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)

Heineken Netherlands Supply Director: Willem de Jonge

Brewery

Zoeterwoude Godfried Meijer

Brewery Den Bosch

Paul Bleijs

Brewery

Wijlre Peter van Besouw

Customer Services & Logistics

Fred Holvast

Financial Planning & Control

Hans van Dam

Human Resources & Organisation Irene Steenwelle

Supply Development

Arno Centen

Purchasing & Sourcing Management

Hubert te Braake

HEINEKEN

NETHERLANDS Dutch Market

HEINEKEN

USA USA Market

HEINEKEN

REGIONS Other Export Markets

HEINEKEN

OTHER OPCO’S Other Heineken Breweries

Commerce

Supply

HNS Organizational Chart

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 SKU’s – 3 Breweries – 30 Packaging Lines – 150 Countries...

Brands

• Heineken 82%

• Amstel 14%

• Brand 2%

• Others 2%

Pack types

Bottle One-way 44%

Cans 22%

Bottle Return 17%

Kegs 7%

Bulk/Tankers 5%

Draught keg 4%

Others 1%

about 50% of Heineken Group volume !

HNS Supply chain set-up

Distributors

Distributors

Retail DC

Retail

On-site

Retail

Retail

Wholesale

ROW

HUSA

HNL

Marketing / Sales: Return on Sales

Supply Organisation: Demand Fulfillment

Accountability per unit

Brewing &

Packing

Outbound Logistics

Inbound Logistics

Buying Contract

Mgt

Suppliers

HNS SC Management

Market Demand Management

• Loading automation & mechanisation at HNS - Manage growth

- Increase efficiency

• 3 Year program

Loading efficiency improvements at HNS

page 9

• Close to the brewery, Heineken owned properties

• Logistic Service Provider will manage warehouse

• Multi user concept: 30.000 m² (>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)

Logistic Centre in Den Bosch Heineken owned, 3rd party managed

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

Aberdeen, 2007

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Customer retention%

Finished goods DOH %

Complete Order Fill Rate %

Avg forecast accuracy on Product Family %

Gross Margin (%of revenue)

Logistics costs as a % of sales

Best-in-class S&OP

All other companies

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!

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

AS IS S&OP

Information Multi-number One Number

Frequency Quarterly Monthly

Horizon Year To Go Rolling

KPIs Functional focus End-to-end

Authority 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

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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”.