Dairy  Drinks Systems applications and products Journey and Future Path Essay

Dairy & Drinks SYSTEMS APPLICATIONS AND PRODUCTS Journey and Future Path

25 May possibly 2011

Raymond John IT Director – Dairy & Drinks

Might 2011

AGENDA • • • • • • Lion Dairy products & Refreshments Overview The battle in 2006 Transforming the platform Buy Next Actions Lessons Learned

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KEY POINTS

• Lion Dairy & Drinks provides two primary channels: ‒ Grocery (Woolworths, Coles, Additional independent supermarkets) which makes up 56% of net revenue; and ‒ Convenience & Food Providers (CFS) accounting for 44% of net sales • Private Label brands are significant in grocery (53. 7% of fresh/UHT milk) and growing. This places pressure about branded players due to the price differential • • CFS is a very complex route consisting of more than 100, 500 stores, every with different needs The CFS channel has an equally complex circulation model which usually consists of a network of distributors, franchise owners and wholesalers • Big cat Dairy & Drinks features Australia's only national chilled distribution network which gives opportunities to leveraging this competitive advantage

3

BRANDS

Milk (White and Flavoured)

Category Rank

#1

Dairy (Yoghurt and dairy deserts)

#1

Juice #1 (Chilled and ambient)

Mozzarella cheese (Everyday and Specialty)

#1

4

GEOGRAPHIC

Malanda (Milk & Cheese)

Booval (Milk) Vitasoy JOINT VENTURE (Soy) Leeton (Juice) Riverland (Juice) Murray Bridge (Dairy & Cheese) Bentley (Milk and juice) Clarence Landscapes (Milk) Jervois (Cheese) Salisbury (Milk) Shepparton (Milk) Divested (FreshCo) Various other JV National Foods Dairy Farmers

Lytton (Juice) Crestmead (Milk) Hexham (Fresh Dairy, condensed dairy and desserts, cottage cheese and milk powder) Penrith (Milk) Lidcombe (Milk and dairy) Baulkham Hills (Perfection dairies) Wetherill Recreation area (dairy, bad cream and bottle and carton UHT) Smithfield (Juice) Canberra - JV with Bega (Milk and cream) Campbellfield (Cheese) Chelsea Altitudes (Milk) Morwell (Dairy) Nobleman Meadow (Cheese)

Allansford (Cheese) Simpson (Cheese) Cobden (Milk) King Area (Cheese) Burnie & Heidi Farm (Cheese) Lenah Pit (Milk)

a few

AGENDA • • • • • • Countrywide Foods Summary The Challenge 5 years ago Transforming the platform Acquisition Next Steps Lessons Learnt

6th

COMPLEX SYSTEMS

7

SILOS THROUGH PURCHASES

8

AN INSTANCE FOR MODIFY

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ESTABLISHING THE STRATEGY

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PLAN • • • • • • National Food Overview The process in 2006 Changing the platform Acquisition Next Steps Lessons Discovered

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SO WHY SAP?? • Functional capacity – primary & advanced modules • Industry competence (global beverages) • Venture solution (single instance)

• Major Option delivery companions

• Industrial value (under San Miguel)

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PUTTING INTO ACTION THE CHANGE

13

13

TBT PROGRAM

15

LAST LANDSCAPE

18

END TO FINISH

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EACH OF OUR CHALLENGE…..

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BUSINESS PROCEDURE OWNERS NETWORK

D2D P2P Payments H2R

1 . BP Owner,

P2P Corporate

technique

O2C Instructions

2 . BP Capability Frontrunners,

process style & people engagement

a few. Workplace Efficient Champions,

process implementation

P2P Agricultural

5. BP Improvement,

governance, specifications, facilitation

O2C Logistics

five. Line Managers,

drive & sustain method change

P2M Manufacture

6th. Project Clubs,

engage & communicate with the network

O2C CFS Product sales

P2M Plan

O2C Grocery Sales

O2C Cash

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BPO CHARTER

• guard the sincerity of the defined Business Processes • give business control to Business Processes • facilitate decision making from a broad range of stakeholder input

• ensure that all business stakeholders gain access to THAT resource • govern activity in line with the IT Strategy • prioritise approved Business IT requests • end up being accountable for approved activity

twenty

INSTITUTIONALISING THE APPROACH

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AGENDA • • • • • • Countrywide Foods Summary The Challenge in 2006 Transforming system Acquisition Following Steps Lessons Learnt

twenty two

NEXT STAGE

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BUNDLED PLATFORM

The integrated program...