Description
A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains
Supply Chain and
BSP1 day
3 December 2013
Ziegelbrücke, Switzerland
2
Agenda
The new operating model
in Carlsberg
Creating an integrated
supply organisation
BSP1
Poster tour in CSC
departments
Q&A
3
Agenda
The new operating model
in Carlsberg
Creating an integrated supply
organisation
BSP1
Poster tour in CSC departments
Q&A
From export-company with few operations to the
world’s fourth largest brewer
4
1999
2013
No. 1
in Northern & Eastern
Europe and fourth
largest brewer in the
world
500
different beer
brands
41,000
employees on
three
continents
36,000,000,000
bottles of beer sold in 2012
CARLSBERG GROUP TODAY
Trondhjem
Gjelleråsen
Falkenberg
Kerava
Northampton
Fredericia
Hamburg
Lubz
Szczecin
Sierpc
Brzesko
Koprivnica
Celarevo
Blagoevgrad Shumensko
Rheinfelden
Varese
Obernai
Thessaloniki
Saku
Riga
Klaipeda
Utena
Breweries in Western Europe
Porto
France
Portugal
Switzerland
Italy
Germany
Poland
Sweden
Norway
Denmark
United Kingdom
Finland
Croatia
Greece
Estonia
Lithuania
Bulgaria
Serbia
Latvia
5
Breweries in Eastern Europe
Russia
Kazakhstan
Uzbekistan
Ukraine
Belarus
Novosibirsk
Rostov
Samara
Tula
Yaroslavl
St.Petersburg
Chelyabinsk
Krasnoyarsk
Khabarovsk
Almaty
Tashkent
Lviv
Kiev
Zaporozhye
Minsk
Baku
Azerbaijan
Voronez
6
Breweries in Asia
7
Zaire
Gabon
Kenya
Congo
Rwanda
Tanzania
Mozambique
Angola
Zambia
Burundi
Malawi
Madagascar
Botswana
Zimbabwe
Namibia
South Africa
Lesotho
Swaziland
AFRICA
Malaysia
Sri Lanka
Singapore
Cambodia
Hong Kong
Vietnam
Laos
India
China
Nepal
Malawi
Hué
Vientiane
Hanoi
Pakse
Vung Tau Biyagama
Kuala Lumpur
Alwar
Aurangabad
Hyderabad
Kolkata
Kathmandu
Guangdong
Xinjiang
Sichuan
Gansu
Yunnan
Guizhou
Guangxi
Chongqing
Hunan
Zhejiang
Anhui
Ningxi
Dharuhera
Paonta Sahib
In Europe, we have changed our operating model
8
From 25 breweries in 25 locations to ONE brewery in 25 locations
Before Now
Sales
Country A
Country B
Country C
Country
Sales A
Country
Sales B
Country
Sales C
Country
Sales D
Country
Sales …
Sales
Sales
Central
supply org
CSC is the company established to manage this
setup going forward
9
CSC will…
• Manage the supply chain network
in Western Europe
• Be responsible for planning,
procurement, production and
logistics
• Set the standards, provide
services and knowledge to all
regions
BSP1 will provide the necessary infrastructure
BSP1 will…
• Standardise most of our core
processes (sales, forecasting,
distribution, billing etc.)
• Standardise a number of supporting
processes (reporting, master data,
asset management)
• Be supported by a common SAP
platform
• Be implemented in all markets in
Western Europe (except Portugal)
10
…by standardising a large
part of our value chain
This has led to a new organisational setup and
new ways of working
• From ‘independent’ and business
integrated on country level…
• … to ‘interdependent’ and integrated at
Group level
• CEO focus on go-to-market excellence
• CSC focus on Supply Chain excellence
• Both focused on serving local
customer and consumer needs
11
• New operating model decided
• BSP adapted
• Integration of Procurement and Supply Chain
decided
• Carlsberg Supply Company AG established in
Switzerland, integrating central procurement,
production, logistics, planning functions under one
roof
• New management team in place
• Local Production and Logistics Directors now
reporting to CSC
• Sweden live on new BSP1 platform
• Norway live on new BSP1 platform
• UK to go live on new BSP1 platform in early 2014
Milestones
12
2011
2012
2013
2014
13
Agenda
The new operating model in
Carlsberg
Creating an integrated
supply organisation
BSP1
Poster tour in CSC departments
Q&A
Our overall supply chain vision is…
14
(Qualifier)
(Differentiator)
COST &
CASH
SERVICE
14
Be the best
CUSTOMER AND
CONSUMER
DRIVEN
supply organisation
in the beverage
industry
The best supply chain organisations…
15
Design once – deploy everywhere
Find the “sweet spot” between
scale and proximity
Work End 2 End
Start from shelf
We have created an integrated supply
organisation…
16
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
…integrating procurement, production and
customer supply chain functions into one
We want to focus on customer and consumer
needs…
17
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
Flow of goods Flow of information
Customer Supply Chain…
18
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
• Ensures on shelf
availability
• Optimises
warehouse and
logistics structures
• Reduces overall
distribution costs
Procurement…
19
…brings the outside world in
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
• Ensures steady supply
of input
• Manages supply risks
• Generates cost savings
• Lowers complexity
• Opens innovation
Production…
20
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
• Ensures steady supply of goods
• Manages quality
• Uses scale advantages in production to
lower the cost of goods
• Manages CAPEX and reduces capital
employed
• Manages risks in connection with product
launches and new product development
Planning…
21
PLANNING
…ensures the End 2 End optimisation
• Ensures that demand meets supply they most
efficient way
• Optimises and allocates production volumes at the
plants and the flows between the plants
• Centrally driven, aligned with commercial and
financial planning cycle
• Long-term outlook, making long term planning
possible
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
People…
22
…bring the business thinking to life
• Having leading skills in all areas
• Ensures capabilities are in place before taking
ownership of key processes
• Operates with an entrepreneurial business spirit
• Creating motivation and fun
PEOPLE
PLANNING
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
Infrastructure…
23
INFRASTRUCTURE
PEOPLE
…building the foundation for an efficient value chain
• Enables sourcing, planning, production,
logistics and service across borders
• Provides the necessary transparency and
knowledge
• Allows us to spend time using data instead of
collecting data
PLANNING
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
All our strategic initiatives are placed in one of
these functions …
24
BUILD THE OPTIMAL END-TO-END INFRASTRUCTURE
CREATE ONE WINNING TEAM
BUILD A CUSTOMER FOCUSED PLANNING
ORGANISATION
DEVELOP
WORLD
CLASS
PROCURE-
MENT
DEVELOP
THE MOST
AGILE AND
COST
EFFICIENT
BREWERY
NETWORK
ACHIEVE
EXCELLENCE
ACROSS ALL
LOGISTICS
OPERATIONS
SUPPLIERS
• … Ensuring ownership of each strategic initiatives in the
organisation, and
• … Making it clear how each employee can contribute
CUSTOMERS
Win in market as
Top 3 preferred
supplier
based on unrivalled
customer
responsiveness and
quality excellence
25
E2E thinking One winning team
400m sprint world record for men: 43.18 sec
4x100m relay for men: 36.84 sec
26
Agenda
The new operating model in
Carlsberg
Creating an integrated supply
organisation
BSP1
Poster tour in CSC departments
Q&A
BSP1/new operating model: What it is
ONE
common Business
Process Model
ONE
common
IT platform
ONE
integrated supply chain
27
BSP1/new operating model will help Carlsberg to
integrate Western Europe in three fundamental ways …
ONE integrated supply chain
• which delivers better service to our customers,
at lower costs, and thereby ensure we remain
competitive
ONE common business process model
• which allows us to share best practices,
exchange information, benchmark and drive
continuous improvements
ONE common IT platform
• which allows us to focus on what’s important –
responding to local market needs and thereby
generate growth in sales and earnings
28
ONE integrated Supply Chain
• Improving customer and consumer
service
• Efficient supply
• Flexible and responsive supply chain
• Launching group innovations more
quickly and more profitably
• Maximising operational synergies
29
ONE common business process model
30
• One standardised way of working
• One common design authority and
governance setup for all processes
Leading to…
• Simplified cooperation for customers and
suppliers
• Faster cross market improvements
• Increased transparency and data availability
• Best practice route to market processes
easily shared
• Achieving and maintaining economies of
scale
• Less expensive development of new
processes
ONE common IT platform
• Harvest global synergies
• Ability to work faster using common tools
• Enable efficient & coordinated project
preparation
• Quicker deployment of improvements
• Key enabler for the supply chain operating
model
• Increase overall business value
31
Simplifying the business
From 8
enterprise
systems
to 1
common
enterprise
system
From 3,000
operational
reports
to 50 key
standardis
ed reports
From thousands
of local spread
sheets
to a
governed
way of link-
ing 50 key
reports to
local infor-
mation
ONE way to procure, plan and produce supporting a customer centric
sales and delivery model based on common data and common tools
From individual
definitions per
country
to 1
shared
definition
From 19
different national
ways of working
To 8
standard-
ised main
areas
32
33
What does is take to implement the new operating
model?
Roadmap
• Sweden and CSC live since April 2013
• Norway live since November 2013
• UK scheduled to go live in early 2014
Approach
• Organise for major business transformation programme
• Learn from different country operations and starting points
• Apply lessons learned and best practice in roll-out
• Dedicated central team and consistency of approach ensure
efficient implementation
• Applying winnings behaviours
34
This is a long journey - just begun
35
Agenda
The new operating model in
Carlsberg
Creating an integrated supply
organisation
BSP1
Poster tour in CSC
departments
Q&A
36
Agenda
The new operating model in
Carlsberg
Creating an integrated supply
organisation
BSP1
Poster tour in CSC departments
Q&A
doc_700305610.pdf
A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains
Supply Chain and
BSP1 day
3 December 2013
Ziegelbrücke, Switzerland
2
Agenda
The new operating model
in Carlsberg
Creating an integrated
supply organisation
BSP1
Poster tour in CSC
departments
Q&A
3
Agenda
The new operating model
in Carlsberg
Creating an integrated supply
organisation
BSP1
Poster tour in CSC departments
Q&A
From export-company with few operations to the
world’s fourth largest brewer
4
1999
2013
No. 1
in Northern & Eastern
Europe and fourth
largest brewer in the
world
500
different beer
brands
41,000
employees on
three
continents
36,000,000,000
bottles of beer sold in 2012
CARLSBERG GROUP TODAY
Trondhjem
Gjelleråsen
Falkenberg
Kerava
Northampton
Fredericia
Hamburg
Lubz
Szczecin
Sierpc
Brzesko
Koprivnica
Celarevo
Blagoevgrad Shumensko
Rheinfelden
Varese
Obernai
Thessaloniki
Saku
Riga
Klaipeda
Utena
Breweries in Western Europe
Porto
France
Portugal
Switzerland
Italy
Germany
Poland
Sweden
Norway
Denmark
United Kingdom
Finland
Croatia
Greece
Estonia
Lithuania
Bulgaria
Serbia
Latvia
5
Breweries in Eastern Europe
Russia
Kazakhstan
Uzbekistan
Ukraine
Belarus
Novosibirsk
Rostov
Samara
Tula
Yaroslavl
St.Petersburg
Chelyabinsk
Krasnoyarsk
Khabarovsk
Almaty
Tashkent
Lviv
Kiev
Zaporozhye
Minsk
Baku
Azerbaijan
Voronez
6
Breweries in Asia
7
Zaire
Gabon
Kenya
Congo
Rwanda
Tanzania
Mozambique
Angola
Zambia
Burundi
Malawi
Madagascar
Botswana
Zimbabwe
Namibia
South Africa
Lesotho
Swaziland
AFRICA
Malaysia
Sri Lanka
Singapore
Cambodia
Hong Kong
Vietnam
Laos
India
China
Nepal
Malawi
Hué
Vientiane
Hanoi
Pakse
Vung Tau Biyagama
Kuala Lumpur
Alwar
Aurangabad
Hyderabad
Kolkata
Kathmandu
Guangdong
Xinjiang
Sichuan
Gansu
Yunnan
Guizhou
Guangxi
Chongqing
Hunan
Zhejiang
Anhui
Ningxi
Dharuhera
Paonta Sahib
In Europe, we have changed our operating model
8
From 25 breweries in 25 locations to ONE brewery in 25 locations
Before Now
Sales
Country A
Country B
Country C
Country
Sales A
Country
Sales B
Country
Sales C
Country
Sales D
Country
Sales …
Sales
Sales
Central
supply org
CSC is the company established to manage this
setup going forward
9
CSC will…
• Manage the supply chain network
in Western Europe
• Be responsible for planning,
procurement, production and
logistics
• Set the standards, provide
services and knowledge to all
regions
BSP1 will provide the necessary infrastructure
BSP1 will…
• Standardise most of our core
processes (sales, forecasting,
distribution, billing etc.)
• Standardise a number of supporting
processes (reporting, master data,
asset management)
• Be supported by a common SAP
platform
• Be implemented in all markets in
Western Europe (except Portugal)
10
…by standardising a large
part of our value chain
This has led to a new organisational setup and
new ways of working
• From ‘independent’ and business
integrated on country level…
• … to ‘interdependent’ and integrated at
Group level
• CEO focus on go-to-market excellence
• CSC focus on Supply Chain excellence
• Both focused on serving local
customer and consumer needs
11
• New operating model decided
• BSP adapted
• Integration of Procurement and Supply Chain
decided
• Carlsberg Supply Company AG established in
Switzerland, integrating central procurement,
production, logistics, planning functions under one
roof
• New management team in place
• Local Production and Logistics Directors now
reporting to CSC
• Sweden live on new BSP1 platform
• Norway live on new BSP1 platform
• UK to go live on new BSP1 platform in early 2014
Milestones
12
2011
2012
2013
2014
13
Agenda
The new operating model in
Carlsberg
Creating an integrated
supply organisation
BSP1
Poster tour in CSC departments
Q&A
Our overall supply chain vision is…
14
(Qualifier)
(Differentiator)
COST &
CASH
SERVICE
14
Be the best
CUSTOMER AND
CONSUMER
DRIVEN
supply organisation
in the beverage
industry
The best supply chain organisations…
15
Design once – deploy everywhere
Find the “sweet spot” between
scale and proximity
Work End 2 End
Start from shelf
We have created an integrated supply
organisation…
16
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
…integrating procurement, production and
customer supply chain functions into one
We want to focus on customer and consumer
needs…
17
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
Flow of goods Flow of information
Customer Supply Chain…
18
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
• Ensures on shelf
availability
• Optimises
warehouse and
logistics structures
• Reduces overall
distribution costs
Procurement…
19
…brings the outside world in
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
• Ensures steady supply
of input
• Manages supply risks
• Generates cost savings
• Lowers complexity
• Opens innovation
Production…
20
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
• Ensures steady supply of goods
• Manages quality
• Uses scale advantages in production to
lower the cost of goods
• Manages CAPEX and reduces capital
employed
• Manages risks in connection with product
launches and new product development
Planning…
21
PLANNING
…ensures the End 2 End optimisation
• Ensures that demand meets supply they most
efficient way
• Optimises and allocates production volumes at the
plants and the flows between the plants
• Centrally driven, aligned with commercial and
financial planning cycle
• Long-term outlook, making long term planning
possible
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
People…
22
…bring the business thinking to life
• Having leading skills in all areas
• Ensures capabilities are in place before taking
ownership of key processes
• Operates with an entrepreneurial business spirit
• Creating motivation and fun
PEOPLE
PLANNING
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
Infrastructure…
23
INFRASTRUCTURE
PEOPLE
…building the foundation for an efficient value chain
• Enables sourcing, planning, production,
logistics and service across borders
• Provides the necessary transparency and
knowledge
• Allows us to spend time using data instead of
collecting data
PLANNING
PROCUREMENT PRODUCTION
CUSTOMER
SUPPLY CHAIN
All our strategic initiatives are placed in one of
these functions …
24
BUILD THE OPTIMAL END-TO-END INFRASTRUCTURE
CREATE ONE WINNING TEAM
BUILD A CUSTOMER FOCUSED PLANNING
ORGANISATION
DEVELOP
WORLD
CLASS
PROCURE-
MENT
DEVELOP
THE MOST
AGILE AND
COST
EFFICIENT
BREWERY
NETWORK
ACHIEVE
EXCELLENCE
ACROSS ALL
LOGISTICS
OPERATIONS
SUPPLIERS
• … Ensuring ownership of each strategic initiatives in the
organisation, and
• … Making it clear how each employee can contribute
CUSTOMERS
Win in market as
Top 3 preferred
supplier
based on unrivalled
customer
responsiveness and
quality excellence
25
E2E thinking One winning team
400m sprint world record for men: 43.18 sec
4x100m relay for men: 36.84 sec
26
Agenda
The new operating model in
Carlsberg
Creating an integrated supply
organisation
BSP1
Poster tour in CSC departments
Q&A
BSP1/new operating model: What it is
ONE
common Business
Process Model
ONE
common
IT platform
ONE
integrated supply chain
27
BSP1/new operating model will help Carlsberg to
integrate Western Europe in three fundamental ways …
ONE integrated supply chain
• which delivers better service to our customers,
at lower costs, and thereby ensure we remain
competitive
ONE common business process model
• which allows us to share best practices,
exchange information, benchmark and drive
continuous improvements
ONE common IT platform
• which allows us to focus on what’s important –
responding to local market needs and thereby
generate growth in sales and earnings
28
ONE integrated Supply Chain
• Improving customer and consumer
service
• Efficient supply
• Flexible and responsive supply chain
• Launching group innovations more
quickly and more profitably
• Maximising operational synergies
29
ONE common business process model
30
• One standardised way of working
• One common design authority and
governance setup for all processes
Leading to…
• Simplified cooperation for customers and
suppliers
• Faster cross market improvements
• Increased transparency and data availability
• Best practice route to market processes
easily shared
• Achieving and maintaining economies of
scale
• Less expensive development of new
processes
ONE common IT platform
• Harvest global synergies
• Ability to work faster using common tools
• Enable efficient & coordinated project
preparation
• Quicker deployment of improvements
• Key enabler for the supply chain operating
model
• Increase overall business value
31
Simplifying the business
From 8
enterprise
systems
to 1
common
enterprise
system
From 3,000
operational
reports
to 50 key
standardis
ed reports
From thousands
of local spread
sheets
to a
governed
way of link-
ing 50 key
reports to
local infor-
mation
ONE way to procure, plan and produce supporting a customer centric
sales and delivery model based on common data and common tools
From individual
definitions per
country
to 1
shared
definition
From 19
different national
ways of working
To 8
standard-
ised main
areas
32
33
What does is take to implement the new operating
model?
Roadmap
• Sweden and CSC live since April 2013
• Norway live since November 2013
• UK scheduled to go live in early 2014
Approach
• Organise for major business transformation programme
• Learn from different country operations and starting points
• Apply lessons learned and best practice in roll-out
• Dedicated central team and consistency of approach ensure
efficient implementation
• Applying winnings behaviours
34
This is a long journey - just begun
35
Agenda
The new operating model in
Carlsberg
Creating an integrated supply
organisation
BSP1
Poster tour in CSC
departments
Q&A
36
Agenda
The new operating model in
Carlsberg
Creating an integrated supply
organisation
BSP1
Poster tour in CSC departments
Q&A
doc_700305610.pdf