Cargill’s Integrated Supply Chain -...

Cargill Integrated Supply Chain – SAP Leonardo Live © 2017 Cargill, Incorporated. All rights reserved.CONFIDENTIAL. This document contains Cargill Confidential information. Disclosure, use or reproduction outside Cargill or inside

Eric Johnson

Vice President Plant Operations

Cargill’s Integrated Supply Chain

Some of these changes we know well.

Other trends and their impacts are still unfolding.

Cargill’s approach to the changing world

Since our founding more

than 152 years ago,

we have remained a

privately held company,

which enables us to

plan and invest

through a long-term

lens, focused on

the future.

Our purpose

To be the leader in nourishing the world in a safe, responsible and

sustainable way.

Our core is strong and our reach

is global

150,000 employees in 70 countries

Capabilities

What will set us apart

Thought Leadership

and Stakeholder

Engagement

Trading and

Management

Sustainable

Supply

Chains

Digitalization

Analytics

Market

Insights and

Innovations

Cargill’s game plan for success

Purpose

Why we existCargill will be the leader in nourishing the world in a safe, responsible and sustainable way.

Vision

Where we

are going

We will be the most trusted partner in agriculture, food and nutrition.

Cargill’s Integrated Supply Chain

1Operating as One Team across

an integrated, end-to-end

supply chain

ZEROCreating ZERO Harm –

protecting people, communities and

the planet

1Capturing One Billion Dollars

annually in efficiencies, cost

improvements and value creation

Business Operations & Supply Chain

Cargill’s process framework

Cargill’s supply chain processes

Plan: Integrated Business Planning

Animal

Nutrition

Agricultural

Supply

Protein &

Ingredients

& Bio-

Industrial

SAP – IBP activities across Cargill businesses

Supply Chain Planning Priorities

• Deploy Standard SCP minimum metrics and standard terminology

• Roll out playbooks for CIBP and foundational processes

• Support enterprise and group CIBP/Foundational process implementation

Cargill Integrated Business

Planning (CIBP)

Foundational Planning

Capabilities

Business

Review

Integrated

Operating

Review

Supply

Review

Demand

Review

Product

Management

Review

CIBPSupply Planning & Detailed

Scheduling

Inventory Planning

Demand Planning

Monthly planning cycle flow

Business Intelligence Input

Portfolio Input

Enterprise

Others

Capability

Corporate Strategy Portfolio History Other

Group BRPreparation for Group

Business Review

cascade

20 working days 10 working days

Next cycle

Preparation for

Enterprise

Business Review

Enterprise BR

OUTCOME

Week 1

Week 2Week 3

Week 4

OUTCOME

Group IOR

Issues as they arise

A monthly process discipline and synchronization is essential for the process to be effective.

IBP lessons learned

It’s all

business

and IT

simple

SAP IBP chosen …

…as needed technology solution

IBP modules in use on active projects

S&OP Demand Response & Supply Inventory Control Tower

• Single data model

• What-if scenario capability

• User experience / interface

• Scalability

• Architecture flexibility

• System integration flexibility

• Cloud-based solution with

SaaS model

Source: Sourcing & Procurement

Design and implement a best practice

source-to-pay process using

technology solutions with a common

data foundation, based on industry

benchmarks for efficiency

and effectiveness.

• Standardization

• Compliance

• Governance

• Efficiency

• Disparate P2P

processes

• Inconsistent

supplier

management

• Varying internal

controls

• Inaccurate data

Current State Future State

Achieving best-in-class

Ariba, OpenText,

Existing ERPs

Ideal Technologies &

Integrations

Strong Partnerships

CSSP, CBS Finance, Legal,

D&BI, Businesses, Suppliers

Data, Procurement, Invoice-to-PayCore Pillars

People Strategy

Change, Communication, Education

Ariba drives our procure-to-pay process

AnalyzeSpend Procure

Invoice & Pay

iAnalyze

SAP BI

Sourcing P2P

ERP/EPM

Ariba P2X

Ariba APC

ERPAriba

NetworkAriba CLM

Source

Sourcing

Monitor & Manage

Various

Contract

Create

Requisition

Approve

Requisition

Create

Purchase Order

Receive Goods

& Services

Process Invoice

& Payment

Procurement Invoice & Pay

P2P (Procure-to-Pay)

AN (Ariba Network)

Invoicing

APC (Ariba

Procurement Content)

Invoice-to-Pay Solution

Make: Plant Operations

Data drives results in Plant Operations

QualitySafety & Security

EnergyUtilization

Process

Efficiency

Regulatory Performance

Asset Health

OperatorsCraftsmen

Supervisors

Process EngineersProduction Superintendents

COE Experts

Location ManagersRegional/Global OpsBusiness leadership

InboundProduction

Continuous - Batch

Production

Weigh, Pack, Label

InventoryOutboundQuality

Warehouse

Plant Performance Management

Different types of data…

…generate different types of intelligence and actions

Generates

MOMOperational

Intelligence

Control Systems / PLL

Input / Sensors / Controls

Process

Asset and

Process

Intelligence

Business

Intelligence

Level 1

Level 2

Level 3

Level 0

Generates

Shop Floor Solution – MII , Savigent

SAP Business Suite

(ECC, TM)

Plant Systems

common plant system

messages

standardized

integration

Global

business - specific

Logical Landscape

plant users

cache &

re-post data

In combination with OSi- PI Data collection

Commonality increases the speed at which

we can mitigate risks and realize value

Deliver: Transportation & Logistics

Management

Why SAP Transportation Management?

TM was selected due to:

• Tight integration with ECC

• Ability to support multiple modes

• Optimization capabilities

• Capitalize on ROI

Desired common global TM:

• Leverage Consolidation activities

• Provide clear visibility to freight spend

• Harmonize carrier experience across Cargill

6,300users

875carriers

~1.5 millionfreight orders

Cargill’s SAP journey: Transportation Management

TM 8.0

TM 9.1

TM 9.3TM 7.0

What Transportation Management Brings to Cargill

• Automatic freight order planning

• Automatic tendering or carrier

assignment

• EDI and portal access for carriers to

reduce phone calls

• Reporting of exception cases

• Invoice screen helps resolve

discrepancies with carriers

• Match pay and tolerance process

reduces manual effort

Automation and Standardization

• Goods receipt & put-away to bins

Picking for staging & shipping

Stock transfers

Product dispositioning

Inventory counting

Gaining

experience with

Warehouse

Management

Purpose

Why we existCargill will be the leader in nourishing the world in a safe, responsible and sustainable way.

Vision

Where we are going We will be the most trusted partner in agriculture, food and nutrition.

Capabilities

What will set us apart

Thought Leadership

and Stakeholder

Engagement

Trading and

Management

Sustainable

Supply

Chains

Digitalization

Analytics

Market

Insights and

Innovations

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