changing transportation from a cost center to a profit center: a case study at bob evans
TRANSCRIPT
In collaboration with
Changing Transportation from a Cost Center to a Profit Center: A Case Study at Bob Evans
Manu Gupta, CapgeminiAugust 16, 2016
In collaboration with
About Bob Evans
� Bob Evans Farms, Inc. was founded in 1948 and is based in New Albany, Ohio.
� Bob Evans Farms, Inc. operates through two segments, Bob Evans Restaurants and BEF Foods
� The company owns and operates more than 500 full-service restaurants under the Bob Evans Restaurants brand in the United States, first restaurant opened in 1962
� Leading producer and distributor of sausage and bacon products, as well as complementary refrigerated and frozen convenience foods, selling under the Bob Evans, Owens and the Country Creek brand names.
� Bob Evans Farms, Inc. was founded in 1948 and is based in New Albany, Ohio.
� Bob Evans Farms, Inc. operates through two segments, Bob Evans Restaurants and BEF Foods
� The company owns and operates more than 500 full-service restaurants under the Bob Evans Restaurants brand in the United States, first restaurant opened in 1962
� Leading producer and distributor of sausage and bacon products, as well as complementary refrigerated and frozen convenience foods, selling under the Bob Evans, Owens and the Country Creek brand names.
In collaboration with
� Bob Evans Transportation dates back to the beginning of the business in Southeastern Ohio
� When Bob Evans began making his world famous sausage he needed a way to distribute to grocery stores
� Deliveries began out of his farm in Rio Grand Ohio using small refrigerated route trucks
� Today the Transportation business unit owns and operates a private fleet of 125 Tractors and 150 Refrigerated Trailers
� Last year this fleet drove over 12 million miles in 45 states
� Bob Evans Transportation has two primary locations in Springfield, OH and Dallas, TX
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About Bob Evans Transportation
In collaboration with
Bob Evans – the 3PL
� Transportation is a separate Business Unit
� Primarily uses own assets
• Small footprint of external carriers, selected mostly through spot bids
� Serves as a “Freight Forwarder” for other Food products companies
� Active Backhaul program to minimize empty miles
• Recurring customer base
• New customers from Load Boards and Brokers
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In collaboration with
Implementation Scope
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� General Ledger (GL)
� Accounts Payable (AP)
� Customer Data Hub (CDH)
� Order Management (OM)
� Accounts Receivables (AR)
� Global Order Promising (GOP)
� Advanced Supply Chain Planning (ASCP)
Oracle EBS – Order-to-Cash
� Predictive Trade Planning (PTP)
� Deductions & Settlement Management (DSM)
� Demand Management (DM)
Demantra
� Transportation Operational Planning
• Outbound
• Inbound
� Freight Payment, Billing & Claims
• Freight Settlement
• Billing for Transportation Services
Oracle Transportation Management (OTM)
In collaboration with
Implementation Footprint – System Landscape
� 8 Interfaces built between EBS and OTM• Order Management – Sales Orders & Transfer Orders• Purchasing – Purchase Orders• Shipping Execution
• Shipments/Trips to EBS• Shipment Actuals from EBS
• Customer Data Hub• Accounts Payables • Accounts Receivable • General Ledger
� Middleware - IBM MQ Series
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Bob Evans - Network
DC
Plant
Cross dock
Bob Evans Facility
Bob Evans Customer
Freight Forward Customer
Bob Evans & Freight Forward Customer
Backhaul Customer
Vendors/Suppliers
Empty Truck
In collaboration with
Order Management
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� Multiple Order Types� Integration with EBS Order Management
and Purchasing� Rapid Order Entry screens� Business Monitor to identify “Hot” orders� Commodity based Order “badging”
OTM Configuration
� All orders are in one system!� Capture and record of orders, enables
analytics� Consolidated view of Orders� Reduces possibility of missed orders
Benefits
EBS Order Management
EBS Purchasing
OTMSales OrdersTransfer Orders
Purchase Orders
Shipments
Transportation Dept.
Spreadsheet
AS400 System
Phone
Paper
In collaboration with
Shipments – Planning & Execution
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� Automatic planning of CPU orders� Multi-stop planning of orders, across order types
• Shipment to EBS only has Trip details for EBS orders
� Spot Bidding� Continuous moves� “Load Plan” Report
OTM Configuration
� Visibility to all shipments in one system� Replaces manual planning� Access to historical data enables analytics� Single data repository replaces laborious manual
process of collecting data and analyzing� Streamlined process for communication to 3PL
Benefits
In collaboration with
Profit from – Freight Forward & Backhaul
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� Integration with Customer Data Hub to enable creation of new Customers & Ship To locations in OTM
� Sell Rates configured in OTM
� Bill creation
� Integration with Accounts Receivable (AR) module
� Recurring process to trigger interface to AR
OTM Configuration
� Enables single repository of Customer master data, minimizes errors and rework
� Financial reconciliation across systems
� Automation of Invoice creation
� Reduction in cumbersome manual activities
� Enables record of rate on the shipment, enables audit and analytics
� Enables visibility to revenue through entire lifecycle
Benefits
Customer Data Hub
Accounts Receivables
OTM
Bills
Validate Customer
In collaboration with
Profit from - Bob Evans Food Services
� Sell Rates configured in OTM, based on Buy shipment allocated costs
� Bill creation and auto-approval
� Integration with General Ledger (GL) module
� Lookup table in GL, automation agents to create matching logic
� Recurring process to trigger interface to GL
OTM Configuration
� Recognize revenue for services provided for transportation of Bob Evans products
� Upcharge on cost to gain revenue for services
� Streamlined financial processes to recognize costs for Intra-company charges
� Automated process
� Analytics of historical transactions to determine “upcharge” amount
Benefits
OTM
General Ledger Module
Bills
In collaboration with
Benefits
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� Automated system driven revenue recognition
� Centralized order and shipment data
� Increased ability for backend analytics
� Reduction of manual reporting
� Streamlined/Reduction of email/phone communication
� Foundation for integration with future telematics system
In collaboration with
Questions?
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Manu GuptaMOVE Practice Lead
Mobile: (404) 934-9643
Atlanta, GA
Collin RowekampFinancial Analyst
Mobile: (614) 497-4443
Columbus, OH
The information contained in this presentation is proprietary. © 2016 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.
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