One step at a time, Chiquita
-
Upload
innovation-enterprise -
Category
Technology
-
view
74 -
download
3
description
Transcript of One step at a time, Chiquita
© 2010 Chiquita Brands
1
S&OP One step at a time
Amsterdam March 11, 2010
© 2010 Chiquita Brands
2
Lead the world in branded,
healthy, fresh foods
Achieve sustainable, profitable growth
Build a high-performance
organization
Develop innovative
higher-margin products
Our Vision
© 2010 Chiquita Brands
3
Chiquita … Not just bananas
© 2010 Chiquita Brands
4
Chiquita
Just Fruit in a Bottle
© 2010 Chiquita Brands
5
2006
2007
2008
2009
Smoothies - a new adventure
Growing SKU range Geographical extension
© 2010 Chiquita Brands
6
At the same time, supply is
also getting more complicated
Product constraints
• From
1 shelf-life promised to cust
1 shelf-life at production
2 productions a week
all SKUs on the same day
• To
6 different shelf-life promised to customers
4 shelf-lifes at production
1 production per week per SKU over 3 days
Network• From
1 plant, 1 whse, 1 country
• To2 plants,
3 whses
13 countries Frische
Bagusat
Nagel Malmoe - Sweden
Nagel Eschweiler - Germany
Italtrans Bergamo - Italy
Cust. DC -
Finland
Ferry
Ferry
Cust. DC -
Sweden
Cust. DC -
Norway
Cust. DC -
Denmark
Customs
Germany
Netherlands
Belgium
Austria
Switzerland
Italy
Belgium
© 2010 Chiquita Brands
7
But what is the urgency?
Improve Customer Service
• Higher product availability
• Perfect Order
• Improved response time
• Increase visibility of resource
requirements
• Proactive customer
management
We want to
Gain Economic Impact
• Reduce finished product waste by
over 1 million EUR over 2 years
We expect to
Enable Chiquita to handle
signif. increase of complexity
• Innovations
• Launches
• New countries
• Promotions / Displays /
Secondary Placements
• New suppliers
We need to
TRANSLATE INTO THE RIGHT LANGUAGE
© 2010 Chiquita Brands
8
Convinced but what’s next?
S&OP is about EXECUTING THE PLAN
through COLLABORATION and ALIGNMENT
© 2010 Chiquita Brands
9
Step 1: Build the foundations for
reliable data
STANDARDIZE
1- Back Office
processes2- Master Data
• Order entry
• Claims
• Communications
with LSP / whses
etc
• Customers
• Suppliers
• Items
• Pricing
• Warehouses
Stop discussing about the data
not being correct
Start addressing the real
challenges
© 2010 Chiquita Brands
10
Step 2: Adapt the demand planning
and replenishment process
SKUs
# of customers
Shelf-life mgmt
network
promotions
Increased COMPLEXITY
All
managed
via Excel
Implement new tools
and processes
To
- Manage complexity efficiently
- Make data more visible and
transform it in information
- Free up people minds so they
can think about the levers rather
than “did they understand us”
- Transform the information into
actions
© 2010 Chiquita Brands
11
Step 2 - What did we do?
1. Focus on the implementation of operational processesa. Implementation of the planning tool – Demantra and PDP
b. Definition of new operational processes, enforced via the tool
c. Adaptation of the tool and processes via the first 5 months learnings: Official go on July 1st
Fully satisfied operationally in January
2. Implement the metricsIn parallel to the operational processes, implementation of metrics (forecast accuracy, actuals vs. budget etc) based on ERP and planning tool information.
Enter Data once – use it everywhere
Available at every level and timeframe
3. Centralized center of competencea. Rules and processes can only be pushed by 1 center
b. Community of users/professionals
© 2010 Chiquita Brands
12
Step 3 – Adapt the demand
reviews in the markets
• Focus sales and marketing on managing events
and demands levers rather than the regular
baselineVia
- improved daily operational process
- higher competence level of operational team
• Standardize templates for monthly meetings
and reportings
© 2010 Chiquita Brands
13
Where are we today?
• Standardized back office processes and
master data management
• Flexible demand and supply planning tool
• Sales and marketing focused on exception
management and market understanding
• One set of numbers
© 2010 Chiquita Brands
14
But this is still a long journey…
• Standardized reporting and action follow-up
• Scenario management
• Standardized monthly meetings
The foundations are down… now we are building on them
The Oliver Wright IBP Model
© 2010 Chiquita Brands
15
Our key learnings of the journey
Enforcing a standard takes 2-steps:
Convince, Train, Document, Engage
Let them fail once
Start with the operational team
- more easily convinced on standardization
- strong informal impact on the rest of their local teams
… but this only works when the operational flow is
STRONGLY dependant on the informational flow
© 2010 Chiquita Brands
16
Our key learnings of the journey (2)
Get the BASICS right
Don’t shy away from the COMPLEXITY
It’s all about CHANGE
Stabilizing the lowest operational processes is the key
before going into advanced practices
Make it manageable but don’t take shortcuts
Manage expectations of the different stakeholders
IT TAKES TIME
© 2010 Chiquita Brands
17
Q&A