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Düsseldorf
                                   April 21, 2010


 Achieving standardization
of Supply Chain Processes
  to increase ‘end to end’
transparency and decrease
           costs

        Peter Devos
Business Process Competence Dir.
     Monsanto Europe
                                                    1
MONSANTO
THE COMPANY AT A GLANCE

                          2
Monsanto is an Agricultural Company




Crop Protection:                Seeds: Corn, Soy, Rape, Cotton,
       RoundUp                           Vegetables
 “According to the UN, by
  2050 the world needs to
double its food production
to feed 9.3 billion people”
                                    Technology :
 “Monsanto is committed to
double yield of corn, soy and      RoundUp Ready,
      cotton by 2030”                SmartStax
 -Hugh Grant, Monsanto CEO

                                                                  3
Monsanto Factsheet




                     4
Production Sites

 Crop Protection Site
 Vegetable Seeds Site
 Row Crops Seed Site



161 Production Sites
35 Countries




                                           5
SUPPLY CHAIN PROCESS
MANAGEMENT

                       6
Supply Chain Process Management

A Process is the way your supply chain people
  are executing their daily job supported by IT-
                       tools
                   Process




  Technology                        People


                                                   Page 7
                                                        7
Supply Chain Process Management

The Quality of a supply chain organization is
 determined by the quality of execution of its
             business processes
                   Process




                   Quality
                     &
                 Productivity
 Technology                        People


                                                 Page 8
                                                      8
Supply Chain Process Management

    CEO to SC Manager:
   The risk: a rigid process embedded in a resistent
    Deliver my
    customers Now!!!!
         organization without innovative thinking

                           Process
                                        -   Org with resistance to Change
                                        -   Lack of SC Agility
                                        -   Reduced Scalability
                                        -   Lack of leverage
                           Quality
                             &
                         Productivity
Technology
                                              People

                                                                        Page 9
                                                                             9
Renewed focus around Process Mgt


• Process Mgt is a way to prepare for the
  Economic Upturn
  – Status Quo is not acceptable

• Reorganizational pressures
  – Do more with less people (= different from working
    harder)
  – Leverage existing people skills by new process & IT-
    tools
  – Align Roles & Resp – process ownership

• More awareness that Supply Chain performance
  is driven by process mgt                    Page 10      10
SUPPLY CHAIN PROCESS
MANAGEMENT

      BUSINESS CASE    11
Supply Chain Improvement

• Costs - WC
• Quality         Information Management within
                       your Business Process
• Volume
• Inventory                  Visibility
                          Transparency
• Compliance          Information Reliability

• Risk Mgt



                                                  Page 12
                                                       12
Process Improvement: where to start?

    Business                                             IT

Supply Chain
needs fast & agile   Process & Cost                ICT need to cut
                     Improvements
responses &                                        costs & need
processes to serve                                 longer leadtimes
the more                              Technical    to cope with
demanding                             innovation   Requirements
customers

                           Miaow ??




      ROCK                                         HARDPLATE

                                         Wuff ??



                                                                      13
Process Improvement @ Monsanto

    Business                                       IT

Supply Chain
needs fast & agile   Process & Cost          ICT need to cut
                               EMEA
                     Improvements
responses &                                  costs & need
                         Business
processes to serve                           longer leadtimes
                          Process
the more                      Technical      to cope with
                      Competence Center
demanding                       innovation   Requirements
customers




                                                                14
Process Improvement: Monsanto case
                  Roles           Responsibility
                              • Std Process solutions
                              • Tech Designs
  EMEA                        • Crossfunct. views
 Business
  Process                     • Std process mappings
Competence                    • Lean – Six sigma
  Center                      • Power user Training

                              • KPI’s - dashboards
                              • Reporting - analysis
                              • Data transparency

                              • master data mgt
                              • process parameters


                                                        15
Some examples
1. Crossfunctional workshops around Business Process Improvement
           ‘Streamline execution of business processes”



                         AS-IS * TO BE
                         Process mappings




           People “on boarding” work as “owners” for change
          Install smarter business processes to make cost
        reductions sustainable
          Create ownership for the “end result”
          Encourage crossfunctional process thinking
          Map systems within business process

                                                                   16
Some examples
2. Installation of a standard DRP process accross EMEA




                   DRP Process
                   orchestration




   Standardized delivery process
   Logistics Costs tranparency & Cost savings
   Process automation
   Improved inventory prepositioning


                                                         17
Some examples
3. Installation of central business dashboards: easy accessible




Common SC process & master data => full business data transparency
Daily order, inventory, business tracking
Right business decisions
Standard business process mgt => Agility

                                                                     18
Conclusions
• Process Management is a survival need in the current
  business climate
• Process Management goes beyond six-sigma, lean and
  IT-tools
• Process Management is working smarter versus
  competition, not working harder
• Process improvement is not new, it’s a race without a
  finish.

   ⇒ I wish you all the best with your process improvement
     endeavours



                                                             Page 19
                                                                  19
Q&A




      Page 20
           20

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Chemical Supply Chain

  • 1. Düsseldorf April 21, 2010 Achieving standardization of Supply Chain Processes to increase ‘end to end’ transparency and decrease costs Peter Devos Business Process Competence Dir. Monsanto Europe 1
  • 3. Monsanto is an Agricultural Company Crop Protection: Seeds: Corn, Soy, Rape, Cotton, RoundUp Vegetables “According to the UN, by 2050 the world needs to double its food production to feed 9.3 billion people” Technology : “Monsanto is committed to double yield of corn, soy and RoundUp Ready, cotton by 2030” SmartStax -Hugh Grant, Monsanto CEO 3
  • 5. Production Sites Crop Protection Site Vegetable Seeds Site Row Crops Seed Site 161 Production Sites 35 Countries 5
  • 7. Supply Chain Process Management A Process is the way your supply chain people are executing their daily job supported by IT- tools Process Technology People Page 7 7
  • 8. Supply Chain Process Management The Quality of a supply chain organization is determined by the quality of execution of its business processes Process Quality & Productivity Technology People Page 8 8
  • 9. Supply Chain Process Management CEO to SC Manager: The risk: a rigid process embedded in a resistent Deliver my customers Now!!!! organization without innovative thinking Process - Org with resistance to Change - Lack of SC Agility - Reduced Scalability - Lack of leverage Quality & Productivity Technology People Page 9 9
  • 10. Renewed focus around Process Mgt • Process Mgt is a way to prepare for the Economic Upturn – Status Quo is not acceptable • Reorganizational pressures – Do more with less people (= different from working harder) – Leverage existing people skills by new process & IT- tools – Align Roles & Resp – process ownership • More awareness that Supply Chain performance is driven by process mgt Page 10 10
  • 12. Supply Chain Improvement • Costs - WC • Quality Information Management within your Business Process • Volume • Inventory Visibility Transparency • Compliance Information Reliability • Risk Mgt Page 12 12
  • 13. Process Improvement: where to start? Business IT Supply Chain needs fast & agile Process & Cost ICT need to cut Improvements responses & costs & need processes to serve longer leadtimes the more Technical to cope with demanding innovation Requirements customers Miaow ?? ROCK HARDPLATE Wuff ?? 13
  • 14. Process Improvement @ Monsanto Business IT Supply Chain needs fast & agile Process & Cost ICT need to cut EMEA Improvements responses & costs & need Business processes to serve longer leadtimes Process the more Technical to cope with Competence Center demanding innovation Requirements customers 14
  • 15. Process Improvement: Monsanto case Roles Responsibility • Std Process solutions • Tech Designs EMEA • Crossfunct. views Business Process • Std process mappings Competence • Lean – Six sigma Center • Power user Training • KPI’s - dashboards • Reporting - analysis • Data transparency • master data mgt • process parameters 15
  • 16. Some examples 1. Crossfunctional workshops around Business Process Improvement ‘Streamline execution of business processes” AS-IS * TO BE Process mappings People “on boarding” work as “owners” for change Install smarter business processes to make cost reductions sustainable Create ownership for the “end result” Encourage crossfunctional process thinking Map systems within business process 16
  • 17. Some examples 2. Installation of a standard DRP process accross EMEA DRP Process orchestration Standardized delivery process Logistics Costs tranparency & Cost savings Process automation Improved inventory prepositioning 17
  • 18. Some examples 3. Installation of central business dashboards: easy accessible Common SC process & master data => full business data transparency Daily order, inventory, business tracking Right business decisions Standard business process mgt => Agility 18
  • 19. Conclusions • Process Management is a survival need in the current business climate • Process Management goes beyond six-sigma, lean and IT-tools • Process Management is working smarter versus competition, not working harder • Process improvement is not new, it’s a race without a finish. ⇒ I wish you all the best with your process improvement endeavours Page 19 19
  • 20. Q&A Page 20 20