Copyright 2010 Del Monte Foods. All rights reserved. 1 Copyright 2010 Del Monte Foods. All rights reserved. 1
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Predictive Planning-
Driving Strategy and Increased Trade
Efficiency & Effectiveness
Copyright 2010 Del Monte Foods. All rights reserved. 2
Purpose
Share Del Monte’s journey from Trade Promotion Management to a Predictive Planning System
• Decision
• Process
• Deployment
• The Future
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Agenda
Del Monte Foods Background
Roadmap to Predictive Planning
Del Monte Journey
Investigation Phase
Communication & Change Management
Deployment Process
Training
Future Roadmap - Integration
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Del Monte is a Branded Category Leader
Pet
Pet Snacks
Pet Food
Dry Cat
Wet Cat
#1
#2
#2
#2
Consumer
Fruit
Vegetable
Tomato
Broth
#1
#1
#2
#2
Source: Nielsen scan and all outlet household panel 52 w/e 1/10
Consumer Products
~50%
Pet Products
~50%
Fiscal Yr 2012 Total DLM Net Sales: $3.7B
Del Monte has grown through acquisition, innovation , and marketing
Del Monte Foods Background
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TPM – 2007 Implementation Success
The Need for a Best in Class Trade Promotion Management Process and System to drive efficiency
• New Trade Promotion Management Process & System (Siebel) Simpler, more efficient, easier to plan
• Real-time trade spend effectiveness capabilities
• Proactive reporting Enhanced Dashboard w/ drill down
• 1 forecast • Seamless integration with customers and
S&OP • Used by all retail sales
• Administratively complex system, out of date, cumbersome, limited flexibility, difficult to update/maintain
• Trade Planning - labor intensive • Multiple sales forecasts • No Supply Chain Integration – no link to
S&OP • Not used by all channels/customers
Where We Were Where We Are Going
GOOD GREAT
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ATLAS Implementation
Sept 07 & May 08
July 08 May 09 July 09
Development of Del Monte’s Holistic TPO Business Case/RFP
(Advanced Analytics & Predictive Modeling)
Del Monte Roadmap – Journey to Predictive Planning
Sept 09
Atlas Enhancements
Sept 09 Jan 10 April 10 Trade ROI Workbench
Project
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Del Monte Roadmap to Trade Optimization
July 12 TPO
Implementation/ Training May 2012
Predictive Planning Development
Begins
Trade ROI Workbench Delivered*
Trade Optimization Predictive Trade Planning
July 10
March 11 TPO RFP Vendor Chosen
On pause… remember – no only means not
today
On Pause – New CEO
June 13 Integration
Oct -Feb 12 Persistence
Trade Efficiency Project
*Delivered to Sales Finance only
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Vision: Predictive Sales Planning
What is the vision? To design and implement a Best in Industry Predictive Planning System that utilizes scientific modeling to simulate scenarios with brands, categories, mix, pricing, timing, duration, competition and other variables to improve plans. The automated “sandbox” will enable our teams to work more efficiently to drive improved planning, effective trade spending & advance Del Monte’s position as a Strategic Supplier.
Benefits • Enabled Joint Customer Business Planning on a Customer’s timeline
• Robust pre-promotion analytics, scenario planning, retailer profitability metrics & total category evaluation
• What-if analysis calculated in minutes vs. hours, increasing productivity
• Increased plan accuracy that continues to improve over time
• Improved trade spend effectiveness
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9
Cross-functional Team
As you build out your cross-functional team, consider these groups:
Steering Committee
Project Management – Business lead and IT lead
Project Core Team
Subject Matter Experts – Customer Marketing (HQ and Field Sales)
– Sales teams super users
– Finance
– IT
– S&OP
– Integrated Business Planning
– Audit
– Training
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1. Business Case • Sell organization on the need
2. Vendor Capability Assessment • Vs. Organization needs
• Checklist of each system features & benefits
3. RFP Development • Questionnaire for each vendor -answers & describe system functionality
4. Formal Vendor Selection
5. Vendor Review • Presentations occurred over 2 days
• Immediate vote on pro’s and con’s of each at the end of day 2
Investigation Phase
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Communication
Build Excitement and Anticipation
1. Intro demo meetings with customer teams & HQ to reveal the new tool
2. Team Director Calls - education & answer questions
3. Create a communication vehicle, tool name, logo & video
4. Make the Launch exciting!
The Goal of early & often communication is to EMBED:
1. Vision – what we are doing and why
2. Users can trust the numbers & lean on the science
3. The tool is simple, intuitive and fast
4. How the tool fits in the planning process
5. Dedicated support team- answer questions and provide assistance
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COMPASS Inserted Into the Planning Process:
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Change Management
Systems & Tools Plan & Analyze Trade Promotions
Manage Profitability & ROI
Ownership/Accountability
Flexibility/Adaptability
Dedication
Commitment
Positive Attitude
80%
20%
The Human Element
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Deployment Process
2 years syndicated RMA level data
Product information
List prices
Case packs
Cost of goods
Customer delivers data
IBM DemandTec platform cleanses &
models data
Data extraction
Sparse data population
Cleanse and load
Build models, validate forecast accuracy
Analyze expected results
Customer builds plan using
IBM DemandTec software
Build promotion
events
Build complete category
plan
Improve with what-if
analysis
Sell in new plan
Leverage retailer metrics
Drop results into excel and PPT templates
Submit into retailer
Quantify impact on category / private label
Data…. Training…
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Deployment Timeline
7/16/12
IBM DemandTec
COMPASS
Release
Phase 1 *
(Top 8 accts)
5/1/12
Data
Delivery
Phase 2:
January
(2 accts)
Phase 3:
April 1
Walmart
Phase 4:
Integration
with F15
planning
June
JCBP
June
Data Modeling
& Attributing
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Compass to Atlas Planning Template (Phase I)
Conversion
Baselines
Promotional Tactics
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Training
Introductory Training – Customer Facing:
Two days of interactive, hands-on training for each customer sales team
Detailed training manual, planning support tools and practice activities
Training – Headquarter Focused:
Interactive, hands-on training sessions for Headquarter support teams: Sales Finance, Customer Marketing teams
These functions support the sales teams to ensure effective use of trade funds; review output for in-market planning sessions
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On-going User Support
Bi-weekly Compass Share Group calls to share team wins and tips & tricks
Weekly Journal newsletters Onsite or Webcast Workshop Sessions Issue Escalation Process: User Discussion Board Software Support
Training Certification Program
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Early Results Are Very Positive – AHA’s
Faster - Increase speed to insights and the best plan
Intuitive- Simple Application
What-if - Fast, yet robust side by side comparison
Ability to: “Manage the total category”
– Compare EDLP tradeoffs
– Evaluate the competition
– Manufacturer and category incrementality
Robust Analytics: (incl. historicals and bump charts in one
system – time savings)
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Early Results Are Very Positive
Usage – All teams have embraced the system and are
facilitating F13 strategic re-planning and F14 initial customer planning
Expected Return (based on business case)
– ROI Improvement (Monitor with actuals in May)
Early Results – Adoption, used for 2014 customer planning
– With drought & impact to supply, COMPASS was used to revise plans/re-strategize
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Future Roadmap - Integration
Integration – Reduction in administrative burden
– Step 1: Phase 1 Bridge - Planning template delivered
– Step 2: System Integration - Implementation Sales target 6/1/13 to coincide with Joint Customer Business
Planning for F15