In collaboration with

In collaboration with

Changing Transportation from a Cost Center to a Profit Center: A Case Study at Bob Evans

Manu Gupta, CapgeminiAugust 16, 2016

In collaboration with

1 About Bob Evans

2 Implementation Scope

3 The Implementation

4 Benefits

In collaboration with

About Bob Evans

� Bob Evans Farms, Inc. was founded in 1948 and is based in New Albany, Ohio.

� Bob Evans Farms, Inc. operates through two segments, Bob Evans Restaurants and BEF Foods

� The company owns and operates more than 500 full-service restaurants under the Bob Evans Restaurants brand in the United States, first restaurant opened in 1962

� Leading producer and distributor of sausage and bacon products, as well as complementary refrigerated and frozen convenience foods, selling under the Bob Evans, Owens and the Country Creek brand names.

� Bob Evans Farms, Inc. was founded in 1948 and is based in New Albany, Ohio.

� Bob Evans Farms, Inc. operates through two segments, Bob Evans Restaurants and BEF Foods

� The company owns and operates more than 500 full-service restaurants under the Bob Evans Restaurants brand in the United States, first restaurant opened in 1962

� Leading producer and distributor of sausage and bacon products, as well as complementary refrigerated and frozen convenience foods, selling under the Bob Evans, Owens and the Country Creek brand names.

In collaboration with

� Bob Evans Transportation dates back to the beginning of the business in Southeastern Ohio

� When Bob Evans began making his world famous sausage he needed a way to distribute to grocery stores

� Deliveries began out of his farm in Rio Grand Ohio using small refrigerated route trucks

� Today the Transportation business unit owns and operates a private fleet of 125 Tractors and 150 Refrigerated Trailers

� Last year this fleet drove over 12 million miles in 45 states

� Bob Evans Transportation has two primary locations in Springfield, OH and Dallas, TX

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About Bob Evans Transportation

In collaboration with

Bob Evans – the 3PL

� Transportation is a separate Business Unit

� Primarily uses own assets

• Small footprint of external carriers, selected mostly through spot bids

� Serves as a “Freight Forwarder” for other Food products companies

� Active Backhaul program to minimize empty miles

• Recurring customer base

• New customers from Load Boards and Brokers

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In collaboration with

1 About Bob Evans

2 Implementation Scope

3 The Implementation

4 Benefits

In collaboration with

Implementation Scope

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� General Ledger (GL)

� Accounts Payable (AP)

� Customer Data Hub (CDH)

� Order Management (OM)

� Accounts Receivables (AR)

� Global Order Promising (GOP)

� Advanced Supply Chain Planning (ASCP)

Oracle EBS – Order-to-Cash

� Predictive Trade Planning (PTP)

� Deductions & Settlement Management (DSM)

� Demand Management (DM)

Demantra

� Transportation Operational Planning

• Outbound

• Inbound

� Freight Payment, Billing & Claims

• Freight Settlement

• Billing for Transportation Services

Oracle Transportation Management (OTM)

In collaboration with

Implementation Footprint – System Landscape

� 8 Interfaces built between EBS and OTM• Order Management – Sales Orders & Transfer Orders• Purchasing – Purchase Orders• Shipping Execution

• Shipments/Trips to EBS• Shipment Actuals from EBS

• Customer Data Hub• Accounts Payables • Accounts Receivable • General Ledger

� Middleware - IBM MQ Series

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In collaboration with

1 About Bob Evans

2 Implementation Scope

3 The Implementation

4 Benefits

In collaboration with11

Bob Evans - Network

DC

Plant

Cross dock

Bob Evans Facility

Bob Evans Customer

Freight Forward Customer

Bob Evans & Freight Forward Customer

Backhaul Customer

Vendors/Suppliers

Empty Truck

In collaboration with

Order Management

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� Multiple Order Types� Integration with EBS Order Management

and Purchasing� Rapid Order Entry screens� Business Monitor to identify “Hot” orders� Commodity based Order “badging”

OTM Configuration

� All orders are in one system!� Capture and record of orders, enables

analytics� Consolidated view of Orders� Reduces possibility of missed orders

Benefits

EBS Order Management

EBS Purchasing

OTMSales OrdersTransfer Orders

Purchase Orders

Shipments

Transportation Dept.

Spreadsheet

AS400 System

Phone

Email

Paper

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Shipments – Planning & Execution

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� Automatic planning of CPU orders� Multi-stop planning of orders, across order types

• Shipment to EBS only has Trip details for EBS orders

� Spot Bidding� Continuous moves� “Load Plan” Report

OTM Configuration

� Visibility to all shipments in one system� Replaces manual planning� Access to historical data enables analytics� Single data repository replaces laborious manual

process of collecting data and analyzing� Streamlined process for communication to 3PL

Benefits

In collaboration with

Profit from – Freight Forward & Backhaul

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� Integration with Customer Data Hub to enable creation of new Customers & Ship To locations in OTM

� Sell Rates configured in OTM

� Bill creation

� Integration with Accounts Receivable (AR) module

� Recurring process to trigger interface to AR

OTM Configuration

� Enables single repository of Customer master data, minimizes errors and rework

� Financial reconciliation across systems

� Automation of Invoice creation

� Reduction in cumbersome manual activities

� Enables record of rate on the shipment, enables audit and analytics

� Enables visibility to revenue through entire lifecycle

Benefits

Customer Data Hub

Accounts Receivables

OTM

Bills

Validate Customer

In collaboration with

Profit from - Bob Evans Food Services

� Sell Rates configured in OTM, based on Buy shipment allocated costs

� Bill creation and auto-approval

� Integration with General Ledger (GL) module

� Lookup table in GL, automation agents to create matching logic

� Recurring process to trigger interface to GL

OTM Configuration

� Recognize revenue for services provided for transportation of Bob Evans products

� Upcharge on cost to gain revenue for services

� Streamlined financial processes to recognize costs for Intra-company charges

� Automated process

� Analytics of historical transactions to determine “upcharge” amount

Benefits

OTM

General Ledger Module

Bills

In collaboration with

1 About Bob Evans

2 Implementation Scope

3 The Implementation

4 Benefits

In collaboration with

Benefits

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� Automated system driven revenue recognition

� Centralized order and shipment data

� Increased ability for backend analytics

� Reduction of manual reporting

� Streamlined/Reduction of email/phone communication

� Foundation for integration with future telematics system

In collaboration with

Questions?

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Manu GuptaMOVE Practice Lead

Mobile: (404) 934-9643

manu.gupta@capgemini.com

Atlanta, GA

Collin RowekampFinancial Analyst

Mobile: (614) 497-4443

michael_rowekamp@bobevans.com

Columbus, OH

The information contained in this presentation is proprietary. © 2016 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.

www.capgemini.com

About CapgeminiWith more than 180,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.

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