Value for the Food & Beverage Industry

22

Content

Value Creation with Every Angle

Every Angle Business Value for the Food & Beverage Industry

Customer Reference Cases

Value Drivers in the Food and Beverage Industry●1

●2

●3

●4

33

Enabling Key Value Drivers for Food & Beverage Companies

Customer

Financial administrative processes

Human resource management

Finance and Controlling

Operational processes

IntegratedSales And

Marketing

Real Time Supply ChainProcureto

Pay

Responsive Manufacturing

Plan

DeliverFGMakeSource RMSupplier

44

Content

Value Drivers for the Food & Beverage Industry●1

Value Creation with Every Angle

Every Angle Business Value for the Food & Beverage Industry

Customer Reference Cases

●2

●3

●4

55

Increase Top- and Improve Bottom Line with Every Angle

Optimize

Operational

Effectiveness

Increase

Topline

Optimize

Operational

Efficiency

Operational Business Analytics

Improve

Bottom-line

66

Our Levers to Exploit Your Business Optimization Potential

Supplier Cash Control

Inventory Management

Operating Expenses Control

Customer Cash Control

Working

CapitalOperating

Cost

Service

& Revenue

Data

Quality

Input generated by standard Angles

77

Closing The Loop From Insight to Action

Specify

Action Needed

Evaluate the

Performance

KPI

Perfect Order

(percentage of orders

cancelled )

Look at the reasons for

turnover losses

Analyze the cancelled

sales order per

rejection code

Example: Perfect Order -“First Time Right” Processing of Orders

Continuous

Improvement

Action in SAP

E .g. Block affected

batch

Analysis to Insight

88

Content

Value Creation with Every Angle

Every Angle Business Value for the Food & Beverage Industry

Customer Reference Cases

Value Drivers for the Food & Beverage Industry●1

●2

●3

●4

99

Synchronizing Demand and Supply The F&B Supply Chain

Objectives

Every Angle Business Value

Key Challenges

Synchronize Demand and Supply

Have the right inventory and react faster to

changes in the market through agility,

transparency, and collaboration capabilities

across the supply chain.

Operate, maintain, upgrade and dispose of

equipment in the most efficient way.

Complexity

Responsiveness

vs Effectiveness

Process Dynamics

Market changes,

seasonal aspects,

changing priorities, etc.

Lack of Visbility on the Dependency

of Demand and Supply

Every Angle Use Cases

● Demand Visibility through the entire

supply chain

● Inventory Projections

● Reduction in stock levels

● Lower Working Capital

● Decrease Lead Times

● Decrease Throughput Times

Decrease Cost by End to End

Supply Chain Visibility

1010

Every Angle SCM Dashboard for the F&B Industry

1111

Ensure Responsive Manufacturing

Objectives

Every Angle Business Value

Key Challenges

Ensure Responsive Manufacturing

● Run the perfect plant and synchronize

manufacturing with business operations

● Integrate outsourced manufacturing with

internal finance and operations

● Ensure product compliance and safety

● Lack of visibility throughout the supply chain to

identify dependencies in the entire supply

network

● Ability to track batches throughout the entire

supply chain

Lack of Insight

Every Angle Use Cases

● Analyze lead times and bottlenecks in

production processes.

● Analyze stock levels and requirements.

● Provide clear insight in planned, target and

actual costs at all possible levels.

● Batch traceability (e.g. for Recall Process)

● Decrease Lead Times

● Decrease Throughput Times

● Reduction of stock levels

● Ensure compliance

Ensure Compliance &

Decrease Operating Costs

1212

Every Angle Manufacturing Dashboard for the F&B Industry

1313

Increase Sales

Objectives

Every Angle Business Value

Key Challenges

Increase Sales

Optimize the O2C process resulting in an

maximized order volume with an optimized

customer service level at reduced costs.

● Lack of visibility throughout the O2C process

● Finding & resolving bottlenecks of critical orders

● Late sales orders causes loss in sales

● Old overdue open orders claim unneeded stock

● Reporting on specific pricing conditions

Execution of Sales Orders

Every Angle Use Cases

● End to end visibility in the O2C process, and

its relation to e.g. P2P, …

● Save hours a week with insight in cause –

effect relations.

● Bottleneck of critical /late orders in one view.

● Save substantial amount of cash with

cleaning up old overdue open orders.

● Increase Customer Service Level

● Lower Working Capital e. g. reduction

in stock levels

● Lower Operating Costs

● Decrease Lead Times

● Decrease Throughput Times

Decrease Cost while increasing

revenue at the same time

1414

Every Angle Sales Execution Dashboard for the F&B Industry

Sales OverviewTop CustomersDSO CGOS Service Level Top Products by Cat

1515

Content

Value Drivers for the Food & Beverage Industry●1

Value Creation with Every Angle

Every Angle Business Value for the Food & Beverage Industry

Customer Reference Cases

●2

●3

●4

1616

Value Creation at Heineken

Slides of the Heineken Presentation at Gartner ITxpo Barcelona 2011

1717

What Food & Beverage Customer Think About Every Angle

1818

Appendix

1919

From Insight to Action: Optimize Delivery Reliability

Evaluate the

PerformanceAnalysis to Insight

KPI

Delivery ReliabilityLook at the reasons

for bottlenecks

Follow up on critical

sales orders per

bottleneck type

Example: Maximize the Number of SOs to be Billed

Continuous

Improvement

Action in SAP

E.g. Change

Depending PO

Specify

Action Needed

2020

From Insight to Action: Working Capital

Evaluate the

Performance

KPI

Working CapitalOverview of potential

future excess stock

Potential excess

stock: can these

orders be cancelled?

Example: Lower Excess Stock Levels

Continuous

Improvement

Action in SAP

Cancel Order

Analysis to Insight

Specify

Action Needed

2121

Every Angle KPI Dashboard (S&OP) at Heineken

http://download.microsoft.com/download/7/8/C/78C8EFF4-6CF1-4F8E-B539-B7AF218BCA12/Heineken_Netherlands_Every_Angle_KPI-Dashboard_4maart.pdf

2222

Beverage requirements – Example 1/2

● BOM reporting

Yes, EA can do multi level and multi plant BOM reporting, including the complete material master fields on both

material and component level

● Inventory projections for materials and by material group

Yes, including analysis of over planned purchase orders, data pollution (e.g. old open orders/requirements)

● Service level reporting by volume as well as by number of orders

Yes, because service level is measured for each individual sales document (even per partial

requested/confirmed/scheduled/delivered quantity), so can be filtered & aggregated to all relevant levels

(material/SKU/item plant, document type, period, item category, material type, material group, product hierarchy, etc.

● Obsoletes / stock write-offs, especially being able to do a root cause analysis, e.g. being able to trace back which

finished product caused the obsolete stock at the raw material level

Yes, including material master fields (e.g. material status, deletion flag), BOM”s and batch traceability (where-used)

● Analysis to support product allocations, i.e. in shortage situations being able to prioritize which deliveries to do first

Yes, default in EA is a FIFO-allocation, but the impact of an alternative allocation can be seen easily

● Supplier performance reporting - Actual vs planning lead times

Yes, based on requested delivery date, delivery date in PO, confirmed delivery date (PO confirmations) and actual

goods receipt date (PO history) and have standard measures for Service level, Delivery reliability, Planned delivery

date, Realized finish date

● Extraction of a forecasted, time-based demand of raw materials to send to suppliers

Yes, based on open purchase requisitions

2323

Beverage requirements – Example 2/2

● KPI reporting of inventory days expressed as (Month end inventory value/COGS)*30

Yes, specific calculations/formulas can be added/adjusted by Every Angle consultants if needed

● Historical stock development (i.e. SOH vs time)

Limited, but can extract material documents which can be used outside of EA to calculate the historical stock

development. Other alternatives:

● If there is a statistical table (e.g. S023) that contains the relevant information.

● If the relevant data is in tables MARDH and MBEWH

● Lotsize analysis based on actual orders

Yes, based on goods receipt quantity on production/process orders and/or quantity of inspection lots

● Production order analysis to calculate actual line efficiencies and line speeds

Yes, the required data can be provided by EA, but the calculations may need to be done outside, e.g. in Excel , or the

specific calculation can be defined & implemented on material plant, resource or capacity level (during a project)

● Master data reporting –

Yes, either from a second instance of EA or integrated in the same EA running on the R/3 system

2424

Beverage requirements – EA Customer

● OTIF

● Material Forecast Supplier

based on planned orders, purchase requisitions and purchase document schedule lines. It can be grouped by day,

week, month, quarter, year, vendor, material and plant. It shows the planned quantity, the closed quantity and the

ordered quantity.

● Maintenance Plans (plant maintenance master data analysis)

● Goods receipt & invoice receipt lead times,

● Analyze Pricing Conditions

● Analyze P2P flow

● GR-Based Inv. Verification indicator.

By using this you can easily see in which POs this indicator have been set