Trevor Barrett, Manager Premier Foods UK Confidential
Transcript of Trevor Barrett, Manager Premier Foods UK Confidential
Trevor Barrett, Manager – Premier Foods UK
Premier Foods “Optimization for Growth”
Enabling Focus on the Customer
Confidential
© 2013 SAP AG. All rights reserved. 2 Confidential
In This Session …
Following the
implementation of Trade
Promotion Management
(TPM) within Premier
Foods, this session
provides an insight into:
Our Approach to Trade
Promotion Optimization
Our business requirements
Our POC framework and
results
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What We’ll Cover …
Premier Foods – Our
History
Trade Promotion
Optimization approach
POC - Framework
Wrap-up
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Premier Foods
Our History
Click here
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Our History and Power Brands
With origins in the canned food industry, Premier Foods has continually expanded and
acquired new brands to become the UK’s largest food producer
In March 2007 Premier Foods completed the £1.2 billion acquisition of RHM along with
many of the UK’s best known food brands including Hovis, Sharwoods, Cadbury Cakes,
Bisto and Mr Kipling
Top 5 Customers – Tesco/Sainsbury/Morrisons/Asda/Co-Op
Gravy/Stock Deserts Sauce’s Soup’s
Cake Bread Sauce’s
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Technology & Trade Promotions
SAP & Premier?
Premier Foods has been using core SAP in parts of it’s business since 2008
The Hovis Division had no SAP platform
Hovis – a perfect test bed for SAP TPM integrated with the SAP Orders to Cash
implementation
Hovis & Trade Promotions
Hovis (Bread) accounts for c £500m of Premier’s total turnover
Fresh products delivered daily (Product range is bread and other bakery e.g muffins)
Mainland GB and Northern Ireland operation
20+ manufacturing/ distribution sites across the UK
The Supply Chain operates 24x7 – most deliveries occurring overnight before 11am
8500 deliveries per day = 8500 invoices
Order cycles are short, typically within 24/48hrs of order receipt.
Approximately 60% of Hovis volume is sold “on promotion”, therefore
including SAP TPM integrated with SAP Order To Cash solution was key...
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Premier – Our Business Unit Structure
Premier Foods
Cake Deserts
Grocery Desert/Source/Meal
Hovis Bread
Ambient Business
TPM Live
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What We’ll Cover …
Premier Foods – Our
History
Trade Promotion
Optimization approach
POC - Framework
Wrap-up
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TPO Approach
Emerging business needs:
Improved Promotional planning (horizon
view)
Promotional Modeling capability (what if)
Collaborative execution (functional control)
Collaborative Margin Growth (focused
investment)
Logical next step ;
Build on TPM Capability
Validate SAP Trade Promotion Optimisation
Business Requirement
Focus on promotional scheduling
Validate what If“/Modeling capability
Understand optimization capabilities
Validate work flow approval
Usability based on
Simplified Screen orientation
Clear transactional ownership
Quality / acceptable outputs
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TPO Approach
TPO Considerations ;
Numerous Optimisation tools
Hosted vs Internal capability (Technical)
Internal Capability (Resource)
Tactical opportunity
Strategic fit
Project scope ;
POC Validation
Data structure validation
Business Capability build
Trade Promotion modelling
Output validation
Fit For Purpose
© 2013 SAP AG. All rights reserved. 11 Confidential
What We’ll Cover …
Premier Foods – Our
History
Trade Promotion
Optimization approach
POC - Framework
Wrap-up
© 2013 SAP AG. All rights reserved. 12 Confidential
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Current Status
“Completing the Jigsaw”
Today 2013
Inconsistent behaviours
• Incorrect base data
• Disparate knowledge & insights
• Systems internally financially driven
• External data not readily available
• Create consistent behaviours
• Improve use of insights in forecasting
• Collate knowledge into 1 place
• Create robust base dataset
• Missing cannibalisation, Retailer impact , systemisation of modelling
• Simple user interface
• Usable by sales force
• Benefits from existing data set (i.e. retailer profitability)
No picture to follow, pieces scattered around &
some missing
Provide the picture, more of the pieces, still scattered around
System “enabler” required
Objective
“ to optimise the ROI from
promotional spend, to be
achieved through;
the right behaviours
with in the appropriate process
underpinned by a best in class
modelling, planning and
evaluation system
capability”
© 2013 SAP AG. All rights reserved. 14 Confidential
1
Promotional
Evaluation
Single ,
Robust Data
Set EPOS & IRI Data @
SKU
Volume Split - Base/
Event
Cannibalisation
Post Promo Dip
Competitor Activity
Scope of the 2013 Challenge
Scenario
Modelling
Retailer ‘lens’
Plan Versions
Aggregations
Guidelines &
Rules
Alerts
Views aligned
to role
1
Time
2 … 18
2
3
4
5
NAM View RGM View
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Business Requirement
1
2
Plan
RGM – Planning Activity
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Demonstration Planning Cycle
1
2
Plan
Plan
RGM - Promotion
Modeling
RGM – Planning Activity
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Demonstration Planning Cycle
1
2
3
Plan
Plan
Plan RGM - Promotion
“What If” Scenarios
RGM - Promotion
Modeling
RGM – Planning Activity
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Demonstration Planning Cycle
1
2
3 4
Plan
Plan
Plan
Plan
RGM - Promotion
“What If” Scenarios
RGM - Promotion
Modeling
NAM – Review
& Release
RGM – Planning Activity
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Demonstration Planning Cycle
1
2 5
3 4
Plan
Plan
Plan
Plan
Review
RGM - Promotion
“What If” Scenarios
All Stakeholders -
Evaluation
RGM - Promotion
Modeling
NAM – Review
& Release
RGM – Planning Activity
Do
(TAMMS/TPM)
© 2013 SAP AG. All rights reserved. 20 Confidential
Trade Promotion Planning Cycle
1
2 5
3 4
Plan
Plan
Plan
Plan
Review
RGM - Promotion
“What If” Scenarios
All Stakeholders -
Evaluation
RGM - Promotion
Modeling
NAM – Review
& Release
RGM – Planning Activity
Do
(TAMMS/TPM)
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Step 1 RGM – Planning Activity
Requirements
18 months rolling timeframe
Run what if scenarios changing the following variables :
– promotional mechanic, MSSP, Retailer funding
Holds live calendars in both internal & retailer years
Demonstration Steps ;
RGM reviews a Promotion Plan Agreement for a 12 month
period for Tesco UK in the marketing calendar
RGM uses pre-assessment dashboard to start to model some
scenario options by tweaking the Promo Mechanics, MSSP,
Retailer Funding etc
RGM Creates promotions from the list of prepared scenarios,
and adds them to the Agreement.
RGM Reviews the promotions for the agreement in a
calendar view ;
– Show retailer time periods and premier time periods etc
Plan
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Promotional Scheduling
Add calendar/scheduled promo’s View
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Step 2 RGM – Promotion Modelling
Requirements
Volume split between base and promotional
Modeling functionality to include following capability;
– cannibalization
– post promotional dip
– impact of competitor activity
Need full P&L view for both internal (PF) and external (Retailer)
System intelligence on best mechanics/ frequency/ discount
levels
Demonstration Steps ;
RGM Opens the agreement and can see the Baseline and the
spikes from the planned Promotional activity
RGM can see the volume decomposition – Seasonality, Holiday,
Price Lift, Mechanic Lift, Cannibalization, Pre/Post Dip
RGM Reviews and flips the views of P&L for Retailer and
Premier in the table, then sees graphics
RGM saves the agreement
Plan
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Baseline /Promotional Spike
Add agreement baseline/spike view
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Step 3 RGM – Promotion “What if” Scenario’s
Requirements
Hold multiple versions of plans
System intelligence on rogue entry of uplifts or redemption
rates.
Demonstration Steps ;
RGM Copies the agreement and confirms status of Promotion
Plan Agreement (i.e. – a firm promotion)
RGM Reviews the promotions for the agreement in a calendar
view
RGM Update’s a promotion from the suggested scenario list ,
then ender's that promotion and use’s the Promotion
Optimization capability to model scenarios and review the
mechanics, frequency, discount levels etc
RGM goes into the planning layout amends/validates rogue
entry of uplift and redemption rates etc
RGM Save’s / Update’s Promotion and Agreement
Workflow alert to inform RGM of update (tbc)
Plan
© 2013 SAP AG. All rights reserved. 26 Confidential
What If/Promotion Modelling
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Step 4 NAM – Review & Release
Requirements
System intelligence on clash of overlapping deals or read across issues
Hold multiple versions of plans
Holds live calendars in both internal & retailer years
Modeling functionality to include following capability;
– cannibalization, post promotional dip, impact of competitor activity
Need full P&L view for both internal (PF) and external (Retailer)
System intelligence on best mechanics/ frequency/ discount levels
Demonstration Steps ;
NAM sees alert from RGM around promotion plan to review
NAM Uses the calendar view to compare in split view the plans suggested
by the RGM .
NAM reschedules a promotion by a number of weeks and saves
(Promotion Overlap Alert appears)
NAM - Review P&L impact.
NAM then opens one of the promotions and reviews the volumes plans,
make some amendments and re-forecasts the individual promotion
NAM Changes status and releases promotion
Plan
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Work Flow Approval
Add alert/schedule update
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Step 5 All Stakeholders - Evaluation
Requirements :
Fund management – (inclusion of targets) and
tracking against these.
Systemise post evaluation
Create categorisation of performance into ABCD
style for simple understanding
Reporting functionality to deliver Project Alphabet
designed reports
Delivers both internal and external view
Tracking vs KPI’s
Supports Project Alphabet Management Review
process
Review
© 2013 SAP AG. All rights reserved. 30 Confidential
Promotional Planning & Evaluation Roadmap
“Completing the Jigsaw”
Inconsistent behaviours
• Incorrect base data
• Disparate knowledge & insights
• Systems internally financially driven
• External data not readily available
• Create consistent behaviours
• Improve use of insights in forecasting
• Collate knowledge into 1 place
• Create robust base dataset
• Missing cannibalisation, Retailer impact , systemisation of modelling
• Simple user interface
• Usable by sales force
• Benefits from existing data set (i.e. retailer profitability)
No picture to follow, pieces scattered around &
some missing
Provide the picture, more of the pieces, still scattered around
• Sophisticated modelling which uses multiple data inputs to create internal and external view
• Integrated into business processes
• Fit for purpose according to user capability
• Flexible & immediate reporting
All the pieces in 1 box with a picture to follow
2012 2014 2013
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Month 1
Activity & Timeline
Month 2 Month 3
POC Business Requirements
Data Modeling (Business Checkpoint)
Business Validation (UAT)
Final Preparation
Go Live
TPO – 12 Week Project Plan
© 2013 SAP AG. All rights reserved. 32 Confidential
What We’ll Cover …
Premier Foods – Our
History
Trade Promotion
Optimization approach
POC - Framework
Wrap-up
© 2013 SAP AG. All rights reserved. 33 Confidential
Lessons Learned
Clarify what and why you “want” or “need TPO
Validate that your plan is “doable” — Not over aspirational
Determine your technical strategy and data availability
Consider your business capability
Map out the functional impact
Validate the data structure
Validate TPO outputs
“Smarter - Faster - Simpler”
© 2013 SAP AG. All rights reserved. 35 Confidential
Where to Find More Information
http://www.sap.com/uk/solutions/business-suite/crm/brochures/index.epx
http://www.sap.com/uk/solutions/rapid-deployment/crm/index.epx