Monsanto: Planning a Transformation JourneyNovember 3, 2017

Chad PetersSarath Kureti

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Monsanto: Sustainable Agriculture Company

Company Confidential

Globally:

20,000+ employees

300+ facilities in 69 countries

Products:

Agricultural and

vegetable seeds

Plant biotechnology traits

Crop protection chemicals

Agriculture biologicals

Data science

Fortune 500 Company

Headquarters: St. Louis,

Missouri, United States

EME

AA

SA

NA

Global

Teams

(St Louis)

• Producing More

We are committed to increasing yields to meet the

growing demand for food, fiber & fuel

• Conserving More

We are committed to reducing the amount of land,

water and energy needed to grow our crops

• Improving Lives

We are committed to improving lives around the world

3

Planning Transformation Journey

Top 3 Planning Priorities (2015)

1. Control Tower (Supply & Demand Matching)

2. Demand Analytics & Forecasting/Planning

3. Sales & Operations Planning (S&OP/IBP)

A Quick Snapshot…

Business value opportunities are real, but

cannot be manually sustained and are at risk

without IT Investments

To help secure current and/or additional business value

several “flights” of IT system/data

investments are required

Key Take-Away

Messages

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Planning enables cross-functional collaboration that drives transparency of demand and supply to

enhance proactive decision making with a customer-focused approach

Supply Chain Planning

“Tactical” (0-12 Wks) S&OP/IBP (3-24 Months)

Demand Supply Distribution

Processes +People/Org +

“Waves” of Transformation Journey (To Date)

✓Pursued Near-Term Value ✓Intro New “Ways of Working” ✓“Level 1 & 2” Process Focus ✓Created Analytical Prototypes

Platforms

Key Pain Points:

1. Processes and Tools Still Highly Manual

2. Lacking Visibility & Automation of Key Data

3. Sustainability of Process and Benefits

Opportunities to Transform Our Business Focused Across 5 Key Areas:

Aligned Way of Working

Visualization of our Supply

Chain Planning

Commitments

Expanding our Technology and Data Analytics

Capabilities

Deeper Focus on the

Customer

Automation of Data for

Agility and Employee Efficiency

Company Confidential

Clear Alignment on Business Scope and Platform Required

Company Confidential

BUSINESS PLANNING PROCESSES

Demand Planning

Demand Actuals

Supply Planning

“”Strategy”

Demand Supply Distribution

“Tactical”

SC Planning

Planning/ Scheduling

Control Tower

Position / Replenish

Optimize Network

Design Network

S&OP / IBP

Case Study - Seed Applied Solution (SAS) Business

Unit (Global)

Case Study - Row Crops Business Unit (EME)

IBP for Demand IBP InventoryIBP Response & Supply

SAP IBP for Sales and Operations

SAP Supply Chain Control TowerCase Study - Row Crops Business Unit (US)

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Technical Architecture

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SAP

SAP

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Implementation Methodology

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Traditional:

• Predictive and occurs as a series of

discrete phases

• Each occurring only after the previous

phase has completed

Agile:

• Iterative, highly adaptive and

streamlined development

• Includes all development phases within

an iteration

Requirements Develop Test

Deliver

Sprint 1

Feedback/Deliver

Sprint 2 Sprint 3

Feedback/Deliver Feedback/Deliver

Early Return on Investment

Design & Blueprint

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Lessons Learned

Company Confidential

▪ Align planning systems to business

commercial goals and the

respective supply chain(s)

▪ Complete process and capability

definition standardization

initiatives

▪ Start with core capabilities and

then continuously improve

▪ Change management is a constant

journey; listen and react or you’ll

lose the planners

▪ Clean master data is a critical

success factor; address early and

often with dedicated team

members

▪ Include real data in testing

phases; use fuller data loads

▪ Design for scalability and

performance

▪ Established well-defined

requirements leading to iterative

prototyping approach for

delivery and course correction

Process-Led

Change Management & Adoption

Design and Deployment

Data Management

Planning Transformation Benefits

Sustain and Improve Current Process and Deployments

Look to Extend Functionality

Collaborate on New Capabilities

Closer Linkage with Prescriptive Analytics and Machine Learning

Improved customer experience

Empowered employees and increased efficiency

Planning processes become more exception based

Improved decision making and risk mitigation

Deliver financial benefit

Next Steps

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