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    Heineken NV 2011 Investor Seminar Zoeterwoude Magne Setnes

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    Henrry Carlos VIllarroel
    Heineken has developed a proven process for driving supply chain performance through benchmarking, best practice sharing, and their proprietary toolset. This virtuous cycle has led to improved productivity, cost savings, and a 35% reduction in fixed costs per hectoliter globally between 2000-2010. Their tools such as Production Cost Modeling and the Global HeiQ knowledge sharing system help accelerate improvements. Application of this process delivered over €100 million in synergies from the FEMSA Cerveza acquisition through a 40% increase in brewery productivity and an 18% reduction in energy use in Mexico.

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    Heineken NV 2011 Investor Seminar Zoeterwoude Magne Setnes

    Uploaded by

    Henrry Carlos VIllarroel
    104 views16 pages
    Heineken has developed a proven process for driving supply chain performance through benchmarking, best practice sharing, and their proprietary toolset. This virtuous cycle has led to improved productivity, cost savings, and a 35% reduction in fixed costs per hectoliter globally between 2000-2010. Their tools such as Production Cost Modeling and the Global HeiQ knowledge sharing system help accelerate improvements. Application of this process delivered over €100 million in synergies from the FEMSA Cerveza acquisition through a 40% increase in brewery productivity and an 18% reduction in energy use in Mexico.

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    Heineken has developed a proven process for driving supply chain performance through benchmarking, best practice sharing, and their proprietary toolset. This virtuous cycle has led to improved productivity, cost savings, and a 35% reduction in fixed costs per hectoliter globally between 2000-2010. Their tools such as Production Cost Modeling and the Global HeiQ knowledge sharing system help accelerate improvements. Application of this process delivered over €100 million in synergies from the FEMSA Cerveza acquisition through a 40% increase in brewery productivity and an 18% reduction in energy use in Mexico.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    104 views16 pages

    Heineken NV 2011 Investor Seminar Zoeterwoude Magne Setnes

    Uploaded by

    Henrry Carlos VIllarroel
    Heineken has developed a proven process for driving supply chain performance through benchmarking, best practice sharing, and their proprietary toolset. This virtuous cycle has led to improved productivity, cost savings, and a 35% reduction in fixed costs per hectoliter globally between 2000-2010. Their tools such as Production Cost Modeling and the Global HeiQ knowledge sharing system help accelerate improvements. Application of this process delivered over €100 million in synergies from the FEMSA Cerveza acquisition through a 40% increase in brewery productivity and an 18% reduction in energy use in Mexico.

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    © All Rights Reserved
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    of 16

    Zoeterwoude, 10 June 2011

    Zoeterwoude, 10 June 2011

    Driving performance
    through a proven process
    Magne Setnes
    Global Supply Chain Control Director
    Agenda

    1 Our Proven Process


    2 Proprietary Toolset
    3 Track Record of Success

    3
    Global Supply Chain control
    A virtuous cycle for improving performance

    Benchmarking Company priorities


    Best practice sharing Global deployment
    TPM deployment Supply Chain Driving
    System and 3 year plan

    Act Plan

    Check Do

    Monthly and quarterly Operations supported by


    reporting global programme and
    Performance and cost TPM

    4
    Capital Expenditure governance and
    prioritisation

    Supply Chain CapEx (m) Process


    Supply Chain CapEx
    Global prioritisation
    /hl produced Financial targets
    /hl produced Bottom up indication
    m
    6

    800
    5
    Tight CapEx Management
    Productivity
    TPM
    600 4
    Utilise Global Supply Network
    3
    400

    200
    1

    0 0

    2007 2008 2009 2010


    5
    We have developed a proprietary toolset
    to benchmark, set targets, plan and follow up

    PCM UBM LCM


    Production Cost Utility Benchmark Logistic Cost

    Supply Chain Driving System & 3 year plan

    BCS BCA
    Brewery Comparison Brewery Cost
    System Analysis

    6
    Agenda

    1 Our Proven Process


    2 Proprietary Toolset
    3 Track Record of Success

    7
    The Heineken Manufacturing Star
    A balanced score card driving world class performance

    Cost
    Leadership
    Customer
    Satisfaction

    Product
    Quality

    Social
    Responsibility
    Organisation
    and People

    8
    Accelerating knowledge sharing
    Driving best practice through Heinekens Global HeiQ system

    Average use per month


    Hits per month

    16,000

    14,000
    +300%
    12,000

    10,000

    8,000

    6,000

    4,000

    2,000

    0,000

    2004 2005 2006 2007 2008 2009 2010


    Launch S&N FEMSA Cerveza
    New system Integrated Integrated
    9
    Production Benchmarking
    Proven results and continuous improvement

    Based on internal and external benchmarking


    Regular audit process
    Driver for productivity increase
    Essential in synergy assessment and greenfields

    PCM Productivity Model*


    Productivity

    Improvement
    steps

    History Current PCM


    *For illustrative purposes only Benchmark 10
    Agenda

    1 Our Proven Process


    2 Proprietary Toolset
    3 Track Record of Success

    11
    Performance improvement in the global
    economic downturn drives cost savings

    Example: Main Production KPIs

    12
    Productivity drives down fixed cost per hl
    Strong progress across all regions

    Global (fixed cost per hl) Personnel represents approximately one


    Other fixed third of total fixed costs (from around 50% in
    Utilities
    Depreciation
    -35% 2000)
    Personnel

    Depreciation has significantly decreased,


    representing less than one quarter of fixed
    costs today

    2000 2005 2010 Opportunities for further fixed cost savings:


    Energy
    Central & Eastern Europe Improved asset utilisation leading to lower
    (fixed cost per hl) depreciation
    -33%
    Other fixed Productivity
    Utilities
    Depreciation
    Personnel

    2000 2005 2010


    13
    We deliver value from new acquisitions
    Example: FEMSA Cerveza

    Tools for delivering value: Mexico: Brewery Productivity


    TPM and operational excellence +40%
    Benchmarking and proven tools
    Engineering and technical support
    Brewing and product knowledge
    Research and innovations

    Integration of FEMSA Cerveza:


    More than 100m in supply chain synergies 2010 2011F 2012F 2013F 2014F 2015F
    Strong productivity growth
    Reduced energy use
    Reduced CapEx Mexico: Energy Use
    -18%

    2010 2011F 2012F 2013F 2014F 2015F


    14
    Summary

    A proven proprietary Toolset and governance structure driving continuous


    improvements

    Accelerated knowledge sharing of Heineken best practice and benchmarking


    adding significant value to acquisitions

    Processes, excellent people and proven tools in place to continue delivering


    results for the years ahead

    15
    Zoeterwoude, 10 June 2011

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