Annual Report 2003 - Nobel Biocare Corporate

Nobel Biocare supply chainsNOBEL BIOCARE ANNUAL REPORT 200323ProductionStockholmProstheticsIndividualized productionCustomerProductionFair LawnProstheticsCustomerStandardized productionProductionKarlskogaDentalimplantsDistributioncenterAlmereCustomerProductionExternalTools &EquipmentSales unitstockCustomerProductionYorba LindaDentalimplantsDistributioncenterYorba LindaCustomerenhanced productivity, shortenedlead times, reduced inventory andimproved service levels.Assortment reduction programIn the fourth quarter 2003, NobelBiocare also finalized its assortmentreduction program resulting in thereduction of the number of unitsfrom 3,400 in 2001 to 760 at the endof 2003. The main benefits of theprogram include more efficient productionand purchasing processesand consequently reduced costs.Due to the phase out of old products,Nobel Biocare met an unexpectedamount of returned goods. However,the company was able to handle theinflow without major negative effectson customer services and deliveryprecision. The degree of order fulfillmentaccording to the customerexpectations increased in 2003 toover 97 percent.Internal production scrap rate – Individualized production (%)35302520151050Q12002Q2 Q3 Q4 Q12003Scrap rate Target 2003Q2 Q3 Q4Information TechnologyNobel Biocare’s Information Technology organizationsupports the business processes of the company globallyin all areas. Information Technology has becomean important part of the marketing and sales processesand web based communication is widely used inthe customer dialogue.The IT platform of Nobel Biocare is very tightly integratedand the strategy is to keep a global commonplatform to support the company users. The advantageis that it gives a full transparency in real-time andsupport common processes in the organization. Themain application platforms are based on SAP productsand the in-house developed Procera system.During 2003 it was decided to roll out the SAP R/3to the remaining subsidiaries in Latin America andPoland, to be finalized in 2005. Integration ofCustomers and Suppliers to the global transactionsystem will also be a focus during 2004.Nobel Biocare has chosen to outsource the operationfor all business critical systems and the globalnetwork, which has been very successful and havegiven high service and availability.