1

How to Empower Your Organization to capture the value of Integrated Business Planning (IBP)

2

Valérie VandenbrouckeSupply Chain & Operations professional

Bluecrux.com

Martin JubertHead of Supply Chain

TereosStarch&SweetenersEurope

Cereal division of Tereos• €1,5 billion turnover• 9 plants that uses 3,9 Mt of cereals• 1800 people employed• Plants & offices in France, UK, Belgium,

Italy, Spain

Together we optimize your business operations- Active in pharma & life sciences, food &

beverage and manufacturing- Team of 40 specialists- Europe & abroad

3

Tereos Starch & Sweeteners

1ST

IN EUROPE

ALCOHOL & ETHANOL

STARCH & SWEETENERS

3RD

IN EUROPE

Headcount: 1800 peopleTurnover: €1,5 billion

4

July 15

Aug 15

Sept 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Ma16

April 16

May 16

June 16

July 16

Aug 16

Sept 16

Oct16

Nov 16

Dec16

Jan 17

Look Forward –End of sugar quotas

5

End of Sugar

Quota in October

2017 How do we cope with this changing market environment – opportunity or threat?

Deregulation of the market: end of quotas

Freedom for production and export

6

Financial End-To-End

NetworkOptimization

Improve profitability by reducing end-to-end costs?

How should our industrial asset network look like within 7 to 10 years?

Investments we need to take?

Integrated

Business

PlanningMarket conditions will be volatile

How to react next month, next quarter,…

A regular end-to-end financial optimization to arbitrage and take management decisions

8

July 15

Aug 15

Sept 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Ma16

April 16

May 16

June 16

July 16

Aug 16

Sept 16

Oct16

Nov 16

Dec16

Jan 17

Look Forward –End of sugar quotas

Capture Value ofIntegrated Business

Planning

9

4. Management

Business Review

1. Product & Demand Review

3. Integrated Reconciliation

2. Supply Review

Execute Improvement

Actions

IBP is …

A Monthly Process

10

4. Management

Business Review

1. Product & Demand Review

3. Integrated Reconciliation

2. Supply Review

Execute Improvement

Actions

IBP is …

24 months looking forward

11Fact based decisions

Optimise E2E marginPlan the Future

1 version of the truth

12

July 15

Aug 15

Sept 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Ma16

April 16

May 16

June 16

July 16

Aug 16

Sept 16

Oct16

Nov 16

Dec16

Jan 17

Capture Value ofIntegrated Business

Planning

Kick-off the “IBP Project”Design phase

13

Build the Project Approach

Top Down

Or Collaborative?

14

Which departments?

Build the Project Team

SUPPLYCHAIN

SALES OPERATIONS

FINANCE

MASTER DATA

Which size?

15

Which talents & skills available?

Build the Project Team

SUPPLYCHAIN

SALES OPERATIONS

FINANCE

MASTER DATA

16

Which talents & skills available?

Build the Project Team

SUPPLYCHAIN

SALES OPERATIONS

FINANCE

MASTER DATA

Complete?

17

Build the Project Approach

Tool Organization

Process

18

From Process to Organization to Tool

FOUNDATIONS

Product

Product

Clear out all process that are input for product review

Clear out industrialization of new products (NPD & plant)

Demand

Demand

Clarify contract management process

Clarify Sales&Marketing organization

Clarify negotiation approach & pricing strategy

Supply

Supply

MPS

Organization Operations

Stock strategy

Short term forecast

Costing

Energy

Raw Materials (pricing / hedging)

Data Management

IR

IR

CAPEX

Group SG&A

Master Planner

Operations Analyst

Controlling as a business partner

Product Manager vs. Sales ManagerRaw

Mat

Landed

Raw

Mat

Resin

Labor

Other

Variable

Packaging

+ Logistics

Activities

Customer

Transport

Pricing

Volume

Mix

19

Build the Project Approach

Engage your top management

20

July 15

Aug 15

Sept 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Ma16

April 16

May 16

June 16

July 16

Aug 16

Sept 16

Oct16

Nov 16

Dec16

Jan 17

Move the“IBP Project” to

Implementation phase

Kick-off the “IBP Project”Design phase

21

Project Implementation Approach

1. Product & Demand Review

2. Supply Review

3. Integrated Reconciliation

4. Management

Business Review

Crawl.Walk.Run.

Measure the evolution

22PROCESS INDICATORSSTEP-BY-STEP APPROACH

Product Demand Supply IR MBR

M5

M4

M3

M2

M1

Step-wise & motivating implementation approach

23

1. Product & Demand Review

2. Supply Review

3. Integrated Reconciliation

4. Management

Business Review

From Project Team to Process Team

You quickly recognize your natural leaders

24

1. Product & Demand Review

2. Supply Review

3. Integrated Reconciliation

4. Management

Business Review

From Project Team to Process Team

They are your change agents

& Lead by example

25

Train your change agents & communicate

MOUNTK WORKSHOP

26

July 15

Aug 15

Sept 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Ma16

April 16

May 16

June 16

July 16

Aug 16

Sept 16

Oct16

Nov 16

Dec16

Jan 17

Move the“IBP Project” to

Implementation phase

Kick-off the “IBP Project”

Transition phase

27

From Implementation to Transition

Temporary flexible solution

To sustainable environment

In a fully empowered organization

Embed continuous improvement

28

July 15

Aug 15

Sept 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Ma16

April 16

May 16

June 16

July 16

Aug 16

Sept 16

Oct16

Nov 16

Dec16

Jan 17

Results ofIBP Process

Kick-off the “IBP Project”

Transition phase

29

Ethanol vs Alcohol

Corn vs Wheat

CAPEX investment IBP enables decision making

30

July 15

Aug 15

Sept 15

Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Ma16

April 16

May 16

June 16

July 16

Aug 16

Sept 16

Oct16

Nov 16

Dec16

Jan 17

Results ofIBP Process

Lessons Learned& Next Steps

31

KeyLessonsLearnedMaster Data Integrity is hard work

Challenge to deploy decisions at all planning levels

Close to loop: Structured information channel needed

Avoid looking on short term

32

Spot supply chain future

IBP infused with big data

lightsoutplanning.com