Mondelēz International & Marco Polo Project

Transcription

1 Mondelēz International & Marco Polo Project

2 About Mondelēz International Who we are

3 Our Dream at Mondelēz International CREATE DELICIOUS MOMENTS OF JOY 3

4 Fast Facts Approximately $36 billion in revenue Global snacks powerhouse Operations in more than 80 countries No. 1 in Biscuits, Chocolate, Candy and Powdered Beverages No. 2 in Gum and Coffee Approximately 100,000 employees Donated more than one billion servings of food since

5 A Global Snacks Powerhouse With $36 Billion In Revenue (2) Beverages 17% Gum & Candy 16% Cheese & Grocery 10% Biscuits (1) 30% Chocolate 27% North America 19% Europe 37% Latin America Asia Pacific CEE Developing Markets 44% MEA Nearly 75% of revenues in fast-growing snacks categories (1) Biscuits includes salty/other snacks (2) Based on 2011 reported net revenues; includes accounting calendar changes and 53 rd Week. 5

6 An Amazing Brand Portfolio Worldwide 6

7 Our Categories, Power Brands and Regional Favorites in Europe Power Brands Regional Brands Chocolate Biscuits Gum & Candy Coffee Cream Cheese

8 Definition of Sustainability The most broadly-accepted definition is from the UN-sponsored Brundtland Commission report (1987): Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

9 Two key facts make the situation more pressing Population growth + Average standard of living = Pollution + Demand on limited natural resources Billion 75MM / year ( Bn) By % more than 2008 China & India 5-8% Growth / year Waste CO2 emissions Increasing energy consumption E.g. Water Air Land Animal and plant species Wood

10 Values Act Like Owners Inspire Trust Keep it Simple Be Open & Inclusive Discuss Decide Deliver Lead from the Head & the Heart Tell It Like It is 36

11 SINCE 2005 WE FOCUSED ON AREAS WHERE WE COULD MAKE A DIFFERENCE 2010 YTD vs 2005 (1) ENERGY WATER CARBON WASTE PACKAGING TRANSPORTATION - 16% - 30% - 18% - 42% tonnes We ve cut 16 million kilometers from our global transportation network. (1) Kraft Foods legacy Ex biscuits & Cadbury With great results!

12 AND WE ARE STICKING TO OUR 2015 COMMITMENTS goals o Packaging - 35MM pounds o Energy - 15% o GHGs - 15% o Water - 15% o Waste - 15% o Transport - 35MM miles Sustainability Wheel o Six areas of focus o Design in sustainability upfront o Continuously improve going forward. 12

13 Marco Polo project details

14 LCC complied with all EU conditions for Marco Polo financing and was successful in obtaining a grant Significant scope to drive trafficavoidance opportunities Cross-border operations User-driven own Mondelez initiative Start-up phase

15 LCC was established end as the Transport and Billing Admin Shared Services Centre in Europe 2009: Legacy Kraft inbound finished goods (FG) flows Corresponding billing international inbound 2010: + Legacy Danone inbound FG flows Start integration of legacy Cadbury inbound FG Piloting additional transport services for Legacy Kraft Expanded local logistics billing activities (Danone, outbound) 2011: + Finalize integration of legacy Cadbury inbound FG flows Legacy Kraft P2P, transitioning Danone and Cadbury Consolidation of CE inbound FG flows of all legacies into Bratislava Expanded local logistics billing activities (Cadbury) 2012+: + Further integration of new geographies & scope

16 LCC covers 2 key processes: Transport Management inbound and Freight Billing inbound & outbound Go Live LCC 5 th Oct 09 Go Live LCC 17 th Aug 09 Process Shipment demand generation Transportation Management Freight Billing Management Carriers Scope What to ship, how many pallets, Conditions, From where To where Process shipment Orders, optimize and order transportation, Manage carriers, claims Run the preliminary, and final prebills, approve invoices, financial reports and accruals Deliver services, review preliminary bills, issue invoice matching final pre bill By whom Country replenishment Transportation Team LCC Freight Billing Team LCC Carriers

17 Key traffic-avoidance tool: existing optimization algorithms developed in the TMS and used for LCC freight optimization activities Level 0 Transportation Orders LTL LTL Level 1 Bundling Level 2 Inbound and Outbound Milkrun FTL FTL Level 3 Roundtrip and Pick-up & Delivery Level 4 Optimal Order Combination

18 Our TMS applies 6 key scenarios in optimisation, covering both LTL Optimisation Scenario Description Opt 1 Increase utilisation of one transport relation by combining truck loads. (Bundled Shipment Orders) Two trucks on same relation with low utilisation truck 1 60% utilisation Origin Destination truck 2 40% utilisation truck 100% utilisation Origin Destination One truck with high utilisation Opt 2 Consolidate trucks with the same destination to increase the existing truck utilisation. (Inbound Milk run) Multiple trucks with different origin and same destination and low utilisation truck 1 55% utilisation Origin 2 Origin 1 Destination truck 2 40% utilisation Origin 2 truck 95% utilisation Origin 1 Destination Milk run with one truck with high utilisation Opt 3 Consolidate trucks with same origin to different delivery locations. (Outbound Milk run) Multiple trucks with same origin and different destinations and low utilisation Destination 1 truck 1 Destination 2 20% utilisation truck 2 70% utilisation Origin Destination 1 Destination 2 truck 90% utilisation Origin Milk run with one truck and high utilisation 18

19 And FTL Optimisation Scenario Description Opt 4 To optimize transportation costs round-trips should be identified and executed. Different trucks are driving on the same relation location 2 truck 1 truck 2 location 1 location 2 truck 1 truck 1 location 1 One truck is driving a roundtrip between location 1 and 2 Opt 5 Combine two single trips into one trip by load/deliver/reload/deliver of the truck from the same warehouse or city. (Tour 1) Re - loading of trucks is not executed delivery 1 truck 1 load 1 delivery 2 truck 2 load 2 delivery 2 delivery 1 then load 2 truck 1 truck 1 load 1 Re - loading truck is possible Opt 6 Combine two single trips into one trip by load/deliver/reload/deliver of the truck from the same regional zone. (Tour 2) Re - loading of trucks is not executed truck 1 load 2 load 1 delivery 2 truck 2 delivery 1 load 2 truck 1 load 1 delivery 2 truck 1 delivery 1 Re - loading truck is potentially possible within a system predefined radius 19

20 Marco Polo LCC Project runs for 5 years, has clear sustainability targets and a total budget of Eur MM 280 Project start date: July 1, 2011 Project end date: Jun 30, 2016 Vkm reduction: 52.4 MM Reduction in no. of trucks: 46,093 Total grant value: Eur 4.2 MM Vkm run: MM Total no. of trucks run: 422,671

21 The project is in its 2 nd operational year, and our key achievements are In August 2012 we have submitted the formal financial and technical report for the first year in operation in order to claim the first grant installment Dedicated TMS report to calculate saved kilometers was developed and audited Sustainability results to date: Year 1 - Eur 232k grant based on actual saved kilometers in Year 1 Year 2-1 st half shows our progress in improving the optimization methodology

22 Thoughts to take away Pan European approach in international transport Major sustainability benefits EEC actively supports sustainability initiatives in road transport Financial benefits also accompany sustainability benefits