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JAVIER GOMES | JUNE 2017
Planning our Future
@HEINEKEN
[STRATEGY, CASE FOR
ACTION & JOURNEY]
JAVIER GOMES PROGRAM MANAGER
S&OP CORE @ HEINEKEN
THE HEINEKEN COMPANY
THE WORLD’S MOST INTERNATIONAL BREWER • NO 1 IN EUROPE • NO 2 IN THE WORLD • BRANDS PRESENT IN >170 COUNTRIES • COMPANY PRESENT IN >70 COUNTRIES
HEINEKEN | PROUD, INDEPENDENT, RESPONSIBLE GLOBAL BREWER
SURPRISING AND EXCITING CONSUMERS EVERYWHERE
LONG AND PROUD HISTORY AND HERITAGE
BREWING GREAT BEERS AND CIDERS, BUILDING GREAT BRANDS
S&OP CORE OUR S&OP JOURNEY KEY LEARNINGS
73,500+ EMPLOYEES
>165 BREWERIES, MALTERIES, CIDER PLANTS AND OTHER
PRODUCTION FACILITIES IN OVER 70 COUNTRIES
CONSOLIDATED BEER VOLUME IN 2016: 200.1 MHL
HEINEKEN | TRULY GLOBAL PRESENCE
EUROPE
78.6mhl
AMERICAS
58.7mhl
1 Within the Africa, Middle East and Eastern Europe segment, Eastern Europe consists of Belarus and Russia.
AMEE1
38.4mhl
ASIA
24.4mhl
CONSOLIDATED BEER VOLUME
THE HEINEKEN COMPANY S&OP CORE OUR S&OP JOURNEY KEY LEARNINGS
HEINEKEN | OUR STRATEGIC PRIORITIES
DELIVER TOP LINE GROWTH
DRIVE E2E PERFORMANCE
BREW A BETTER WORLD
ENGAGE AND DEVELOP OUR PEOPLE
THE HEINEKEN COMPANY S&OP CORE OUR S&OP JOURNEY KEY LEARNINGS
Our S&OP Journey @HEINEKEN
IN 2014
>90% OF OUR
VOLUME
MANAGED THROUGH
48 COUNTRIES
APPLY
HEINEKEN S&OP
FROM 2010 – 2014, S&OP HAS BEEN IMPLEMENTED AT HEINEKEN
THE HEINEKEN COMPANY S&OP CORE KEY LEARNINGS OUR S&OP JOURNEY
“AFTER 2014: THERE IS A NEED TO GROW MATURITY THROUGH...”
94% ... KEEP EXTENDING AND GET MORE VALUE OUT OF S&OP
79% ... MORE INTEGRATION WITH SUPPLIERS AND CUSTOMERS
82% ... MORE INTEGRATED MANAGEMENT OF PRODUCT PORTFOLIO
96% ... EVOLVING FROM VOLUMES TO FINANCIAL VALUES
85% ... SUPPORTING WITH MORE ADVANCED AND INTEGRATED IT
PERCENTAGE OF (SENIOR) DIRECTORS AND OPCO MT AGREEING
Coalition of the Willing
Local Empowerment
Competition Strategic
Alignment
KEY SUCCESS FACTORS
Co-Creation
WITH GREAT SUCCESS AND RECOGNITION
Decision making Collaboration
6%
54%
36% 56%
41%
Don’t know
Agree
Strongly disagree
Strongly agree
Disagree
4%
14% 27%
55%
“S&OP HAS SIGNIFICANTLY IMPROVED AND/OR INCREASED THE FOLLOWING ASPECTS…”
Business value
THE HEINEKEN COMPANY S&OP CORE KEY LEARNINGS OUR S&OP JOURNEY
EXTERNAL AND INTERNAL CHALLENGES DEMAND HIGHER CAPABILITIES
THE HEINEKEN COMPANY S&OP CORE KEY LEARNINGS OUR S&OP JOURNEY
HOW TO CROSS THE LINE ?
WHAT’S NEXT? HOW TO GET A STEP-CHANGE?
THE HEINEKEN COMPANY S&OP CORE KEY LEARNINGS OUR S&OP JOURNEY
Low High
S&OP NEXT
Elevated Demand and Supply Planning
Redesigned S&OP Process
Basic Planning
Foundational S&OP
PLANNING COMPLEXITY
SO
PH
IST
ICA
TIO
N
(Abilit
y t
o m
anage c
om
ple
xit
y)
Low
H i g h
S&OP CORE
Elevated Demand and Supply Planning.
Existing Foundational S&OP
+
FIT FOR PURPOSE APPROACH | ONE SIZE DOES NOT FIT ALL
Our SEGMENTED approach makes us
DIFFERENT
THE HEINEKEN COMPANY S&OP CORE KEY LEARNINGS OUR S&OP JOURNEY
Hig
h
S&OP CORE
BOLDNESS TO AIM AT MINIMUM REQUIREMENTS
LEVERAGE ON OUR EXISTING TOOLS PROCESSES
AGILE APPROACH TO DEVELOPING AND PILOTING
S&OP CORE | DRIVE VALUE THROUGH SPEED, EFFICIENCY AND SIMPLICITY
Our Programme Principles are present in all we do
THE HEINEKEN COMPANY OUR S&OP JOURNEY KEY LEARNINGS S&OP CORE
LOGISTICS COSTS REDUCTION; APPROX 1%
REVENUE INCREASE; UNDER 1%
EXPECTED BENEFITS | DRIVING A POSITIVE BUSINESS CASE
REDUCTION OF OBSOLESCENCE COSTS; 10 to 30%
REDUCED COGS; APPROX 1%
INVENTORY REDUCTION; 10 to 15%
RECURRING IT COST REDUCTION
THE HEINEKEN COMPANY OUR S&OP JOURNEY KEY LEARNINGS S&OP CORE
S&OP CORE | THE HOW
STRUCTURED PROGRAMME APPROACH, FOLLOWING PROVEN GUIDELINES AND ORGANIZATION
AMBITIOUS ROLL-OUT PLAN FOR FAST PAY-BACK
COLLABORATIVE, CO-DEVELOPMENT WITH GLOBAL EXPERTS, PILOT OPCOS AND PARTNER
THE HEINEKEN COMPANY OUR S&OP JOURNEY KEY LEARNINGS S&OP CORE
S&OP CORE | SCOPE AND STARTING POINTS
BASIC SCOPE: DEMAND AND SUPPLY PLANNING
COVERING ALL ELEMENTS OF THE HIGH PERFORMANCE ORGANIZATION (HPO) MODEL
COMBINING INSIGHTS FROM NEW GLOBAL BLUEPRINT AND OUR LATEST AND GREATEST FUTURMASTER IMPLEMENTATIONS
THE HEINEKEN COMPANY OUR S&OP JOURNEY KEY LEARNINGS S&OP CORE
ROLL-OUT
S&OP CORE | JOURNEY AND AMBITION
PILOT 1
PILOT 2
INITIAL DESIGN
FLIGHT 1
FLIGHT 2
FLIGHT 3
FLIGHT 4
...
30+ OpCos by
2020
TODAY
THE HEINEKEN COMPANY OUR S&OP JOURNEY KEY LEARNINGS S&OP CORE
KEY-LEARNINGS
STRONG FOCUS ON CHANGE MANAGEMENT
TANGIBLE AND INTANGIBLE BENEFITS TO SUPPORT OUR STORY
STEP-CHANGE OVER GRADUAL APPROACH
CO-DEVELOPMENT WITH OPCOS AND PARTNER
FIT-FOR-PURPOSE OVER ONE-SIZE-FITS-ALL
THE HEINEKEN COMPANY OUR S&OP JOURNEY S&OP CORE KEY LEARNINGS
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