Driving Business Results with Oracle Comprehensive Trade Management Bob Ashford, Massimo Zanetti...

Driving Business Results with Oracle Comprehensive Trade Management

Bob Ashford, Massimo Zanetti BeverageBoyd Smythe, PepsiCo Victor Espinoza, Chicken of the Sea Herbert Klein, OracleLinda Peel, Oracle

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template2

Program Agenda

Introductions

Customer Profiles

Interactive Discussions

Q & A


What is Comprehensive Trade Management?

•Category Management•Consumer Insights•Trade Insights

•Financial Planning•Fund Planning•Volume Planning•Promotion Planning•Promotion Optimization•Price Planning•Calendar Optimization

•Sales Forecasting•Promotion Tracking and Analysis•Liability Estimating and Reconciling•Funds Management•Claims Management

•Strategic Objective Planning•Coverage (Territory/Route) Planning•Tactical Objectives Planning•Visit Prioritization•Visit Scheduling•Visit and Activity Execution

CategoryManagement

Account PlanningRetail

ExecutionPromotion

Management

High Performance Infrastructure

Unified Reporting Layer


Customer Profiles

5

Who Is PepsiCo?

Global Beverages

Global Snacks

Global Nutrition

Brands

22 billion-dollar

brands

Performance

More than $65 billion

revenue

Scale

>200 countries & territories

People

~280,000employees

PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers

convenient, nutritious and affordable options in nearly every country around the world.

6

Our Trade Solution: TPO with Indirects

This Week

Tostitos

Doritos

Ruffles

Sunchips

Last Week

Fritos

Cheetos

20 Count

Sunchips

Baked

7

How the Business Uses It

Review Event Performance

• Standardized Methodology• Includes

Cannibalization• Sales & Profit• Retailer Impact

• Every Event• Timely Reporting

Assess Proposed Trade Calendars

• Scenarios Created by Sales & Finance Teams

• Scenario Planning Incents Risk-Taking

• Automated Forecasting

Analyze Promotions Nationally

• Set National Strategies & Forecast Impact

• Identify Broad Opportunities

• Enable Discussions of Account-Specific Opportunities

8

Future Plans & Objectives

•Roll Out to New Account Teams

•Continue Improving Inputs & Accuracy

•Embed Fully into Processes

•Develop Additional Tools


Massimo Zanetti Beverage USA

We are a privately owned vertically integrated Coffee Company– Part of a Global Coffee group based in Italy with over 100 years of

coffee experience.

– Serving the “At-home” and “Away from home” Coffee market with Branded and Private Label coffee products.

– We grow, harvest, mill, roast, grind, package, and drink Coffee!

– One of the Largest Coffee companies in North America

7 Locations, ~1,000 MZB associates in North America WE MAKE COFFEE!!!!

Bob Ashford, VP IT and Single Serve


Massimo Zanetti Beverage USA Distinguished Brands of Coffee and Espresso


Corporate Brand CustomersMassimo Zanetti Beverage USA

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=703KkPTqrcp9_M&tbnid=Xfp_x6j2LcqmAM:&ved=0CAUQjRw&url=http://gorgeheroesclub.blogspot.com/p/ghc-corporatebusiness-donors.html&ei=hlcmUonvFeeqsAS6hIDQBQ&bvm=bv.51495398,d.cWc&psig=AFQjCNGpukjUEU1N99yDWH3uB5AfKJOZ9w&ust=1378330790778120

http://www.brandsoftheworld.com/download/brand/184922.html

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Rchpzz4r0L3DkM&tbnid=v3aIwlyXQwUpJM:&ved=0CAUQjRw&url=http://www.traderjoes.com/&ei=O30iUf6fA6rN2QWK2IHICg&bvm=bv.42553238,d.aWc&psig=AFQjCNEskUgQ2CBoH8mkOnO69wJpYr5xOg&ust=1361301170691098


TPM Solution – One system, Three functions

Promotion Planning and Management– (~3,500 annual promotions)

Deduction Management– (~12,000 annual trade based deductions )

Integrated Forecast engine– Significant improvements in forecasting

– Improved efficiency


Trade Management• Enter and manage Promotional

activity at multiple aggregation levels

• Compare promotion alternatives• Determine most profitable plan• View trade-fund balances in

real-time

Plan the Trade Promotions with Statistical Information

Control of discretionary spendingManage trade spending with promotional lifts and what-if analysis

Trade Promotion Management


• Promotions entered by Sales reps, Brokers, or Sales support team • Statistical Lift generated using the Analytic Engine• Promotion Lifts reviewed and modified by Sales reps, Sales Support, and Planning group via overrides • Promo Lift values synchronized to DM module for “Planned” promotions• Promo Approval process executed• Approved Promotions set to Committed status• Shipments loaded weekly into Demantra from ERP• Accruals calculated based on shipments• Accruals posted to ERP(GL) (Based on Accrual report)• Deduction Settlement process executed (see DSM Process)

Promotion Planning ProcessPromotions entered by Sales reps

Statistical Lift generated by Engine

Promo Lift values synchronized to DM module

Promo Approval process executed

Promo Lifts reviewed /

modified via overrides

Approved Promotions set to Committed status

Accruals calculated based on shipments

Accruals posted to ERP (GL)

DSM process executed

(see DSM Process)

Shipments loaded into TPM/forecasting software from ERP

Massimo Zanetti – Promotion Planning Process


Deduction Settlement• Provide single system access to

Deductions and Promotions allowing for an efficient settlement process

• Provide real-time management of trade spending based on all phases (projection, execution, reconciliation)

Settle deductions with in promotion planning system

Integrated Deduction Settlement ProcessEnable real-time collaboration of promotional and deduction settlement activities

Deduction Settlement Management


Fund management• Budget allocation with trade-

fund execution capabilities• Control of discretionary

spending by product, group, customer, etc.

Track trade spending based on Promotion Plans

Detailed Trade Spend ManagementProvide real-time views of projected and actual trade spending based on promotional activity and deduction settlement process

Trade Spending


Future JourneyCurrent Focus

• Advanced Forecasting and Modeling• Additional focus on AFDM• Possible additional engine tuning

• Trade Promotion “Optimization”• Further organizational focus

• Production Scheduling• Product sequencing• Changeover minimization

Future Focus• Supply Planning

• Advanced Supply Chain Planning / Constraint based optimization (ASCP)• Rapid Planning (RP)


Changes and BenefitsBenefits

• 20% increase forecast accuracy improvement• 20% increase inventory turns• 30% less total inventory on increased sales volume – while maintaining 98% customer fills rates• Stronger order fulfillment• Shorter cash-to-cash cycle times• Process change enabled by People, Organization, and technology

Changes• Combined unified system for Forecasting and Promotions• Management Reviews

Key Learning’s• Business and IT resource requirements

• Project needs to be driven by the Business and IT• Strong leadership requirement• Future support resources should be available from the project start

• Choose the right implementation partner - Project was on time and on budget


Summary

Selection Process• Workshops and presentations• Requirements analysis with agreed scope• Budget approval

Business Challenge• Very competitive market• Extreme aggressive timeline

Business Case• Statistical forecast• Manage trade spending• Measure and optimize the promotional lift• Compare promotion alternatives• Replacement of an existing TPM

- (no forecasting)

Footprint• JD Edwards E1• Demantra DM, PTP, DSM


Questions ?


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