$17.1B global consumer products company, founded in 1806

39,000 Colgate people worldwide

Products sold in 223 countries

Company Overview

Hill’s Pet Nutrition

13%

North America 18%

Latin America 29%

Europe/ South Pacific 20%

Greater Asia/Africa

20%

ORAL CARE PERSONAL CARE

HOME CARE PET NUTRITION

S&OP At Colgate

A monthly structured process to gain

alignment on a consensus demand plan

taking into consideration the business goals

and constraints from Finance, Supply Chain,

and Sales & Marketing

Colgate’s Monthly Discipline!

CP’s Monthly Discipline?

• The Monthly Execution of Commercial Business

Planning

• Monitoring and documenting the changes in business

environment to provide visibility to updated positions b/w

financial estimates

• Focuses on delivering and exceeding business objectives

through cross functional collaboration and alignment

• Improves commercial effectiveness

Why The Need For An

S&OP Tool?

• Manually intensive data gathering exercise

• Limited “what if” capabilities

• Lack of flexible analytics

• Need for collaboration tools to manage process

Specific Business

Requirement for S&OP • Monthly top line rolling 12 month LE with a focus on

the next two quarters

• Clear business position by product sub-category with capabilities to input plans at any level of product hierarchy

• Top-Down / Bottom-up planning capabilities

• Possibility to have “what-if” scenarios

• Eliminate the need to manually collect information from multiple systems and sources

SAP S&OP Powered by HANA

• SAP is Colgate’s strategic partner for Information

Technology

• Easy to use (Excel Planning Templates)

• Powered by HANA for fast Top-Down / Bottom-Up

planning

• Collaboration embedded in the UI (facilitates user

interaction and communication within the tool)

• Analytics embedded in S&OP

Colgate’s S&OP Prototype

Real-Time Scenario Planning & Simulation

Complete Demand, Supply & Finance Model

Social Collaboration

Sales and Marketing

Forecasting

Consensus Demand Planning

Revenue & Profit

Impact

Inventory Target

Setting & Projections

Material & Capacity-

Constrained Planning

Executive Review & Real-Time Analytics

SAP Sales and Operations Planning 2.0 Powered by SAP HANA™

Colgate’s S&OP Prototype

SAP TPM

SAP BW

SAP SCM-APO

SAP

S&OP

Consensus

Demand

CBP Monthly

Discipline

SAP SCM-APO

Budget Volume

Business

Warehouse

FTP

Manual

Update

Colgate’s S&OP Prototype • Project started in October 2012

• Scope: One product category in our US

company

• S&OP tool to be validated in 3 CBP monthly

discipline cycles: March

April

• May

• Plans to bring fully productive by July 2013

Key Business Benefits

• Streamline S&OP process by eliminating current

manual process using excel spreadsheets

• Better collaboration across functional areas for

improved planning process

• What-if scenarios will allow better simulations and

improve the decision making process

• Improve Inventory and Customer Service Levels