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Innovations & Best Practices from Clorox, P&G, General Mills
Walmart & Coca-Cola
Bobby Miller, Executive PartnerORTEC International
Corporate Transformation at GA Pacific
Creative Class is Driving the Economy
How can I build relevancy in the multi-channel world?
How can I re-define my supply chain and introduce innovations?
How can I build a business case for REAL ROI? How can I increasing the value of the SAP
investment?
Learning Points/Today’s Agenda
Global Consumer Economic Outlook
Pressure on Supply Chain Cost
Offense Defense
2015 SC Insights 25 Supply Chains to Admire
1. Amazon2. McDonald’s3. Unilever4. Intel5. Inditex6. Cisco Systems7. H&M8. Samsung
Electronics9. Colgate
Palmolive10.Nike11.The Coca-ColaCo.12.Starbucks
13. Walmart14. 3M15. PepsiCo16 Seagate Technology17. Nestle18. Lenovo Group19. Qualcomm20. Kimberly Clark21. Johnson & Johnson22. L’Oreal23. Cummins24. Toyota25. Home Depot
2015 Gartner Top 25 Supply Chains
Apply Supply Chain Leaders
Best Practices & Innovations
What to do?
Raw Material
Replenishment Deployment & Demand Load Buildin
g
Customer Orde
r Sizin
g
Daily Rout
e Planning
Pick,
Pack, Load
SAP Centric Route, Load and Warehouse Control Optimization Platform
End to End Value
CPG Company Supply Chain
Market Leaders Best Practices
APO & ORTEC Project Timeline
Selection of APO, Smart Op’s & ORTEC
Full suite implementation launched across Clorox NA
Implementation Schedule Considerations:
“Big Bang” implementation strategy Transcend 17 years of customized legacy systems Downsizing & outsourcing of IT services
13
Replenishment Deployment &
Demand
Customer Order Sizing
STO & VMI Order Load Building
Business Challenges & Drivers
Underutilized trucks – Clorox pays the freight Reduce greenhouse emissions Directive to centralize planning processes Reduce greenhouse emissions Move planning systems to SAP APO Critical gaps on in SAP truck load building
Replenishment Deployment &
Demand
Customer Order Sizing
Project Deliverables
Solution to create optimal stock replenishment truck loads
Solution to create optimal VMI replenishment truck loads Solution to optimize sales order truck loads Integration to SAP APO and SAP ECC
Replenishment Deployment &
Demand
Customer Order Sizing
16
Raw Material
Question: How do you optimize this?
CPG Inventory Analyst SAP1 2
34
5
1. Order creation, presented to inventory analyst2. Order sent to ORTEC with following rules:
Priority 1 = base need, promotions or events Priority 2 = analyst changes Priority 3 = fill
3. ORTEC load optimization4. Sent to Datalliance5. Analyst reviews, launches order
ORTEC Integration Process – VMI OrdersSaaS VMI Integration to ORTEC & SAP
What Inbound Materials do I manage as a buyer that my company pays the freight?
How can I identify what a full truck of supplies really is?
Since I pay for the freight, the inbound supplies should be maximizing the capacity
in the truck.
Purchase Order Freight Optimization will ensure full
truck utilization.
Sales Order Load Building
A DAY IN THE LIFE OF A DEPLOYMENT PLANNERWhat are the priorities of the materials?
What’s on promotion? What’s considered turn business. What
needs to be expedited? I need to backfill the trucks to the fullest
possible.
Stock Transfer Requisition Load Building
Sales Order #1
from Customer
ABC
Sales Order #2
from Customer
ABC
Sales Order #3
from Customer
ABC
Sales Order
#4 from Custome
r ABCGroup Multiple Sales Orders into 1
Consolidated Order
A DAY IN THE LIFE OF A CUSTOMER SERVICE REPRSENTATIVE
Order Consolidation
Sequenced Trips
Select My Orders
Build Full Truck loads with limited
truck capacity
I need the ability sequence multiple deliveries and build
full truck loads
A DAY IN THE LIFE OF A CUSTOMER SERVICE REPRSENTATIVE
Multi Sales Order Drop Offs
Walmart increased private fleet
efficiency by 3.2% in 2014,
accounting for an 87.4%
improvement over 2005 baseline
Doing More With Less Innovation
Cases transported (M)
Miles driven (M)
•335 million more cases shipped
•300 million fewer miles driven
Note: Performance based on Walmart fiscal year
FY08 FY09 FY10 FY11 FY12 EDaily Route
PlanningPick,
Pack, Load
The Coke One SAP Logistics Solution
Next Generation DSD Strategic and Operational Process Powered by ORTEC
Order Taking and
Transmission
Picking and Loading
Strategic Route to Market (RTM) and Customer Service Policy
(CSP)
Load DesignTracking & Control
of Sales and Delivery
Operation
Daily RoutingStrategic Route Planning
“Closed-Loop”Continuous
Improvement Reporting
Delivery Execution
Visit Plan Daily Route Planning
Pick, Pack, Load
Closed Loop Planning to Execution
Weight Performance Measurement
ABC ABC ABC
Average Weight Full Truckload 53’ Foot VanMax DOT 49,500
Source: ORTEC Benchmark from Like Companies, Clorox Current KPI ABC
Best –in – Class Performance
Before ORTEC Optimized Trucks
After ORTEC Optimized Trucks
The imaginary “White Line”
Reduction in transportation cost 7 - 15%
Visibility to ensure discounts to customers are correct
Increase customer service and deployment planner productivity by 50%
Reduce warehouse pick and load time by 20%
Return On Investment
Don’t wait for a good economy to improve your supply chain.
Disrupt the norm. Be creative.
Follow the supply chain leading companies
Apply solutions to your SAP Ecohub that will add common sense value.
Key Takeaways
ORTEC DNA
