One step at a time, Chiquita
In this presentation by Chiquita, they talk through their vision in regards to S&OP. Before going on to talk about their steps to making their S&OP innovations successful. They also talk through where they are today in regards to their S&OP journey, as well as their key learnings that they've picked up along the way.
<ul><li> 1. 2010 Chiquita Brands 1 S&OP One step at a time Amsterdam March 11, 2010 </li></ul>
<p> 2. 2010 Chiquita Brands 2 Lead the world in branded, healthy, fresh foods Achieve sustainable, profitable growth Build a high-performance organization Develop innovative higher-margin products Our Vision 3. 2010 Chiquita Brands 3 Chiquita Not just bananas 4. 2010 Chiquita Brands 4 Chiquita Just Fruit in a Bottle 5. 2010 Chiquita Brands 5 2006 2007 2008 2009 Smoothies - a new adventure Growing SKU range Geographical extension 6. 2010 Chiquita Brands 6 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 To 2 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 7. 2010 Chiquita Brands 7 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 8. 2010 Chiquita Brands 8 Convinced but whats next? S&OP is about EXECUTING THE PLAN through COLLABORATION and ALIGNMENT 9. 2010 Chiquita Brands 9 Step 1: Build the foundations for reliable data STANDARDIZE 1- Back Office processes 2- 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 10. 2010 Chiquita Brands 10 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 11. 2010 Chiquita Brands 11 Step 2 - What did we do? 1. Focus on the implementation of operational processes a. 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 metrics In 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 competence a. Rules and processes can only be pushed by 1 center b. Community of users/professionals 12. 2010 Chiquita Brands 12 Step 3 Adapt the demand reviews in the markets Focus sales and marketing on managing events and demands levers rather than the regular baseline Via - improved daily operational process - higher competence level of operational team Standardize templates for monthly meetings and reportings 13. 2010 Chiquita Brands 13 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 14. 2010 Chiquita Brands 14 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 15. 2010 Chiquita Brands 15 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 16. 2010 Chiquita Brands 16 Our key learnings of the journey (2) Get the BASICS right Dont shy away from the COMPLEXITY Its all about CHANGE Stabilizing the lowest operational processes is the key before going into advanced practices Make it manageable but dont take shortcuts Manage expectations of the different stakeholders IT TAKES TIME 17. 2010 Chiquita Brands 17 Q&A </p>