CCBSA OP CLIENT SUMMIT. 28 August 2017

Transcription

1 CCBSA OP CLIENT SUMMIT 28 August 2017

2 Agenda Introduction to CCBSA CCBSA Supply Chain Design & Journey The Role of Outperform in CCBSA & Progress Process & Systems Improvement Next Steps

3 Introduction to CCBSA

4 Introduction to CCBA & CCBSA SABMiller (now AB-Inbev), Gutsche Family Investments (GFI) and The Coca-Cola Company (TCCC) have consolidated their respective NARTD businesses to form CCBA The company merged on 1 July 2016 Accounting for approximately 40% of all Coca- Cola volumes on the continent 14 Countries, 30 Bottling Plants, 450,000 Outlets South Africa, CCBSA operates as an independent large country, with 6 businesses that merged Other countries report into an International Division of CCBA CCBSA also exports to CCBA countries as well as for other Bottlers or Third Parties Presentation Name 2017/09/05 Page 4

5 Introduction to CCBSA Products & Brands CCBSA Coca Cola Beverages South Africa is a licensed Coca-Cola producer and co-pack for Monster as well.

6 Introduction to CCBSA Supply Chain North Region Pretoria Polokwane Nigel Heidelberg PET, Glass PET, Glass PET, Glass PET Gauteng & Inland Region Midrand Devland Wadeville Bloemfontein PET, Juice PET, Glass Cans/PET/Juice PET, Glass Coastal Region Durban PET, Glass, Cans Port Elizabeth Elgin Epping PET, Glass Juice, Cans Cans Presentation Name 2017/09/05 Page 6

7 Supply Chain Planning Organisational Structure Planning Manager x1 North Region Pretoria PET, Glass Senior Demand Planner x1 Demand Planner x2 Polokwane Nigel PET, Glass PET, Glass Senior Supply Planner x2 Supply Planner x2 Plant Supply Manager Heidelberg PET Gauteng & Inland Region Tactical Planner x1 Midrand PET, Juice Raw Material Supply Manager x1 Export Manager x1 Materials Planner x12 Export Process Lead x3 Export Controller x2 Devland Wadeville Bloemfontein Coastal Region Durban Port Elizabeth PET, Glass Cans/PET/Juice PET, Glass PET, Glass, Cans PET, Glass Import Controller x1 Elgin Epping Juice, Cans Cans Presentation Name 2017/09/05 Page 7

8 CCBSA Supply Chain Design & Journey

9 Key Supply Chain Planning Principles Delivering Invoicing Picking & Loading Settlement Take Time Out of the Supply Chain Reduce Variability High Velocity Inventory Demand Driven Planning Fix Sequencing (Repetitive / Rhythm) Supply Chain Synchronisation Manufacturing & Inventory Route Planning Order

10 Key Supply Chain Planning Principles Demand Focus System Design Supply Focus System Design When CCBSA merged, legacy ABI was operating a Demand Focus System Design. Legacy Canners started to implement it, while the other legacy companies all operated according to a Supply Focus System Design. Currently driving the transformation for total CCBSA to operate according to be Demand Focussed.

11 Demand Driven Planning Model + S&OP Daily Control & Execution Planning Operational Planning & Control Monthly Tactical Sales & Operations Planning

12 Planning Time Fence TIME FENCE PROCESS DRIVEN EXECUTION MANAGE ABNORMALITIES FLEX CAPACITY BALANCE THE GRID CONTINUOUS REVIEW OF CHANGES CREATE CAPABILITY ALIGN SUPPLY CHAIN TO DEMAND Sensing changing customer demand, then adapting both planning and production while pulling from suppliers. All in real time.

13 Model Stock Calculation SS = 30 Cycle = 0.5 SS = 30 Cycle = 2 Max =80

14 Previous Supply Chain

15 Current Supply Chain

16 Role of Outperform in CCBSA & Progress

17 Role of Outperform in CCBSA During the Integration Planning in 2015, it was agreed that Outperform will be used as CCBSA s Supply Planning Tool The focus was adopt a Demand Driven Supply Chain Design across the newly formed CCBSA and rollout the legacy ABI process & system at all 6 legacy companies in CCBSA With each legacy company on a different ERP system or SAP installation, OP was used to integrate information and create one planning platform An additional challenge was that since AB-Inbev agreed to sell their share to The Coca-Cola Company, all business systems had to be carved-out from the AB-Inbev platform, before the legacy businesses could roll-in to one platform Further enhancements were identified to improve the operational functionality of OP in CCBSA

18 Progress Made in the 1 st Year OP was successfully rolled out to 8 of the 12 plants with data uploads from multiple ERP systems 3 times a day. The remaining 4 plants, who produces all national demand for certain products, will be rolled out by October OP is fully functional, however structure and process challenges had to be addressed first. All primary distribution movements are planned in OP and integrated to the Distribution Planning tool as well as SAP for daily planning & scheduling OP was moved successfully to a new platform, while the users were steadily increased across the 8 plants using OP already. Stability improvements are continuing to ensure that all 12 plants can fully use OP Functionality to allow the import of all legacy business sales history is completed and testing to commence as soon as possible. This needs to be scheduled alongside the carve-out projects and planned system freezes.

19 Progress Made in the 1 st Year Development to include Syrup Room Scheduling is in progress and on track. Task Name Duration Start Finish OP Syrup Room Enhancement 165 days Tue 17/03/14 Mon 17/10/30 Demand Process (Accountable: Business Partnering) 65 days Tue 17/03/14 Mon 17/06/12 Engage and mobilise 6.5 days Tue 17/06/13 Wed 17/06/21 Design 13 days Wed 17/06/21 Mon 17/07/10 Realisation and Testing 67 days Mon 17/06/26 Tue 17/09/26 Final Preparation 3 days Wed 17/09/27 Fri 17/09/29 Go-live and Support 13.5 days Mon 17/10/02 Thu 17/10/19 Closure 3.25 days Thu 17/10/19 Tue 17/10/24 Project Management 100 days Tue 17/06/13 Mon 17/10/30

20 Progress Made in the 1 st Year Comparing Peak (Oct - Jan) 2015 to 2016, OOS (Out-of-Stock) reduced from 4% to 2.4%, avoiding 2M Cases of lost sales while finish goods inventory remained the same in nominal value Year to Date OOS improved further across CCBSA.

21 Process & Systems Improvements Next Steps

22 Demand Driven Planning Across Time Horizons

23 Next Steps Carve-Out and Roll-In of all legacy companies to be completed. MRP functionality enhancements were identified with the focus on enhancements that can be developed & implemented while the above continues. CCBSA to adopt DD-MRP in Scheduling, Operational, Tactical & Strategic Planning. This will require changes to the current Model-Stock logic and calculations Across the total supply chain including raw material supply Standard OP functionality to be investigated for the use in operational (Rolling 13 Weeks) and tactical space (Rolling 18 Months), enhancements to be DD-MRP Compliant

24 Have a good one!