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|English to Swedish translations [PRO]|
|English term or phrase: To: All Nordic Region Personal|
|To: All Nordic Region Personal|
From: Todd Zimmerman
Subject: Nordic Organization
Date: October XX, 2000
It has been two months since the announced company restructuring and great progress has been made throughout the company. The goal of Kodak Polychrome Graphics to continue as the industry leader has not changed. It has been almost three years since this company was formed. At the time of the formation and soon after the addition of Horsell Anitec, it was difficult to know how to size the organization to best serve the customer and deliver the proper results to the shareholders. We now have a better understand of the size of the business, the needs of our customers and what it takes to be the industry leader.
We have been asked to deliver an aggressive but achievable business target – earnings return of 10% on revenue. Due to your efforts the Nordic Region has made continuous progress in achieving these goals. We finished 1999 with an earnings return of –0,5% of revenue, based on our results through September we should finish 2000 with and earnings return of 4,2% of revenue, behind our budget of 5.4%. Our goal for 2001 is an earnings return of 10% of revenue. To accomplish this we need to build off the success from this year and continue to focus on increasing gross profit, make some changes to reduce costs and increase productivity. The goal is to accomplish this without impacting the high quality customer service we currently provide.
In order to reach an earnings return of 10% of revenue we will need to make some organizational changes. These changes will impact some people that have been a part of building this organization. Those impacted are not being removed do to performance, but are part of the restructuring to improve our performance and allow us to continue the leadership position for years to come. Every effort is being made to help those impacted have smooth transition.
Two major changes are being implemented for 2001. This process has begun and will continue to develop so we are positioned correctly at the beginning of the year. These organization changes will create a Nordic Logistics Organization and a Nordic Equipment Service Organization.
I am very pleased to announce that Kristina Swebilius has accepted the assignment to head up the Nordic Logistics Organization. In her new role Kristina will continue to report to me.
The Nordic Logistics Organization will be responsible for all aspects of the supply chain, which includes from purchasing the products from manufacturing to delivering the products to our customers. Reporting directly to Kristina will be the planners, the order entry people in each country and the warehouse operation in Göteborg. The order entry people will continue to reside in the countries and to be an integral part of the local organization. This consolidation will allow us to implement best practices consistently across the Nordic Region and build a closer working relationship between planning, order entry and distribution. The Nordic Logistics Organization will be reduced from its current staffing by two order entry people, one will be moved to a new position, and one full time temporary planner. This new structure will also provide the Country Managers with more time to focus on sales profitability as well as managing relationships with our resellers and partners.
The Nordic Service Organization will consist of five Service Technicians and five Applications Specialists. Today the combined country service organization consists of nine Service Technicians and five Applications Specialist. These changes are being implemented to improve the profitability of the service organization and to utilize the people effectively. The focus of this new organization will mainly be on service and support of digital equipment sold by Kodak Polychrome Graphics. Today this includes Approval and the Newsetter. Service for conventional equipment will be handled by outside companies. This has been the structure in two of the Nordic countries and it has worked very well. The Service Technicians and Applications Specialists will continue to report to the Country Managers, but will now have Nordic responsibility. Centralized tracking of service performance, all service invoicing and some dispatching will be done under the newly created position of Nordic Service Coordinator.
I am happy to announce that Anna Blomqvist has accepted the position of Nordic Service Coordinator. In her new role Anna will report to Roar Ellingsen.
Other efforts are being made to reduce costs and improve earnings including not filling open positions, working closer with resellers, freight reductions, etc.
My business belief is that you cannot just continually cut costs to achieve success.
Cost reductions are a necessary part of business, however the focus needs to be on sales profitability. Kodak Polychrome Graphics has the leadership position in Thermal plates, which is being strengthened with the addition of Electra Excel. This leadership position together with enhancements to the Approval offering and a broad portfolio of traditional plates and film provide the best industry offering available. This combined with a focus on price management and the new more efficient organization will give us the tools to build a long term successful business while achieving our goals.
Change is always difficult and will impact people that have been with this company from the beginning and have helped shape its culture. This are difficult situations and although it may be hard at times I would ask that we stay focused on our individual roles and continue to build the Nordic Region into a business that consistently delivers maximum earnings.
If you have any questions I encourage you to talk to your managers or feel free to contact me directly.
Thanks for your continued commitment and dedication to our customers and our business.
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