KPI Dashboard at

Heineken Netherlands

Paul Schalekamp, Supply Chain Controller

Anton de Romijn, Strategic Business Analyst

March 2010

Performance Highlights Heineken International

(Based on 2009 Full Year Results)

HNS Organizational Chart

Commerce

HEINEKEN
NETHERLANDS
Dutch Market

Supply

HEINEKEN
USA
USA Market

HEINEKEN
REGIONS

Other Export Markets

HEINEKEN
OTHER OPCOS

Other Heineken Breweries

Heineken Netherlands Supply

Director: Willem de Jonge

Financial Planning
& Control
Hans van Dam

Brewery
Zoeterwoude
Godfried Meijer

Human Resources
& Organisation
Irene Steenwelle

Supply
Development

Purchasing &
Sourcing Management

Arno Centen

Hubert te Braake

Brewery
Den Bosch
Paul Bleijs

Brewery
Wijlre

Peter van Besouw

Customer Services
& Logistics
Fred Holvast

HNS Sales volume per region (in HL)

(Based on 2009 Full Year Results)

HNS Produced volume per Brewery

(Based on 2009 Full Year Results)

Product Portfolio; 900 SKUs 3 Breweries

30 Packaging Lines 150 Countries...

Pack types

Brands
Heineken

82%

Amstel

14%

Brand

2%

Others

2%

about 50% of Heineken

Group volume !

Bottle One-way

44%

Cans

22%

Bottle Return

17%

Kegs

7%

Bulk/Tankers

5%

Draught keg

4%

Others

1%

HNS Supply chain set-up

Market Demand Management

HNS SC Management

Distributors
Buying

Contract
Mgt

Suppliers

HUSA
Inbound
Logistics

Brewing
&
Packing

Outbound
Logistics

ROW

Retail
Distributors
Retail

Retail DC
HNL

Retail
Wholesale
On-site

Accountability per unit

Marketing / Sales: Return on Sales
Supply Organisation: Demand Fulfillment

Loading efficiency improvements at HNS

Loading automation & mechanisation at HNS
-

Manage growth
Increase efficiency

3 Year program

Logistic Centre in Den Bosch

Heineken owned, 3rd party managed
Close to the brewery, Heineken owned properties
Logistic Service Provider will manage warehouse
Multi user concept: 30.000 m (>50 %)

for 3rd parties

Operational since July 2009

CAPACITY
55.600 m2 / 27,000 Ground Pallet Places
Both sides : 15 loading docks (7 automatic)
Office : 3 floors (total app. 900 m2)

page 9

OTA - Container Terminal Alphen

Focus HNS in 2010.....

Delivering strong results; investing for the future

Total Cost Management

Operational Excellence

Sustainability

Need for Data Integrity & Reliability

Need for Visibility and Transparency across all elements

of the Supply chain

Case for Action: Increased market

dynamics and cost targets

Accelerate project with start of Benchmark

Benchmark Supply Chain Planning

HNS 2008
Heineken can improve on:
Performance measurement (Balanced Scorecard)
Cooperation and collaboration across the Supply
chain
Systems Transparancy and Connectivity
Sales & Operations Planning

Companies adopting S&OP are

best in class
Logistics costs as a % of sales

Gross Margin (%of revenue)

Avg forecast accuracy on Product Family %

Best-in-class S&OP
All other companies

Complete Order Fill Rate %

Finished goods DOH %

Customer retention%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Aberdeen,

2007

What do we mean by S&OP?

Respond to Demand and Supply variations with timely,
data-driven decisions
Collaborative process to align demand, supply and
financial resources
Create a single, achievable plan
Effective means for senior management to demonstrate
leadership, teamwork and orchestrate success

S&OP is the process by which HNS makes its decisions!

15

S&OP; what is it and what is it not?

Information
Frequency
Horizon
KPIs
Authority

AS IS

S&OP

Multi-number

One Number

Quarterly

Monthly

Year To Go

Rolling

Functional focus

End-to-end

Scattered, ad-hoc

Centralized/
standardised

Goal of S&OP; better decisions for the whole supply chain

S&OP = Balancing Demand & Supply

Key Succes Factors for S&OP

Top level management involvement and

commitment
Ownership and decision authority of participants
Accurate data system support
Clear responsibilities and accountabilities
Discipline
-Adhere to decisions in the S&OP
-Mandatory attendance
It takes time
-To clean-up misalignments

S&OP meeting structure

Monthly process
7-52 weeks
horizon

Weekly process
1-6 weeks
horizon

Heineken Supply Chain Performance

Management

Functional requirements of KPI Dashboard

KPIs complete, up-to-date and unbiased

Data visualization ability to view KPIs graphically

Presented in Supply Chain coherence
Instant reflection of past/recent performance
Dynamic views and drill-down functionality
Value and Quantity
Online accessibility
Limited (no) manual intervention necessary; directly
connected to the source data
Compatibility with any data source
Quick to deploy and easily customisable

Every Angle & KPI-Dashboard

22

Key learnings and success factors

Management support and commitment
Cross-departmental involvement
Every KPI must have a functional owner
Get functional owners of specific KPIs involved at early
stage

Incorporate specific requests of functional owners (i.e.

layout changes)
Get IT-department involved at early stage
In-house placement of Every Angle staff (if possible)
Grant access to all people involved in S&OP
Recognition that KPIs will never be perfect or
finished.