1. Ceramics Warehouse Optimization January2012 (Update 06/03/2012)

2. Optimization directions Ceramics warehouse optimization: Directions: 1.Improve organization (JP Cabrera+Max Dos Santos) 1.Order preparation flow : define efficient process + standardize 2.Outbounds Dock usage : 8 docks for a better activity concentration 3.Replenishment : along each aisle instead of a central area 2.Improve storage (JP Cabrera+Dominique Collot) 1.Define all external areas close to the building for storage 2.Move far external storage areas close to the warehouse: 1.Leroy Merlin in the external storage areas 2.The rest inside the building, function of ABC classification 3.Full pallet products movings close to the docks 4.The rest in the racks, function of ABC classification

3. C class Picking area (done in Aug.) A class B class After sales Area NewProductsNewProducts

4. A class (20% items) Reserve area (Stacks) Overflow Area

5. Reserve area (Racks) C class(45% items) Obs + SAV Area 5% items B class (30% items)

6. Reserve area (All) C class(45% items) Obs + SAV Area 5% items B class (30% items) A class (20% items)

7. Reserve strategies (simplified) INB INS EXB INT INR RIR

8. North Park Reserve area (Target) North Park = All items for Leroy Merlin excluding carton packaged material Very low moving material in the PND area

9. Preparation of the internal storage space Directions: I propose that we manage the dismantling by ourselves: –We have the knowledge, and we already did cartridge racks dismantling –We need 2 temporary people, 4 weeks Method: We will start by the racks on the top left corner (area IPIL3) to create free space then we continue with the racks on the top right (the rest of IPIL3) and then, the racks on area IPIL1 in the drawing : –At the end because there are many products to move to free spaces We will not change the set-up in SAP during the dismantling period: –We will block the cells to avoid entry –We will remove the products that are stored in the cartridge racks –Place them in a « virtual » stacks identified like today: >Example: parts that stored in RAC1-01 today will be physically transfered to an area on the floor, named and identified RAC1-01 –As soon as a rack is dismounted, it becomes a virtual area available for the products of the next rack to be dismounted –We loop on this previous activities till the end of the dismantling

10. New testing environment Directions: The testing in the « Quality » environment is key to be sure that we define perfectly the set-up to be migrated to the « Production » SAP system Method: Phil, George: set-up the new strategy environment in the Quality system JP and Dominique : define the list of articles in the test-playing JP and Dominique: testings with the help of George –Inbounds into blocks, into racks, into the North Park –Picking replenishment –Outbounds from blocks, racks, North Park: >Full pallets >Mixed pallets –Returns

11. Current strategies: SAP layout migration Projected strategies: Ideal scheme Reference data table Strategies data table To be built with help of WM expert Current storage ABC classification Bins

12. ABC reserve Project team Steering comitee: Laurent Daraignez, project supervisor Udo Wessels, consultant Jean-Pierre Cabrera, project manager Phil Timmis, part time consultant, WM expert Sylvie Leobardy, part time consultant, WM expert Project members: Jean-Pierre Cabrera, project manager Dominique Collot, WM supervisor Nelly Vezin, WM local team IM : Włodek Hałas Garry Powers

13. Pictures Before Dismantling IPIL5 ready Painting IPIL3 and 4 PaintingIPIL3 ready (INT) 07/03/2012 22/02/2012