Hub16: Del Monte aligns Supply Chain with Finance

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The Del Monte – Anaplan Project

HELLO! My name is STEVE.

• Introducing Del Monte• The Current Del Monte S&OP

Framework• The Del Monte – Anaplan Journey• Q&A

HELLO! My name is STEVE.

• Show video: Del Monte overview

Video

Support Functions: HR Finance IT R&D Opcom

Suppliers

Receiving &Staging

Manufacturing

Warehousing &Delivery

Trade Customers

Consumers

Procurement/PlanningQA

Raw Materials WarehouseQA

Manufacturing (Toll and Mindanao Cannery and Plantation)

Logistics

SalesLogisticsAccounting

MarketingProduct Development

We organize ourselves around the customers’ needs.

8

Data Quality

Shar

ehol

der V

alue

| C

usto

mer Strategy | Tactics | O

perations

SUPPLY3

ALIGNMENT5

RECONCILE4

DEMAND2

INNOVATION1

Single agreed plan

Integrated Business Management Senior Team Strategic 18 to 24

months Focus: 4+ months

Tactical S&OP Demand, Supply Planners Tactical 1 to 4 weeks / 2

months Focus: 1 to 3 months

Operational Scheduling Supervisors, Operators Here & now Focus: today/tomorrow

We don’t lack for management concepts to help us.

IBM builds on the classical CLASS A MRPII framework of the 90’s…

Innovation for long term planning.

STRATEGIC/INNOVATIONPLANS (LRP)

FINANCIALPLANS (LRP)

BUSINESSPLANNING (AOP)

SALES & OPERATIONSPLANNING (S&OP)

DEMANDMANAGEMENT

ROUGH-CUTCAPACITY

PLANNING

MFG CAPACITIES

LOGISTICSCAPACITIES

SUPPLIERS’CAPACITIES

CUSTOMERS & CONSUMERS

CUSTOMERDEVELOPMENT

MARKETING

OTHERDEMAND

ORDER ENTRY/

PROMISING

MASTERSCHEDULING

DETAILEDMAT'L./CAP.PLANNING

PLANT/SUPPLIER

SCHEDULING

EXECUTION

BILLSOF

MAT'L.

ROUTINGS

INVTY.RECORDS

WORKCENTERS


Innovation Review (IR)

Demand Review to size up the market.





DEMANDMANAGEMENT

ROUGH-CUTCAPACITY

PLANNING

MFG CAPACITIES

LOGISTICSCAPACITIES



CUSTOMERDEVELOPMENT

MARKETING

OTHERDEMAND

ORDER ENTRY/

PROMISING

MASTERSCHEDULING


PLANT/SUPPLIER

SCHEDULING

EXECUTION

BILLSOF

MAT'L.

ROUTINGS

INVTY.RECORDS

WORKCENTERS


Demand Review (DR)

Supply Review to understand capacity constraints





DEMANDMANAGEMENT

ROUGH-CUTCAPACITY

PLANNING

MFG CAPACITIES

LOGISTICSCAPACITIES



CUSTOMERDEVELOPMENT

MARKETING

OTHERDEMAND

ORDER ENTRY/

PROMISING

MASTERSCHEDULING


PLANT/SUPPLIER

SCHEDULING

EXECUTION

BILLSOF

MAT'L.

ROUTINGS

INVTY.RECORDS

WORKCENTERS


Supply Review (SR)

Reconciliation Review to understand trade offs.





DEMANDMANAGEMENT

ROUGH-CUTCAPACITY

PLANNING

MFG CAPACITIES

LOGISTICSCAPACITIES



CUSTOMERDEVELOPMENT

MARKETING

OTHERDEMAND

ORDER ENTRY/

PROMISING

MASTERSCHEDULING


PLANT/SUPPLIER

SCHEDULING

EXECUTION

BILLSOF

MAT'L.

ROUTINGS

INVTY.RECORDS

WORKCENTERS


Reconciliation Review (RR)

Top Management to align the organization.





DEMANDMANAGEMENT

ROUGH-CUTCAPACITY

PLANNING

MFG CAPACITIES

LOGISTICSCAPACITIES



CUSTOMERDEVELOPMENT

MARKETING

OTHERDEMAND

ORDER ENTRY/

PROMISING

MASTERSCHEDULING


PLANT/SUPPLIER

SCHEDULING

EXECUTION

BILLSOF

MAT'L.

ROUTINGS

INVTY.RECORDS

WORKCENTERS


Management Business Review (MBR)

A platform for collaboration is needed…

The Now…

Multiple S&OP’s (and no enterprise view)

Multiple sources of data Manually linked planning processes –

MPS/MRP/CSAR/Plantation Planning Transportation/ shipment planning is

manually linked to supply plans Need to link short, mid, and long

term Pineapple planning on a rolling basis.

No regular financial integration in our current S&OP process

In mature market segments, need opportunities for profits to be made

An Integrated System for an Integrated Business Management philosophy

enabling:

A formal integrated approach Integrated planning across

functions providing an enterprise view of operational plans and financial impact

Continuous management of change, issues, scenarios

Linkage of short, mid, and long term planning.

Superior customer service, reduced inventories, optimized cost

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The search for a planning tool

Del Monte became part of the Anaplan sphere on September 2015 with an FP&A use case

-

Anaplan FP&A Go-Live on December

7, 2015

Del Monte current Use Cases – either via prebuilt models, created from scratch, or under assessment

Financial Planning and Analysis– Phil Market Finance Module

• Sales and Marketing• Logistics and Transportation• Tollpack/Culinary/Reds Cost Planning• Cannery/Pineapple Cost Planning• Operating Expenses

– Export– S&W

Legal Consolidation Supply Planning (Mindanao) Distribution Resource Planning HR Manpower Planning

Anaplan implem gave us Quick and Big Wins so far.

More granular analysis of drivers, better Planning quality– By Ship to by SKU– Transportation requirements and budgeting,– Warehouse capacity planning– BOM based costing for tollpacked products– Direct product and customer profitability analysis– Powerful allocations

Speed and Efficiency - Less painful Budgeting Process– Analysis on the fly– Very significant improvement in Planning turnaround time – from a 2-week to a 2-day process.– Parallel processing vs Serial processing

Flexibility via Anaplan’s Self Service model System is business driven with IT/Anaplan Support as a valuable partner. Optimization leading to financial gains – yet to be determined, but expected.

Anaplan provides the ability to drill down even more.Without Anaplan To

Pricing By sku by quarter By sku by month

Discounts Average per channel By customer

Volume By Channel/By sku/By quarter Plus By Customer/By Ship To/By Month

Advertising and Promo Excel Worksheets by brand by channel by month by spend type

Upload by Owners (eventually)

Special Pricing and Trade Deals Average %s (from historical or AOP) By Customer/By SKU

Product Costs Standard cost per case, every OL cycle Standard cost per case with PPV adjustment for months; with possibility to build bottom up (space consideration)

Transportation Costs National Average by sku By ship to by sku

Overheads Manual Excel worksheets Via Anaplan (controllable vs non controllable) with opportunity for ZBB and driver based build in the future (space consideration)

Actuals and Variance reporting Excel and powerpoint files Dashboard Reporting and more accurate Rate-Volume-Mix analysis

25

You cannot model what you do not understand.

• At the end of 2011, we have 400 SHIP-TO’s being served.

• In 2013, this increased to 600 delivery points

• To date, we are already serving more than 800 sites

• With this trend, we are likely to have 1,200 delivery points by 2017

1. Where are our customers?

Toll Packers

Mindanao Cannery

Manila warehouses –

Cebu warehouse

Cagayan warehouses –

Dev- Vis

Dev – Luzon, Mindanao, Visayas

Key Luzon

Key Vis

EXPORT MARKETS

DM Plantation

300 RPM /700 IndirectSuppliers

Toll pack itemsBugo items

Key- Key Accounts

Dev- Dev. Accounts

Stored in RPMWarehouses

Stored in RPMWarehouses

Dev– Luzon, Mindanao, Visayas

Key Min

2. From Supply to meet Demand

3. Costs costs costs

RAW MATERIALS, other than formulation:– Line loss (line/machine, packaging format, etc.)– Formula adjustments—modifications in product formulation due to variability in a major ingredient;

major examples: tomato paste, fruit concentrates– Purchase prices

PACKAGING MATERIALS– Line loss (line/machine, packaging format, etc.)– Purchase prices

TOLL FEES– Line speed, efficiency, age of investment, volume

FIXED COSTS– The allocation of Toll Operations cost centers– Controllable vs Uncontrollable costs.

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Models, Modules, Lists, Line Items

General Lists - sampleProperties Subsets Item Count

Ship to Customer, DC: Organization, Street: Text, City: Text, TranspZone: Number, SDst: Number, Sales district: Text, CGrp: Number, Customer group: Customer Group, PostalCode: Number, Region, Island, Sales Group: Text, Distributor's Discount: Number, FS Discount: Number, Other Discount: Number, 2% Culinary Discount: Boolean, 4% Pasta Discount: Boolean, FNR 15+1 Trade Deal: Boolean, Prompt Payment Discount: Number, E2E Discount: Number, Marketing Group, Via DC?: Boolean, Crossdock?: Boolean

FS Discount - Ship to, Distributor, Key, Dev, Perpetual Discount - Ship to, Special Pricing Discount - Ship to, Crossdock, Distribution Allowance - Ship to, Spend Rate Accounts - Ship to, E2E Discount - Ship to, FS MD Percentage - Ship to, FS MD Peso - Ship to, TTA - Ship to, Trade Deals - Ship to, Grocery - Ship to

1068

SKU Code2: Text, Brand, Product Hierarchy, Category, Source, Island, Net Weight: Number, Gross Weight: Number, Stat Case Factor: Number, Kg Factor: Number, Obso Rate Plan: Number, Bad Order Rate: Number, Size/Dimension: Text, New Products: Boolean, Load Factor CV: Number, Load Factor Truck 10 Wh: Number, Load Factor Truck 6 Wh: Number, Del Fee Multiplier: Number, Volume: Number, FY16 LPBT: Number, SVI/SSM Discounts: Number, Alfamart Discounts: Number, Suy Sing/Super 8 Discounts: Number, Goldilocks Discount: Number, Jollibee Discount: Number, Shakeys Discount: Number, Chowking/Greenwich DIscount: Number, Contract Pckg Discount: Number, McDonalds Discount: Number, Tropical Hut Discount: Number, Customs Operations: Number, TTA: Number, Downline SKU: Boolean, Phil Seven Trade Deals: Number, Chowking/Greenwich Trade Deals: Number, Goldilocks Trade Deals: Number, Jollibee Trade Deals: Number, McDonalds Trade Deals: Number, Red Ribbon Trade Deals: Number, Shakeys Trade Deals: Number, Tropical Hut Trade Deals: Number, Centerpoint FS Trade Deals: Number, Marina FS Trade Deals: Number, Pine / Non-Pine: Text, via DC?: Boolean, Parent2: Brand, Category TR, Cost Growth Classification

Traded, Toll, Bugo, Beverages, Special Pricing Discount SKU, FS Trade Deals SKU

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General Lists – sample

Properties Subsets Item CountSold to Cgrp: Number, Customer Group 578Product Hierarchy Brand, Description: Text, Source 309Zip Code City: Text 252Cost Elements Description: Text, Source File: Text, Input by: Text, Time Input: Text Yearly, Monthly 174Cost Centers Person Responsible: Text, Sub - dept: Text, P&L: P&L Cost Centers Logistics, G&A, R&D, S&M, Tollpack 159Customer Customer group code: Number, Channel: Organization, Customer Group,

Marketing Group, FS MD: Number, Spend Rate Account: BooleanFS MD Percentage, FS MD Peso, Distribution Allowance - Customer, Spend Rate Accounts, DUMMY, Special Pricing Discount Customer, FS Trade Deals Customer

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Value Fields Soc subset: Soc Subset, SOC Subset L5, P&L by SKU: SOC Subset per SKU, Expenses: Boolean

Sales Qty and Rev, Other Disc, Below GM, Above GM w/o Ship to, Above GM w/ Ship to, TPC, Prod Cost, Volume, Reg sales and transpo per ship to subset

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Brand Category 39Tollers 14Cust. Group - Region Name basis: Text 11P&L Cost Centers 9Category TR 8MAPS Value Property: Number 6Markets 6Region 6Commercial Cost Centers 4Advertising Budget Source 4Category 4Island 4Organization Marketing Group Grocery - Channel 4Source 4Cross dock provider 3Customer Group 3Marketing Group 3

The FP&A High Level Model Map – THIS IS IT!

Transportation and Distribution Model Map

BOM Costing Per SKU sample module

Basic Fixed Costs and Opex Model - pre ZBB

Driver-based analysis - sample

Seamless ERP Integration– Planning level not matched with ERP/Actuals

New concept of storage and size utilization. – Cloud storage means costs. – Tendency to be Anaplan “addicts”

Spurious accuracy because of the computing power we have in our hands

Increasing user and management expectations Change management

Challenges

Some materials used in the presentation may proprietary– The IBM process is cited to provide the framework for the current

S&OP process done in Del Monte

Notes

Hub16: Del Monte aligns Supply Chain with Finance

Business

Transcript of Hub16: Del Monte aligns Supply Chain with Finance