Customer Profile - Oliverwight-eame

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www.oliverwight-americas.comOliver Wight Americas – Case Study – SABMiller LatAmSABMillerBenefits at a GlanceCustomer profile Increased the level of maturity andcommon understanding among thesupply chain teams in the LatAm region Evolved practices so that today they focusin on the broader supply chain with betterquality interactions, not only inside the endto-end scope, but also with other functions Established Communities of Practice toDeveloping Best Practice PlanningCompetency Across Six BusinessesThe Latin American region of SABMiller, oneof the world’s leading brewers, was confrontedwith a challenge: How can they developcreate a highly effective platform forplanning competencies across six businessessharing best practices between thethat are consistent, sustainable, and contributeSABMiller businesses in the LatAm region Reduced by 50 percent the time toimplement planning and control processand operate the process to Class A bestpractices standardsInspiringBusinessExcellenceto operational and financial results?

www.oliverwight-americas.comOliver Wight Americas – Case Study – SABMiller LatAmThe group’s portfolio includes global brands, such as PeroniThe answer to these challenges proved to be The OliverNastro Azzurro, Miller Genuine Draft, Miller Lite, and Grolsch.Wight Class A Checklist for Business Excellence andIt also includes leading local brands, such as Aguila (Colombia),its Proven Path methodology for implementing processCristal (Peru), Atlas (Panama), Pilsener (Ecuador), Salva Vidaimprovements.(Honduras), and Pilsener (El Salvador).The company had invested in on-line education on planningDiagnostic Evaluation Helps Determinethe Right Approachand control methodologies, which was useful in creating aTo determine the best approach, Oliver Wight was askedcommon knowledge base. Yet, this investment alone wasto conduct a Diagnostic evaluation of the planning and controlinsufficient in meeting the objectives of sustainable planningpractices being deployed at Bavaria, the Colombian subsidiarycompetency throughout all of the businesses.of SABMiller. The Diagnostic evaluation revealed that thefunctional areas in the businesses were not integrated andThe company’s leadership team believed there was moresynchronized. Also, communications processes were weak.to be gained by ensuring that best practice standardsin planning and control were being implemented andThe supply planning, procurement, and demand planningsustained. The questions were:functions were part of the supply chain function. The salesand marketing functions did not regularly communicate What is the best approach to establish best practicestheir plans to help develop a more accurate demand plan.for integrated planning and control across all ofThe supply chain organization had opportunities to exploitthe businesses?the interrelation between SC concepts such as masterplanning and scheduling, capacity planning, and production How can they gain economies of scale in doing so?planning and scheduling — and to integrate these planningprocesses.1

www.oliverwight-americas.comOliver Wight Americas – Case Study – SABMiller LatAm“The improvement in our service level andprofitability indicators demonstrated thatthese new ways of working were the rightpath for creating sustainable leadership inour industry.”Carlos AgustoSupply Chain Development Managerfor BavariaThe Oliver Wight principals who conducted the DiagnosticThe Leadership Phase provides executive education so thatevaluation did not find these issues insurmountable. In fact,the leadership team can understand the specific issues, what itthe issues are fairly common throughout the industry today.will take to fix the problems, and what the business case is forCompany leaders who recognize the insufficiencies of theirchange, including return on investment.planning processes — and take steps to correct them — leadcompanies that tend to better adapt to changes in theAdrian De Wilde, Bavaria’s Vice President of Supply Chain,marketplace and improve their companies’ financial andunderstood, from previous experience, the benefits of integratedoperational performance.planning and control — top to bottom — throughout a businessorganization. He proved an able leader in helping the supplyIn presenting the findings from the Diagnostic evaluation,chain organization to understand the value of implementingOliver Wight’s Alberto Fonseca and Ron Ireland were mindfulintegrated planning and control processes and committingthat SABMiller’s supply chain leaders were looking forto operate the processes to Class A Capable standardsrecommendations on an effective approach for developingacross all six businesses.the competencies needed to yield sustainable operationalintroduced the Proven Path methodology for implementingUse of Self-Assessments and ExpertAssessmentsprocess change as well as The Oliver Wight Class AThe question that remained was whether economy of scaleChecklist for Business Excellence.could be achieved in this endeavor and could be expandedresults. During the presentation of the findings, Oliver Wightto all of the SABMiller operations in Latin America. ThroughThe Proven Path methodology approaches process changediscussions with Oliver Wight, the following approachin phases — Leadership Phase, Development Phase, andwas determined:Ownership Phase. Before investing significant time and financialresources in further developing competencies, Oliver Wightrecommended first completing the Leadership Phase. Oliver Wight conducted overview and detailed educationon the integrated planning and control processes.2

www.oliverwight-americas.comOliver Wight Americas – Case Study – SABMiller LatAmThis education covered integrated business planning,the intricacies of each of the planning processes.demand planning, master planning and scheduling,capacity planning, production planning, and data integrityprocesses. Oliver Wight provided coaching on issues and answeredquestions in between the expert assessments to ensurethat impediments to progress were addressed. The purpose of this education was to provide sufficientknowledge for the SABMiller LatAm planning teams inThe involvement of Jaime Ochoa, SABMiller LatAm’s Overalleach country to conduct self-assessments of the aboveProject Sponsor and Director of Supply Chain for the region,processes. The standards in The Oliver Wight Classwas critical to ensuring that the self-assessments and expertA Checklist for Business Excellence were used in theassessments were conducted with a high degree of integrity.self-assessments.Ochoa and his team from the LatAm hub attended everyassessment. They also oversaw the preparation of the Oliver Wight conducted training sessions on how tosupporting documents and evidence to provide justificationperform the self-assessments so that the same rationalefor the assessment ratings. This effort included developingwas used by all the businesses in rating the planningstandard formats and templates to facilitate the evaluationprocesses. The planning teams would be aided by theprocess.Oliver Wight eList in order to document the ratings andensure standardization across all business units.“Most importantly, I made sure that the internal approachtowards the evaluations was with the intent of showing the 3 Oliver Wight conducted expert assessments atreality of the operation and not in making a ‘grade’,” Ochoasix-month intervals to rate progress. At the same time,explains. He now serves as the Vice President of SupplyOliver Wight provided further education and coaching onChain for the business in Ecuador.

www.oliverwight-americas.comOliver Wight Americas – Case Study – SABMiller LatAm“Oliver Wight taught us what excellenceshould look like. There were so many ahamoments when the participants finallyunderstood the connection betweenthe work streams and why they wereimportant.”Jaime OchoaSABMiller LatAm’s Overall Project SponsorDirector of Supply Chain for the LatAm regionRole of Oliver Wight Experts — TeachingWhat Excellence Looks LikeVictor Aguirre, the former Project Leader at the BavariaOchoa and others involved in the initiative express appreciationOliver Wight:operation in Colombia, cites five contributions made byfor the Oliver Wight approach. Oliver Wight’s experts weredemanding and strict in their evaluations. At the same time,Oliver Wight’s experts also provided education and practical1. Assistance with identifying the gaps between currentand best-in-class process performanceadvice to spur true understanding of what it takes toeffectively operate the planning and control processesin an integrated manner.In doing so, Oliver Wight helped create a new culture for2. Assistance with identifying how to improve the maturityof our people and processes3. A way to challenge our leaders to move forwardthe supply chain in all of the businesses. “Oliver Wight taughtus what excellence should look like. There were so manyaha moments when the participants finally understood4. Taught us the best practices by sharing their experienceand knowledgethe connection between the work streams and why theywere important,” Ochoa states.5. Provided an objective view of the improvements madeand the level of competencyNigel Walker, Director of Supply Chain Development atBavaria, who assumed the project manager role, recognizesImplementing the Integrated Planning and Control processesthe commitment of Oliver Wight’s experts to stay in touchand developing the competency to operate the processesbetween the expert assessments. “They were always readyat a Class A Capable level required more than four yearsto answer questions and provide clarity,” he says.of effort. Oliver Wight appreciated SABMiller’s approach for4

www.oliverwight-americas.comOliver Wight Americas – Case Study – SABMiller LatAmsustaining momentum over those four years and for building“The Communities of Practice significantly improved the qualityteamwork across the six businesses.of the deliverables for the assessments. It also accelerated thetime required to develop the processes and get those processesValue of Communities of Practiceoperating at Class A Capable levels,” Ron Ireland observes. TheThe Integrated Planning and Control effort was divided intofive business units, which followed Bavaria’s initial lead, were ableeight work streams — Management, Sales & Operationsto quickly close the gaps based on the shared learnings fromPlanning, Product Management, Demand Management,Bavaria. As a result, the business units were then able to reachProcurement, Supply Planning and Execution, MaterialsClass A Capable levels of performance in half the time that BavariaPlanning, and Master Data. For each work stream, teams wereanticipated.formed into regional Communities of Practice.The Communities of Practice were not disbanded after eachEach Community of Practice was composed of membersbusiness achieved Class A Capable certification. “The Communitiesfrom all six of the businesses. Meetings were held every monthof Practice are our best platform for sharing best practices betweenwith each community. Each community worked together toour businesses,” says Mauricio Garcia, Supply Chain Excellencedevelop templates, procedures, and tools. They also workedDirector for SABMiller LatAm and Overall Project Sponsor. "As atogether to prepare for the upcoming expert assessments.result, the Communities of Practice continue to drive the processesto further mature and improve," according to Ochoa.“It was amazing to see the shared enthusiasm that builtpractices and putting new processes in place were valueCreating a Culture of ContinuousImprovement and Industry Leadershipgenerators for their businesses,” observes Alberto Fonseca,The Bavaria business in Colombia, in 2012, achieved the OliverOliver Wight principal who worked along with Oliver Wight’sWight Planning and Control Capable Milestone. Following in theirRon Ireland and Jose Luis Jorquiera in providing educationfootsteps, the SABMiller LatAm businesses in Peru, Honduras, andand coaching.El Salvador achieved the same recognition.as the Communities of Practice found that using best5

www.oliverwight-americas.comOliver Wight Americas – Case Study – SABMiller LatAm“The Communities of Practice are ourbest platform for sharing best practicesbetween our businesses.”Mauricio GarciaSupply Chain Excellence Director for SABMillerLatAm and Overall Project SponsorThe leaders of SABMiller’s effort recognize that far more wasaccomplished than achieving a certification. Nigel Walker citesphase into the business and allowed me to be operationalhow a deep understanding of modern supply chain conceptsfrom day one,” Ochoa states.has been developed. As a result, SABMiller LatAm is looking foradditional ways to improve the effectiveness of the supply chain.Agusto takes a broad view in observing the impact the effortThey are now identifying ways to further integrate associatedhas had for SABMiller LatAm. “It’s important to remark that thissupply chain functions, like distribution and manufacturing.was a four-year journey to excellence. Class A recognition wasthe consequence of having achieved a great performance andContinuous improvement, in fact, has become engrained in thematurity in our Integrated Planning and Control processes,”culture. “I learned that the journey to excellence never ends,”Agusto says. “The improvement in our service level andsays Carlos Agusto, Supply Chain Development Managerprofitability indicators demonstrated that these new waysfor Bavaria. “The best practices we implement today canof working were the right path for creating sustainablebe improved upon tomorrow by someone else. This impliesleadership in our industry.”a continuous effort and humility to recognize that we canalways learn from others.”Eduardo Dager, Supply Chain Vice President, SABMillerLatAm, comments: “Oliver Wight’s involvement was veryOchoa found that what he learned from the effort hashelpful to increase the level of maturity and commonprepared him to be a better supply chain executive. Whenunderstanding among the supply chain teams in the LatAmhe was promoted to Vice President of Supply Chain forregion. In collaboration with the SABMiller supply chainSABMiller's Ecuador business, he found he had a solidteam, they sowed some seeds that later started to blossom“handle” on the supply chain. His participation in theand drive a journey of continuous improvement. We haveassessments in Ecuador gave him an understanding of thebeen walking this journey since then, looking today at aoperation and its strengths and weaknesses. This, in turn,broader supply chain with better quality interactions, not onlyenabled him to shape the strategy and plans for the Ecuadorinside the end-to-end scope, but also with other functions.”supply chain operations. “That reduced my introductory6

www.oliverwight-americas.comOliver Wight Americas – Case Study – SABMiller LatAmOliver Wight has a 40-year track record of delivering business improvement to some of theworld’s best-known organizations. We believe that sustainable improvement can only bemade through your own people. So unlike other consultancy firms, we transfer our knowledgeto you, which means you can achieve performance levels and financial results that last.Oliver Wight AmericasP.O. Box 368, 292 Main StreetNew London, NH 03257, USAT: americas.comOliver Wight Asia/Pacific131 Martin Street, BrightonVictoria 3186, AustraliaOliver Wight EAME LLPThe Willows, The Steadings Business CentreMaisemore, Gloucester, GL2 8EYInspiringBusinessExcellence

processes. The standards in The Oliver Wight Class A Checklist for Business Excellence were used in the self-assessments. Oliver Wight conducted training sessions on how to perform the self-assessments so that the same rationale was used by all the businesses in rating the pla