Economic volatility, global climate changes, rising globalization, and the relentless fast pace of innovation driven by the informed consumer have always defined the business landscape for Del Monte. As those changes have developed (and continue to shapeshift), the dynamics among supply chain, commercials, and finance have evolved as well—while they have always been fundamentally linked, the way in which they engage needs to keep up with the increasing complexity required to deliver and delight customers. Learn how Del Monte has changed the way it connects its supply chain with profitability by linking it to financial cost and revenue models in Anaplan.
7. Support Functions: HR Finance IT R&D Opcom
Suppliers
Receiving &
Staging
Manufacturing
Warehousing &
Delivery
Trade Customers
Consumers
Procurement/
Planning
QA
Raw Materials Warehouse
QA
Manufacturing (Toll and
Mindanao Cannery and
Plantation)
Logistics
Sales
Logistics
Accounting
Marketing
Product Development
We organize ourselves around the customers’ needs.
9. Innovation for long term planning.
STRATEGIC/INNOVATION
PLANS (LRP)
FINANCIAL
PLANS (LRP)
BUSINESS
PLANNING (AOP)
SALES & OPERATIONS
PLANNING (S&OP)
DEMAND
MANAGEMENT
ROUGH-CUT
CAPACITY
PLANNING
MFG CAPACITIES
LOGISTICS
CAPACITIES
SUPPLIERS’
CAPACITIES
CUSTOMERS &
CONSUMERS
CUSTOMER
DEVELOPMENT
MARKETING
OTHER
DEMAND
ORDER
ENTRY/
PROMISING
MASTER
SCHEDULING
DETAILED
MAT'L./CAP.
PLANNING
PLANT/
SUPPLIER
SCHEDULING
EXECUTION
BILLS
OF
MAT'L.
ROUTINGS
INVTY.
RECORDS
WORK
CENTERS
IBM builds on the classical CLASS A MRPII framework of the 90’s…
Innovation Review (IR)
10. Demand Review to size up the market.
STRATEGIC/INNOVATION
PLANS (LRP)
FINANCIAL
PLANS (LRP)
BUSINESS
PLANNING (AOP)
SALES & OPERATIONS
PLANNING (S&OP)
DEMAND
MANAGEMENT
ROUGH-CUT
CAPACITY
PLANNING
MFG CAPACITIES
LOGISTICS
CAPACITIES
SUPPLIERS’
CAPACITIES
CUSTOMERS &
CONSUMERS
CUSTOMER
DEVELOPMENT
MARKETING
OTHER
DEMAND
ORDER
ENTRY/
PROMISING
MASTER
SCHEDULING
DETAILED
MAT'L./CAP.
PLANNING
PLANT/
SUPPLIER
SCHEDULING
EXECUTION
BILLS
OF
MAT'L.
ROUTINGS
INVTY.
RECORDS
WORK
CENTERS
IBM builds on the classical CLASS A MRPII framework of the 90’s…
Demand Review (DR)
11. Supply Review to understand capacity constraints
STRATEGIC/INNOVATION
PLANS (LRP)
FINANCIAL
PLANS (LRP)
BUSINESS
PLANNING (AOP)
SALES & OPERATIONS
PLANNING (S&OP)
DEMAND
MANAGEMENT
ROUGH-CUT
CAPACITY
PLANNING
MFG CAPACITIES
LOGISTICS
CAPACITIES
SUPPLIERS’
CAPACITIES
CUSTOMERS &
CONSUMERS
CUSTOMER
DEVELOPMENT
MARKETING
OTHER
DEMAND
ORDER
ENTRY/
PROMISING
MASTER
SCHEDULING
DETAILED
MAT'L./CAP.
PLANNING
PLANT/
SUPPLIER
SCHEDULING
EXECUTION
BILLS
OF
MAT'L.
ROUTINGS
INVTY.
RECORDS
WORK
CENTERS
IBM builds on the classical CLASS A MRPII framework of the 90’s…
Supply Review (SR)
12. Reconciliation Review to understand trade offs.
STRATEGIC/INNOVATION
PLANS (LRP)
FINANCIAL
PLANS (LRP)
BUSINESS
PLANNING (AOP)
SALES & OPERATIONS
PLANNING (S&OP)
DEMAND
MANAGEMENT
ROUGH-CUT
CAPACITY
PLANNING
MFG CAPACITIES
LOGISTICS
CAPACITIES
SUPPLIERS’
CAPACITIES
CUSTOMERS &
CONSUMERS
CUSTOMER
DEVELOPMENT
MARKETING
OTHER
DEMAND
ORDER
ENTRY/
PROMISING
MASTER
SCHEDULING
DETAILED
MAT'L./CAP.
PLANNING
PLANT/
SUPPLIER
SCHEDULING
EXECUTION
BILLS
OF
MAT'L.
ROUTINGS
INVTY.
RECORDS
WORK
CENTERS
IBM builds on the classical CLASS A MRPII framework of the 90’s…
Reconciliation Review (RR)
13. Top Management to align the organization.
STRATEGIC/INNOVATION
PLANS (LRP)
FINANCIAL
PLANS (LRP)
BUSINESS
PLANNING (AOP)
SALES & OPERATIONS
PLANNING (S&OP)
DEMAND
MANAGEMENT
ROUGH-CUT
CAPACITY
PLANNING
MFG CAPACITIES
LOGISTICS
CAPACITIES
SUPPLIERS’
CAPACITIES
CUSTOMERS &
CONSUMERS
CUSTOMER
DEVELOPMENT
MARKETING
OTHER
DEMAND
ORDER
ENTRY/
PROMISING
MASTER
SCHEDULING
DETAILED
MAT'L./CAP.
PLANNING
PLANT/
SUPPLIER
SCHEDULING
EXECUTION
BILLS
OF
MAT'L.
ROUTINGS
INVTY.
RECORDS
WORK
CENTERS
IBM builds on the classical CLASS A MRPII framework of the 90’s…
Management Business Review
(MBR)
14. A platform for collaboration is needed…
The Now…
Multiple S&OP’s (and no enterprise
view)
Multiple sources of data
Manually linked planning processes
– MPS/MRP/CSAR/Plantation
Planning
Transportation/ shipment planning is
manually linked to supply plans
Need to link short, mid, and long
term Pineapple planning on a rolling
basis.
No regular financial integration in
our current S&OP process
In mature market segments, need
opportunities for profits to be made
An Integrated System for an
Integrated Business
Management philosophy
enabling:
A formal integrated approach
Integrated planning across
functions providing an enterprise
view of operational plans and
financial impact
Continuous management of
change, issues, scenarios
Linkage of short, mid, and long
term planning.
Superior customer service,
reduced inventories, optimized
cost
16. Del Monte became part of the Anaplan sphere on
September 2015 with an FP&A use case
-
Anaplan FP&A Go-
Live on December
7, 2015
17. Del Monte current Use Cases – either via prebuilt models, created from
scratch, or under assessment
Financial Planning and Analysis
– Phil Market Finance Module
• Sales and Marketing
• Logistics and Transportation
• Tollpack/Culinary/Reds Cost Planning
• Cannery/Pineapple Cost Planning
• Operating Expenses
– Export
– S&W
Legal Consolidation
Supply Planning (Mindanao)
Distribution Resource Planning
HR Manpower Planning
18. Anaplan implem gave us Quick and Big Wins so far.
More granular analysis of drivers, better Planning quality
– By Ship to by SKU
– Transportation requirements and budgeting,
– Warehouse capacity planning
– BOM based costing for tollpacked products
– Direct product and customer profitability analysis
– Powerful allocations
Speed and Efficiency - Less painful Budgeting Process
– Analysis on the fly
– Very significant improvement in Planning turnaround time – from a 2-week to a 2-day process.
– Parallel processing vs Serial processing
Flexibility via Anaplan’s Self Service model
System is business driven with IT/Anaplan Support as a valuable partner.
Optimization leading to financial gains – yet to be determined, but expected.
19. Anaplan provides the ability to drill down even more.
Without Anaplan To
Pricing By sku by quarter By sku by month
Discounts Average per channel By customer
Volume By Channel/By sku/By quarter Plus By Customer/By Ship To/By Month
Advertising and Promo Excel Worksheets by brand by channel by
month by spend type
Upload by Owners (eventually)
Special Pricing and Trade Deals Average %s (from historical or AOP) By Customer/By SKU
Product Costs Standard cost per case, every OL cycle Standard cost per case with PPV
adjustment for months; with possibility to
build bottom up (space consideration)
Transportation Costs National Average by sku By ship to by sku
Overheads Manual Excel worksheets Via Anaplan (controllable vs non
controllable) with opportunity for ZBB and
driver based build in the future (space
consideration)
Actuals and Variance reporting Excel and powerpoint files Dashboard Reporting and more accurate
Rate-Volume-Mix analysis
21. • At the end of 2011, we have 400
SHIP-TO’s being served.
• In 2013, this increased to 600
delivery points
• To date, we are already serving
more than 800 sites
• With this trend, we are likely to
have 1,200 delivery points by
2017
1. Where are our customers?
22. Toll Packers
Mindanao Cannery
Manila warehouses –
Cebu warehouse
Cagayan warehouses –
Dev- Vis
Dev – Luzon, Mindanao,
Visayas
Key Luzon
Key Vis
EXPORT MARKETS
DM Plantation
300 RPM /700 Indirect
Suppliers
Toll pack items
Bugo items
Key- Key Accounts
Dev- Dev. Accounts
Stored in RPM
Warehouses
Stored in RPM
Warehouses
Dev– Luzon, Mindanao,
Visayas
Key Min
2. From Supply to meet Demand
23. 3. Costs costs costs
RAW MATERIALS, other than formulation:
– Line loss (line/machine, packaging format, etc.)
– Formula adjustments—modifications in product formulation due to variability in a major
ingredient; major examples: tomato paste, fruit concentrates
– Purchase prices
PACKAGING MATERIALS
– Line loss (line/machine, packaging format, etc.)
– Purchase prices
TOLL FEES
– Line speed, efficiency, age of investment, volume
FIXED COSTS
– The allocation of Toll Operations cost centers
– Controllable vs Uncontrollable costs.
32. Seamless ERP Integration
– Planning level not matched with ERP/Actuals
New concept of storage and size utilization.
– Cloud storage means costs.
– Tendency to be Anaplan “addicts”
Spurious accuracy because of the computing power we have in our
hands
Increasing user and management expectations
Change management
Challenges
34. Some materials used in the presentation may proprietary
– The IBM process is cited to provide the framework for the current
S&OP process done in Del Monte
Notes
Editor's Notes
Transport, Warehousing (General Manila and Mindanao Strategy)
- Brief personal introduction
This one completely re-edited, patterned after IBMgt Overview course. Agree with “create alignment”? Implies any or all of three can change.
Del Monte started Anaplan with Financial Planning end of September 2015.
Current Use Cases - either via prebuilt models or created from scratch.