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TRANSCRIPT
1
Trevor Barrett, Manager – Premier Foods UK
Premier Foods “Optimization for Growth”
Enabling Focus on the Customer
2
Our History and Power Brands
With origins in the canned food industry, Premier Foods has continually expanded and
acquired new brands to become the UK’s largest food producer
In March 2007 Premier Foods completed the £1.2 billion acquisition of RHM along with
many of the UK’s best known food brands including Hovis, Sharwoods, Cadbury cakes,
Bisto and Mr Kipling
Top 5 Customers – Tesco/Sainsbury/Morrisons/Asda/Co-Op
Gravy/Stock Deserts Sauces Soups
Cake Bread Sauces
3
Technology & Trade Promotions
SAP & Premier?
Premier Foods has been using core SAP in parts of it’s business since 2008
The Hovis Division had no SAP platform
Hovis – a perfect test bed for SAP TPM integrated with the SAP Orders to Cash
implementation
Hovis & Trade Promotions
Hovis (Bread) accounts for c £500m of Premier’s total turnover
Fresh products delivered daily (Product range is bread and other bakery e.g muffins)
Mainland GB and Northern Ireland operation
20+ manufacturing/ distribution sites across the UK
The Supply Chain operates 24x7 – most deliveries occurring overnight before 11am
8500 deliveries per day = 8500 invoices
Order cycles are short, typically within 24/48hrs of order receipt.
Approximately 60% of Hovis volume is sold “on promotion”, therefore
including SAP TPM integrated with SAP Order To Cash solution was key...
4
Premier – Our Business Unit Structure
Premier Foods
Cake Deserts
Grocery Desert/Source/Meal
Hovis Bread
Ambient Business
TPM Live
5
TPO Approach
Emerging business needs:
Improved Promotional planning (horizon
view)
Promotional Modeling capability (what if)
Collaborative execution (functional control)
Collaborative Margin Growth (focused
investment)
Logical next step ;
Build on TPM Capability
Validate SAP Trade Promotion Optimization
Business Requirement
Focus on promotional scheduling
Validate what-if/Modeling capability
Understand optimization capabilities
Validate work flow approval
Usability based on
Simplified Screen orientation
Clear transactional ownership
Quality / acceptable outputs
6
TPO Approach
TPO Considerations:
Numerous Optimisation tools
Hosted vs Internal capability (Technical)
Internal Capability (Resource)
Tactical opportunity
Strategic fit
Project scope:
POC Validation
Data structure validation
Business Capability build
Trade Promotion modelling
Output validation
Fit For Purpose
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8
1
Promotional
Evaluation
Single ,
Robust Data
Set EPOS & IRI Data @
SKU
Volume Split - Base/
Event
Cannibalisation
Post Promo Dip
Competitor Activity
Scope of the 2013 Challenge
Scenario
Modelling
Retailer ‘lens’
Plan Versions
Aggregations
Guidelines &
Rules
Alerts
Views aligned
to role
1
Time
2 … 18
2
3
4
5
NAM View RGM View
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Trade Promotion Planning Cycle
1
2 5
3 4
Plan
Plan
Plan
Plan
Review
RGM - Promotion
“What If” Scenarios
All Stakeholders -
Evaluation
RGM - Promotion
Modeling
NAM – Review
& Release
RGM – Planning Activity
Do
(TAMMS/TPM)
10
Promotional Planning & Evaluation Roadmap
“Completing the Jigsaw”
Inconsistent behaviours
• Incorrect base data
• Disparate knowledge & insights
• Systems internally financially driven
• External data not readily available
• Create consistent behaviours
• Improve use of insights in forecasting
• Collate knowledge into 1 place
• Create robust base dataset
• Missing cannibalisation, Retailer impact , systemisation of modelling
• Simple user interface
• Usable by sales force
• Benefits from existing data set (i.e. retailer profitability)
No picture to follow, pieces scattered around &
some missing
Provide the picture, more of the pieces, still scattered around
• Sophisticated modelling which uses multiple data inputs to create internal and external view
• Integrated into business processes
• Fit for purpose according to user capability
• Flexible & immediate reporting
All the pieces in 1 box with a picture to follow
2012 2014 2013
11
Lessons Learned
Clarify what and why you “want” or “need” TPO
Validate that your plan is “doable” — Not over aspirational
Determine your technical strategy and data availability
Consider your business capability
Map out the functional impact
Validate the data structure
Validate TPO outputs
“Smarter - Faster - Simpler”
