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How to Empower Your Organization to capture the value of Integrated Business Planning (IBP)
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Valérie VandenbrouckeSupply Chain & Operations professional
Bluecrux.com
Martin JubertHead of Supply Chain
TereosStarch&SweetenersEurope
Cereal division of Tereos• €1,5 billion turnover• 9 plants that uses 3,9 Mt of cereals• 1800 people employed• Plants & offices in France, UK, Belgium,
Italy, Spain
Together we optimize your business operations- Active in pharma & life sciences, food &
beverage and manufacturing- Team of 40 specialists- Europe & abroad
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Tereos Starch & Sweeteners
1ST
IN EUROPE
ALCOHOL & ETHANOL
STARCH & SWEETENERS
3RD
IN EUROPE
Headcount: 1800 peopleTurnover: €1,5 billion
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Look Forward –End of sugar quotas
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End of Sugar
Quota in October
2017 How do we cope with this changing market environment – opportunity or threat?
Deregulation of the market: end of quotas
Freedom for production and export
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Financial End-To-End
NetworkOptimization
Improve profitability by reducing end-to-end costs?
How should our industrial asset network look like within 7 to 10 years?
Investments we need to take?
Integrated
Business
PlanningMarket conditions will be volatile
How to react next month, next quarter,…
A regular end-to-end financial optimization to arbitrage and take management decisions
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Look Forward –End of sugar quotas
Capture Value ofIntegrated Business
Planning
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4. Management
Business Review
1. Product & Demand Review
3. Integrated Reconciliation
2. Supply Review
Execute Improvement
Actions
IBP is …
A Monthly Process
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4. Management
Business Review
1. Product & Demand Review
3. Integrated Reconciliation
2. Supply Review
Execute Improvement
Actions
IBP is …
24 months looking forward
11Fact based decisions
Optimise E2E marginPlan the Future
1 version of the truth
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Capture Value ofIntegrated Business
Planning
Kick-off the “IBP Project”Design phase
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Build the Project Approach
Top Down
Or Collaborative?
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Which departments?
Build the Project Team
SUPPLYCHAIN
SALES OPERATIONS
FINANCE
MASTER DATA
Which size?
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Which talents & skills available?
Build the Project Team
SUPPLYCHAIN
SALES OPERATIONS
FINANCE
MASTER DATA
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Which talents & skills available?
Build the Project Team
SUPPLYCHAIN
SALES OPERATIONS
FINANCE
MASTER DATA
Complete?
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Build the Project Approach
Tool Organization
Process
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From Process to Organization to Tool
FOUNDATIONS
Product
Product
Clear out all process that are input for product review
Clear out industrialization of new products (NPD & plant)
Demand
Demand
Clarify contract management process
Clarify Sales&Marketing organization
Clarify negotiation approach & pricing strategy
Supply
Supply
MPS
Organization Operations
Stock strategy
Short term forecast
Costing
Energy
Raw Materials (pricing / hedging)
Data Management
IR
IR
CAPEX
Group SG&A
Master Planner
Operations Analyst
Controlling as a business partner
Product Manager vs. Sales ManagerRaw
Mat
Landed
Raw
Mat
Resin
Labor
Other
Variable
Packaging
+ Logistics
Activities
Customer
Transport
Pricing
Volume
Mix
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Build the Project Approach
Engage your top management
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Move the“IBP Project” to
Implementation phase
Kick-off the “IBP Project”Design phase
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Project Implementation Approach
1. Product & Demand Review
2. Supply Review
3. Integrated Reconciliation
4. Management
Business Review
Crawl.Walk.Run.
Measure the evolution
22PROCESS INDICATORSSTEP-BY-STEP APPROACH
Product Demand Supply IR MBR
M5
M4
M3
M2
M1
Step-wise & motivating implementation approach
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1. Product & Demand Review
2. Supply Review
3. Integrated Reconciliation
4. Management
Business Review
From Project Team to Process Team
You quickly recognize your natural leaders
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1. Product & Demand Review
2. Supply Review
3. Integrated Reconciliation
4. Management
Business Review
From Project Team to Process Team
They are your change agents
& Lead by example
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Train your change agents & communicate
MOUNTK WORKSHOP
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Move the“IBP Project” to
Implementation phase
Kick-off the “IBP Project”
Transition phase
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From Implementation to Transition
Temporary flexible solution
To sustainable environment
In a fully empowered organization
Embed continuous improvement
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Results ofIBP Process
Kick-off the “IBP Project”
Transition phase
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Ethanol vs Alcohol
Corn vs Wheat
CAPEX investment IBP enables decision making
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Results ofIBP Process
Lessons Learned& Next Steps
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KeyLessonsLearnedMaster Data Integrity is hard work
Challenge to deploy decisions at all planning levels
Close to loop: Structured information channel needed
Avoid looking on short term
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Spot supply chain future
IBP infused with big data
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