EyeOn Food & FMCG network meeting: margeknallers & servicekillers

margeknallers & servicekillers network meeting

EyeOn magazine 30 May 2013

eyeon food & fmcg

eyeon food & fmcg network meeting

Introduction On May 30th 2013 the EyeOn Food and FMCG team hosted its fourteenth network event, during which all members of the Food & FMCG Network were invited to discuss the main challenges that drive organizations these days. The event was held at EyeOn’s unique headquarters at Croy Castle.

The purpose of this magazine is to remember the key learnings of the 14 th Food & FMCG event. Of course, we would like to welcome you again to one of the future network meetings, expert sessions, or master classes. Check our website regularly to find out when other events will take place!

A broad spectrum of the Food & FMCG branch was represented, including Alpro, Bacardi, Bavaria, Campbell’s, Cargill, Continental Bakeries, Dr. Oetker, Flexoplast, Heinz, Intersnack, Lassie and Mondelèz.

www.eyeon.nl

Content Theme: focus on the increasing pressure on margins and service for the supply chain.

Margeknallers and service killers from a marketing perpective, by Nanne Migchels.

Presentation of interview findings by Arike van Rooij and Dennie van den Biggelaar (EyeOn).

Freek Bloemer (Lassie) and Jochem Westeneng (EyeOn) explaining the implementation of the planning wheel at Lassie.

EventCasting, an EyeOn concept where events are forecasted through the entire chain, presented by AndrĂŠ Vriens (EyeOn).

AndrĂŠ Vriens, managing partner at EyeOn, about the values of EyeOn and their meaning to him.

eyeon food & fmcg network meeting

The theme The subject of this event was “Margeknallers & Service killers�. During this day we focused on the increasing pressure on margins and service and the corresponding implications for the supply chain. Throughout the day the members of the Food and FMCG Network shared ideas. Furthermore they discussed the challenges that potential margin and service killers like promotions and new product introductions may cause within the organization.

Dennie van den Biggelaar and Arike van Rooij were joint organizers of the Food and FMCG Event.

eyeon food & fmcg network meeting

Dennie: ‘’We based the theme of this Network Event on a well-read article on a logistics website. Just like the author of this article, we are convinced that most supply chain managers and departments are not always aware of the underlying causes of business process failures and diminishing service levels.

Based on interviews and discussions during the event, we could conclude that most supply chain managers focus on service and failure costs. However, implementing and monitoring margin-related KPIs within supply chains still turned out to be a practice mainly for marketing and sales departments.’’

Arike: ‘’In preparation of the event we asked ourselves the question: How can we still add value to an event when it has already been organized 14 times? Afterwards, I think we can conclude that we did. Combining the discipline of Marketing and Supply Chain Management in the presentation of our guest speaker appeared to be a good recipe and also the interactive presentation we held with all participants has led to fruitful discussions.

Based on this experience, I am looking forward to the much larger event that has been planned in November this year. For more information, please check the website regularly for updates: www.eyeon.nl

Kick off The day started at 9.00 in the large, distinctive meeting room on the ground floor of Croy Castle. Niek van de Crommert, senior consultant at EyeOn, opened the event and guided us through the agenda of the day. Please find below the agenda of this event and find out what was discussed during the different sessions on the following pages.

eyeon food & fmcg network meeting

Session 1 Margeknallers and servicekillers from a marketing perspective Who Dr. Ir. Nanne Migchels of the Radboud University of Nijmegen About An interesting lecture of “Margeknallers & service killers” from a marketing perspective.

The main message of his presentation was that we must not forget that it is the end consumer who eventually decides whether or not to buy your product. Migchels emphasized the importance of defining touch points, contact moments with your customers. Based on this, Migchels suggests to build internal processes around these touch points with your key customers. After this refreshing presentation we interviewed Dr. Ir. Nanne Migchels about his experience of giving a marketing-focused presentation to mainly supply chain managers instead of students or marketing colleagues.

How did you experience combining the discipline of Marketing with Supply Chain Management?

This is just another take on basically the same story. But we are often so busy minding our own business that we tend to forget what it is all about. Happy customers are what you work for after all.

Is there anything you learned from today’s discussion with supply chain managers that you haven’t realized before?

Ah, that is a tricky one. I’ve shown a slide about how to organize processes around customers and that was an eye opener to some. It comes naturally to me, since I’ve been into marketing for such a long time. It taught me that I am also stuck in my own little world and I need to reach out to other disciplines more.

What would be your advice to supply chain managers about the interaction with marketing?

No advice, just use the six-pack style of management: you bring a six-pack and sit down with someone in some other part of your organization and simply share a beer. There will be three each. Whining and complaining will start after nr 1, you can do business or learn something that really gives an insight (personal and business) after nr 2, and once you’ve finished nr 3, you will be friends for life and there is one barrier less in your company.

Some audience views: ‘’A clear and inspiring presentation, from preventing failures and costs to centralizing the end customer.’’ ‘’It’s interesting to approach the subject of service- and margin killers from a marketing perspective’’ ‘’Valuable angle of incidence to view on the supply chain from a marketing perspective’’

eyeon food & fmcg network meeting

eyeon food & fmcg network meeting

Session 2 Presentation of interview findings

Who Dennie van den Biggelaar and Arike van Rooij, consultants at EyeOn About The results of the interviews conducted

by EyeOn prior to this event. By making use of the interactive platform, Socrative, Arike and Dennie were able to pose several in-depth questions, which participants could answer instantly with their smartphones. Fuelled by the answers to the questions that became visible on screen, interesting discussions arose on the consequences of a margin versus service focus within supply chain departments.

Especially the fact that, although most (supplychain-oriented) participants acknowledge the importance of a margin-driven supply chain, only few actually use specific margin-related KPIs as guidance in making the right decisions.

Furthermore, it appeared that most suppliers would like to collaborate with their customers more intensively, but only few suppliers actually have set up such collaboration.

Dennie and Arike asked themselves the question: What did I learn from the Network Event and this presentation?

Our presentation emphasized the role and responsibility of the supply chain manager within the organization and the total supply chain. Our guest speaker, Nanne Migchels, provided us with plenty of arguments that made our statements clearer. From the interviews, it appeared that despite the maturity level of an organization, supply chain managers often struggle with the same challenges. By posing several in-depth questions based on our questionnaire, interesting discussions arose on the challenges that organizations nowadays face. We feel that both presenters and the audience enjoyed a pleasant and informative day.

Some audience views: ‘’Strong interaction during the session with good evaluation and valuable exchange on points of view / expertise’’ ‘’A very interactive, discussion’’

fun

and

good

‘’In my opinion, interactive sessions like this are the key value of EyeOn events.’’

The EyeOn “Margin Boosters & Service Killers”-matrix

eyeon food & fmcg network meeting

The Food & FMCG team Get to know our Food and FMCG team! Feel free to contact us about the events we organize or your challenges regarding forecasting and planning.

Dennie van den Biggelaar Consultant dennie.vandenbiggelaar@eyeon.nl

Niek van de Crommert Consultant niek.vandecrommert@eyeon.nl

Luc van Wouwe Consultant luc.vanwouwe@eyeon.nl

Monique BourgondiĂŤn Consultant monique.bourgondien@eyeon.nl

Arike van Rooij Consultant arike.vanrooij@eyeon.nl

AndrĂŠ Vriens Consultant & managing partner andre.vriens@eyeon.nl

eyeon food & fmcg network meeting

eyeon food & fmcg network meeting

Session 3 Implementation of a planning wheel at Lassie Who Freek Bloemer, Demand Manager at Lassie, and Jochem Westeneng, consultant at EyeOn About Planning Wheel reduces stock and creates standardized production schedules.

Lassie is Holland’s market leader in rice through retail sales channels. With a significant volume of B2B rice products added last year, Lassie implements a Planning Wheel to standardize the production schedule for consumer rice.

This generates the flexibility in resources needed for the B2B production.

EyeOn assisted Lassie in creating this Planning Wheel. The Planning Wheel is a cyclical production schedule: the schedule is repeated after a period of six weeks.

Product segmentation, based on volume and forecastability per SKU, determines the production frequency of each SKU within the six week cycle. Products with similar production characteristics are combined or scheduled sequentially. Raw material and (buffer) capacity usage are balanced within one cycle.

The Planning Wheel ensures a stable capacity usage of the plant and a more predictable production schedule. These economies of repetition result in decreased safety stock settings and better service levels. Moreover, planning efforts are minimized to minor changes of the week’s production schedule. With the production moments of each SKU known well in advance, the rest of the company is informed by the same means: Lassie’s Planning Wheel.

Some audience views: ‘’Interesting, because it concerns a specific and actual problem with a clear solution’’ ‘’This confirms to me that differentiation in forecasting is the right thing to do for the company I work for’’ ‘’This is an useful example of solving problems’’

eyeon food & fmcg network meeting

eyeon food & fmcg network meeting

Session 4 EyeOn Eventcasting

Who André Vriens, managing partner at EyeOn About EventCasting, an EyeOn concept where events like promotions and new product introductions are forecasted through the entire chain, from consumer to supplier. This results in more transparency and cooperation between participants in the chain. During the presentation, it became clear that the increase of promotional pressure at retailers is for many manufacturers a true margin and service killer. André also showed that the introduction of new products seldom leads to a fluent transition between the old and new SKU. By sharing information along the supply chain through an independent party, promotions and new product introductions can eventually become margin boosters, as they were originally intended!

The concept of EventCasting is already applied by some of EyeOn’s customers. In case you would like to have more on information on this concept, feel free to contact EyeOn.

Some audience views: ‘’Interesting concept in the old challenge to manage events better and in having transparency on PoS and service performance’’ ‘’This presentation gave me the valuable insight that not OTIF (On Time, In Full), but OSA (On Shelf Availability) tells you the final service level’’ ‘’Interesting subject, it gave a nice insight on the latest developments with regard to forecasting’’

PID 2011

Preview of the next network meeting: PID 2013 On November 7th 2013, we organize the Planning Inspiration Day (PID) 2013. This network event will take place in a broader setting with participants from all industries combined. In line with the previous PID, we expect more than 200 participants from leading international companies. During the day you will have the unique possibility to exchange ideas and extend your professional network.

In case there are topics you would like to see addressed on this day, please feel free to contact us. We look forward to meeting again at the PID 2013!

eyeon food & fmcg network meeting

EyeOn’s values After the event we spoke to André Vriens, managing partner at EyeOn, about the values of EyeOn and their meaning to him.

Drive to Deliver Essential in the way we work at EyeOn! Not only making a good concept and a nice PowerPoint, but really making things work for our customer and for his customer.

Fun It’s great to have fun, both with colleagues, customers and also during the network event. A nice example is the voting method we used during the event. It was not only useful to collect opinions, but first of all a fun way to have a nice discussion, especially when only one attendee held a different opinion.

Freedom Spending a whole day in a Castle ending the day with a nice Croy beer!

No-nonsense Yes we are!

Thought leadership It’s great to develop new concepts like Eventcasting. The EyeOn way is to do this step by step, continuously improving this in collaboration with customers and network members. The nice thing about an event like this is that we can share some of the newest ideas we developed .

At the same time, we all learn from each other and I think most attendees were inspired by the discussions. I myself was inspired by the Starbucks example of how to make a happy customer using an experience map.

eyeon food & fmcg network meeting

eyeon food & fmcg network meeting

eyeon food & fmcg network meeting

Support Simavi; Drink from the Dopper

EyeOn offers their guests a Dopper bottle with fresh tap water to support their health, the environment and Simavi.

The Dopper is an initiative to promote the use of local tap water and reduce the big amount of plastic waste. It’s produced in an environmental friendly way, free of BPA and contributes to drinking water projects in Asia and Africa: five percent of the net Dopper revenue will be donated to Simavi.

Dopper app for your mobile phone With the Dopper app you can find free water tap points all over the world. You can also find stores, offices and private residences that allow you to fill up. Download the app for your phone and start to refill!

More information: www.dopper.com

Colofon For more information about the Food & FMCG Team, check www.eyeon.nl.

Concept magazine: Ono Ono Text: EyeOn Photography: Martine Harmeling (EyeOn) Design: Martine Harmeling (EyeOn)