Predictive Planning- REPLACE WITH IMAGE 4.25 X Driving Strategy and Increased Trade Efficiency & Effectiveness

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REPLACE WITH IMAGE 4.25” X 3.83”

Predictive Planning

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Driving Strategy and

Increased Trade

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Purpose

Share Del Monte’s journey from Trade Promotion

Management to a Predictive Planning System

•

Decision

•

Process

•

Deployment

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Agenda

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Del Monte Foods Background



Roadmap to Predictive Planning

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Del Monte Journey



Investigation Phase



Communication & Change Management

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Deployment Process

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Training

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Del Monte is a Branded Category Leader

Pet Pet Snacks Pet Food Dry Cat Wet Cat #1 #2 #2 #2 Consumer Fruit Vegetable Tomato Broth #1 #1 #2 #2 Consumer Products ~50% Pet Products ~50% Fiscal Yr 2012

Total DLM Net Sales: $3.7B

Del Monte has grown through acquisition, innovation , and marketing

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TPM – 2007 Implementation Success

The Need for a Best in Class Trade Promotion

Management Process and System to drive efficiency

• New Trade Promotion Management Process & System (Siebel)

 Simpler, more efficient, easier to plan

• Real-time trade spend effectiveness capabilities

• Proactive reporting

Enhanced Dashboard w/ drill down

• 1 forecast

• Seamless integration with customers and S&OP

• Used by all retail sales

• Administratively complex system, out of date, cumbersome, limited flexibility, difficult to update/maintain

• Trade Planning - labor intensive

• Multiple sales forecasts

• No Supply Chain Integration – no link to S&OP

• Not used by all channels/customers

Where We Were Where We Are Going

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ATLAS

Implementation

Sept 07 & May 08

July 08 May 09 July 09

Development of Del Monte’s Holistic TPO Business Case/RFP

(Advanced Analytics & Predictive Modeling)

Del Monte Roadmap – Journey to Predictive Planning

Sept 09

Atlas Enhancements

Sept 09 Jan 10 April 10 Trade ROI Workbench

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Del Monte Roadmap to Trade Optimization

July 12 TPO Implementation/ Training May 2012 Predictive Planning Development Begins Trade ROI Workbench Delivered* Trade Optimization Predictive Trade Planning

July 10 March 11 TPO RFP Vendor Chosen On pause… remember – no only means not

today On Pause – New CEO June 13 Integration Oct -Feb 12 Persistence

Trade Efficiency Project

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Vision: Predictive Sales Planning

What is the vision?

To design and implement a Best in Industry Predictive Planning System that utilizes scientific modeling to simulate scenarios with brands, categories, mix, pricing, timing, duration, competition and other variables to improve plans. The

automated “sandbox” will enable our teams to work more efficiently to drive

improved planning, effective trade spending & advance Del Monte’s position as a Strategic Supplier.

Benefits

• Enabled Joint Customer Business Planning on a Customer’s timeline

• Robust pre-promotion analytics, scenario planning, retailer profitability metrics & total category evaluation

• What-if analysis calculated in minutes vs. hours, increasing productivity

• Increased plan accuracy that continues to improve over time

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Cross-functional Team

As you build out your cross-functional team, consider these groups:

 _{Steering Committee}  _{Project Management}

– Business lead and IT lead

 _{Project Core Team}

 _{Subject Matter Experts}

– Customer Marketing (HQ and Field Sales)

– Sales teams super users

– Finance

– IT

– S&OP

– Integrated Business Planning

– Audit

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1. Business Case

• Sell organization on the need

2. Vendor Capability Assessment

• Vs. Organization needs

• Checklist of each system features & benefits

3. RFP Development

• Questionnaire for each vendor -answers & describe system functionality

4. Formal Vendor Selection 5. Vendor Review

• Presentations occurred over 2 days

• Immediate vote on pro’s and con’s of each at the end of day 2

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Communication

Build Excitement and Anticipation

1. Intro demo meetings with customer teams & HQ to reveal the new tool 2. Team Director Calls - education & answer questions

3. Create a communication vehicle, tool name, logo & video 4. Make the Launch exciting!

The Goal of early & often communication is to EMBED:

1. Vision – what we are doing and why

2. Users can trust the numbers & lean on the science 3. The tool is simple, intuitive and fast

4. How the tool fits in the planning process

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Change Management

Systems & Tools

Plan & Analyze Trade Promotions Manage Profitability & ROI

Ownership/Accountability Flexibility/Adaptability Dedication Commitment Positive Attitude

80%

20%

The

Human

Element

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Deployment Process

 2 years syndicated RMA level data

 Product information  List prices  Case packs  Cost of goods Customer delivers data IBM DemandTec platform cleanses &

models data

 Data extraction

 Sparse data population

 Cleanse and load

 Build models, validate forecast accuracy Analyze expected results Customer builds plan using IBM DemandTec software Build promotion events Build complete category plan Improve with what-if analysis

Sell in new plan

 Leverage retailer metrics

 Drop results into excel and PPT templates

 Submit into retailer

 Quantify impact on category / private label

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Deployment Timeline

7/16/12 IBM DemandTec COMPASS Release Phase 1 * (Top 8 accts) 5/1/12 Data Delivery Phase 2: January (2 accts) Phase 3: April 1 Walmart Phase 4: Integration with F15 planning June JCBP June Data Modeling & Attributing

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Compass to Atlas Planning Template (Phase I)

Conversion

Baselines

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Training

Introductory Training – Customer Facing:

 _{Two days of interactive, hands-on training for each customer sales}

team

 _{Detailed training manual, planning support tools and practice}

activities

Training – Headquarter Focused:

 _{Interactive, hands-on training sessions for Headquarter support}

teams: Sales Finance, Customer Marketing teams

 _{These functions support the sales teams to ensure effective use of}

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On-going User Support

 _{Bi-weekly Compass Share Group calls to share team wins and tips}

& tricks

 _{Weekly Journal newsletters}

 _{Onsite or Webcast Workshop Sessions}

 _{Issue Escalation Process: User Discussion Board}  _{Software Support}

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Early Results Are Very Positive – AHA’s

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Faster

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Increase speed to insights and the best plan

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Intuitive

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Simple Application

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What-if

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Fast, yet robust side by side comparison

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Ability to

:

“Manage the total category”

– Compare EDLP tradeoffs

– Evaluate the competition

– Manufacturer and category incrementality

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Robust Analytics

:

(incl. historicals and bump charts in one

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Early Results Are Very Positive

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Usage

–

All teams have embraced the system and are

facilitating F13 strategic re-planning and F14 initial customer planning

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Expected Return

(based on business case)

– ROI Improvement (Monitor with actuals in May)

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Early Results

– Adoption, used for 2014 customer planning

– With drought & impact to supply, COMPASS was used to revise plans/re-strategize

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Future Roadmap - Integration

Integration

– Reduction in administrative burden

– Step 1: Phase 1 Bridge - Planning template delivered

– Step 2: System Integration - Implementation Sales target 6/1/13 to coincide with Joint Customer Business Planning for F1

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