achieve the target, the initiative will involve the following measures:
Slow-movers: Ongoing and aggressive reduction of slow-movers (slow-movers categorized as
running styles with DOH>90 for WH and DOH>210 for Consignment)
Demand Planning: Adjustment of demand planning according to missed sales expectations or
definition of additional sales initiatives
Sales strategy: Streamlining and alignment of sales strategies according to their stock
implications
Portfolio: Optimal liquidation of the remaining stock Dorina and possible other items resulting
from exists/closures
All those initiatives are to be implemented globally and will require the cooperation of every member
and country involved.
On a structural level, we are currently working on several initiatives that shall accompany the above
mentioned measures along 2016/2017 (e.g. dismantling of virtual stocks, SPUs project, etc.).
More information on the quantification of the single measures by country will be communicated to you
further on. In the meantime, we would like to thank you all for your work and motivation in 2015 and
count on your commitment in 2016.
Kind