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47

The Logistics function manages all the

Group’s intercompany flows at the level of

both annual budget andmonthly operations,

with the aim of satisfying demand in all

markets without a local production source.

The function also manages short and

medium-term production allocations and

planning through the Sales & Operations

Planning process, which links the demand

cycle with the supply cycle.

Production planning differs according to

product classification: “Engineer to Order”

products are mainly used in the Energy

Projects segment for Submarine, High

Voltage and Umbilical cables, businesses in

Inventory management for every kind of

stock received particular attention in 2015;

in particular: raw materials, with increasing

effort devoted to the planning and

procurement of all materials, particularly

metals; intermediate products, with various

“lean”and“sixsigma”projectsimplemented

at the most critical plants; finished goods,

with emphasis on the accuracy of sales

forecasts and continued focus on reducing

slow-moving items.

Inventory management

EFFICIENT LOGISTICS TO MEET

EVERY TYPE OF DEMAND WORLDWIDE

which Prysmian supports its customers right

from system design all the way through to

final cable laying, while “Assembly to Order”

products enter production in rapid response

to demand for components.

“Make to Order” products are manufactured

and shipped only after receipt of a customer

order. The “Make to Stock” approach is

generally used for more standardised

products, for which inventory management

policy is important in order to be able to

provide a rapid response to demand. This

model is mainly applied for products used by

the Energy Products and Telecom operating

segments.