On the Way to the Glass Pipeline

A key ingredient to the success of our ability to service our customers, integrate acquisitions, increase efficiencies and grow our free cash flow base continues to be the Stanley Fulfillment System, or SFS. In 2011 we increased total company working capital turns 18% from 5.7 to 6.7 and up 23% to 7.0 turns excluding the impact of Niscayah. While still distant to the 8.6 turns that legacy Stanley reached in 2010, we are confident that the tenets and process of SFS that took them from the mid-4s to this level in three years will be just as successful on our combined enterprise. We continue to believe SFS represents one of the biggest opportunities to create additional value from the Stanley Black & Decker merger with the potential to unlock over half a billion dollars if we are able to return to 8 turns, let alone our mid-decade goal of 10.

And the next phase of SFS, currently in the works, is transformational:

  • Turning our supply chain into a Glass Pipeline—collaborative, integrated and completely transparent.
  • Taking our product innovation to a whole new level, anticipating and creating customer needs with 24/7 virtual development teams and proactive complexity management.
  • Becoming a digital enterprise, with global platforms, global shared services and a lean, agile organization worldwide.

The result: a breakthrough business model.

close From Operational Discipline
to Optimal Performance

SFS is our way of business and competitive advantage, driving all of Stanley Black & Decker toward best-in-class operational discipline and world-class customer service.

Stanley Fulfillment System (SFS)

For more information on SFS,
click here.