In food and beverage, the best performing companies have found new ways to add value with end to end synchronization of their ‘value chain’. Think of any industry challenge such as reducing lead times and inventories to free up cash, while improving customer service, shelf in stock and making your supply chain more agile and resilient. $VVXFKWKHYDOXHFKDLQLQ) %KDVVSHFL¿FFKDUDFWHULVWLFVDQGFKDOOHQJHV± for instance the consolidation of retail power and the ever increasing volume VROGRQSURPRWLRQVZKLFKIRUFHVLQGXVWU\SDUWQHUVWREHKLJKO\HI¿FLHQWWR match a volatile customer demand. For that reason, F&B is a mature market in terms of value chain integration compared to other industries. Most of the approaches like cross docking, S&OP migration to IBP, Store Direct Delivery, increased delivery frequency, Real Time tracking, etc. were originally developed in F&B and are now applied to other industries. VALUE CHAIN IMPROVEMENT IN FOOD AND BEVERAGE BRINGS VALUE Reduction in Order Lead Time Improvement in On Time in Full (OTIF) Customer Delivery Frequency (to Retail DCs) improved from weekly to daily Improvement in Compliance; Service as measure by the customer Reduction in Inventory Days-on-Hand Improvement in Net Promoter Score (NPS) Contributing 20-40% in overall Sales Growth 2-5%2-6 days3-7 points 5-15% 1-715-25% 5-15%70-80 2-4% Reduction in Total Delivered Cost Improvement in On-Shelf Availability Impact on Top Line & Bottom LineImpact on Working CapitalImpact on Customer Experience Improve your most important KPIsWE HAVE UNLOCKED VALUE IN YOUR INDUSTRY WITH OTHER CLIENTS Thanks to our knowledge of your industry and having worked with the academic world we have developed a framework that helps companies to move to the next level towards achieving a synchronized e2e value chain. This approach makes it possible to assess your company’s value chain performance - from design, to customer - and implement a progression plan to ensure you outpace your competitors. We benchmark your performance against the best practice results of your industry and we help you to both identify your desired level of maturity and create a plan that will help you attain synchronization across all disciplines. For example, we have been working for one of the largest beverage companies, to redesign their End to End Value Chain approach to improve performance to match the best in class industry level. This was achieved by performing, concurrently, for each Value Chain discipline, a KPI and processes DVVHVVPHQWIRFXVLQJVSHFL¿FDOO\RQWKHLQWHUIDFHV across silos, where most of the losses typically KLGH.H\LPSURYHPHQWWKHPHVZHUHLGHQWL¿HG and a 2 year progression plan was built and the top 5 cross discipline projects were kicked off (for example an upgrade of their planning tools to give visibility in each key country of local planning results and capability). In 2019, this company reached a new record customer service level in Europe and set a new benchmark in the beverage industry. The strategic relevance of an e2e synchronized supply chain is changing. Costs and working capital continue to remain relevant focus areas, but impact on customer experience is becoming an increasingly important driver. Leading companies in F&B manage to develop joint business plans with retailers to leverage supply chain solutions (e.g. increase delivery frequency, cost reduction, increase promotional volume replenishment and joint forecasting) to grow volume and customer value at the same time. Assessment of your company’s value chain performance TOGETHER WITH YOU, WE ASSESS THE CURRENT E2E PERFORMANCE… Our research has shown that typically, around 60%(!) of ‘losses’ occur between the disciplines (from Design to Customer). Just think of the non-value add activities that departments need to go through before they can use input from other departments and consider the over optimization of functional excellence as opposed to end to end HI¿FLHQF\ For most companies that we have worked with in F&B we have seen the largest gaps in the interface between planning and other departments as well as gaps in external collaboration with suppliers and customers. In F&B the complexity of the portfolio and the level of process integration with suppliers and retailers is higher than other industries: the best companies have stepped up their planning capability and their collaboration with external networks. TO GIVE A FEW EXAMPLES OF WHAT TYPE OF PROJECTS COULD BE INITIATED • Global End-to-End Network Design when facing a fragmented manufacturing/distribution footprint, the individual sites might be optimized, but a network strategy is essential to stay FRPSHWLWLYHDQGEHQH¿WIURPSRWHQWLDOVFDOHDQGRUDGGHGDJLOLW\:LWKVRSKLVWLFDWHGGLJLWDO tools we help you to identify the best footprint for your E2E network. • World Class VC Progression when your global network of factories, warehouses or DCs lack consistent standards across SC Operations (Customer Services, Planning, Warehouse and Transportation) these result in losses across silos. We help you to identify the right foundations and standards to follow across the End to End Network, including Procurement and Sales interfaces. • Value Chain Integration when inventory policies or decisions are developed for different types of inventory (FG RM, WIP) in isolation from the total supply chain view. • Migrating from S&OP to IBP in F&B the times of the monthly S&OP cycle are long gone. :HKHOS\RXWRHYROYHLQWRVKRUWF\FOH6 23DQGPLJUDWHWR,%3WRUHÀHFWWKHG\QDPLVPRI the F&B market requirement, while implementing a real time digital IBP cockpit to create one source of truth. • New Product Development Process we support many clients in ensuring that New Product introduction is boosting results in the synchronized E2E Value Chain, as opposed to totally disrupting the progress of every new launch. With the typical high churn on F&B initiatives, this is vital to ensure consistent progress over time. • Strategic Visioning when market developments (3d printing, COVID) force the company to rethink its SC strategy. ...AND TRANSLATE THAT INTO HOW TO REACH TANGIBLE RESULTS The next step is to systematically and concurrently improve these weak spots. This enables you to break down the silos and work towards an e2e integrated & synchronized value chain or even a real time network. Together with your people, we build an e2e progression plan that allows you to progress concurrently in line with the best players in the industry. With our wealth of experience we are DEOHWRWUDQVODWH¿QGLQJVIURPWKHDVVHVVPHQWLQWR proven improvement initiatives that boost results by working on processes, human dynamics and digital support. “The model ensures that all e2e domains advance their capabilities and performance standards with DOLJQHGJRDOVDQGV\QFKURQL]HGZRUNÀRZ´WHO ARE WE? Our consultants for food and beverage are at the top of their game and work passionately in the industry every day. With 40 years’ experience EFESO’s offer encompasses the end-to-end value chain, assuring fast and sustainable results. Our high impact projects include the best digital and advanced analytics solutions, maintaining the historical attention to organisation design and a human centric approach. If you need more information regarding our value chain approach for the food and beverage industry please contact: Leonardo Terzoli Industry leader food and beverage Leonardo.Terzoli@efeso.com Eitel Monaco End to End Value Chain International Expert Eitel.Monaco@efeso.com https://www.roi-international.com/ https://www.efeso.com/Next >