Learning and Knowledge

June 2012
Completed by: <Your Name>

Citation: Kraft Foods Asia Pacific - SAP APO

© 2009 IBM Corporation

GBS Learning and Knowledge
CONFIDENTIALITY: Please Delete the options that do not apply: Referencing forbidden; Partner approval required (Please state the contact name)
Client name only; Ready to use

Kraft Foods – Catalyst APO

Kraft Foods

Kraft Foods is a multinational confectionery, food and beverage conglomerate. Kraft manufactures and markets many brands in more than 170
countries. Twelve of its brands annually earn more than $1 billion worldwide. Forty of its brands are at least a century old.

Business Issues IBM Solution and Methods

• Alignment of Planning processes across APAC region with that of Gold  APO Gold Model Roll Out
Model
For more details please see Appendix.
Project Challenges:
• User readiness for some of the sophisticated planning processes of
current Gold Model
• Planning for time zone difference
• Early identification of critical and complex developments
• Stabilization of ECC module before / along with APO rollout starts in a
particular market
• Cross-functional / cross-team support
• Language Challenges
• Having Core Team members continue throughout the project

Why IBM Project Benefits

 Business Process Knowledge • Provide more frequent and more granular update of demand and
 supply information to provide better visibility of all locations and
Global and Regional APO capability
improved planning accuracy. APO will be geared to allow daily
 Proven Offshore Delivery Model visibility of data, including customer orders and inventory positions
 APO Gold Model knowledge • Eliminate manual work to feed information to systems through
automatic integration of SAP modules and APO
• Provide improved exception management (alerts) to focus work efforts

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Project Details – For Internal Use Only!

Project Details IBM Team

Start Date: 12-Sep-2011 End Date: 31-Dec-2013 Project Partner: Rakesh Agarwal

Contract Type: Time and Material Project Manager: Chaitanya Bhide

TCV: US$ 2.5 Millions Lines of Business Involved: Demand Planning, Supply Planning, Production
Planning
Key Project Staff: Vikash Kumar, Kishore Reddy, Neetu Surana, Lokanatha
Solution/Competency Area Pothuri Chowdary, Sravan Kumar Maturu, Rupesh Brahmankar, Satish
SAP SCM APO Bondalapati, Vijay Anand, Balaram Naik, Vikram Patrikar, Abhishek Rai

Project Features

Production Planning:
SNP Optimizer for Capacity Planning
Pooled Capacities on resources
Detail Scheduling
Family Material / Trial Order / Dummy Material
Process Orders being used in place of repetitive mfg. This change in Transactional Process changes the feed of Transactional data to APO
Supply Planning:
New APO-APO Interface being introduced in APAC
Capacity Leveling Engine for Co-Manufacturing and Co-Packing in APAC
Use of Inspection lots in APAC instead of quality inspection stock in Europe for deployment
Base Unit of measure is CSE in APAC and KG in Europe
Demand Planning:
Demantra and Navigator used for ANZ for Forecasting in ANZ
Navigator being interfaced in APAC

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Client Reference– For Internal Use Only!

Client Reference Question Answer

Is this engagement an important story (a strategic solution/service for

your practice or industry, a major client name etc) that would be an
asset to others as an external reference?

If yes, do you think the client would be willing to act as a reference for
IBM ?
Note: Reference activities could range from speaking with another
client, to hosting a site visit, to review/approval of a one page
slide/speaker notes that can be used (without further approval) in a
variety of sales and marketing activities
If yes, please provide the primary GBS contact (name, tel and email
address) of the person we should contact to develop the reference
and work with the client to gain approval on reference related activities

Were Benchmarking Services used when running this project? If Yes,

please provide a GBS contact name

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Appendix
Topic
APO Gold Model
Family Material Planning Concept
Subcontracting – Finite Planning
Details
SCM version 7.0
New optimiser features for managing boundaries
–Overtake customised features in Biscuits model
–Included in SAP standard planning area 9ASNP04
•Time series key figures for storage upper bound
Use standard functionality (planning books)
–Minimise reliance on customised transactions
Adhere to Gold Model principles
–Plan to local MU demand, not global demand
Format & Recipe are modelled as “virtual” components of Finished
Product
Any plan order at Finished Product level is creating a ‘dependent’
demand on both family levels
Regarding this ‘dependent’ demand on families, the planner can
easily plan each family (Format & Recipe) in respecting their
constraints
Compliant with the Third Party Ordering (TPO) process used in D1
Europe.
Used for co-pack or co-manufacturing where a finite plan is required
in SNP (mid-term planning).
SAP standard solution
Capable of modeling multiple production lines with differing
capacities at one subcontract vendor.
Also now possible to model one SKU across multiple lines at the
subcontract vendor location (multiple PIRs).