del monte template · process & system (siebel) simpler, more efficient, easier to plan...

Copyright 2010 Del Monte Foods. All rights reserved. 1 Copyright 2010 Del Monte Foods. All rights reserved. 1

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Predictive Planning-

Driving Strategy and Increased Trade

Efficiency & Effectiveness

Copyright 2010 Del Monte Foods. All rights reserved. 2

Purpose

Share Del Monte’s journey from Trade Promotion Management to a Predictive Planning System

• Decision

• Process

• Deployment

• The Future


Agenda

Del Monte Foods Background

Roadmap to Predictive Planning

Del Monte Journey

Investigation Phase

Communication & Change Management

Deployment Process

Training

Future Roadmap - Integration


Del Monte is a Branded Category Leader

Pet

Pet Snacks

Pet Food

Dry Cat

Wet Cat

#1

#2

#2

#2

Consumer

Fruit

Vegetable

Tomato

Broth

#1

#1

#2

#2

Source: Nielsen scan and all outlet household panel 52 w/e 1/10

Consumer Products

~50%

Pet Products

~50%

Fiscal Yr 2012 Total DLM Net Sales: $3.7B

Del Monte has grown through acquisition, innovation , and marketing

Del Monte Foods Background


TPM – 2007 Implementation Success

The Need for a Best in Class Trade Promotion Management Process and System to drive efficiency

• 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

• Administratively complex system, out of date, cumbersome, limited flexibility, difficult to update/maintain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

Where We Were Where We Are Going

GOOD GREAT


ATLAS Implementation

Sept 07 & May 08

July 08 May 09 July 09

Development of Del Monte’s Holistic TPO Business Case/RFP

(Advanced Analytics & Predictive Modeling)

Del Monte Roadmap – Journey to Predictive Planning

Sept 09

Atlas Enhancements

Sept 09 Jan 10 April 10 Trade ROI Workbench

Project


Del Monte Roadmap to Trade Optimization

July 12 TPO

Implementation/ Training May 2012

Predictive Planning Development

Begins

Trade ROI Workbench Delivered*

Trade Optimization Predictive Trade Planning

July 10

March 11 TPO RFP Vendor Chosen

On pause… remember – no only means not

today

On Pause – New CEO

June 13 Integration

Oct -Feb 12 Persistence

Trade Efficiency Project

*Delivered to Sales Finance only


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


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


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

Investigation Phase


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


COMPASS Inserted Into the Planning Process:


Change Management

Systems & Tools Plan & Analyze Trade Promotions

Manage Profitability & ROI

Ownership/Accountability

Flexibility/Adaptability

Dedication

Commitment

Positive Attitude

80%

20%

The Human Element


Deployment Process

2 years syndicated RMA level data

Product information

List prices

Case packs

Cost of goods

Customer delivers data

IBM DemandTec platform cleanses &

models data

Data extraction

Sparse data population

Cleanse and load

Build models, validate forecast accuracy

Analyze expected results

Customer builds plan using

IBM DemandTec software

Build promotion

events

Build complete category

plan

Improve with what-if

analysis

Sell in new plan

Leverage retailer metrics

Drop results into excel and PPT templates

Submit into retailer

Quantify impact on category / private label

Data…. Training…


Deployment Timeline

7/16/12

IBM DemandTec

COMPASS

Release

Phase 1 *

(Top 8 accts)

5/1/12

Data

Delivery

Phase 2:

January

(2 accts)

Phase 3:

April 1

Walmart

Phase 4:

Integration

with F15

planning

June

JCBP

June

Data Modeling

& Attributing


Compass to Atlas Planning Template (Phase I)

Conversion

Baselines

Promotional Tactics


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


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


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)


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


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

del monte template · process & system (siebel) simpler, more efficient, easier to plan...

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