Heiner Heils, CEO, Maxim Group

MAXIM-Group
Presentation for the
MANUFUTURE conference 2015
24.11.2015
Content
•
members of the Maxim-Group
•
main facts
•
reasons for the success
•
goods quality tests
•
price calculations
•
examples of production costs


•
mouthwash
deodorant
supply chain


old model
new model
2
Members of the Maxim-Group
3
Main facts
MAXIM Markenprodukte GmbH & Co. KG
Formation
1980 by Dr. Rolf Giesen
Company Objective
Production and distribution of cosmetic and pharmaceutical OTC products
(mainly in the private label sector)
est. 190 mio. €
around 235 mio. products (pieces)
Discounters (Aldi, Lidl, etc.)
Drugstores (Rossmann, dm, etc.)
Retail (Edeka, Kreudvat, etc.)
Private owned medium-sized companies (Dalli, Mann & Schröder)
Private label multinationals (McBride)
Companies with own branded articles (Beiersdorf, Henkel, Unilever)
Turnover (in 2015)
Sales quote (in 2015)
Main customers
Competitors
4
Reasons for the success
•
being different
•
price leadership combined with high quality products
(quality leadership in private label)
•
own R + D department
•
low expenses in advertising
5
Goods quality tests
6
Goods quality tests
7
Price calculation
Retail price in €, VAT
included
Retail price in €, VAT
not included
Retail margin in %
Tooth paste
125 ml
0,45
0,39
20-45
Deodorant spray
200 ml
0,89
0,75
20-45
Mouthwash
500 ml
0,95
0,79
20-45
• suppliers have massive pressure on commodities
• cutthroat competition forces a rethinking of strategy
8
Strategic options
•
Leave the segment of the market
•
Move the production sites to Eastern Europe
•

Lower costs of employment

Efficiency ?

Quality ?
check all steps of the supply chain
9
Example of production costs - mouthwash
formula
packaging
Margin of packaging
production
production
20 %
37 %
3%
25 %
Logistics incoming
5%
Logistics outgoing
10 %
10
Example of production costs - deodorant
formula
packaging
Margin of packaging
production
production
24 %
43 %
5%
18 %
Logistics incoming
6%
Logistics outgoing
4%
11
Example of production costs
aluminium
slags
colour
production
+ overheads
+ margin
logistics
45 %
5%
45 %
5%
12
Being successful with commodities
•
main production site in Western Europe in order to avoid
high costs in logistics when supplying customers
•
Vertical integration in order to avoid high costs in logistics
and to gain additional margins
•
high level of automation
13
Supply chain of aerosols– Old model
Supplier
Cans
(Eastern Europe)
Supplier
Vents
Elysée
Cosmetiques
Forbach
production
Cosmolux
Echternach
assembly
+ logistics
cross docking
warehouse
customers
Supplier
Caps
14
Supply chain of aerosols – New model
Aluminium
slugs
PET
granules
International
Can
Echternach
packaging
Cosmolux
Echternach
Production
+ assembly
+ logistics
cross docking
warehouse
customers
Wall to wall
15
Supply chain of mouthwash – New model
PET
granules
Cosmolux
Echternach
Cosmolux
Echternach
blowmoulding
or
stretchmoulding
filling
+ assembly
+ logistics
customers
16