Evosys’ VCP Implementation at

Kellogg’s India Pvt Ltd.

Case Study

Background

Kellogg’s began with only 44 employees in Battle Creek, Michigan, in 1906 & today manufactures in 18 countries and sells products in more than 180 countries around the world. For more than 100 years, innovation and commitment to being the best in the categories in which Kellogg competes has guided the Company. From being the first company to offer premiums in cereal boxes to being the first to fortify cereals, Kellogg has historically been a leader in industry, innovation and marketing. Kellogg India is planning to Implement Oracle Demantra & Advanced Supply Chain Planning to enable a system to forecast the demand by interactively retrieving the required data from the departments instead of manually retrieving it. The modules seamlessly integrate with the Oracle E-Business suite already implemented at Kellogg India. Kellogg’s has one Manufacturing Plant at Taloja, and many distribution centers at various cities like Ahmedabad, Bangalore, Chennai, Goa, Hyderabad, Kanpur, Mumbai, Pune etc. Demands from each distribution center collected at HO Mumbai by the Demand Manager. In an S&OP meeting the Supply Plans are frozen for the next month. The Procurement Manager plans the Materials Plan based on the Demand input and keeps the cover of long lead time items. The distribution plan is derived based on the production output from the Plan. For distribution planning, the planner also considers the safety stock to be maintained.

Project Details

Module: Advance Supply Chain Management (CBO) Integration with DISHA (Secondary Sales System)

Operating System: HPUXITANIUM Hardware Platform: ASCP - HP INTEGRITY RX2800 I2

Project Kick off Date : 15-May-2012

Project Resources

Evosys Resource Details : • Project Manager - 1 • ASCP Functional Consultant - 1 • Demantra Functional Consultant- 1 • Technical Consultant -1

Kellogg’s Resource Details:

• Project Manager -1 • Technical Manager – 1 • Demand Planning Manager – 1 • Materials Manager – 1 • Distribution Manager – 1 • Logistic Head – 1 • External SCM Consultant - 1

Generate the Sales forecast baselines and align it with the sales and marketing activities to

generate the final forecast.

Derive Plan directly from approved Sales and Operation Plan (S&OP meeting).

Understanding the purchase and Plant capacity.

Revise the sales forecast based on the inputs from the S&OP discussion.

Consolidate the number of (20 CFA’s + 1 Plant) forecasts (Sales Estimates) to single master

forecast. This Consolidated Forecast will be integrated with this ASCP Plan.

There would be only one single consolidated ASCP Plan defined in the system which will

suggests the Supplies for Production Plan (Packing and Process), Procurement plan

(Purchasing Requisition) & Dispatch Plan (Internal Sales Orders).

To replace the existing complex XL sheet based planning which is used by CFAs and Plant.

Real time data visibility through the system.

Business Problem/Need

Reduce Planning cycle time with holistic planning and optimization and Achieve higher

inventory turns.

Drive decisions directly into execution i.e. Releasing the Planned Orders (Batches, Internal

Requisitions & Purchase Requisitions) directly from the Plan.

Provide Supply chain Planning workbench for the Planner.

Bring the forecast/estimate closer to the consumption point (Secondary Sales numbers).

Ability to expand the aggregated plans to detailed executable plans (In terms of time

buckets, the monthly plan needs to be segregated to detailed weekly plans).

Consolidated Demand & Supply view.

Ability to validate the Available to Promise for all the Distributor Sales Orders.

Generate the dispatch plan by prioritizing requirement v/s availability including planned

quantity.

Business Problem/Need (Contd.)

Generate Demand

Plan in Demantra

ASM validate Demand

Plan

ASM can optionally correct the forecast

by entering the ASM override field

RSM validate Demand

Plan

RSM can optionally correct the forecast

by entering the RSM override field

SCM Head validate Demand Plan

On - hand stock Total outstanding supplies

WIP Batches

SCM Head can optionally correct the forecast by

entering the SCM - Head override field

ASCP Planning Material Master Supply Master

Inventory Rules

Material Plan Production Plan Distribution Plan

Purchase Reqs. Internal Reqs. Prod Batches

The Solution

This solution will improve the overall efficiency of the supply chain by a Gross Margin

enhancement of 1% and reduce decision making latency.

Kellogg’s will achieve a customer service level of 90% on-time fill rate.

Help reduce supply chain planning time to 30% and make optimal supply chain

decisions in real time.

It will enable transition from supply chain based on inventory to supply chain based

on information by improving inventory turns by 50%.

This solution will help in providing centralized, holistic and optimal planning solution

and analysis tools.

Kellogg’s will get a comprehensive distribution planning and replenishment solution.

With this solution, Kellogg’s can achieve a forecast accuracy of 70%.

Expected Benefits for Kellogg’s

Involvement of the Senior Management throughout the implementation process.

Custom development of promotions as causal factors and improving the quality of

forecasting and forecast accuracy.

Supporting the implementation with the right set of reports.

Identifying the product issues at the earliest and involving Oracle Support for early

fixes.

Critical Success Factors

Why Evosys

• Leaders to Implement ASCP & Demantra along with other Edge Products in ME Region.

• VCP team consists of SCM and Materials Management Domain Experts.

• Resources with Multiple Implementations Expertise in different business verticals.

• Dedicated Practice specially to take care of customers of VCP and to bring in the right focus

of VCP Practice.

• Offers services Not only in VCP space but also ERP & EPM and hence we specialize in

integration and end to end solution.

Hea

lth

care

• KFSH & RC,KSA

• SEHA,UAE

• NGHA,KSA

• NEP(NHS),UK

• KHUH, Bahrain

• KKESH, KSA P

ub

lic S

ecto

r

• MOH,UAE

• SCT,KSA

• Musanada, UAE

• Dubai Government, UAE

Rea

l Est

ate

• Ezdan, Qatar

Man

ufa

ctu

rin

g, R

etai

l &

Dis

trib

uti

on

• Zams (Global Export Marketing Co.), UAE

• ATE, India

• AQESA, KSA

• Riyadh Cement, KSA

• Shalina, India

• Sanipex, Dubai

• SAMCO Farm Superstores, KSA

Div

ersi

fied

Gro

up

s

• SAAD,KSA

• Ali Bin Ali, Qatar

• Corodex, UAE

Tele

com

• Etisalat, UAE

• Nawras, Oman

• Vodafone, Egypt Lo

gist

ics

& T

ran

spo

rtat

ion

• Qatar Navigation & Qatar Shipping (Milaha)

• Al Theyab Transportation Co. Riyadh

• Arabian Hala, KSA

Foo

d In

du

stry

• Kellogg's, India

• Depco, Bahrain

• Dudhsagar, India

Evosys Industry Bandwidth at a Glance

Questions?

Thank You Global Headquarter Evolutionary Systems Pvt. Ltd. 11th floor, Kataria Arcade, Beside Adani Vidya Mandir School, Behind ADANI CNG Pump, S. G. Highway, Makarba – Ahmedabad – 380054. Tel : +91 79 30233300, 30233301 Fax : +91 79 30233399,

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