Transcript
Page 1: One step at a time, Chiquita

© 2010 Chiquita Brands

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S&OP One step at a time

Amsterdam March 11, 2010

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Lead the world in branded,

healthy, fresh foods

Achieve sustainable, profitable growth

Build a high-performance

organization

Develop innovative

higher-margin products

Our Vision

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Chiquita … Not just bananas

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Chiquita

Just Fruit in a Bottle

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2006

2007

2008

2009

Smoothies - a new adventure

Growing SKU range Geographical extension

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At the same time, supply is

also getting more complicated

Product constraints

• From

1 shelf-life promised to cust

1 shelf-life at production

2 productions a week

all SKUs on the same day

• To

6 different shelf-life promised to customers

4 shelf-lifes at production

1 production per week per SKU over 3 days

Network• From

1 plant, 1 whse, 1 country

• To2 plants,

3 whses

13 countries Frische

Bagusat

Nagel Malmoe - Sweden

Nagel Eschweiler - Germany

Italtrans Bergamo - Italy

Cust. DC -

Finland

Ferry

Ferry

Cust. DC -

Sweden

Cust. DC -

Norway

Cust. DC -

Denmark

Customs

Germany

Netherlands

Belgium

Austria

Switzerland

Italy

Belgium

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But what is the urgency?

Improve Customer Service

• Higher product availability

• Perfect Order

• Improved response time

• Increase visibility of resource

requirements

• Proactive customer

management

We want to

Gain Economic Impact

• Reduce finished product waste by

over 1 million EUR over 2 years

We expect to

Enable Chiquita to handle

signif. increase of complexity

• Innovations

• Launches

• New countries

• Promotions / Displays /

Secondary Placements

• New suppliers

We need to

TRANSLATE INTO THE RIGHT LANGUAGE

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Convinced but what’s next?

S&OP is about EXECUTING THE PLAN

through COLLABORATION and ALIGNMENT

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Step 1: Build the foundations for

reliable data

STANDARDIZE

1- Back Office

processes2- Master Data

• Order entry

• Claims

• Communications

with LSP / whses

etc

• Customers

• Suppliers

• Items

• Pricing

• Warehouses

Stop discussing about the data

not being correct

Start addressing the real

challenges

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Step 2: Adapt the demand planning

and replenishment process

SKUs

# of customers

Shelf-life mgmt

network

promotions

Increased COMPLEXITY

All

managed

via Excel

Implement new tools

and processes

To

- Manage complexity efficiently

- Make data more visible and

transform it in information

- Free up people minds so they

can think about the levers rather

than “did they understand us”

- Transform the information into

actions

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Step 2 - What did we do?

1. Focus on the implementation of operational processesa. Implementation of the planning tool – Demantra and PDP

b. Definition of new operational processes, enforced via the tool

c. Adaptation of the tool and processes via the first 5 months learnings: Official go on July 1st

Fully satisfied operationally in January

2. Implement the metricsIn parallel to the operational processes, implementation of metrics (forecast accuracy, actuals vs. budget etc) based on ERP and planning tool information.

Enter Data once – use it everywhere

Available at every level and timeframe

3. Centralized center of competencea. Rules and processes can only be pushed by 1 center

b. Community of users/professionals

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Step 3 – Adapt the demand

reviews in the markets

• Focus sales and marketing on managing events

and demands levers rather than the regular

baselineVia

- improved daily operational process

- higher competence level of operational team

• Standardize templates for monthly meetings

and reportings

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Where are we today?

• Standardized back office processes and

master data management

• Flexible demand and supply planning tool

• Sales and marketing focused on exception

management and market understanding

• One set of numbers

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But this is still a long journey…

• Standardized reporting and action follow-up

• Scenario management

• Standardized monthly meetings

The foundations are down… now we are building on them

The Oliver Wright IBP Model

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Our key learnings of the journey

Enforcing a standard takes 2-steps:

Convince, Train, Document, Engage

Let them fail once

Start with the operational team

- more easily convinced on standardization

- strong informal impact on the rest of their local teams

… but this only works when the operational flow is

STRONGLY dependant on the informational flow

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Our key learnings of the journey (2)

Get the BASICS right

Don’t shy away from the COMPLEXITY

It’s all about CHANGE

Stabilizing the lowest operational processes is the key

before going into advanced practices

Make it manageable but don’t take shortcuts

Manage expectations of the different stakeholders

IT TAKES TIME

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Q&A