KPI Dashboard at Heineken Netherlands

Transcription

1 KPI Dashboard at Heineken Netherlands Paul Schalekamp, Supply Chain Controller Anton de Romijn, Strategic Business Analyst March 2010

2 Performance Highlights Heineken International (Based on 2009 Full Year Results)

3 HNS Organizational Chart Commerce HEINEKEN NETHERLANDS Dutch Market HEINEKEN USA USA Market HEINEKEN REGIONS Other Export Markets HEINEKEN OTHER OPCO S Other Heineken Breweries Supply Heineken Netherlands Supply Director: Willem de Jonge Financial Planning & Control Hans van Dam Supply Development Arno Centen Human Resources & Organisation Irene Steenwelle Purchasing & Sourcing Management Hubert te Braake Brewery Zoeterwoude Godfried Meijer Brewery Den Bosch Paul Bleijs Brewery Wijlre Peter van Besouw Customer Services & Logistics Fred Holvast

4 HNS Sales volume per region (in HL) (Based on 2009 Full Year Results)

5 HNS Produced volume per Brewery (Based on 2009 Full Year Results)

6 Product Portfolio; 900 SKU s 3 Breweries 30 Packaging Lines 150 Countries... Pack types Bottle One-way 44% Brands Heineken 82% Amstel 14% Brand 2% Others 2% about 50% of Heineken Group volume! Cans 22% Bottle Return 17% Kegs 7% Bulk/Tankers 5% Draught keg 4% Others 1%

7 HNS Supply chain set-up Market Demand Management HNS SC Management Distributors Buying Contract Mgt Suppliers Inbound Logistics Brewing & Packing Outbound Logistics HUSA ROW HNL Retail Distributors Retail Retail DC Retail Wholesale On-site Accountability per unit Marketing / Sales: Return on Sales Supply Organisation: Demand Fulfillment

8 Loading efficiency improvements at HNS Loading automation & mechanisation at HNS - Manage growth - Increase efficiency 3 Year program

9 Logistic Centre in Den Bosch Heineken owned, 3rd party managed Close to the brewery, Heineken owned properties Logistic Service Provider will manage warehouse Multi user concept: m² (>50 %) for 3rd parties Operational since July 2009 CAPACITY m2 / 27,000 Ground Pallet Places Both sides : 15 loading docks (7 automatic) Office : 3 floors (total app. 900 m 2 ) page 9

10 OTA - Container Terminal Alphen

11 Focus HNS in Delivering strong results; investing for the future Total Cost Management Operational Excellence Sustainability Need for Data Integrity & Reliability Need for Visibility and Transparency across all elements of the Supply chain

12 Case for Action: Increased market dynamics and cost targets Accelerate project with start of Benchmark

13 Benchmark Supply Chain Planning HNS 2008 Heineken can improve on: Performance measurement (Balanced Scorecard) Cooperation and collaboration across the Supply chain Systems Transparancy and Connectivity Sales & Operations Planning

14 Companies adopting S&OP are best in class Logistics costs as a % of sales Gross Margin (%of revenue) Avg forecast accuracy on Product Family % Best-in-class S&OP Complete Order Fill Rate % All other companies Finished goods DOH % Customer retention% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Aberdeen, 2007

15 What do we mean by S&OP? Respond to Demand and Supply variations with timely, data-driven decisions Collaborative process to align demand, supply and financial resources Create a single, achievable plan Effective means for senior management to demonstrate leadership, teamwork and orchestrate success S&OP is the process by which HNS makes its decisions! 15

16 S&OP; what is it and what is it not? AS IS S&OP Information Multi-number One Number Frequency Quarterly Monthly Horizon Year To Go Rolling KPIs Functional focus End-to-end Authority Scattered, ad-hoc Centralized/ standardised Goal of S&OP; better decisions for the whole supply chain

17 S&OP = Balancing Demand & Supply

18 Key Succes Factors for S&OP Top level management involvement and commitment Ownership and decision authority of participants Accurate data system support Clear responsibilities and accountabilities Discipline -Adhere to decisions in the S&OP -Mandatory attendance It takes time -To clean-up misalignments

19 S&OP meeting structure Monthly process 7-52 weeks horizon Weekly process 1-6 weeks horizon

20 Heineken Supply Chain Performance Management

21 Functional requirements of KPI Dashboard KPIs complete, up-to-date and unbiased Data visualization ability to view KPIs graphically Presented in Supply Chain coherence Instant reflection of past/recent performance Dynamic views and drill-down functionality Value and Quantity Online accessibility Limited (no) manual intervention necessary; directly connected to the source data Compatibility with any data source Quick to deploy and easily customisable

22 Every Angle & KPI-Dashboard 22

23 Key learnings and success factors Management support and commitment Cross-departmental involvement Every KPI must have a functional owner Get functional owners of specific KPIs involved at early stage Incorporate specific requests of functional owners (i.e. layout changes) Get IT-department involved at early stage In-house placement of Every Angle staff (if possible) Grant access to all people involved in S&OP Recognition that KPIs will never be perfect or finished.