The Journey ConAgra OTM Implementation

Transcription

1 The Journey ConAgra OTM Implementation Ryan Oswald Amy Smith Dawn Wilson ConAgra Foods, Inc

2 Agenda ConAgra Overview Reasons for OTM Implementation Timeline Implementation Approach FTI Rate & Award Maintenance Master Data Alerts & Notifications Freight Pay/Finance Challenges and Opportunities Future Enhancements

3 ConAgra Foods Overview ConAgra Foods started in 1919 as Nebraska Consolidated Mills In 1971, it was renamed ConAgra, Inc. and the company became ConAgra Foods in 2000 ConAgra Foods is a Fortune 500 company with more than 23,000 employees, with the company s world headquarters located in Omaha, Neb In fiscal year 2012, ConAgra Foods brought in $13+ billion in net sales

4 Our Brands

5 Consumer Foods ConAgra Foods is one of North America s leading food companies, with brands in 97 percent of America s households 25 of these brands are No. 1 or No. 2 in their category 19 of these brands generate more than $100 million in retail sales each year ConAgra Foods offers 140 meals for $3 or less ConAgra Foods sells nearly 12.3 million packages of food products each day, including 3.8 million frozen food packages.

6 Reasons for Implementing Legacy Systems Outdated Optimization Opportunities Fusion Transportation Intelligence Inbound Freight Management Material Allocations Rail & International Planning Centralized

7 Timeline Aggressive timeline: Two years from blueprinting to implementation Blueprinting TMS Selection Design Phase 1 Go Live June 2009 May 2010 Aug 2010 June 2011

8 Implementation Approach Implemented in four phases Phase 1 Phase 2 Phase 3 Phase 4 Inbound to 4 Plants and Consumer Rail June 20, 2011 Outbound Stock Transfers & Customer July 25, 2011 Remaining Inbound January 9, 2012 Customer Pick Up June 11, 2012

9 Implementation Approach Following modes now planned in OTM Truck LTL IM Rail (new) Ocean (new) CPU (new)

10 FTI Operations & Procurement Standard Reports OTD Route Guide Compliance Rate Inquiry Load Planner Scorecard Freight Cost Reporting Carrier Scorecard Adhoc Reporting

11 Alerts & Notifications Supplier Pickup notifications Insurance Certificates Notification to carriers and procurement Event management Missing statuses Rate Pages Auto generated report

12 Rate & Award Maintenance OTM UI Rate Maintenance Cumbersome at best No lane integrity to match to award Awards Business model requires Capacity Commitments Maintenance is nearly impossible through UI Overrides? Developed web based tool outside of system Tool populates & loads.csv files through integration

13 Master Data Master Data maintenance is full time job Rail Routes, itineraries, rates International Itineraries, accessorials Inbound LTL Transits Customer calendars Inbound raw materials Commitments

14 Freight Pay Systems Pre-Go Live SAP Orders (Customer) Orders (Supplier-unplanned inbound) FI AP & G/L BI Reporting Preferred Carrier HUB Manugistics Movement Freight Pay Chrystal Reports Walker Procurement & AP Oracle G/L Access Databases Post Go Live SAP Master Data (Cust./Mat./Vend.) Orders (PO/STO/SO) FI (AP & GL) BI Reporting OTM Order base Shipment Invoice FTI Reporting MarkView Workflow (TransQ)

15 E2E Process Finance Dependency Order Creation Master Data Customer Plant Vendor Material Order PO STO SO Trans - Planning Rate Offerings Awards Modes Lanes Itineraries Bulk Planning Trans - Execution Tendering Status Delivery Returns Settlement Invoice Receipt Match Approval Voucher Payment AR Inquiry Accounting/Finance Accruals Material Ledger Cost Allocation Assessments Finance Reporting Budget Standards Metrics Reconciliation Internal Use

16 Dynamic Dialogue/Challenges Cutover Plans Order Create date or ship date Conversion of transactions or bleed out Business and Carriers transacting in two systems Clean cut-off for deferred/incurred vs. reconcile Implementation Master data, master data, master data Automating manual and disparate steps Defining standards, exception processes and fixing errors Transitioning ad-hoc and database reporting to centralized business intelligence structure

17 Finance Change Management Communications and training for Carrier AR Coordinating EDI IT resources for EDI 210 transmission before, during and after cutover(s) Documentation and delivery of training for access to web portal for invoicing, attachments and payment status Internal business partners Preparation for accounting impacts on planning, processing and reporting Collaboration with procurement and supply chain Training for plant buyers inbound transportation Introducing workflow for invoice exception approvals Communicating with carriers on e-commerce changes

18 Accounting Highlights Accrual Allocation Voucher Costing Point in Time IB Ship Date OB PGI Actual Cost Material Level Weight & Cube Invoice Approval SAP PI & Payment Material Ledger Assessments Challenges/Opportunities: Moving from more generic allocation of costs to specific by material weight/cube Change management business alignment with budgeting/accounting design changes Difficult to correct transaction data errors and reconcile financial timing differences between systems/gl and reporting.

19 Record on spreadsheet and go into SAP to change due date base on carrier terms Freight Related Invoice Is MBOL in Manu? Is Order Ref. in SAP PO or STO? PO NonPO Send to Imaging for PO Queue Send to Imaging for NonPO Queue Unplanned Freight on Supplier PO Route for G/L coding & Approval Posted to SAP AP for Payment Processing NO EDI or Web Invoice from Carrier NO YES NO Chack Status Error (10,19, 29, 39, 69) and manually get additional approvals/ documents Clean to Voucher? NO Is Invoice for Return or Detention? YES Use SOP & Spreadsheet to track, , get additional approvals Manually edit/ match/approve invoice in Manu Post to Walker for Payment Process From six decision points To two and From three invoicing systems to One Is invoice Freight Forwarder, Ocean or International? YES Manually audit/ enter in Database & Walker NO Is Invoice for Mills or Rail? YES Manually audit/ enter in Mills Freight Pay Sys. Freight Related Invoice Scan, Index & route to FP specialist in TransQ Match to shipment in OTM? YES Manually (match/edit) invoice & Approve in OTM Reengineering Freight Pay EDI & Web Invoice from Carrier NO Auto Match to Shipment in OTM & Auto Apporved NO Route for additional approvals or edits to shipment YES Voucher to SAP awaiting terms & payment process

20 Kofax-Non SAP Freight (Workflow)

21 Freight Pay FTI Reporting Freight Pay Invoice Sourcing / Automation Activity Summary prior day, week, month Invoice Blocks Invoice Errors / Tolerance Summary Delivered Shipments without Invoice Carrier Open Accrual Ad hoc Query Actuals by cost type (detention, unloading) Enhance FP/Carrier Scorecard Finance Open Accruals Delivered Shipments, without invoice or with balance dues Plan to Actual Performance Forecasting Compliance Enhance - Reconciliation Transactions reconciled between systems landscape

22 OTM FP Processing Impact Before Paper Invoice audit manual/ Key into Manu After Paper Index/route MarkView Key into OTM / close MVT Ship Load Planner notes for preapprovals unplanned items Ship No Notes / unplanned items must be coded on shipment Auto Approvals >75% Error Statuses in detail Auto Approvals ~70% Query & Status Indicator Pay Accrual invoice Fewer clicks Delegate Exceptions Pay Accrual net 6/36 mo. No short pay Req. Unloading Receipts Challenges/Opportunities: Use Line Item Tolerances without creating unnecessary blocked invoices. Integrated screen to see planned shipment costs, applied actual costs by line item when manually approving invoices. More shortcut keys to process faster.

23 Challenges & Opportunities Rail FTI Reporting Awards and Load Balancing System Performance Master Data Change Management

24 Future Enhancements Cooperative Routing Business Monitors FTI Automating Rate Pages Screen Sets Performance & Optimization Rail Umler & CLM s

25 Q&A Questions