A Breakthrough S&OP approach

1. Commit your Teams to your Ambition Alain Perrot & Andy Coldrick – September 2011 With

2. About Ling-Coldrick Dick and Andy have been collaborating on S&OP for 25 years. Dick created S&OP, and he and Andy are two of the leading thinkers and consultants on its development and advancement. We are a very strong partnership and specialize in pushing S&OP boundaries. We help businesses all over the world to maximize S&OP's potential to generating more cash and increasing profits. We both now live in the USA and are working together even more closely. We assist clients with breakthrough success in implementing Right to Left S&OP. We led the thinking on aligning the S&OP process to the strategic intent of the business and future portfolio. Before that we were the first to recognize that new product activity and financial links into traditional S&OP were treated as afterthoughts, but were not being truly integrated. We pioneered integration of these two pieces, and also created integrated reconciliation to explode the 'single number' myth, in vogue at the time. Understanding change, assumption management and scenario planning giving a 'range of views' all emphasize the need for management information and not just numbers. This led to the five step Breakthrough S&OP process highlighted earlier, if S&OP was to become a strong cross functional process. Utilizing a "range of views" also saw the need to use a different process from the traditional demand/supply balancing model. During that time we encountered companies in complex environments. Clients in just North America implement S&OP in one very large country - the USA. In Europe we deal with a more complex picture with clusters of countries, and in many cases these clusters are combined into a region such as Europe, Africa and the Middle East. In the 1990's Europe and Asia regions were microcosms of the global picture. We pioneered the way to implement integrated S&OP in global, regional and country environments, from experience in Europe. Our ability to work anywhere in the world with multinationals built an unrivalled experience in helping businesses maximize the benefits of global S&OP, while understanding potential road blocks with different cultures, expectation and systems. Dick Ling Andy Coldrick

3. Alain Perrot Alain Perrot is a food engineer graduated from ENSIA (National French School for Food Industries) and has a MBA from ESSEC. He has started his career in 1984 in the Mars Group (Unisabi) where he created the Industrial Engineer function in the Strasbourg plant. Then, he is successively appointed Shift Manager in Strasbourg plant, Financial Planning Manager, Resourcing Manager and Business Planning Manager of Unisabi. In 1992, he is appointed Supply Chain Project Manager Mars Petcare Europe. From 1992 to 1994, he reconfigures the Supply Chain to bring it to «Class A» level, and pionneers the implementation of SAP R3 for the whole Supply Chain (Planning, Logistics, R&D, Manufacturing, Purchasing). Concurrently he leads the implementation of S&OP in Europe, where he first meets Andy. In 1995, he joins Bestfoods France as Logistics & Planning Director, to lead the Supply Chain Project. From 1995 to 1996, he divides Inventories by 2, and improves the Order Filling Rate by 30%. In 1997, he is appointed Plant Manager of the Dressings Factory in Dunkerque, which he transforms in 2 years into the most agile plant of Bestfoods Europe (Agility multiplied by 2). In 1999, he joins Air Liquide Welding, to create the Supply Chain function, as Vice President Supply Chain & Purchasing. From 1999 to 2003, he creates the Supply Chain & Purchasing Organization of the 20 autonomous companies of Air Liquide Welding, improves the order filling rate by 30%, decreases inventories by 20%, and improves purchasing productivity by 4%/year. He also is the driving force in a successful S&OP process,again working with Andy. In 4 years, he moves the Supply Chain of Air Liquide Welding from a buzz word to the Transformation Engine of the Company. A key driver of this journey was the implementation of a Regional IBM he developed with the support of Andy. In 2003 he becomes associate of Big Fish, a service company dedicated to People development in Operations. From 2003 to 2006, he was Associate Professor at Strasbourg Business School, where he taught Supply Chain Strategy, Multicultural Management, and ERP implementation. He is a worldwide leading authority in breakthrough S&OP has implemented it in several FMCG’s, but also in other industrial sectors like automotive and welding. Since 2008, he is the leading consultant of group Danone for Breakthrough S&OP (branded GPS in Danone). So far, he has implemented GPS in 40 Danone Companies, representing a coverage of 75% Danone Turnover. GPS is now recognized as THE deployer of Danone new operating culture.

4. GPS is NOT a Supply Chain project… From “Involved” in S&OP to “Committed” to GPS

9. What Benefits can GPS deliver Strategy Deployment (Market Growth/Share) (Clarity, Anticipation, Focus, Decisions) (Revenue, Profit, Cash)

12. The GPS tools are visible and easy to understand, but the change of Mindset is the real Challenge Behaviours Processes Tools

13. An Example : The RADAR with the wrong behaviours Normally, if everything goes well, this project should be on time…. I am astonished to learn that this project has problems. My teams tell me exactly the contrary. I want to know who is responsible for this disaster !!!

14. Individual commitment to a group effort - that is what makes a team work, a company work, a society work, a civilization work. Vince Lombardi