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Evosys’ VCP Implementation at
Kellogg’s India Pvt Ltd.
Case Study
Background
Kellogg’s began with only 44 employees in Battle Creek, Michigan, in 1906 & today manufacturesin 18 countries and sells products in more than 180 countries around the world. For more than100 years, innovation and commitment to being the best in the categories in which Kelloggcompetes has guided the Company. From being the first company to offer premiums in cerealboxes to being the first to fortify cereals, Kellogg has historically been a leader in industry,innovation and marketing.
Kellogg India is planning to Implement Oracle Demantra & Advanced Supply Chain Planning toenable a system to forecast the demand by interactively retrieving the required data from thedepartments instead of manually retrieving it. The modules seamlessly integrate with the OracleE-Business suite already implemented at Kellogg India.
Kellogg’s has one Manufacturing Plant at Taloja, and many distribution centers at various citieslike Ahmedabad, Bangalore, Chennai, Goa, Hyderabad, Kanpur, Mumbai, Pune etc. Demandsfrom each distribution center collected at HO Mumbai by the Demand Manager. In an S&OPmeeting the Supply Plans are frozen for the next month. The Procurement Manager plans theMaterials Plan based on the Demand input and keeps the cover of long lead time items. Thedistribution plan is derived based on the production output from the Plan. For distributionplanning, the planner also considers the safety stock to be maintained.
Project Details
Number of Employees: 300Number of Users: 40
Module: Advance Supply Chain Management (CBO)
Integration with DISHA (Secondary Sales System)
Operating System: HPUXITANIUM
Hardware Platform: ASCP - HP INTEGRITY RX2800 I2
Project Kick off Date : 15-May-2012
Project Resources
Evosys Resource Details :
• Project Manager - 1• ASCP Functional Consultant - 1• Demantra Functional Consultant- 1• Technical Consultant -1
Kellogg’s Resource Details:
• Project Manager -1• Technical Manager – 1• Demand Planning Manager – 1• Materials Manager – 1• Distribution Manager – 1• Logistic Head – 1• External SCM Consultant - 1
Generate the Sales forecast baselines and align it with the sales and marketing activities to
generate the final forecast.
Derive Plan directly from approved Sales and Operation Plan (S&OP meeting).
Understanding the purchase and Plant capacity.
Revise the sales forecast based on the inputs from the S&OP discussion.
Consolidate the number of (20 CFA’s + 1 Plant) forecasts (Sales Estimates) to single master
forecast. This Consolidated Forecast will be integrated with this ASCP Plan.
There would be only one single consolidated ASCP Plan defined in the system which will
suggests the Supplies for Production Plan (Packing and Process), Procurement plan
(Purchasing Requisition) & Dispatch Plan (Internal Sales Orders).
To replace the existing complex XL sheet based planning which is used by CFAs and Plant.
Real time data visibility through the system.
Business Problem/Need
Reduce Planning cycle time with holistic planning and optimization and Achieve higher
inventory turns.
Drive decisions directly into execution i.e. Releasing the Planned Orders (Batches, Internal
Requisitions & Purchase Requisitions) directly from the Plan.
Provide Supply chain Planning workbench for the Planner.
Bring the forecast/estimate closer to the consumption point (Secondary Sales numbers).
Ability to expand the aggregated plans to detailed executable plans (In terms of time
buckets, the monthly plan needs to be segregated to detailed weekly plans).
Consolidated Demand & Supply view.
Ability to validate the Available to Promise for all the Distributor Sales Orders.
Generate the dispatch plan by prioritizing requirement v/s availability including planned
quantity.
Business Problem/Need (Contd.)
Generate Demand
Plan in Demantra
ASM validate Demand
Plan
ASM can optionally correct the forecast
by entering the ASM override field
RSM validate Demand
Plan
RSM can optionally correct the forecast
by entering the RSM override field
SCM Head validate Demand Plan
On-hand stockTotal outstanding supplies
WIP Batches
SCM Head can optionally correct the forecast by
entering the SCM- Head override field
ASCP PlanningMaterial MasterSupply Master
Inventory Rules
Material Plan Production PlanDistributionPlan
Purchase Reqs. Internal Reqs. Prod Batches
The Solution
This solution will improve the overall efficiency of the supply chain by a Gross Margin
enhancement of 1% and reduce decision making latency.
Kellogg’s will achieve a customer service level of 90% on-time fill rate.
Help reduce supply chain planning time to 30% and make optimal supply chain
decisions in real time.
It will enable transition from supply chain based on inventory to supply chain based
on information by improving inventory turns by 50%.
This solution will help in providing centralized, holistic and optimal planning solution
and analysis tools.
Kellogg’s will get a comprehensive distribution planning and replenishment solution.
With this solution, Kellogg’s can achieve a forecast accuracy of 70%.
Expected Benefits for Kellogg’s
Involvement of the Senior Management throughout the implementation process.
Custom development of promotions as causal factors and improving the quality of
forecasting and forecast accuracy.
Supporting the implementation with the right set of reports.
Identifying the product issues at the earliest and involving Oracle Support for early
fixes.
Critical Success Factors
Why Evosys
• Leaders to Implement ASCP & Demantra along with other Edge Products in ME Region.
• VCP team consists of SCM and Materials Management Domain Experts.
• Resources with Multiple Implementations Expertise in different business verticals.
• Dedicated Practice specially to take care of customers of VCP and to bring in the right focus
of VCP Practice.
• Offers services Not only in VCP space but also ERP & EPM and hence we specialize in
integration and end to end solution.
Hea
lth
care
• KFSH & RC,KSA
• SEHA,UAE
• NGHA,KSA
• NEP(NHS),UK
• KHUH, Bahrain
• KKESH, KSAP
ub
lic S
ecto
r
• MOH,UAE
• SCT,KSA
• Musanada, UAE
• Dubai Government, UAE
Rea
l Est
ate
• Ezdan, Qatar
Man
ufa
ctu
rin
g, R
etai
l &
Dis
trib
uti
on
• Zams (Global Export Marketing Co.), UAE
• ATE, India
• AQESA, KSA
• Riyadh Cement, KSA
• Shalina, India
• Sanipex, Dubai
• SAMCO Farm Superstores, KSA
Div
ersi
fied
Gro
up
s
• SAAD,KSA
• Ali Bin Ali, Qatar
• Corodex, UAE
Tele
com
• Etisalat, UAE
• Nawras, Oman
• Vodafone, EgyptLo
gist
ics
& T
ran
spo
rtat
ion
• Qatar Navigation & Qatar Shipping (Milaha)
• Al Theyab Transportation Co. Riyadh
• Arabian Hala, KSA
Foo
d In
du
stry
• Kellogg's, India
• Depco, Bahrain
• Dudhsagar, India
Evosys Industry Bandwidth at a Glance
Questions?
Thank You
Global Headquarter
Evolutionary Systems Pvt Ltd.4th Floor, Drive In Cinema BuildingDrive In Road, Ahmedabad, IndiaBoard: +91 79 4005 3350,Fax: +91 79 4005 3349,
Follow us on -
ME Headquarter
Evolutionary Systems FZ Arabia LLCBldg No. 11, DIC, Dubai, UAETele: +9714 4380181,Fax: +9714 4380180
U.K./ Europe Headquarter
Evolutionary Systems Company Ltd. 344-354,Gray’s Inn Road King’s Cross, London United Kingdom WCIX 8BP Tele : +44 (0) 207 1642255Fax : +44 (0) 207 1642001
E-mail us at:
www.evosys.co.in
http://www.facebook.com/Evosys
http://www.linkedin.com/company/evosys
http://twitter.com/evosysoracle