Monthly Business Planning at Nestlé DSD: A Full Context Sport

Fostering Demand Planning, Forecasting, S&OP for 30+ Years!

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Monthly Business Planning at

Nestlé DSD: A Full Context Sport

Geoff Fisher – Dir. Of Supply Chain, Nestle DSD

Anthony Reese – Partner, IBP2 CPIM


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Speaker Background

Geoff Fisher Director of Supply Chain, Nestle USA – Direct Store

Delivery Div. Before merging with Nestle, he served in the

same capacity for Dreyer’s Ice Cream where he was a

member of the Supply Chain team for over 14

years. Before starting his rewarding (and tasty) career in

ice cream, Geoff was a consultant for 9 years with

Andersen Consulting and Price Waterhouse in the

Consumer Products and Retail industry segments.


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Speaker Background

Anthony Reese CPIM Is a founding partner at Integrated Business Planning

Associates and is a visionary leader with passion for

bringing exciting products to market. His early interest in

cars led to his first job as an auto mechanic and then into

an impressive career in the automotive/motorcycle

industry. Along the way, Tony earned two advanced

degrees from MIT and now brings in-depth knowledge of

Product Lifecycle Management along with strong

understanding of Sales and Operations Planning and its

current best practice form, Integrated Business Planning.


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Presentation Outline

• A Business Overview

• Our Planning Challenges

• Getting Started

• The Winning Game Plan

• So What Happened?


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Nestlé DSD – An Overview

Great Brands

National

Network

Superb “To The

Shelf” Service


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Nestlé DSD – An Overview

= Happy

Consumers!


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Business Planning Challenges

• Highly seasonal

• Highly promoted

• Large network of demand points

• Capacity Constrained

• Organizational Challenges


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Planning Challenges – Seasonality

• Two Highly Seasonal Businesses

• Two Separate Planning Teams

• One Supply Chain

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Planning Challenges – Promotions

• Our Promotions Do Well

• Planning For Them Is Challenging

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Planning Challenges – Geography

• Over 100,000 Sell To Locations

• Over 75 Warehouses

• -20F Cold Chain

• Many Plants & Lines

• Over 1,000 SKUs

• Short Shelf Life (Piz - 6mo)

• A Daily & Weekly Business Pulse

• A High Service Level Expectation

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* Demonstrative Data Only


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Planning Challenges – Constraints

• Tight capacity on popular product lines

• Requires longer range forecast accuracy

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Planning Challenges – Organization

• PLAN is king and predictability is rewarded

• Unwillingness to call off of Plan

• Skip over trade realities until too late

Below Plan Plan

S&OP Forecast?

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http://openclipart.org/detail/22860/money-bag-icon-by-chovynz


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Getting Started

• The Right Coach

• Making A Case For Change

• Start The Project

• Remain Open To Change

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Getting Started – Find A Coach

• Design A Winning Game Plan from

Experience

• Guides Project Around Potential Pitfalls

Alright Folks! I will show

you how we can win at

this game! But first – let’s

make sure we are warmed

up and ready to do the

right work!

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http://openclipart.org/detail/5370/whistle-by-kelan


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Getting Started – A Case For Change

Huddle Play: Consensus Demand Only

10 20 30 40 50 40 30 20 10

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X

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Partial Huddle:

Finance &

Demand

Planning

Other Team

Members On

The Sidelines

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Lack of a huddle forced “at the line” audibles

10 20 30 40 50 40 30 20 10

10 20 30 40 50 40 30 20 10 X

X

X X

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W

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S

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Players Join The

Game After The

Huddle – Ready

To React

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Other operational forecasts not aligned

Many “broken plays” and missed

scoring opportunities – big plays

always needed to achieve PLAN

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Getting Started – Project Start Up

• Gained executive

support for an S&OP

Project

• Built a core team

• Some skeptics thought

we were fine

• As-is Sessions were

cathartic – the

dysfunction was

unanimous

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Getting Started – Changed Game Plan

• Crossed paths with a new Monthly Business

Planning project out of HQ

• Saw the approach as aligned

with our To-be approach with

the addition of better customer

alignment highlighted during the As-is

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Winning Game Plan

• Define The Core Process

• Build The Transition Plan

• Execute Flawlessly

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The Winning Game Plan – MBP

MAR

Monthly

Account

Review

Updated

Customer

Demand

Forecast

Customer-

Level

Inputs

MSR

Monthly

Sales

Review

Updated

Business

Demand

Forecast

Consol.

Business

Demand

Forecast

MGR

Monthly

Gap

Review

Updated

P&L

Forecast

&

Scenarios

New P&L

Forecast

MFR

Monthly

Forecast

Review

Aligned

Business

Forecast

Full

Business

Forecast

MOR

Monthly

Operations

Review

Aligned

Supply

Outlook

Aligned

Business

Forecast

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The Winning Game Plan – Transitions

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The Winning Game Plan – Execution

• Assigned meetings to functions/leads

• Rolled out one meeting at a time, get good

at the basics

• Broke old habits and held Execs out of

early cycle meetings

• Created safe environment for start up

meetings and feedback

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So What Happened?

• Results Achieved

• Best Practices

• Take-Aways

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Results Achieved

• Best Ever Forecast Performance

(>5 percentage points improvement)

• Better and Earlier Alignment on “One Number”

(Proactive decisions made earlier)

• Cross-functional Engagement

(Right People + Right Topics + Right Time = Trust)

• Achieving Plans with Less Stress

(Eliminated off-cycle meetings/decisions)

• Worldwide Standard Process for S&OP

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Lessons Learned – Best Practices • Create a Safe Environment

• Start with unconstrained demand

• Constrain Transparently

• Align P&L on Constrained Demand

• Collaborate – Share Leadership across all key

planning functions (Right People, Right Topics,

Right Time)

• Track Implementation To Ensure Process Fidelity

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Lessons Learned – Take-Aways

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Our MBP Mantra

When you are not feeling the MBP magic,

just boldly say our project slogan…

“MBP IS FOR ME!”

And you will feel happy inside

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Questions


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Contact Information

Geoff Fisher, Oakland, California

[email protected]

Anthony Reese, San Jose, California

[email protected]

mailto:[email protected]

mailto:[email protected]

Monthly Business Planning at Nestlé DSD: A Full Context Sport

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Transcript of Monthly Business Planning at Nestlé DSD: A Full Context Sport