Achieving Operational Visibility and Financial Gain at Del Monte
 

Achieving Operational Visibility and Financial Gain at Del Monte

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Perficient joined Del Monte Corporation for this webcast about how you can achieve greater operational visibility and financial gains by extending IBM Cognos TM1 beyond financial planning and ...

Perficient joined Del Monte Corporation for this webcast about how you can achieve greater operational visibility and financial gains by extending IBM Cognos TM1 beyond financial planning and analysis, to operational planning. Using recent examples from Del Monte, we show you how you can improve planning decisions, make more effective use of planner time and realize significant financial gains.

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  • If we back up a level and look at a broad coverage map of the various roles and functions of finance. The spectrum runs from Strategic Planning & Analysis to statutory reporting. Each finance organization is different in where their focus lies. This is determined by leadership, capabilities of staff, technology employed, its industry and the organization’s relative maturity.Broadly these roles can be grouped into : TransactionalControlManagement, and Decision support What study after study has revealed that top performing finance organizations automating their way of our transaction processing and into the business partnering aspects of planning and analytics. But the use of technology is not simply to ‘pave the cow path’. To drive the desired change you need to take the opportunity to evolve the process.
  • Let’s explore this using Planning as an example. Our clients are actively looking to get more from their planning processes. Too often we find our clients are trapped in a legacy budgeting process resulting in plans with little business unit buy in, excessive detail blurring the “knowns” and the “guesses”, and providing little insight. The processes are evolving to include more scenarios, more iterations and to extend the process beyond finance and into the business units. The approach is also evolving as displayed in this diagram. Initially planning is internally focused and is used primarily to enable variance reporting. Then plans tend to follow a consistent progression. Forecasting is added and frequently starts with attempts at extrapolating the future with trending, regression or simulation models but over time the focus turns more to modeling various issues and looking at multiple scenarios. The difference is being prepared for a variety of outcomes rather than just one. Once a forecasting process starts to prove valuable the next step in the evolution is to include external scenarios around customers, suppliers and market conditions. As competency and capabilities improve the approach to planning will continue to evolve until strategic planning and operational decision making are connected by clear lines.
  • One transformation I mentioned early on is that finance organizations are becoming embedded into the operations of the business. The role is evolving to become the business partner that runs the analytics that run the business. Finance is stepping out beyond that classic walls of budgeting and reporting. Today we are going to see how Juan-Carlos from Del Monte is using business analytics across Del Monte’s value chain to drive measurable performance.

Achieving Operational Visibility and Financial Gain at Del Monte Achieving Operational Visibility and Financial Gain at Del Monte Presentation Transcript

  • ACHIEVING OPERATIONAL VISIBILITY & FINANCIAL GAINS
  • Speakers Erik Duffield Director, Finance Analytics Erik.Duffield@perficient.com 303-629-9206 Juan-Carlos Bertini Vice President Financial Planning & AnalysisMark HattingDirector, Pacific DeliveryPractice Mark.Hatting@perficient.com 408-973-8004 2
  • Agenda Erik Duffield Understanding & Adapting to the changing role of Finance Juan-Carlos Bertini / Mark Hatting Operational Visibility & Financial Gains at Del Monte Q&A 3
  • Perficient ProfileIdeally positioned as the GO TO Partner for IBM An IBM “5-Star Premier” Business Partner since 1997 SVP, SVI and VAP Authorized Reseller across all Brands in U.S. Healthcare and Retail Industry Authorized Solution provider IBM Lab Services (ISSL, ISSW and ISSIM) go-to market partner IBM Education Authorized Training Partner/ATP and Training resellerThriving and Growing Organically and via Acquisition Public, NASDAQ: PRFT 1700 Colleagues $250 M 2011 Revenue Run Rate Local Sales/Delivery offices Offshore Development Center in Hangzhou ChinaIBM Recognition IOD Solution Provider of the Year – 2011 Lotus Most Distinguished Partner – 2006, 2008, 2011 2010 IOD Industry Warehouse Pack Partner of the Year 2010 Impact Smarter Decision Management Award Winner 2010 Lotusphere Best WebSphere Portal Solution – Finalist
  • Role of Finance is ChangingTransaction processing requirements decreasingMore powerful analytical toolsFewer peopleEmbedded teams
  • Domain of modern finance Controls, Strategic Annual Plans / Managerial Financial Strategic Analysis Consolidations Planning Forecasts Analysis Analysis & Reporting 3-5 year view of Application of Treasury / Cash Puts next years the business financial & Mgmt strategicExternal analysis operational data initiatives intoof markets and Models and tests to inform and Capital Structures action Close,competitors “big blocks” – direct business / Financing Consolidation, people, capital, decisions The allocation of ReportInternal review of products, M&A Risk Mgmt / fiscal and humancompetencies Maintains focus on Scenario Planning resources aligned Compliance,and capabilities Primarily a high key initiatives to to key initiatives Internal Audit level financial keep alignment Investment ID & and goalsAssessments of view Analysiscustomers and Develops best Aligned withproducts Scenario / practices and a Portfolio Mgmt business via sensitivity tested true analysis collaboration competency 6
  • Planning: evolution demonstrated externally financial forecast-based oriented strategic planning planning planning management•Annual budgeting •Starts our as financial •Extending “issue • Melding strategic process planning with a longer orientation” planning and everyday time horizon mgmt into a single,•Internally focused •Competency in internal seamless process •Out year extrapolations planning•Forecasts revenue, become unreliable •Not necessarily more costs, capital for the year •Focus moved to “outside sophisticated but more •Tendency to try more world” (customers, integrated with•Used to benchmark sophisticated forecasting competitors, suppliers) operational decision performance tools: trend analysis, making regression models, Characteristics•Strategies are often simulation models Attributes implicit or opportunistic •Resource allocation is • Grow frustrated with dynamic •Framework defined by most these extrapolations too future strategic issues •Plans are adaptive vs. rather than today’s org •Realization that charting deterministic. Find new structure the future is failing, move ways, new markets to “issues orientation” •Strategic thinking •Surprise strategies, less capabilities are linear widespread and many rewarded •Often recommend multiple course of action •Series of feedback loops vs. sequence of plan submissions few 7 elite
  • Running the analytics that run the business $Analytic Embedded in business functions 8
  • Business Visibility & Financial Gains at Del Monte Mark Hatting, Perficient Juan Carlos Bertini, Del Monte Foods
  • The Company: Diversified Portfolio of Pet and Consumer Products Net Sales by Segment Consumer Products ~51% Pet Products ~49% Adjusted EBITDA by Segment Consumer Products ~35% Pet Products ~65%10
  • Background: Economic Trends and Volatility Data Overload Inflation ↑ Uncertainty ? $350 $300 Risk ! $250 $200 $150 $100 $50 $- Net Cost Increases/(Decreases) ($M) $(50) Gross Cost Increases/(Decreases) ($M) $(100) F05 F06 F07 F08 F09 F10 F11 F1211
  • Opportunity: Analytics, Insights to drive bottom line inaccurate platform …out of time integrated intelligenceTransaction focus………… 80% 20% business driversreconcile data overloadformula error FP&A insights mistake 40% 60% ……….Business partner vacuum productivity silos career growthlack of visibility passion version control engaged retention “all we do is forecast” 12
  • Deliverable: A Planning & Analysis Platform for Operations • Driver BasedCAPABILITIES • Improved visibility • Integrated WHY? • Reduced planning cycle times WHAT • Scenario Capable • Better resource utilization Insights Limited Late Knowledge ProcessingValue Data Gathering 13 Focus
  • Deliverable: A Planning & Analysis Platform for Operations • Driver BasedCAPABILITIES • Improved visibility Improved and • Integrated WHY? • Reduced planning cycle times WHAT Insightful Decision • Scenario Capable • Better resource utilization Making Process Insights Strategic Profit-Maximizing Limited Late Knowledge Analytics SME’s Power-Users ProcessingValue Data Gathering Integration Consolidation 14 Focus
  • Deliverable: A Planning & Analysis Platform for Operations • Driver BasedCAPABILITIES • Improved visibility Improved and • Integrated WHY? • Reduced planning cycle times WHAT Maximize Profits Insightful Decision • Scenario Capable • Better resource utilization Making Process Insights Strategic Profit-Maximizing Limited Late Knowledge Analytics SME’s Power-Users ProcessingValue Data Gathering Integration Consolidation 15 Focus
  • A Planning & Analysis Platform for Operations Volume Forecasting Inventory Management Buy Make Store Deploy Deliver • Corn • Sourcing • Location • Mode Drivers • Wheat • Yields • Efficiencies • Lane / Miles • Resins • Overheads • Overheads • Utilization • Linerboard • Labor • Labor • Fuel16
  • Highlights….. Transportation • Seamless Reporting • Mode Optimization • Granularity oProduct oMode oLane17
  • Highlights….. Materials Planning and Hedging • BOM integration • Scenario Control • Hedging Support o Cross Hedges o Open vs. Covered18
  • Highlights….. Transportation Miles, Weights by “Lane” • Granularity oLane oMiles oWeights oProduct • Deployment Planning • Supply Planning • Inventory Analysis19
  • Highlights….. Scorecards • Sourcing Analysis • Spend and Productivity Scorecards20
  • Key Learnings• IT & Business owner roles • Sponsorship – Who has the “keys” – Self Service vs. Control – Project support• SME involvement – Guiding vision – Transfer the vision • Picking the tool• Power users – Compatibility (ERP/Systems) – Adoption – Maintain and Enhance • Prototype – Iterative development• Picking the partner – Phased approach – Knowledge / Demonstrated Ability – Scope – Continuity • Commitment to success 21
  • Conclusion www.slideshare.net/PerficientInc www.facebook.com/Perficient www.perficient.com/Thought-Leadership/Social-Media/BlogsErik Duffield Mark Hatting Juan-Carlos BertiniDirector, Finance Director, Pacific Delivery Vice PresidentAnalytics Practice Financial Planning Erik.Duffield@perficient.com & Analysis Mark.Hatting@perficient.com 303-629-9206 408-973-8004 22