HEINEKEN Supply Chain B.V. Global Logistics | October 20, 2014
Heineken Global Supply Chain | April 2015
Customer SC Collaboration at Heineken
Marc Bekkers
Bart Prins
ESCF
Eindhoven 8 April 2015
The world’s most international brewer
No 1 in Europe and No 2 in the world by consolidated volume
Present in over 70 countries globally
Brewing great beers, building great brands
Committed to surprising and exciting
consumers everywhere
Long and proud history and heritage
HEINEKEN | Proud, Independent, Responsible Global Brewer
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HEINEKEN | Our Values
Enjoyment we bring enjoyment to life
Respect for individuals, society and the planet
Passion for quality
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HEINEKEN is Unique
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The Brewing Industry Top 10
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Source: Canadean Annual Brand Database July 14
Industry Consolidation
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Source: Canadean Annual Brand Database July 14
Litres per Capita Consumption by Region
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Source: Canadean Global Beverage Forecast March 2014
Consumption Volume Development
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Source: Canadean Global Beverage Forecast March 2014
Supply Chain Management
Our Supply Chain…
Produces over 200 million hl
Covers 196 plants, in 75 countries
126 majority owned beverage plants
21 own maltings & supply plants
50 managed minorities
Has 65 breweries brewing Heineken®
Receive bottles and cans from 160 supply plants
Analyses 125.000 samples per year
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Serving 152.000
beers per minute
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Global Supply Chain
Warehousing Transport SC Planning SC Design
Main Capabilities Differentiated Service Strategy
Customer Centric Excellence
S&OP Demand Planning Supply Planning
SC Network Design
Freight Management
Transport Excellence
Green Logistics
Warehouse Excellence
RPM Management
Key initiatives • Warehouse Cost Modelling
• Master Plans • Returnable
Packaging Management
• Warehouse safety program
Our organisation…
Global Logistics
• Transport Cost Modelling
• Outsourcing tenders
• Green Distribution program
• S&OP foundation and Maturity Checks
• S&OP Next (advanced tooling and IBP)
• Location Allocation studies
• Distribution Footprints
• Freight Management Systems
• Customer Segmentation
• Cost-2-Serve • Logistics Trade
Terms • Joined SC Planning • Contact Strategy • E2E Collaboration • Global Customers
Customer SC
Customer Supply Chain – Our Challenges
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Customer at the center
X functional working
Enablers
Challenges
4. Global Customers
Contact Strategy & E2E
Collaboration
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1. Customer Service Excellence
E2E Internal Collaboration
Optimal RTM Ordering
Order2Cash efficiency
Performance Management
3. Customer Centricity
Local Customer Collaboration: Availability (OSA)
2. Customer SC Profitability
Cost 2 Serve
& Logistics
Trade Terms
Multi Channel: • On trade • Traditional
• Modern trade o E-Com (B2B) o Convenience o Discounters
• Distributors
Customer Supply Chain – Our Approach
Mastering (the challenges of) the omni-channel supply chain… as Global Supply Chain in HEINEKEN
Supply Chain 2020 Where do we need to master? What will our challenges be?
Breaking down the theme of today….
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How do we commonly define our supply chains / channels?
SCOR / M4SC Roadmap
How do will fill the gaps? Capability
Supply Chain 2020 program
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Company strategy
External views
Customer & consumer
needs
Market trends & insights
Global
Regions
workshops
Where do we want to go?
How ready are we?
Structure & tools • E2E Process models • SC definitions • Operating models • Fit-gap analysis • SWOT analysis • … • Channels!
Current Supply Chain capabilities
Adopting the SCOR & M4SC model
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SCOR - Supply Chain Operations Reference Model
cross-industry process-reference model
M4SC - Supply Chain Management Reference Model
management & focus of supply chain resources
They can be used to segment & organize the
business into value chains, starting from two angles:
From strategy forward
From customers backward
Application of the M4SC approach to guide development
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Supply Chain
Resources Feedback
Drives Supply Chain
Processes Feedback
Drives
Business
Strategy
Supply Chain
Network Feedback
Drives Supply Chain
Strategy
Drives
Feedback
Segment business into supply chains, determine performance
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Building our E2E operating model for the future
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We have succeeded to structure a requirements led, capabilities enabled operating model
Segment business into supply chains, determine performance
Manage processes towards strategic network goals
Continuously align resources to meet process goals
2. Upstream Supply Chain 3. Downstream Supply Chains
5. Cross Border Trade
1. E2E Planning (Strategic & Tactical)
6. E2E Supply Chain Enabling Processes
Supplier (internal & external)
Customer (internal & external)
Beverage Production
Primary Warehouses
Point of Sale
Customers’ Customer
Consumers Ingredients & Packaging Materials
Secondary Warehouses
Raw Materials
Suppliers’ Supplier
Packaging
Heineken Production
Heineken Fulfillment
Information Flows
Physical flows
4. Reverse Supply Chains
Financial flows
Inbound Warehouses
Determine performance KPI’s and related targets
Model the E2E business processes
Continuously improve through capability development & TPM
Segment business into value chains & channels
Example: Upstream Supply Chain
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Horeca &
Traditional Trade
Modern Trade
Events
Direct to Consumer
Reverse
Example: Downstream Channels
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Upstream
Downstream – HoReCa & Traditional Trade Downstream – Modern Trade
Downstream – Events Downstream – Direct Consumers
Reverse – Finished Prod Reverse – RPM
Cross Border Trade
Example: requirements & focus per channel
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Typical Horeca and Traditional Trade Supply Chain - Stable/Decline
Definition Horeca outlet point of sales (Hotel, Restaurant, Café) Includes the following customer types: Company Canteens, Railway Services, Airline
Caterers Includes Traditional Trade (includes individual entrepreneurs e.g. independent retailers
such as Ma and Pa shops, simple Kiosks) Through own distribution or 3rd party distribution (Cash & Carry and wholesale) All beverage product types – Owned & 3rd party brands
Competitive requirements(1)
Performance Attributes: Key Performance Indicators: Required Performance:
Reliability …. …% = Advantage
Responsiveness/Agility …. …Days …Days
= Parity
Cost ... …% = Superior
Asset Management …. …Days …%
= Parity
Comments advantage supply reliability (customer service) to meet/exceed expectations. Responsiveness at parity to qualify for customer orders. Asset Management at parity:
Example: practical application
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Supporting an OpCo where to focus improvements per channel to meet future Supply Chain requirements and fill the gaps
Supply Chain Capability development
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Structure
Processes & Tasks
Governance & Performance
People & Competencies
Rewards & Recognition
Information & Systems
Example – Customer Collaboration Channel: Modern-Trade
Capabilities are centrally developed, but co-created with leading OpCos
Strong relationship with channels during development and deployment
OpCos can sign up to implement capabilities
Workshops, training, tools, or full implementation of systems and processes
Conclusion
Ambition
• We aim to become more efficient in getting better: define future needs, develop collectively, apply where necessary, implement efficiently
Enablers
• The combination of Capabilities and SCOR® Roadmap / M4SC has proven to be a great methodology to identify and fill gaps, providing a congruent development and deployment approach
Results
• A future requirements led, capabilities enabled operating model, consisting of
• Commonly defined processes with governance
• Channels distinguished via the M4SC approach
• Programs for Capability development and deployment
• Driving strategic action plans
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Questions?
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