the journey -...
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The Journey ConAgra OTM Implementation
Ryan Oswald
Amy Smith Dawn Wilson
ConAgra Foods, Inc
Agenda
• ConAgra Overview • Reasons for OTM Implementation • Timeline • Implementation Approach • FTI • Rate & Award Maintenance • Master Data • Alerts & Notifications • Freight Pay/Finance • Challenges and Opportunities • Future Enhancements
ConAgra Foods Overview
• ConAgra Foods started in 1919 as Nebraska Consolidated Mills • In 1971, it was renamed ConAgra, Inc. and the company
became ConAgra Foods in 2000 • ConAgra Foods is a Fortune 500 company with more than
23,000 employees, with the company’s world headquarters located in Omaha, Neb
• In fiscal year 2012, ConAgra Foods brought in $13+ billion in net sales
Our Brands
Consumer Foods •ConAgra Foods is one of North America’s leading food companies, with brands in 97 percent of America’s households •25 of these brands are No. 1 or No. 2 in their category •19 of these brands generate more than $100 million in retail sales each year •ConAgra Foods offers 140 meals for $3 or less •ConAgra Foods sells nearly 12.3 million packages of food products each day, including 3.8 million frozen food packages.
Reasons for Implementing
Legacy Systems Outdated
Optimization Opportunities
Fusion Transportation Intelligence
Inbound Freight Management
Material Allocations
Rail & International Planning Centralized
Timeline
Aggressive timeline: Two years from blueprinting to implementation
Phase 1 Go Live June 2011
Design Aug 2010
TMS Selection May 2010
Blueprinting June 2009
Implementation Approach
Phase 1
• Inbound to 4 Plants and Consumer Rail • June 20, 2011
Phase 2
• Outbound Stock Transfers & Customer • July 25, 2011
Phase 3
• Remaining Inbound • January 9, 2012
Phase 4
• Customer Pick Up • June 11, 2012
Implemented in four phases
Implementation Approach
Following modes now planned in OTM
Truck LTL IM
Rail (new)
Ocean (new)
CPU (new)
FTI – Operations & Procurement
• Standard Reports – OTD – Route Guide Compliance – Rate Inquiry – Load Planner Scorecard – Freight Cost Reporting – Carrier Scorecard
• Adhoc Reporting
Alerts & Notifications
• Supplier – Pickup notifications
• Insurance Certificates – Notification to carriers and procurement
• Event management – Missing statuses
• Rate Pages – Auto generated report
Rate & Award Maintenance
• OTM UI Rate Maintenance – Cumbersome at best – No lane integrity to match to award
• Awards – Business model requires Capacity Commitments – Maintenance is nearly impossible through UI – Overrides?
• Developed web based tool outside of system – Tool populates & loads .csv files through integration
Master Data
Master Data maintenance is full time job • Rail
– Routes, itineraries, rates • International
– Itineraries, accessorials • Inbound LTL
– Transits • Customer calendars • Inbound raw materials • Commitments
Freight Pay Systems
Pre-Go Live • SAP
– Orders (Customer) – Orders (Supplier-unplanned inbound) – FI – AP & G/L – BI Reporting
• Preferred Carrier • HUB • Manugistics
– Movement – Freight Pay – Chrystal Reports
• Walker Procurement & AP • Oracle G/L • Access Databases
Post Go Live • SAP
– Master Data (Cust./Mat./Vend.) – Orders (PO/STO/SO) – FI (AP & GL) – BI Reporting
• OTM – Order base – Shipment – Invoice – FTI Reporting
• MarkView Workflow (TransQ)
Internal Use
E2E Process – Finance Dependency
Order Creation • Master Data • Customer • Plant • Vendor • Material
• Order • PO • STO • SO
Trans - Planning • Rate Offerings • Awards • Modes • Lanes • Itineraries • Bulk Planning
Trans - Execution • Tendering • Status • Delivery • Returns
Settlement • Invoice Receipt • Match • Approval • Voucher • Payment • AR Inquiry
Finance Reporting
Budget Standards Metrics Reconciliation
Accounting/Finance Material Ledger
Accruals Cost Allocation Assessments
Dynamic Dialogue/Challenges
• Cutover Plans – Order Create date or ship date – Conversion of transactions or “bleed out” – Business and Carriers transacting in two systems – Clean cut-off for deferred/incurred vs. reconcile
• Implementation – Master data, master data, master data – Automating manual and disparate steps – Defining standards, exception processes and fixing errors – Transitioning ad-hoc and database reporting to centralized
‘business intelligence’ structure
Finance Change Management
• Communications and training for Carrier AR – Coordinating EDI IT resources for EDI 210 transmission
before, during and after cutover(s) – Documentation and delivery of training for access to web
portal for invoicing, attachments and payment status • Internal business partners
– Preparation for accounting impacts on planning, processing and reporting
– Collaboration with procurement and supply chain • Training for plant buyers – inbound transportation • Introducing workflow for invoice exception approvals • Communicating with carriers on e-commerce changes
Accounting Highlights
Accrual •Point in Time • IB Ship Date •OB PGI
Allocation •Actual Cost •Material Level •Weight & Cube
Voucher • Invoice
Approval •SAP PI &
Payment
Costing •Material
Ledger •Assessments
Challenges/Opportunities: • Moving from more generic allocation of costs to specific by material
weight/cube • Change management business alignment with budgeting/accounting design
changes • Difficult to correct transaction data errors and reconcile financial timing
differences between systems/GL and reporting.
Reengineering Freight Pay
Freight Related Invoice
Is Order Ref. in SAP PO or
STO?
Is Invoice for Mills or Rail?
Is Invoice for Return or
Detention?
Is invoice Freight Forwarder, Ocean or
International?
EDI or Web Invoice from
Carrier
Clean to Voucher?
Post to Walker for Payment Process
Is MBOL in Manu?
Chack Status Error (10,19, 29, 39, 69)
and manually get additional
approvals/documents
Use SOP & Spreadsheet
to track, email, get additional approvals
Manually audit/enter in Database
& Walker
Manually audit/enter in Mills
Freight Pay Sys.
Send to Imaging for PO Queue
Send to Imaging for
NonPO Queue
Posted to SAP AP for Payment
Processing
Unplanned Freight on
Supplier PO
Record on spreadsheet and go into SAP to change due date base on carrier terms
Route for G/L coding & Approval
PO
NonPO
YES
NO NO
Manually edit/match/approve invoice in Manu
YES
NO
NO
YES
YES
NO
Freight Related Invoice
Scan, Index & route to FP specialist in
TransQ
Match to shipment in
OTM?
Manually (match/edit)
invoice & Approve in
OTM
Route for additional
approvals or edits to
shipment
Voucher to SAP awaiting
terms & payment process
EDI & Web Invoice from
Carrier
Auto Match to Shipment in OTM &
Auto Apporved
YES
YES
NO
NO
From six decision points To two and
From three invoicing systems to One
Kofax-Non SAP Freight (Workflow)
Freight Pay • Invoice Sourcing / Automation
– Activity Summary prior day, week, month
• Invoice Blocks – Invoice Errors / Tolerance Summary
• Delivered Shipments without Invoice – Carrier Open Accrual
• Ad hoc Query – Actuals by cost type (detention,
unloading) • Enhance – FP/Carrier Scorecard
Finance • Open Accruals
– Delivered Shipments, without invoice or with balance dues
• Plan to Actual – Performance – Forecasting – Compliance
• Enhance - Reconciliation – Transactions reconciled
between systems landscape
Freight Pay FTI Reporting
Before
Paper • Invoice audit manual/e-mail • Key into Manu
Ship • Load Planner notes for pre-
approvals “unplanned items”
Auto • Approvals >75% • Error Statuses in detail
Pay
• Accrual reversed @ invoice • Fewer “clicks” • Delegate Exceptions
After
Paper • Index/route MarkView • Key into OTM / close MVT
Ship • No Notes / unplanned items must
be coded on shipment
Auto • Approvals ~70% • Query & Status Indicator
Pay
• Accrual net reversed @ 6/36 mo. • No short pay • Req. Unloading Receipts
Challenges/Opportunities: • Use Line Item Tolerances without creating unnecessary blocked invoices. • Integrated screen to see planned shipment costs, applied actual costs by
line item when manually approving invoices. • More shortcut keys to process faster.
OTM – FP Processing Impact
Challenges & Opportunities
• Rail • FTI Reporting • Awards and Load Balancing • System Performance • Master Data • Change Management
Future Enhancements
• Cooperative Routing • Business Monitors • FTI • Automating Rate Pages • Screen Sets • Performance & Optimization • Rail Umler & CLM’s
Q&A
Questions
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