Presented by Sarah Bourdeloux, CSCP, EMEA CI & HPO...
Transcript of Presented by Sarah Bourdeloux, CSCP, EMEA CI & HPO...
EMEA S&OP USING SCOR MODEL
Presented by
Sarah Bourdeloux, CSCP, EMEA CI & HPO Manager
&
Fabien Roumeaux, EMEA Supply Chain Planning Director
Our passion for flavor
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Agenda
1. Introduction to the Company
2. EMEA S&OP Journey
3. Methodology
• Assessment
• To be process
• Policy
• Organizational changes
4. Benefits and Challenges
5. The Journey continues
6. Q&A
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1.Our History
• Founded in 1889 in Baltimore, Maryland
by Willoughby McCormick
• First McCormick product - Root Beer extract
• Acquired F.G. Emmett Spice Company
of Philadelphia in 1896
Motto: “Make the Best – Someone Will Buy It”
1.Global Leader in Flavor & Global Sourcing
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1980
1990
2000
Unique Sauces 2006
2010
2011
2003
2004
2007
1.Global Leader in Flavor
• Headquartered in Sparks/ Baltimore, Maryland
• 12,000 employees worldwide
• $4.2 billion in sales
• Facilities in 24 countries with brands
reaching more than 125 countries & territories
• Our Mission: “To save the World From Boring Food”
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38% 62%
2. The journey in McCormick
• Started in North America in 2002,
• Was a consequence of the evolution of the supply chain
executive roles in plan, source, make, deliver, and enable,
• Initial supply chain excellence projects focused on S&OP to
improve metrics negatively impacted by the implementation of
APO (rolled out across the company starting in 2002 ending
with EMEA in 2013),
• 29 SCOR projects from 2006 to 2013 implemented since then,
• Managed as an opportunity to establish an end to end process
• Aligned with McCormick OGSMs and Continuous Improvement
programs
2. Strategically applying the SCOR Implementation Roadmap
through the company at the Global Supply Chain level
2. One year and half journey in EMEA
• Was an opportunity to describe the S&OP process using SCOR, creating meeting guidelines, policies and re energizing current process and integrating new business units,
• Focused on building organizational capability,
• Identified the right sponsor, project leader, cross-functional project and extended teams to ensure full commitment to delivery,
• Helped by Supply Chain Finance to quantify, sign-off, and track portfolio,
• Included individual OGSMs tied to metrics and portfolio to all cross functional participants
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10,0Demand Planning
Supply Planning
Unit and FinancialReconciliation
Leadership Review andAlignment
SOP Maturity Score as of Feb 2013
Lack of alignment
between countries and
functions for existing
meetings
Lack of ownership and
policies for those 2 activities
Lack of reporting
3. Initial stage and SCORMark assessment
Week
1
P1.1.1
Complete month end close and validate data
FINANCE
P1.1.2
Analyze forecast and BIAS performance
DEMAND PLANNING
P1.1.10EMEA Consumer Reconciliation
P1.1.3
Generate and validate statistical forecast
DEMAND PLANNING
P1.1.6
Consolidate EMEA demand view
SYSTEMATICDEMAND PLANNING
P1.1.7
Update launch and replenishment NPD plans and forecasts
MARKETINGSALES
Week
4W
eek
3W
eek
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P1.1.8
Update promotional event calendar
MARKETINGSALES
Supply Review
P1.1.9
Update account plans based on collaboration activities (from P4.1)
SALES
P1.1.5
Identify demand shaping opportunities
SUPPLY PLANNING
P1.2.11EMEA Board of Directors Update
P1.1.4
Generate, validate, and conduct country demand review
DEMAND PLANNING
P1.1.13
Conduct Pre-Demand Detailed Review
DEMAND PLANNING
3. To be process : weekly breakdown Demand Review example
3. To be process : DP SCOR Level 4 input/output example
Divisional
European
weeks weeks weeks
Local
3. LOCAL PLANT
SUPPLY REVIEW
2. DEMAND REVIEW BY
cluster / customer
3B. EUROPEAN
SUPPLY REVIEW
7. EMEA financial Reconciliation
5. LEADERSHIP REVIEW EMEA
1. PRE DEMAND
REVIEW BY Cluster /
brand
2B. DEMAND REVIEW
EMEA
3. Policy : Revising the S&OP Cycle
3. Policy : Demand Review
The Pre-Demand meetings are held prior to and Country Demand Review meeting is held on the 5th
workday of each month. The purpose is to obtain consensus from Sales, Finance, and/or Marketing on the
new demand plan (units) rolling forward 18 months and reconcile the Risks and Opportunities from plan,
previous plan, to budget.
Attendees for the Pre-Demand : Attendees for the country demand review :
Country Country
National account controller Sales director
National account managers Marketing director
Sales director (optional) Demand planning (facilitator)
Marketing managers Commercial finance
Category managers Category management director (optional)
Demand planner (facilitator) General manager
Commercial finance Account controllers
S&OP Process owner
Agenda:
Review rolling 18-month forecast and historical performance
Review NPD and promotion events assumptions
Review gap fillers and historical forecast performance
Note any significant trends; new/lost listings; life cycle changes; special production and custom demands
Identify for reconciliation and leadership meetings: spotlight items; gap actions
3. Policy : Supply Planning
The Pre-Supply and Supply Planning meetings are held on the 5th and 10th workday of each month.
Attendees for Pre-Supply by plant and co-packers in aggregate include local representatives as plant manager,
production manager, planning manager, material manager, purchasing manager,…Attendees for Supply meeting
is at director role for both consumer &industrial activities
Purpose: To obtain consensus on the manufacturing plan going forward a rolling 18 months
Agenda for Pre-Supply Meeting:
Previous month’s performance
Requirements, capacity and production review
Material supply issues
Agenda for EMEA Supply Meeting:
Demand meeting highlights, new projects
Inventory review including projection
Supply Chain delivery reliability, warehouse utilization
Capacity and production review, SLOB review
Material supply issues, spotlight topics for reconciliation/leadership
The supply meeting will be re-scheduled if the planning team or operations representatives are absent. Any
stand-in representative must be authorized to act on behalf of their department.
The EMEA S&OP Reconciliation & Leadership meeting is typically held on between the 15th and 18th
workday of each month following the Supply meeting.
Attendees for the EMEA Leadership & Reconciliation group are :
GM Retail or Industry of each country/business
Finance Director Retail or Industry
Sales Director Retail or Industry
Marketing Director Retail or Industry
Supply Chain Planning Director
Purchasing Director
Operations Director Retail or Industry
Purpose: Align unit plan with budget and actively manage gaps.
Agenda:
Demand update review
Review financial reconciliation summary
Review gaps and financial impact
Supply update review
Review other significant issues
Review long term capacity constraints
S&OP Process review
3. Policy : Reconciliation & Leadership
3. Supply Chain Planning function realignment
Pro
duction P
lannin
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Plan Source Make Deliver Return P
roduction S
chedulin
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Pro
cure
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Mate
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pla
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Pla
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tions
Co-p
ackin
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Custo
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Serv
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Ware
house a
nd
Logis
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Back Office / Supply Planning
Continuous Improvement, High Performance
Dem
and P
lannin
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Inte
rcom
pany
SLO
B a
nd Invento
ry
Supply Chain Planning Activity
4. Benefits
• Opportunity to redesign organization, processes and tools,
• Align and harmonize WOWs, processes, KPIs in a multi
country/business organization,
• Globally accepted language (SCOR) for process,
performance, practices, and people –fast adoption cross-
culturally enabling common deployment templates,
• Enable frequent benchmark with other FMCGS,
• Support continuous improvement philosophy,
4. Challenges
• Require project resource and time to achieve great results,
• Empower and develop people across the organization,
• Break the silo walls down between functions,
• Daily commitment of all functions to support the S&OP,
• Hardwired to IT both in terms of IT spend priorities as well as
pre-defined requirements –increased utilization of SAP
functionality,
• Never ending story eg strong change management culture….
5. The journey continues
• Supply Chain Excellence Program to focus on 5 areas :
• Leverage all SAP/ APO functionalities to achieve higher performance,
• Drive performance through aligned and widely shared KPI’s & reporting,
• Strengthen inventory management,
• Re engineer promotion process management,
• Excellence in execution thanks to process standardization, roles and responsibilities alignment & fully documented SOPs
• Yearly S&OP Assessment to measure improvement
• On going Six sigma training and projects to achieve higher performance
• Continuous benchmark with other FMCGs
QUESTIONS ?