Challenges of a small SSC in a Big company

Transcription

1 Challenges of a small SSC in a Big company

2 Agenda SABMiller / Plzeňský Prazdroj introduction PPAS SSC development Current Business Services and challenges we face Potential ways forward 1

3 SABMiller / Plzeňský Prazdroj introduction 2

4 SABMiller plc The world s second largest brewer South African Breweries (SAB) founded SAB acquires Miller Brewing Co (USA) SABMiller plc established Total sales amount to over 265 million hl (beer + soft drinks) More than 200 brands Pilsner Urquell (Czech Rep.) Peroni Nastro Azzuro Miller Genuine Draft (Italy) (USA) Grolsch (Netherlands) Flagship brands in the SABMiller plc international portfolio 3

5 SABMiller plc has operations in more than 75 countries around the globe, on six continents North America 8 breweries 1 country Europe 21 breweries 9 countries Africa & Asia 86 breweries 31 countries Latin America 17 breweries 7 countries South Africa 7 breweries 1 country 4

6 Plzeňský Prazdroj, a.s. (PPAS) A story that never ceases to inspire A member of the global brewing company SABMiller plc PPAS acquired in 1999 by SAB 3 breweries; about 2,000 employees First-ever Pilsner pale lager brewed on 5 October 1842 Total annual volume of beer sold at home and abroad: almost 9.9 million hl The biggest beer exporter in the Czech Rep., to more than 50 countries Every second beer consumed in the Czech Rep. is produced by PPAS One of the TOP 20 tax-payers in the Czech Republic 5

7 PPAS Brand Portfolio A perfect family of excellent individuals Legendary pale lager that gave birth to a whole category of Pilsners Best-seller among alcohol-free beers in the Czech Rep. Most popular/bestselling beer in the Czech Republic A truly special beer, characterized by its mellow bitter taste No.1 in Moravia, distinctive due to its bitterness Refreshing wheat beer, flavoured with orange peel and a dash of coriander Pale low-gravity beer of good quality and price Best-selling Czech beer brand worldwide Low-alcohol drink made of beer and natural fruit juice Excelent 11 is a pale beer characterized by a full body and fresh aroma of hops Modern, low-carbonated malt drink Pale low-gravity beer, with a nicely bitter and balanced taste 6

8 Breweries & Distribution Centres PPAS breweries (capacity) Germany 13 distribution centres (depots) Poland Myslbek Office Germany Slovakia Austria 7

9 PPAS SSC Development 8

10 Initial situation 2001 Total employment / Employment in Finance Department CZECH Republic 196 / 6, / 82,2 Velké Popovice Plzeň 362 / 27,5 Nošovice 391 / 23,6 Šariš Slovak Republic PPAS acquired by SAB in legal entities + Šariš in Slovakia Merger in CZ in breweries + 10 distribution centres 9

11 Initial situation, cont... Duplication of activities within financial processes between companies Lack of consistency between processes performed by breweries Finance Function focused on transaction processing instead of supporting the decision making process at the strategic and operational level Costs of the Finance Function were 5 times higher than costs the Finance Function in the best practice organisations 437 FTE engaged in financial processes, including 140 within the Finance Department; PWC Consulting was asked to design and implement a Shared Service Centre for the financial processes, which would serve all four breweries within PUG. 10

12 Major achievements Pilsen selected to be the major seat for the SSC 50% headcount reduction in the Financial Department of the PUG Redesigned and improved financial processes incl. IT support, e.g.: Simplified Chart of Accounts; Electronic purchasing tool; Invoice and travel expense scanning; 3way matching of invoices; Workflow in AP, FA Clear split of the activities within processes between SSC and business units Defined Key Performance Indicators for processes and major activities Common accounting policies and procedures for all business units Closing improved from 5 to 2 days Reduced bank charges Reduced number of suppliers Improved financial control 11

13 Evolution since 2002 Starting with 34 FTE SAP implementation May 2005 Germany transaction processing taken over (+4) Gradual outflow of Slovakia support from 2006 Reporting incorporated into SSC (+5) Other routine financial transactions/reports taken over (+3) Limited efficiency delivered (-5) Centralised Telesales team established in Pilsen (part of Sales team) BPO considered in 2011 (outsourcing to India) 12

14 From SSC to Business Services HR Operations taken over in 2012 Admin/support functions taken over in 2012 (e.g. mailroom) SSC structure upgraded to Business Services departments following core processes (OTC, PTP, RTR) Business Services / SSC principles reinforced e.g. process automation, simplification, standardisation KPIs reported, SLAs being prepared Avoid language dependency if possible (e.g. bi-lingual templates) Grown to 80+ FTE in

15 Business Services further scope up the value chain? Balance Sheet / Working capital management Cash flow management Managing risks - Treasury - Credit - Tax 14

16 Current Business Services and challenges we face 15

17 Capability Assessment Strong performance record, efficiency measures close to best in class Strong team capabilities Capable leadership team, able to take more on board Strong Performance Management (SABMiller standard) but not tailored to SSC needs Ongoing strive for cost efficiency Latest org structure adjustment heading towards current SSC standards 16

18 Capability Assessment, cont Focused on 1 country/customer No activity with big scale (except Telesales) No End-to-end process owners No formal customer relationship management KPIs and SLAs not used properly STIs linked to PPAS commercial performance Goals linked to PPAS overall goals not purely process driven Limited process KPIs driven goals Limited customer satisfaction driven goals Continuous process improvement capacity reduced if any Training and development significantly reduced Enabling organisation not tailored to SSC needs Process training framework and knowledge does not exist as a formal process 17

19 Ways forward, summary 18

20 Business Services ways forward? Internally Ongoing strive for transactional process centralisation Liberate the business let them focus on core activities Externally / within SABM Group Europe/Global SABMiller consolidation activities Global SAP solution implementation coming chance for process redesign incl. end-to-end ownership and management Leverage current position within the group 19

21 Summary small SSC in a big company Some challenges can be faced Process improvement limited but we progress some not Core business has a priority Training KPIs alignment Resource allocation But there are some advantages, e.g. Attractive employer (Plzeňský Prazdroj in Pilsen) Possibility to develop career outside Business Services but still within the same company 20

22 Is it worth it? YES, IF: Willingness to change standardise, simplify, centralise Ownership and support from top of organisation Ready for change agenda people behaviours, mindset Investment in system available Multiple locations Luxury out 21

23 A story that never ceases to inspire