KPI Dashboard at Heineken Netherlands Paul Schalekamp, Supply Chain Controller Anton de Romijn, Strategic Business Analyst March 2010
Performance Highlights Heineken International (Based on 2009 Full Year Results)
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
HNS Sales volume per region (in HL) (Based on 2009 Full Year Results)
HNS Produced volume per Brewery (Based on 2009 Full Year Results)
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%
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
Loading efficiency improvements at HNS Loading automation & mechanisation at HNS - Manage growth - Increase efficiency 3 Year program
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: 30.000 m² (>50 %) for 3rd parties Operational since July 2009 CAPACITY 55.600 m2 / 27,000 Ground Pallet Places Both sides : 15 loading docks (7 automatic) Office : 3 floors (total app. 900 m 2 ) page 9
OTA - Container Terminal Alphen
Focus HNS in 2010... 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
Case for Action: Increased market dynamics and cost targets Accelerate project with start of Benchmark
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
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
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
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
S&OP = Balancing Demand & Supply
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
S&OP meeting structure Monthly process 7-52 weeks horizon Weekly process 1-6 weeks horizon
Heineken Supply Chain Performance Management
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
Every Angle & KPI-Dashboard 22
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.