{ "docId": "019dd923-622c-750b-8b98-eaae8b08698d", "docSlug": "c665ec3b53b5", "documentTitle": "Amcor plc (pro forma Amcor-Berry Global combination) (AMCR)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2020-03-10 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 54, "pageCount": 95, "prevPage": 53, "nextPage": 55, "slideType": "testimonial", "function": "illustrate_case", "density": "dense", "nDataPoints": 1, "notes": "The slide uses direct quotes from a former employee to validate the activist thesis regarding operational inefficiencies.", "elementsJson": [ "headline_text", "paragraph", "callout_box", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-eaae8b08698d/54", "deckHref": "/decks/019dd923-622c-750b-8b98-eaae8b08698d", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-eaae8b08698d.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-eaae8b08698d#slide-54", "components": [ { "bbox": null, "kind": "callout", "text": "We heard a first hand opinion that the Company is aggressive with suppliers, and has already picked \"low hanging fruit\" on the Amcor side of the business over the years.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2b65-734e-a983-94058e6ca3fc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.96, "x": 0.02, "y": 0.18 }, "kind": "paragraph", "text": "We spoke with a former employee familiar with Amcor's North American procurement and cost savings initiatives. We heard a first hand opinion that the Company is aggressive with suppliers, and has already picked “low hanging fruit” on the Amcor side of the business over the years. In addition we learned through second hand conversation that innovation was difficult at Amcor through a long product development process.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ae7256c8-dc17-4058-a843-b7e7ead50b1e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.12, "y": 0.35 }, "kind": "quote", "text": "One of the systems they have actually, I would say it's an initiative that really expanded and became very big. Is called procure plus solely focused around cost savings... I thought this became, very challenging because you cannot continue to save, you know, 10% or whatever percent... especially when you merge with a company and your supplier base, is very fragmented... So I personally didn't like that approach, but that was the company direction.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "61886e15-2320-4e1d-ae34-16959b7c7ffc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.86, "x": 0.12, "y": 0.675 }, "kind": "quote", "text": "What I also know on the new product development... process internal process was so broken that it takes forever. And, a lot of customers don't want to wait for that... you'd have to develop them like two years in advance to get it to market... So I think that's a drawback for Amcor to get actually the new type of revolutionary bottle that the customer wants, and they want them quick. Amcor just struggled with that.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c4a55387-55f1-4799-8dfb-27cd6e07a1a5", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "One of the systems they have actually, I would say it's an initiative that really expanded and became very big. Is called procure plus solely focused around cost savings... In my personal opinion, I thought this became, very challenging because you cannot continue to save, you know, 10% or whatever percent was it just say on average 10 to 15% year over year when you already picked up all the low hanging fruit.....especially when you merge with a company and your supplier base, is very fragmented... But we forced suppliers, with a very serious extended payment terms, 90 days and some small suppliers just have a very, very difficult time with that. — Former Employee. What I also know on the new product development... the process internal process was so broken that it takes forever. And, a lot of customers don't want to wait for that... So I think that's a drawback for Amcor to get actually the new type of revolutionary bottle that the customer wants, and they want them quick. Amcor just struggled with that. — Former Employee.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-2b65-734e-a983-9b27fadcb237", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.45, "x": 0.02, "y": 0.94 }, "kind": "source-note", "text": "(1) Amcor's days payable outstanding is currently 92 days per Blomberg", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "03c56730-886f-4261-97ef-2e7229b6644d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.65, "x": 0.308, "y": 0.045 }, "kind": "title", "text": "Expert Call On Amcor's Cost Program", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fc6c99cb-c7f1-4d10-83cb-76cf8606fd85", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [ { "to": 59, "from": 52, "name": "Quick Win Big Bet", "slug": "47-quick-win-big-bet", "bestFor": "Transformation planning, 100-day plans, resource allocation", "matchId": "53c07a7b-0b0c-4f14-baa7-c199804d850d", "evidence": "The deck presents benchmarking analysis to argue that Amcor's synergies are suspect.", "position": 2, "objective": "To argue that investing in Amcor is not a great thesis", "structure": "The Full List -> Quick Wins (Low effort, High impact) -> Big Bets (High effort, High impact) -> Sequenced Roadmap", "confidence": 0.6, "description": "Separate initiatives into immediate wins and longer-term strategic bets" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }