THE INTEGRATED BUSINESS

PLANNING SEMINAR

21st September 2016

Implementing IBP in OTC Pharma

Vision to Operational Reality

Dan Grills & Sue Austin

Agenda

Where are we now?

How we made it happen

Why Exceedra?

Why change?

But first a short intro about Omega Pharma

1987

2015

$5bn

$1.4bn

0

100000000

200000000

300000000

400000000

500000000

600000000

Reckitts J&J GSK OmegaPharma

Bayer Novartis SCAHygiene

Vitabiotics Pfizer Thornton& Ross

Seven Seas

IRI data ending 31st October 2015

+14.4%

+7.4%+9.3%

-4.4%

+5.5%

+6.0%

+10.0% +3.7% +0.6%

+0.2% -0.2%

UK’s No.4 & Fastest-growing OTC Healthcare Company

Our Customers

• Pharmacy Wholesale• Drug, Grocery & Conv

Omega Pharma Brands

WHY CHANGE?

€117m €200m€20m

2012 2013 2016

Business Evolution

Little or no S&OP

Ltd business planning

Cash mgt & supply issues

S&OP underway

High level business planning

Process & engagement started

ERP + Excel

S&OP established

Effective medium & short term business planning

Process & engagement strong

High manual effort to plan & execute business

IBP in place

Co-ordinated profit & cash-mgt across the full planning horizon

Technology integrates & automates planning

Reporting enables rapid decision-making

S&OP Maturity

Stage 1React

Stage 2Anticipate

Stage 3Integrate

Stage 4Collaborate

Stage 5Orchestrate

Maturity model source = Gartner

Business case

10%

30%

10%

1%

End Customer needs – Demand Planning & Sales

End Customer needs – Supply Chain

End Customer – The Wider Business

WHY EXCEEDRA?

Why Exceedra?

Resulting new capabilities

New capability Outcomes

On line Integrated sales promotions management portal

• Simple & accessible for users – goodbye Excel!• Trade spend management – Invoice accruals.• Improved promotions spend control.

Integrated Planning & Scenarios Management

• Improved profit & cash-driven decision-making.• Improved budget building & planning.• Exception reporting for forecast analysis.

Advanced Demand Planning• Statistical Forecasting.• Hierarchies with planning at multiple levels.• NPD introduction.

Inventory Optimisation• Multi parameter stock modelling to optimise stock & service.• Improved forecast accuracy driving out the trend of +ve bias.

Management Information for all

• One version of the truth to drive alignment• Multi-dimensional views (brand, customer, SKU, time, metric)• System-generated EBIT and cash projections in-month and at

month close – faster course correction

Resulting new capabilities

New capability Outcomes

On line Integrated sales promotions management portal

• Simple & accessible for users – goodbye Excel!• Trade spend management – Invoice accruals.• Improved promotions spend control.

Resulting new capabilities

New capability Outcomes

Integrated Planning & Scenarios Management

• Improved profit & cash-driven decision-making.• Improved budget building & planning.• Exception reporting for forecast analysis.

Resulting new capabilities

New capability Outcomes

Advanced Demand Planning• Statistical Forecasting.• Hierarchies with planning at multiple levels.• NPD introduction.

Resulting new capabilities

New capability Outcomes

Inventory Optimisation• Multi parameter stock modelling to optimise stock & service.• Improved forecast accuracy driving out the trend of +ve bias.

Resulting new capabilities

New capability Outcomes

Management Information for all

• One version of the truth to drive alignment• Multi-dimensional views (brand, customer, SKU, time, metric)• System-generated EBIT and cash projections in-month and at

month close – faster course correction

HOW WE MADE IT HAPPEN

How difficult is a systems project anyway?!

Organisation

What worked well

• Project & Stg Committee

• Dedicated data lead

• Exceedra engagement

What would we change

• Project Mgr from IT

• Sales representation

Design

What worked well

• Fast-track start

• Collaboration between Omega & Exceedra

What would we change

• More detailed definition & alignment of the “to be”

Testing

What worked well

• Widened project team

• Test scripts

• Dedicated testing room

What would we change

• Allow more time!

Launch planning

What worked well

• Cutover plan – not big bang

• Finance & supply chain 1st

• Expectation management

What would we change

• More focus on data cutover

Engagement

What worked well

• Business-wide comms

• Train-the-trainer approach

• Time invested in training prep

• Phased training delivery

What would we change

• Underestimated time needed for training prep

WHERE ARE WE NOW?