Supply Chain World - Fall 2017 - 34

COVER STORY | THE TORO COMPANY
Toro believes staying on top of
the market requires constant
innovation and building trusted
relationships.

speak the language and understand the local business norms.
Although it has a global presence, the majority of Toro's supply
chain and logistics operations are
still conducted from its headquarters in Minnesota. Being
centralized allows Toro's supply
chain team access to more of the
company's resources and be more
involved in decision making. Even
something as simple as a supplier
using the conference rooms at
Toro's corporate office to meet
with the engineering teams helps
engage the supply chain group
in product development. That,
in turn, helps Toro anticipate
logistics and sourcing issues and
develop mitigation strategies.
Combining all those independent areas meant that Toro's
supply chain group had to merge
a range of responsibilities that
34

Supply Chain World FALL 2017

previously were divided between
different departments. The supply
chain team handles contracts with
ocean carriers, truckload and lessthan-truckload shipping, it manages a third-party domestic trucking
fleet, negotiates with suppliers on
prices and lead times, works with
the factories on purchase orders
and scheduling agreements and
navigates import and export issues
such as tariffs and duties.

Staying Vital
Like leading manufacturers in other industries, Toro believes that
staying on top requires constant
innovation and building trusted relationships. The company
adheres to a vitality index, which
sets a goal that at least 35 percent
of all revenues should be from
new products that came to market
within the past three years. Toro

also implemented several employee-based initiatives, including the
current company-wide program:
Destination PRIME.
Destination PRIME is a threeyear initiative that began in 2015
and aims to increase organic net
sales by 5 percent or more annually, achieve operating earnings of
more than 13 percent by the end
of 2017 and drive working capital
as a percent of sales to 13 percent
or less. PRIME stands for productivity, relationships, innovation,
momentum and excellence.
When the need arose for site specific training, Toro
and RMP worked as a Team to develop a training
program for both Toro and RMP assigned employees. This type of partnership highlights RMP's core
competency: to provide employment solutions
through staffing.
RMP Temps is one of the largest woman and
minority owned staffing agencies in the Southwest
Region. Established in 1990, RMP's corporate office
is in El Paso, Texas, with branch offices located in
Dallas, San Antonio and Laredo.



Table of Contents for the Digital Edition of Supply Chain World - Fall 2017

Contents
Supply Chain World - Fall 2017 - Cover1
Supply Chain World - Fall 2017 - Cover2
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