Vaasan S&OP story - Aalto€¦ · Need for S&OP process at VAASAN Situation in 2012 o Common view...
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Vaasan S&OP story 600 Minutes SCM + Lantmännen updates Nina Tuomikangas 21.10.2015
Transcript of Vaasan S&OP story - Aalto€¦ · Need for S&OP process at VAASAN Situation in 2012 o Common view...
Vaasan S&OP story
600 Minutes SCM +
Lantmännen updates
Nina Tuomikangas
21.10.2015
Landscape
Lantmännen+ VAASAN:
An Exciting Journey Begins
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Landscape
VAASAN Becomes a Natural Part of
Lantmännen’s Food Sector
Supply Chain & IT
Human Resources
Finance & Treasury
Internal Audit Board of
Directors
CEO & Group
President
Legal Affairs Strategy & Business
Development
Sustainable Development
R&D
Communication
Agriculture
Sector
Machinery
Sector
Food
Sector
Energy
Sector
Lantmännen
Real Estate
3
Landscape
Lantmännen Unibake
Produces high-quality frozen and fresh
bread products for food service and food
retail. The assortment includes fast food,
bread, pastries and savouries.
• Net sales of 7,200 MSEK.
• About 3,600 employees.
• Brands include: Hatting, Schulstad,
Korvbrödsbagarn, Pastridor, Americana
Range, and more.
+ the US, Australia
and South Africa
Sales by product category
4
Landscape
Lantmännen Cerealia
Develops, produces and sells grain-based
products such as flour, flour mixes, hulled
grains, muesli, pasta and pancakes, as well
as ready-to-eat meals, beans and lentils.
• Net sales of 3,762 MSEK.
• About 1,100 employees.
• Brands include: AXA, Kungsörnen, Amo,
Regal, Sopps, Gooh, Start, GoGreen,
and more.
Sales by product category
Landscape
The VAASAN Group in a Nutshell
• About 2,500 employees, half in Finland.
16 production facilities.
• Net sales of 400 MEUR, in bake-off, crisp
bread and fresh bread.
• 165 years of history in the bakery
industry.
• Leading player in Finland – major player
in Sweden, Norway and the Baltics.
Seinäjoki
Kuusankoski
Joutseno
Vantaa
Vammala
Riga
Rezekne
Tartu
Tallinn
Kiiminki
Kotka
Vilnius
Panevezys
Holstebro
Stockholm
Asker
Kuopio
Tampere
Saue
Helsinki
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Vaasan S&OP story
05.2013 www.vaasan.com
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Need for S&OP process at VAASAN
Situation in 2012
o Common view of the future and common ways of working expected
Different ways of planning and operating in different business areas and
countries
Cross-functional, cross-BA and cross-country coordination very difficult
Lack of visibility to new product launches and delistings
o More fact-based, profit driven decisions and mindset required
Very weak link between demand-supply planning and financial planning
o Longer term visibility expected
Focus in short term
Constant flow of surprises
VAASAN journey to climb up the S&OP
Maturity steps*
1. Cross-functional planning
• End-to-end S&OP process
established with basic tools
(Excel, powerpoint)
2. Scenario planning
• System support for automation
• Capability to plan with scenarios
4. Profit optimization with
network design scenarios
• Fully integrated business and
supply chain planning
3. Profit optimization
• Gross profit planning in S&OP
• Rolling business planning
* Source: Chainalytics S&OP Maturity steps
Starting point in 11/2012
VAASAN Group S&OP project
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• Project Objectives
o Implement unified VAASAN Group Sales & Operations planning
process in 2013
Improve the efficiency of our operations through better planning and better
visibility to the future
Support growth
• Main deliverables
o S&OP implemented to VAASAN Group with basic tools in 2013
o Future roadmap for S&OP enhancement in 2014-2015 with advanced
tools
VAASAN S&OP objective
Unified and well structured S&OP process with efficient meetings
and clear decision-making & accountability
Common view of the future
Profit driven mindset
Visibility into the future and finding solutions to achieve our
targets
Monthly S&OP process
Product review objective:
• Ensure that sales, production and
sourcing have visibility to updated
product launches, brand activities and
de-listings
• Ensure to have NPD, brand activities
and de-listings to reach the targets Demand review objective:
• Agree on demand plan, providing the
best possible information about future
sales
• Agree on and prioritize gap-closing
actions
Supply & Material review objective:
• Ensure cost efficient production,
sourcing and logistics against latest
demand plan and customer service
targets
• Identify potential bottlenecks in the
planning horizon
• Identify available capacity for sales
opportunities
Pre-S&OP meeting objective: • Consolidate the 18 month S&OP plan proposal
• Prepare key assumptions, gap-closing actions and
open issues for the BA Executive S&OP meeting:
Executive S&OP meeting objective: • Review S&OP plan and possible
changes to assumptions
• Review and agree on gap closing
actions
• Resolve any open issues
• Approve S&OP plan
• Initiate Group level strategic projects
Monthly S&OP calendar 2014
22.10.2015 14
Calendar week
4
Calendar week
1
Calendar week
2
Calendar week
3
Group
BA
Country
Product
review
Supply
review
Material
review
Executive
S&OP
Executive
S&OP Demand
Review Pre-S&OP
Product
review Product
review Product
review Product
review Product
review
Product
review Product
review Product
review Product
review Demand
review
Executive
S&OP
Monday
Wednesday
Friday
Tuesday/
Wednesday
Thursday
/Friday
Monday (am)
Thursday/ Friday
Monday (pm)/
Tuesday
Tuesday/
Wednesday/
Thursday
Material costs
for next S&OP cycle
Executive
S&OP Executive
S&OP Executive
S&OP Executive
S&OP
Product
review
Week 3
Communication
and execution
in countries
How we climbed on top of the first
maturity step?
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10/12 01/13 04/13 07/13 10/13 01/14
S&OP design
Basic tools
S&OP Pilot Process deployed to 1st Business Area
Deployment to 2nd Business Area
Deployment to 3rd Business Area
• Harmonized Group-level S&OP process created
• Design documented into S&OP Handbook
• New profit-driven mindset created
• Long-term thinking to focus finding opportunities to close
gaps
• Executed using Excel templates
• Required lot of manual effort, but provided easy and flexible
way to adjust the process when needed
Key lessons learned
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WORKS
• Common S&OP process across VAASAN Group
• Meeting agendas and meeting flow
• Roles & responsibilities clear. Owners take
ownership, facilitators ensure efficient meeting flow,
participants prepared and active
• Information flow between product-demand-supply
• Product portfolio roadmap: visibility to all
planned product changes in one file
• New culture emerging
• Working systematically with opportunities,
risks and gap closing
• Increased profit thinking across functions
• Longer term planning increasing
• Controllers closer to business
ROOM FOR IMPROVEMENT
• Basic tools provide information flow but
require extensive manual work
• Basic tools don’t enable scenario work, drill
down and visual quick view
• Focus on long-term planning, still some short-
term/lagged decisions and issues.
VAASAN journey continues to climb up
the S&OP Maturity steps*
1. Cross-functional planning
• End-to-end S&OP process
established with basic tools
(Excel)
2. Scenario planning
• System support for automation
• Capability to plan with scenarios
4. Profit optimization with
network design scenarios
• Fully integrated business and
supply chain planning
3. Profit optimization
• Gross profit planning in S&OP
• Rolling business planning
* Source: Chainalytics S&OP Maturity steps
Starting point in 11/2012
Current level in 10/2014
Goal for 2016:
World class S&OP
process
