Predictive Planning- REPLACE WITH IMAGE 4.25 X Driving Strategy and Increased Trade Efficiency & Effectiveness

Transcription

1 Predictive Planning- REPLACE WITH IMAGE 4.25 X 3.83 Driving Strategy and Increased Trade Efficiency & Effectiveness Copyright 2010 Del Monte Foods. All rights reserved. 1

2 Purpose Share Del Monte s journey from Trade Promotion Management to a Predictive Planning System Decision Process Deployment The Future Copyright 2010 Del Monte Foods. All rights reserved. 2

3 Agenda Del Monte Foods Background Roadmap to Predictive Planning Del Monte Journey Investigation Phase Communication & Change Management Deployment Process Training Future Roadmap - Integration Copyright 2010 Del Monte Foods. All rights reserved. 3

4 Del Monte Foods Background Del Monte has grown through acquisition, innovation, and marketing Del Monte is a Branded Category Leader Consumer Pet Fruit #1 Pet Snacks #1 Vegetable #1 Pet Food #2 Tomato #2 Dry Cat #2 Broth #2 Wet Cat #2 Fiscal Yr 2012 Total DLM Net Sales: $3.7B Consumer Products ~50% Pet Products ~50% Source: Nielsen scan and all outlet household panel 52 w/e 1/10 Copyright 2010 Del Monte Foods. All rights reserved. 4

5 TPM 2007 Implementation Success The Need for a Best in Class Trade Promotion Management Process and System to drive efficiency GOOD GREAT Where We Were Where We Are Going Administratively complex system, out of date, cumbersome, limited flexibility, difficult to update/maintain Trade Planning - labor intensive Multiple sales forecasts No Supply Chain Integration no link to S&OP Not used by all channels/customers Copyright 2010 Del Monte Foods. All rights reserved. 5 New Trade Promotion Management Process & System (Siebel) Simpler, more efficient, easier to plan Real-time trade spend effectiveness capabilities Proactive reporting Enhanced Dashboard w/ drill down 1 forecast Seamless integration with customers and S&OP Used by all retail sales

6 Del Monte Roadmap Journey to Predictive Planning Atlas Enhancements Sept 07 & May 08 ATLAS Implementation July 08 Sept 09 May 09 July 09 Sept 09 Jan 10 April 10 Trade ROI Workbench Project Development of Del Monte s Holistic TPO Business Case/RFP (Advanced Analytics & Predictive Modeling) Copyright 2010 Del Monte Foods. All rights reserved. 6

7 Del Monte Roadmap to Trade Optimization July 10 On pause remember no only means not today March 11 TPO RFP Vendor Chosen On Pause New CEO July 12 June 13 TPO Integration Implementation/ May 2012 Training Predictive Planning Development Begins Oct -Feb 12 Persistence Trade Efficiency Project Trade Optimization Predictive Trade Planning Trade ROI Workbench Delivered* *Delivered to Sales Finance only Copyright 2010 Del Monte Foods. All rights reserved. 7

8 Vision: Predictive Sales Planning What is the vision? To design and implement a Best in Industry Predictive Planning System that utilizes scientific modeling to simulate scenarios with brands, categories, mix, pricing, timing, duration, competition and other variables to improve plans. The automated sandbox will enable our teams to work more efficiently to drive improved planning, effective trade spending & advance Del Monte s position as a Strategic Supplier. Benefits Enabled Joint Customer Business Planning on a Customer s timeline Robust pre-promotion analytics, scenario planning, retailer profitability metrics & total category evaluation What-if analysis calculated in minutes vs. hours, increasing productivity Increased plan accuracy that continues to improve over time Improved trade spend effectiveness Copyright 2010 Del Monte Foods. All rights reserved. 8

9 Cross-functional Team As you build out your cross-functional team, consider these groups: Steering Committee Project Management Business lead and IT lead Project Core Team Subject Matter Experts Customer Marketing (HQ and Field Sales) Sales teams super users Finance IT S&OP Integrated Business Planning Audit Training Copyright 2010 Del Monte Foods. All rights reserved. 9 9

10 Investigation Phase 1. Business Case Sell organization on the need 2. Vendor Capability Assessment Vs. Organization needs Checklist of each system features & benefits 3. RFP Development Questionnaire for each vendor -answers & describe system functionality 4. Formal Vendor Selection 5. Vendor Review Presentations occurred over 2 days Immediate vote on pro s and con s of each at the end of day 2 Copyright 2010 Del Monte Foods. All rights reserved. 10

11 Communication Build Excitement and Anticipation 1. Intro demo meetings with customer teams & HQ to reveal the new tool 2. Team Director Calls - education & answer questions 3. Create a communication vehicle, tool name, logo & video 4. Make the Launch exciting! The Goal of early & often communication is to EMBED: 1. Vision what we are doing and why 2. Users can trust the numbers & lean on the science 3. The tool is simple, intuitive and fast 4. How the tool fits in the planning process 5. Dedicated support team- answer questions and provide assistance Copyright 2010 Del Monte Foods. All rights reserved. 11

12 COMPASS Inserted Into the Planning Process: Copyright 2010 Del Monte Foods. All rights reserved. 12

13 Change Management 80% 20% The Human Element Positive Attitude Commitment Dedication Flexibility/Adaptability Ownership/Accountability Systems & Tools Plan & Analyze Trade Promotions Manage Profitability & ROI Copyright 2010 Del Monte Foods. All rights reserved. 13

14 Deployment Process Data. Training Customer delivers data IBM DemandTec platform cleanses & models data Customer builds plan using IBM DemandTec software Sell in new plan 2 years syndicated RMA level data Product information List prices Case packs Cost of goods Data extraction Sparse data population Cleanse and load Build models, validate forecast accuracy Build complete category plan Build promotion events Improve with what-if analysis Analyze expected results Leverage retailer metrics Drop results into excel and PPT templates Submit into retailer Quantify impact on category / private label Copyright 2010 Del Monte Foods. All rights reserved. 14

15 Deployment Timeline 7/16/12 IBM DemandTec COMPASS 5/1/12 Data Delivery Release Phase 1 * (Top 8 accts) Phase 2: January (2 accts) Phase 4: Integration with F15 planning June Data Modeling & Attributing Phase 3: April 1 Walmart June JCBP Copyright 2010 Del Monte Foods. All rights reserved. 15

16 Compass to Atlas Planning Template (Phase I) Conversion Baselines Promotional Tactics Copyright 2010 Del Monte Foods. All rights reserved. 16

17 Training Introductory Training Customer Facing: Two days of interactive, hands-on training for each customer sales team Detailed training manual, planning support tools and practice activities Training Headquarter Focused: Interactive, hands-on training sessions for Headquarter support teams: Sales Finance, Customer Marketing teams These functions support the sales teams to ensure effective use of trade funds; review output for in-market planning sessions Copyright 2010 Del Monte Foods. All rights reserved. 17

18 On-going User Support Bi-weekly Compass Share Group calls to share team wins and tips & tricks Weekly Journal newsletters Onsite or Webcast Workshop Sessions Issue Escalation Process: User Discussion Board Software Support Training Certification Program Copyright 2010 Del Monte Foods. All rights reserved. 18

19 Early Results Are Very Positive AHA s Faster - Increase speed to insights and the best plan Intuitive- Simple Application What-if - Fast, yet robust side by side comparison Ability to: Manage the total category Compare EDLP tradeoffs Evaluate the competition Manufacturer and category incrementality Robust Analytics: (incl. historicals and bump charts in one system time savings) Copyright 2010 Del Monte Foods. All rights reserved. 19

20 Early Results Are Very Positive Usage All teams have embraced the system and are facilitating F13 strategic re-planning and F14 initial customer planning Expected Return (based on business case) ROI Improvement (Monitor with actuals in May) Early Results Adoption, used for 2014 customer planning With drought & impact to supply, COMPASS was used to revise plans/re-strategize Copyright 2010 Del Monte Foods. All rights reserved. 20

21 Future Roadmap - Integration Integration Reduction in administrative burden Step 1: Phase 1 Bridge - Planning template delivered Step 2: System Integration - Implementation Sales target 6/1/13 to coincide with Joint Customer Business Planning for F15 Copyright 2010 Del Monte Foods. All rights reserved. 21