Consolidating Multiple Product Development Systems at TreeHouse Foods into SAP Product Lifecycle Management

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2 Consolidating Multiple Product Development Systems at TreeHouse Foods into SAP Product Lifecycle Management Kathy Kugelman, TreeHouse Foods Robin Patrawala, Linx-AS SESSION CODE: PL1288

3 AGENDA About TreeHouse Foods Product Data Management at TreeHouse Solution with SAP PLM Change Management Highlights, Benefits & Lessons Learned Looking Ahead Q&A

4 AGENDA About TreeHouse Foods Product Data Management at TreeHouse Solution with SAP PLM Change Management Highlights, Benefits & Lessons Learned Looking Ahead Q&A

5 ABOUT TREEHOUSE FOODS Leader in supplying high quality products and services to private label brands of retail grocery and food service industries. Celebrating 10 years in business: On June 28, 2005 became an independent and public company trading on the NYSE (THS). CPG manufacturer with approximately $3.5 billion in sales Principle Operating Company: Bay Valley Foods, LLC 25 manufacturing locations with approximately 7000 employees

6 TREEHOUSE MISSION Become the recognized industry leader in private label, customer brands and custom products Grow tall via product innovation, consumer insight, customer partnerships and strategic acquisitions Grow strong through strategic vision, operational excellence, structural consolidation and collaborative teamwork Build competitive advantage through the relentless pursuit of our customers needs, lowest cost operations and shareholder returns Live by our values, true to our beliefs, respecting our legacy heritages and uniting them under one roof and culture, while building the TreeHouse of the future Exceed the expectations of our customers, suppliers, employees and shareholders alike

7 CATEGORY GROWTH

8 STRATEGIC ACQUISITIONS

9 AGENDA About TreeHouse Foods Product Data Management at TreeHouse Solution with SAP PLM Change Management Highlights, Benefits & Lessons Learned Looking Ahead Q&A

10 INITIAL STATE OF PDM Management of recipe and specifications conducted in multiple legacy systems. Manual handoffs and tools used to manage over 16,000 finished good materials. Manual creation of specifications based off of vendor documents and legacy systems data.

11 THIS RESULTED IN... Technical product information managed in disparate legacy systems each requiring varying IT maintenance and separate processes for several business units. Manual keying of data into different systems slowed process time and increased risk of inaccurate or redundant data Lack of collaboration between developers of various business units

12 THIS RESULTED IN... Lack of timely product costs: inability to copy, scale, or synchronize a recipe must build from scratch Gaps in review and reporting processes In-process analytics Multiple sources needed to create specifications reports Workflow inefficiencies

13 PROCESS CHANGE INITIATIVE January 2010, company-wide SAP ERP initiative focused on streamlining processes and identifying future business requirements. Goal was to replace legacy applications across all locations and create enterprise wide design for future acquisitions February 2011, first went live with Customer Service, Accounting, Corporate Purchasing and Supply Chain Planning. Continue to roll out to individual Business Units one at a time.

14 PROCESS CHANGE INITIATIVE During 2013, began planning for an improved Product Data Management solution Functional area assessments completed Developed a business case for Product Data Management. Project team started in Q to begin SAP PDM blueprint process Implemented across two Business Units in March 2015

15 WHAT WE SET OUT TO DO More time creating target products, less time managing paperwork Create a single version of the truth for all technical product information to eliminate redundancy/improve efficiencies, improve accuracy, reduce compliance risk, and accelerate new product development. Establish blueprint for implementation across all businesses units Improve ability to service customers by leveraging technology and streamlining current processes. Support the overall PLM initiative through Change Management activities.

16 AGENDA About TreeHouse Foods Product Data Management at TreeHouse Solution with SAP PLM Change Management Highlights, Benefits & Lessons Learned Looking Ahead Q&A

17 SOLUTION SCOPE Product Data Management functionality within current SAP system: Modules: Recipe Development Specification Management Document Management Enhancement Pack 7, Support Pack 5

18 CHANGED BUSINESS PROCESSES Manage Ingredient Specifications Manage Packaging Specifications Manage Recipe Formulas Manage Recipe Finished Goods Manage Label/Nutritional Data Manage Handover to Manufacturing Material Master Manage Handover to Manufacturing Quality Inspection Plans Handover to Manufacturing BOM and Master Recipe Specification Workflow

19 SOLUTION OVERVIEW Product Change Process (PDM: Product Data Management) Ingredient Specifications Recipe Food Product Label Data Spec Documents Food Product (WIP) Specifications Recipe Finished Product Finished Product Specifications Spec Documents Packaging Component Specifications Spec Documents Spec Documents Document Management System

20 PROJECT TIMELINE May-14 June-14 July-14 Aug-14 Sept-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Blueprint & Design Workshops Realization Data Conversion Build / Solution Build Testing Training Cutover Support

21 LEGACY SYSTEM REPLACEMENT Formulation Legacy systems used by R&D to create recipes. PLM Recipe Development Regulatory Used for regulatory and governance reference for BU s on PDM. Maintain & use for ingredients and label information. SAP PLM SAP ERP Label Creation Manual process and forms will be replaced by SAP specification and workflow. Label files stored in SAP DMS. Quality Specifications will be generated (WWI report) from SAP and will not need to be manually created. Supplier Compliance

22 DATA MIGRATION Focus on identification of legacy source data and launch resources to clean up data at least 6-9 months prior to go-live. PLM projects are heavily data related so the focus on data is much greater than other SAP projects Data team focused heavily on cleansing, collection, transformation, and validation Used pre-developed tools to load data

23 AGENDA About TreeHouse Foods Product Data Management at TreeHouse Solution with SAP PLM Change Management Highlights, Benefits & Lessons Learned Looking Ahead Q&A

24 BUILDING THE TEAM Strong support from executive sponsors Staff top people full time on the core team Pull key personnel from various functions for dedicated project time Use consultants with deep knowledge of software and industry Involve Subject Matter Experts early and often (design, checkpoints, Integration testing, mock data conversion, User Acceptance Testing, training)

25 TRAINING APPROACH Functional Subject Matter Experts Change Impact & Process Awareness meetings Training tools consisting of course wrappers, uperforms, and additional reference tools Train the Trainer concept

26 TRAINING Because Product Data Management touches so many functional departments, the key to our training program was identifying subject matter experts to instill a continuous learning culture. Project Management Package Engineering Product Development PDM Quality Assurance Regulatory Label/Artwork Management Master Data Finance

27 AGENDA About TreeHouse Foods Product Data Management at TreeHouse Solution with SAP PLM Change Management Highlights, Benefits & Lessons Learned Looking Ahead Q&A

28 HIGHLIGHTS Most complex data load performed by ERP team in TreeHouse history Conducted extensive testing, including System Integration Testing (SIT), User Acceptance Testing (UAT), Exploratory, Site Readiness, and Performance testing cycles. Many different departments used to test various user perspectives. SAP RD sync (push) to SAP ERP

29 BENEFITS One Source of Truth: Consolidate all technical product information into a central software system (SAP) Retire legacy development systems Improve developer productivity and visibility Increase synergies and ideation between developers of various business units Recipe/Specification Development and Execution (ERP) data controlled through SAP system

30 BENEFITS Promotes packaging efficiency Integrate automated workflow Enterprise blueprint which will allow TreeHouse Foods to further implement across acquired business units and existing categories

31 LESSONS LEARNED Logging all issues, risks, and defects keeps control Prototyping / Design Verification were critical steps during the implementation Clarified business requirements Increases user acceptance, ownership, and change Focus data model design helped early on in the project. Establishing property trees early helps with the data migration planning and blueprint which leads to clean iterations before go-live

32 LESSONS LEARNED Ensure BASIS resources can support the newer technologies. Ensure Security is given time to understand the new security objects Developing a Knowledge Transfer Plan ensures future success Expect and manage team resources and changes Emphasize training and change management impact

33 AGENDA About TreeHouse Foods Product Data Management at TreeHouse Solution with SAP PLM Change Management Highlights, Benefits & Lessons Learned Looking Ahead Q&A

34 LOOKING AHEAD Future Rollouts Continue to follow ERP roll out across Business Units with PDM implementation Migrate from legacy project management system to SAP PPM

35 AGENDA About TreeHouse Foods Product Data Management at TreeHouse Solution with SAP PLM Change Management Highlights, Benefits & Lessons Learned Looking Ahead Q&A

36 THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: PL1288 For ongoing education on this area of focus, visit

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