Practical lessons from implementing a monthly business planning process (IBP). Presented at the APICS 2012 International Conference & Expo.

1. Monthly Business Planning at
Nestlé DSD – Essential Lessons
Geoff Fisher – Dir. Of Supply Chain, Nestle DSD
Anthony Reese – Partner, IBP2 CPIM

2. Speaker Background
Geoff Fisher
Director of Supply Chain, Nestle USA – Direct Store Delivery
Div. Before merging with Nestle, he served in the same capacity
for Dreyer’s Ice Cream where he was a member of the Supply
Chain team for over 14 years. Before starting his rewarding (and
tasty) career in ice cream, Geoff was a consultant for 9 years
with Andersen Consulting and Price Waterhouse in the
Consumer Products and Retail industry segments.
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3. Speaker Background
Anthony Reese CPIM
Is a founding partner at Integrated Business Planning Associates
and is a visionary leader with passion for bringing exciting
products to market. His early interest in cars led to his first job as
an auto mechanic and then into an impressive career in the
automotive/motorcycle industry. Along the way, Tony earned
two advanced degrees from MIT and now brings in-depth
knowledge of Product Lifecycle Management along with strong
understanding of Sales and Operations Planning and its current
best practice form, Integrated Business Planning.
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4. Presentation Outline
• A Business Overview
• Our Planning Challenges
• Getting Started
• The Winning Game Plan
• So What Happened?
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5. Nestlé DSD – An Overview
Great Brands
National Network
Superb “To The
Shelf” Service
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6. Nestlé DSD – An Overview
= Happy Consumers!
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7. Business Planning Challenges
• Highly seasonal
• Highly promoted
• Large network of demand points
• Capacity Constrained
• Organizational Challenges
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8. Planning Challenges – Seasonality
• Two Highly Seasonal Businesses
• Two Separate Planning Teams
• One Supply Chain
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9. Planning Challenges – Promotions
• Our Promotions Do Well
• Planning For Them Is Challenging
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10. Planning Challenges – Geography
• Over 100,000 Sell To Locations
• Over 75 Warehouses
• -20F Cold Chain
• Many Plants & Lines
• Over 1,000 SKUs
• Short Shelf Life
• A Daily & Weekly Business Pulse
• A High Service Level Expectation
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* Demonstrative Data Only

11. Planning Challenges – Constraints
• Tight capacity on popular product lines
• Requires longer range forecast accuracy
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12. Planning Challenges – Organization
• PLAN is king and predictability is rewarded
• Unwillingness to call off of Plan
• Skip over trade realities until too late
Below Plan Plan
S&OP Forecast?
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13. Getting Started
• The Right Coach
• Making A Case For Change
• Start The Project
• Remain Open To Change
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14. Getting Started – Find A Coach
• Design A Winning Game Plan from Experience
• Guides Project Around Potential Pitfalls
Alright Folks! I will show you
how we can win at this game!
But first – let’s make sure we
are warmed up and ready to
do the right work!
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15. Getting Started – The Case For Change
Huddle Play: Consensus Demand Only
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Partial Huddle:
Finance &
Demand Planning
Other Team
Members On
The Sidelines
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16. Getting Started – The Case For Change
Lack of a huddle forced “at the line” audibles
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Players Join The
Game After The
Huddle – Ready
To React
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17. Getting Started – The Case For Change
Other operational forecasts not aligned
Many “broken plays” and missed
scoring opportunities – big plays always
needed to achieve PLAN
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18. Getting Started – Project Start Up
• Gained executive support
for an S&OP Project
• Built a core team
• Some skeptics thought
we were fine
• As-is Sessions were
cathartic – the
dysfunction was
unanimous
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19. Getting Started – Changed Game Plan
• Crossed paths with a new Monthly Business Planning
project out of HQ
• Saw the approach as aligned
with our To-be approach with
the addition of better customer
alignment highlighted during the As-is
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20. Winning Game Plan
• Define The Core Process
• Build The Transition Plan
• Execute Flawlessly
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21. The Winning Game Plan – MBP
Monthly
Account
Review
Updated
Customer
Demand
Forecast
Customer-
Level Inputs
Monthly
Sales
Review
Updated
Business
Demand
Forecast
Consol.
Business
Demand
Forecast
Monthly
Gap
Review
Updated
P&L
Forecast &
Scenarios
New P&L
Forecast
Monthly
Forecast
Review
Aligned
Business
Forecast
Full
Business
Forecast
Monthly
Operations
Review
Aligned
Supply
Outlook
Aligned
Business
Forecast
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22. The Winning Game Plan – Transitions
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23. The Winning Game Plan – Execution
• Assigned meetings to functions/leads
• Rolled out one meeting at a time, get good at
the basics
• Broke old habits and held Execs out of early
cycle meetings
• Created safe environment for start up
meetings and feedback
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24. So What Happened?
• Results Achieved
• Best Practices
• Take-Aways
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25. Results Achieved
• Best Ever Forecast Performance
(>5 percentage points improvement)
• Better and Earlier Alignment on “One Number”
(Proactive decisions made earlier)
• Cross-functional Engagement
(Right People + Right Topics + Right Time = Trust)
• Achieving Plans with Less Stress
(Eliminated off-cycle meetings/decisions)
• Worldwide Standard Process for S&OP
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26. Lessons Learned – Best Practices
• Create a Safe Environment
• Start with unconstrained demand
• Constrain Transparently
• Align P&L on Constrained Demand
• Collaborate – Share Leadership across all key planning
functions (Right People, Right Topics, Right Time)
• Track Implementation To Ensure Process Fidelity
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27. Lessons Learned – Take-Aways
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28. Our MBP Mantra
When you are not feeling the MBP magic, just
boldly say our project slogan…
“MBP IS FOR ME!”
And you will feel happy inside
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29. Questions

30. Contact Information
Geoff Fisher, Oakland, California
geoff.fisher@us.nestle.com
Anthony Reese, San Jose, California
anthony.reese@ibp2.com