Achieving Operational Visibility and Financial Gain at Del Monte

ACHIEVING OPERATIONAL VISIBILITY & FINANCIAL

GAINS

Speakers

2

Erik Duffield

Director, Finance

Analytics

[email protected]

303-629-9206

Mark Hatting

Director, Pacific Delivery

Practice

[email protected]

408-973-8004

Juan-Carlos Bertini

Vice President

Financial Planning

& Analysis

Agenda

3

Erik Duffield

Understanding & Adapting to the changing

role of Finance

Juan-Carlos Bertini / Mark Hatting

Operational Visibility & Financial Gains

at Del Monte

Q&A

Perficient Profile

Ideally positioned as the GO TO Partner for IBM

An IBM “5-Star Premier” Business Partner since 1997

SVP, SVI and VAP Authorized Reseller across all Brands in U.S.

Healthcare and Retail Industry Authorized Solution provider

IBM Lab Services (ISSL, ISSW and ISSIM) go-to market partner

IBM Education Authorized Training Partner/ATP and Training reseller

Thriving and Growing Organically and via Acquisition

Public, NASDAQ: PRFT

1700 Colleagues

$250 M 2011 Revenue Run Rate

Local Sales/Delivery offices

Offshore Development Center in Hangzhou China

IBM Recognition

IOD Solution Provider of the Year – 2011

Lotus Most Distinguished Partner – 2006, 2008, 2011

2010 IOD Industry Warehouse Pack Partner of the Year

2010 Impact Smarter Decision Management Award Winner

2010 Lotusphere Best WebSphere Portal Solution – Finalist

Role of Finance is Changing

Transaction processing requirements decreasing

More powerful analytical tools

Fewer people

Embedded teams

6

Strategic Analysis Strategic Planning

Annual Plans / Forecasts

Managerial Analysis

Financial Analysis

Controls, Consolidations

& Reporting

External analysis of markets and competitors Internal review of competencies and capabilities Assessments of customers and products

3-5 year view of the business Models and tests “big blocks” – people, capital, products, M&A Primarily a high level financial view Scenario / sensitivity tested

Puts next years strategic initiatives into action The allocation of fiscal and human resources aligned to key initiatives and goals Aligned with business via collaboration

Application of financial & operational data to inform and direct business decisions Maintains focus on key initiatives to keep alignment Develops best practices and a true analysis competency

Treasury / Cash Mgmt Capital Structures / Financing Risk Mgmt / Scenario Planning Investment ID & Analysis Portfolio Mgmt

Close, Consolidation, Report Compliance, Internal Audit

Domain of modern finance

Planning: evolution demonstrated

7

financial

planning

forecast-based

planning

externally

oriented

planning

strategic

management

•Annual budgeting

process

• Internally focused

•Forecasts revenue,

costs, capital for the year

•Used to benchmark

performance

•Strategies are often

implicit or opportunistic

•Starts our as financial

planning with a longer

time horizon

•Out year extrapolations

become unreliable

•Tendency to try more

sophisticated forecasting

tools: trend analysis,

regression models,

simulation models

• Grow frustrated with

these extrapolations too

•Realization that charting

the future is failing, move

to “issues orientation”

•Extending “issue

orientation”

•Competency in internal

planning

•Focus moved to “outside

world” (customers,

competitors, suppliers)

Characteristics

•Resource allocation is

dynamic

•Plans are adaptive vs.

deterministic. Find new

ways, new markets

•Surprise strategies, less

linear

•Often recommend

multiple course of action

• Melding strategic

planning and everyday

mgmt into a single,

seamless process

•Not necessarily more

sophisticated but more

integrated with

operational decision

making

Attributes

•Framework defined by

future strategic issues

rather than today’s org

structure

•Strategic thinking

capabilities are

widespread and

rewarded

•Series of feedback loops

vs. sequence of plan

submissions

most

many

few elite

Running the analytics that run the business

8

Analytic

$

Embedded in

business functions

Business Visibility & Financial Gains at Del Monte

Mark Hatting, Perficient

Juan Carlos Bertini, Del Monte Foods

Consumer Products

~51% Pet

Products ~49%

The Company: Diversified Portfolio of Pet and Consumer Products

Net Sales by Segment

Adjusted EBITDA by Segment

Consumer Products

~35%

Pet Products

~65%

10

Background: Economic Trends and Volatility

11

$(100)

$(50)

$-

$50

$100

$150

$200

$250

$300

$350

F05 F06 F07 F08 F09 F10 F11 F12

Net Cost Increases/(Decreases) ($M)

Gross Cost Increases/(Decreases) ($M)

Risk !

Inflation ↑

Data Overload

Uncertainty ?

FP&A

Opportunity: Analytics, Insights to drive bottom line

12

40% 60% ……….Business partner

80% 20% Transaction focus…………

reconcile

version control

formula error

mistake

“all we do is forecast”

…out of time

lack of visibility

vacuum

silos

inaccurate

data overload

productivity

insights

intelligence

passion career growth

platform integrated

engaged

retention

business drivers

Deliverable: A Planning & Analysis Platform for Operations

• Driver Based

• Integrated

• Scenario Capable

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• Improved visibility

• Reduced planning cycle times

• Better resource utilization

WH

AT

CA

PA

BIL

ITIE

S

WH

Y?

Gathering

Processing

Limited Late Insights

Knowledge

Data

Focus

Val

ue


• Driver Based

• Integrated


14




WH

AT

CA

PA

BIL

ITIE

S

WH

Y?

Improved and

Insightful Decision

Making Process

Gathering

Processing


Knowledge

Data

Focus

Val

ue

Insights

Knowledge

Data Integration Consolidation

Analytics SME’s Power-Users

Strategic Profit-Maximizing


• Driver Based

• Integrated


15




WH

AT

CA

PA

BIL

ITIE

S

WH

Y?

Improved and

Insightful Decision

Making Process

Maximize Profits

Gathering

Processing


Knowledge

Data

Focus

Val

ue

Insights

Knowledge

Data Integration Consolidation

Analytics SME’s Power-Users

Strategic Profit-Maximizing

A Planning & Analysis Platform for Operations

16

Buy

•Corn

•Wheat

•Resins

•Linerboard

Make

•Sourcing

•Yields

•Overheads

•Labor

Deploy

Deliver

•Mode

•Lane / Miles

•Utilization

•Fuel

Store

•Location

•Efficiencies

•Overheads

•Labor

Inventory Management

Driv

ers

Volume Forecasting

Highlights….. Transportation

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• Seamless Reporting

• Mode Optimization

• Granularity

oProduct

oMode

oLane

Highlights….. Materials Planning and Hedging

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• BOM integration

• Scenario Control

• Hedging Support

o Cross Hedges

o Open vs. Covered

Highlights….. Transportation Miles, Weights by “Lane”

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• Granularity

oLane

oMiles

oWeights

oProduct

• Deployment Planning

• Supply Planning

• Inventory Analysis

Highlights….. Scorecards

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• Sourcing Analysis

• Spend and Productivity Scorecards

Key Learnings

• IT & Business owner roles – Who has the “keys”

– Self Service vs. Control

• SME involvement – Transfer the vision

• Power users – Adoption

– Maintain and Enhance

• Picking the partner – Knowledge / Demonstrated Ability

– Continuity

21

• Sponsorship

– Project support

– Guiding vision

• Picking the tool

– Compatibility (ERP/Systems)

• Prototype

– Iterative development

– Phased approach

– Scope

• Commitment to success

Conclusion

22

Erik Duffield

Director, Finance

Analytics

[email protected]

303-629-9206

Mark Hatting

Director, Pacific Delivery

Practice

[email protected]

408-973-8004

www.slideshare.net/PerficientInc

www.facebook.com/Perficient

www.perficient.com/Thought-Leadership/Social-Media/Blogs

Juan-Carlos Bertini

Vice President

Financial Planning

& Analysis

Achieving Operational Visibility and Financial Gain at Del Monte

Technology

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