3512 business transformation at bq using sap forecasting replenishment

Managing Change With

SAP Forecasting & Replenishment

Suren Sornalingam & Aadil Jappie

[

Real Experience. Real Advantage.

[

We are the largest home improvement and

garden centre retailer in the UK & Europe

employing more than 30,000 people nationwide.

We offer around 40,000 inspirational home

improvement and garden products for the

homemaker, occasional to serious DIY'er, and

trade professionals.

Currently, we have 350 stores in the UK, 9 stores

in Ireland and more than 60 stores opened

internationally, including B&Q Beijing, which is

now the largest B&Q store in the world

All about us..


[

UK

SPAIN

FRANCE

POLAND

RUSSIA

TURKEY CHINA

GERMANY

IRELAND

Kingfisher is an international retail business with over 950 stores in eight countries.

We employ 80,000 people and nearly six million people visit our stores every week.

Sales over: 10.8 billion

Pre-tax profit : 807 million

Employees : 80,000


[ Project

Delivers


[


[

The Customer


[

Helping our customer


[ 18mm snap-off knife


[

Last year This year


[ MRP 4.7


[


[

2 years of sales history

F&R 5.1


[

Causal based forecasting

Missed sales opportunity


[

Too much stock

Right stock for us And our customers


[

Order forecasts to share with vendors


[

Stores are treated uniquely


[

Demand Infuencing factors (DIFS) Pro-actively manage promotions,

events, micro-seasons etc..


[

Reporting converts data

into easy decision making information






[ Transparency of F&R performance at every

level by exception

Confidential and Property of B&Q. Data is for demonstration purposes only and may not be representative


[


[

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Week

2011 2012

Housewares Stock Housewares Availability

96.0%

96.5%

97.0%

97.5%

98.0%

98.5%

99.0%

99.5%

100.0%

Week


[ Stakeholders

Supply Chain

& Commercial

Vendors

Logistics

Stores

Supply Chain

& Commercial

Stores

The Customer

Board

Sponsorship

/Steering

Group


[

130 hours of Supply Manager and Analyst workshops delivered over 18 months

6 User Acceptance Testers carried out 3 months of testing the system

Subject Matter Experts heavily involved during design, training development and

training sign-off

3 conference calls to share knowledge between Supply Analysts and their

equivalents at other retailers who have been using SAP F&R for a number of years

It was great to speak to a user of our new system and hear how passionate they were about the system itself and

what great results they have seen from it.

I feel that some of the best practice we have taken from them which

we are planning to deploy in our business will only help with

a smooth transition to SAP F&R.

Readiness & Engagement

: The Supply chain Journey


[ : The Supply Chain Journey

Training

PowerPoint led

training

Interactive

breakouts

Trainer led

demos

Hands-on

computer exercises

+ + +



[ : The Supply Chain Journey

Support for Go Live & beyond

Business-led Go

Live sign off

Super User

support Daily update

huddles

14

100% of all Core 1500 & Fast Seller store/sku sample

forecasts are explicable. Aggregated macro sample sku

level sales forecasts are acceptable

Are store level Forecasts for Key

articles robust at a macro & micro level

in Dry Run?

Dean Hawkridge

Chris Moorhouse

4.1

100% of nominated scripts for the agreed sample

completed successfully

Have the Masterdata validation scripts

been executed successfully for the Pilot

Buying Groups

Dean Hawkridge

Chris Moorhouse

3.2

All products with < 1 year history and a seasonal shape

have a reference article applied

Have all required Reference articles

been applied?

Dean Hawkridge

Chris Moorhouse

3.3

Documented roles and responsibilities for data team

covering at least DIF entry, LT/MOQ changes, Planning

Calendars

There is a Central function set-up to

manage all F&R Masterdata changes

Spencer Maynard3.4

4 - Sales & Order Forecasts

3 - Data Validation

100% of Selling Class 3,4&5 store/sku sample forecasts

are explicable. Aggregated macro sample sku level sales

forecasts are acceptable

Are store level Forecasts for slow

selling articles robust at a macro &

micro level in Dry Run?

Dean Hawkridge

Chris Moorhouse

4.2

RAG

3.5

3.1

All periods of supply availability < 90% have been

filtered.

Masterdata Validation scripts completed and tested

for all AP373 fields

Success CriteriaWho Readiness Check

Graham

Simpkin

Have the Required Dry Run Data

Validation scripts been drafted to

cover all key Masterdata inputs

Graham

Simpkin

Data Cleanse for Consumption

history and DIFs has been

completed

Pilot Readiness Criteria 3 & 4Pilot Readiness Criteria 3 & 4



[ : The Store Journey

Attended by Regional, Unit & Stock Managers in all 30 regions

Combination of F&R information and general stock management training

Excellent feedback:

Fantastic! This reduces task that doesnt

add value or improve

availability

Hurrah!

Its great to see the investment B&Q is making to

make it easier for stores to take

money

Regional F&R

Sessions

Opportunity to directly engage with Trading

Managers across all stores

Positively confirmed that Unit & Stock Managers

were actively training and

preparing their teams for

F&R

NEC Product Show

Established as the route for store feedback

Has worked well as a temperature check for

impact on stores

Supported by specific issue resolution within the

Orange Team Post Implementation

Conference Calls

F&R


[

Legacy systems

reversible interfaces (ECC6 ready) Co

mm

on

gro

up

pla

tfo

rm

Eas

ier

& E

xp

an

d

Help

ing

ou

r cu

sto

mer

: Delivering Quality

Change Project challenges

1. Communicating not over-

communicating

2. Making it simple, keeping it

simple

3. Domino effect of missed

milestones

4. Motivating an evolving team

Technical Project challenges

1. Navigating a complex

legacy environment

2. Data volumes

3. Staying Vanilla

4. Test, Test, Test


[

Legacy systems

reversible interfaces (ECC6 ready) Co

mm

on

gro

up

pla

tfo

rm

Eas

ier

& E

xp

an

d

Help

ing

ou

r cu

sto

mer

: Delivering Quality

Project principles

1. Customer focussed

2. Executive accountability

3. Business ownership

4. Trust the experts

5. Change management led by the business

6. Business processes re-aligned to IT

7. Keep it simple

8. Technology kept standard

9. One team, build great partnerships

10.Motivational Brand


[

Customer led

Landing sustainable change One process, one team Vendor collaboration Engaging our people Results


[

Thank You!!


[

32

[

] Thank you for participating.

SESSION CODE: 3512

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3512 business transformation at bq using sap forecasting replenishment

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