Submitted By: Ananda Dasgupta Sudeep Ojha Tushar Pandey Viswanath Srinivas Pendyala Eshan Gupta Ashwin Kondadi
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Presentation Outline • • • • • • • • • • •
Overview of Coca – Cola Problem statement Project objective Coke One Vendor Selection Goals of Implementation ERP Planning phase ERP Implementation Change Management Benefits and Limitation of the ERP Lessons Learned
Introduction Brands in 200+ countries
1.8 Billion servings everyday
700000+ employees worldwide
Over 10000 SKUs
3500+ brands worldwide
Receives $18B as franchisee fees from bottlers and $90B business
Problem Statement A legacy IT architecture in place
Multiple software systems in place: sales and distribution, finance, HR, PR and other home grown applications Each of the bottlers were using their own versions of SAP for finance, manufacturing and administration
Lack of integration and unavailability of companywide business information
Non-existent business process standardization and high inventory costs
Project Objectives/Business Case Localization of global SAP Business Suite for Coke bottlers to improve flexibility
Faster process innovation cycle - implement differentiating new business processes on top of SAP Business Suite Provide end-to-end business tools that will allow the bottlers to standardize all systems & processes
Introduce more effective methods to optimize productivity and performance
To provide excellent customer service by improving customer-centric procedures such as inventory management & invoicing accuracy Business developers get access to critical info: transaction history, Promotion Activities, Product Availability
Coca Cola Bottler Services
Roadmap for Coke One
How Coke One enables Vision 2020
Departments
Vendor selection Functionality Modularity – Customization Possibilities - % of processes covered – Best Practices of Industry Technology Compatibility with the existing infrastructure Vendor Reputation – Nb Of installations in industry and area – Successful track record of its partners
Support After-implementation support level Costs
ERP Market Share
Goals of implementation SAP is a complete end-to-end business tool that will allow CCH to standardize all systems & processes applying the same technology in all divisions. Significant investment in SAP, introducing new and more effective methods to optimize productivity and performance throughout the organization. SAP Platform allows CCHellenic to provide excellent customer service by improving our customer-centric procedures such as inventory management and invoicing accuracy.
With the installation of SAP Wave 2, business developers have access to various critical customer information such as: Transaction History Promotion Activities Product Availability …through their handheld devices that enable more competitive customer service.
Projected benefits
$53 - $109 million
Enterprise Process Map Field sales plan
Pricing Territory/ Visit Plg.
In Store Execution
Integr. Order Mgmnt
Distribution Mgmnt
Sales, Marketing & Distribution
Channel / Category Plan and Promotion Plan
Settlement Billing
Strategic Route Planning
Treasury Treasury Cash Mgmnt
Cash Mgmnt
Market-to-Cash
Financial Financial Accounting
Demand Planning
Weekly Dem. & Supply Mgmnt
Production Execution.
Product Quality
Warehouse management
Manufacturing & Haulage
Supply Network Planning
Financial Planning
Capital Budget
Equipment demand planning
Haulage Fleet Mainten.
Vendor Mgmnt
Procurement
Procurement Mgmnt
Receiving Mgmnt
Accounts Payable
Procure-to-Pay
Equipment Placement
Asset Management
Equipment Equipment Refurbishment/ Maintenance Disposal
Recruitment
Org.Mgmt & Admin
Human Resource Management Recruit-To-Retain
Compensation
Survey Monitoring
Customer Profitability
Controlling
Group Reporting / KBI
Period End
RFA Process
Field Sales Monitoring
Operational Reporting / KBI
Period End Closing Closing
Forecast-to-Deploy
Promotion Evaluation
Accounting
Controlling
Asset Management Human Resource Planning
Financial Financial Management Management
Corporate Reporting (Business Intelligence)
Business Planning
Key Account Wholesaler plan
Finance Management
Product & Customer Segmentation
Corporate & Management Reporting
Vendor Monitoring
Equipment Monitoring
People Performance & Development
ERP Architecture
Implementation Process
Prepare
Set up Project Team
Define Project Plan
Define and finalize Scope
Establish Milestones
Assess
Evaluate Solution
Define Key Users / Critical personnel
Gap Analysis / Change Requests
Assess / Approve changes
Implement
Allocate external & internal resources
Monitor Implementation
Test solution provided
Provide Feedback
Roll – out
Halt change process
Define cut-off period and Phase in
Define Contingency Plan (in case of failure)
Minimize functionality until stabilization
Project Implementation Timeline
Preparation Phase
Go Live
Recovery
Much work to prepare for new systems and business processes.
The go-live event is both an end and a beginning.
Immediately after going live, performance, productivity and morale usually declines as people adapt to the new system and processes.
Once people become comfortable using the system and all the bugs are worked out, then the environment stabilizes.
With a stable environment, the benefits of SAP can be obtained, such as efficiency, effectiveness and transformation.
Change Management Planning Document processes Define Gaps Assess / Implement Build knowledge
Transfer knowledge
Use knowledge
BENEFITS/ADVANTAGES
• Standardization of Business Process across business units • Faster access to Sales data • Reduced Inventory Levels • Improvements in Production scheduling • Improvements in Forecasting • Eliminate Manual Processes (Financial Statements)
• Faster and accurate decision making • Improved customer service • Faster Replenishment of shelves in retail outlets • Increase in Revenues • Better Compliance • High Reliability • Low cost of ownership • Better Security
LIMITATIONS/DISADVANTAGES High Training Costs Complexity in Implementation which lead to phased approach Legacy systems and new systems should run parallel Database Migration Limitations as DB2 supports unsorted exports
Lessons learned • The major lesson learned during the course of implementation were – Stages : very important, that implementation is done in stages. Trying to implement everything at once will lead to a lot of confusion and chaos. – Buy in: employee buy in is of paramount importance when you are planning to implement in stages and then scale up – Requirement analysis: the success or failure of the implementation totally depends on how well has the planning team analysed the requirements – Communication: there should be a continuous channel open for evaluation of the project as ERP systems are very integrated and change to one may affect other related modules – Training: there should be a continuous training program enabling in smooth transition – Customization: tailor fit the ERP/BPM modules to your organisation; it will help reduce costs and time on a longer run
Conclusion In the Czech Republic, Slovakia, Italy and Bulgaria, handheld electronic devices allow the delivery drivers to produce customer invoices at the time of delivery, reducing invoice inquiries and improving cash flow.
In Poland, Bulgaria and Romania, automated dispatching of products results in faster delivery and optimized route planning, to help meet specific customer requirements.
In Austria and Italy, a SAP-driven vendor management inventory system allows exchanging electronic inventory information with large customers and plan the replenishment of their warehouses.
In Bulgaria, a specialized customer order entry process and keyboard have helped Customer Service specialists reduce the time required to take a product order by 25%-30%.
