2

3

Old situation

New situation

? ?

How to change? Right SAP backbone

Resources available

Global Tool Functionalities

Data StrategyAlignment

are CHANGINGTIMES

Zoeterwoude

Den Bosch

Wijlre

Wijlre Brand: The Craft Brewery

Zoeterwoude: The Flexible Global Brewery

HEINEKEN Netherlands Supply: Our Breweries

Den Bosch: The Innovation Brewery

Deliver top line growth

In 2018, Heineken®

brand grew 7.7%, its best performance in a decade

Accelerating Heineken®

Double digit growth of international and local craft

brands

Building Craft & Variety

Double digit growth driven by Tiger, Desperados, Birra Moretti

and Krušovice

Developing our international brands

◻ Mid-single digit growth. ◻ Strong growth in Europe, Egypt,

Russia, Ethiopia and Haiti

Leading Low- and no-alcohol

◻ The Blade, a counter-top draught system for small outlets, rolled-out in 2018◻ Sales of The Sub accelerated in 2018

◻ Continue to develop and roll out B2B and B2C platforms across markets

Driving draught innovation and e-commerce

Strong local positioning providing scale and route-to-

market power

Winning with local brands

Double digit growth, led by South Africa, Spain and Vietnam

Shaping the cider category

CHANGING DEMAND

Low & No alcohol

DRINK DIFFERENT

Pils

GOOD DEAL

Craft

DRINK DIFFERENT

8

MULTIPLE BOTTLENECKS

9

Old situation

New situation

? ?

How to change?

are CHANGINGTIMES

PLANNINGExcellence

1. Key learning

weekly

discuss &

act

HAPPY HEALTHY PEOPLE

Department A

Department B

Department C

Department D

PLANNINGExcellence

LEARNINGS

• Work “Agile” • Start ambitious• Get your data / input right• Make sacrificies • Stop and Rethink

When you experiment with Machine Learning outlier prediction model

• Choose the right level• You cannot predict when it is unpredicable• Don’t believe everything they sell you• Start doing experiments

LEARNINGS MACHINE LEARNING

2. Machine

learning is

hard but

experiment

ing with it

brings side

benefits

NOW WHAT

• Descripitive is a start• Start with the proof of value• Start learning• Start training• Evaluate

When you ended up with a descriptive outlier model

PLANNINGExcellence

|

MATERIALCHANGEOVERS.

PRESCRIPTIVE PLANNING (PackMat)

Key Learnings Material Design Changeover Optimization

- Start with VMI with suppliers – this can be via excel

- Describe current processes (potentially via intern)

- Work closely with local IT to build or select a tool together

- Build in (automated) data validity checks and do not allow to start without it

- For changeover problems within FMCG, choose Mixed Integer Linear Programming

- Use combination of Continuous Improvement and AGILE

Prescriptive Planning (PackMat)

AND COMBINE WITH AGILE IT APPROACHUSING HEINEKEN CONTINUOUS IMPROVEMENT

Agile approach

Divide process in building blocks, and take the following steps per building block:• Requirements• Design• Development• Testing• Documentation

Process Selection Current State Identify Waste Future State Improve processBPO

Joined approach

ITTactical PlanningSchedulingDemandSuppliersGlobal SC

3.“VAN DOEN LEER JE MEER DAN VAN DENKEN”

PRESCRIPTIVE PLANNINGdelivers results

20

Simplified Roadmap 2020

21

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Integrate MaterialPlanning

Real time planning

Develop Future Production Planning Tool

Integrate W&T Planning

Integrate Beer Planning

Go for future planning tool

Evaluation of replacement planning tool. Go/No-Go

for further integration

SetupProject

OrganizationFuture tool selection phase

Lights out planning

DuplicateMaterials

planningconcept

Suppliercommunication

Integration/alignmentcopack/cofill processes

Product Data Relations

Data InsightsExecution of Data StrategyData Strategy

LETS BUILD THAT BRIDGE

Old Situation

New Situation