Dave Allen SVP Operations and Supply Chain

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Dave AllenSVP Operations and Supply Chain
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About Del Monte
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Brand Strength
1 brand in Fruits/Vegetables 2 brand in Solid
Tomatoes 1 brand in Tuna 1 brand in Dog
Biscuits 2 brand in Soft and Chewy Dog Treats 3
brand in Dry Cat Food 2 brand in Wet Cat Food
Source AC Nielsen 52 weeks ending April 2006
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Top 20 U.S. Branded Dry Foods Companies
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Del Monte Locations
Bloomsburg
Walnut Creek
Samoa, Thailand Ecuador
StarKist
Distribution Center DLM Operated
Distribution Center- 3rd Party
Fruit
Corporate Offices/RD
Tomato
Veg
Pet Food
College Inn
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Business Situation in 2006

• Symptoms
• Difficulty delivering consistent and sustainable
  service levels
• High inventory levels across the supply network
• Reactive manufacturing, deployment, and
  distribution activities
• Suboptimal support for promotional investments
• Lack of direction re use of increasing volumes
  of retailer-specific data
• Cumulative Impact
• Frustrated Retailers
• Confused Suppliers
• Missed Opportunities

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Our Conclusions

• Must execute with a field of vision from the
  Store-Shelf all the way to Suppliers
• Total Network Visibility is key
• Cannot continue to create periodic roadmaps and
  then follow the roadmaps to get to a moving
  destination
• Sense Respond must be the mantra
• Needed to be more nimble in order to adjust and
  optimize our execution efforts
• Separation of Execution from Controlling
  activities sets us free
• Deploy many-to-many network - ONE Network hosted
  service
• Had to make demand driven processes part of our
  DNA
• Single process regardless of Retailer capabilities

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1. Total Network Visibility Pulling from
consumption demand all the way back to our
Suppliers
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1. Total Network Visibility Near-term Demand
Execution is the Focus

• Down-Stream data
• Store-level forecasts, POS, Inventory at Stores
  /DCs /Intransit, DC demand, VMI, Promotions
• Demand Execution calculates the near-term
  updated demand information which then drives
  Supply Execution, Supply Planning, Demand
  Planning, etc.

Demand Execution
Demand Planning
Down Stream Data (DSR /EDW)
S O P
Other Customers
Supply Execution
Supply Planning
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2. Sense and Response CapabilitiesLine of sight
execution vs. mapped directions
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2. Sense and Response CapabilitiesLive at Del
Monte since 2H07
Demand Execution
Demand Planning
Supply Execution
Supply Planning
Demand Execution
Supply Exec
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3. Separation of Execution and ControllingHarmoni
zing across systems and processes

• ERP Our Elephant
• Moves at a steady, but relatively slow pace
• Never forgets

• Execution Platform Our Cheetah
• Moves in an aggressively fast manner
• Focuses in on the here, now, and the near future
  

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3. Separation of Execution and ControllingHarmoni
zing across systems and processes

• Optimization Engines
• Exception Driven UI
• Multi-Enterprise Workflow Process Activation

• Reduced Customization
• System of Record Focus
• Emphasis on Controls Recordkeeping

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4. Demand-Driven DNATotal Adoption to break thru
the Sound Barrier!

• Moved beyond
• Enterprise-centric
• Pilots
• Using Retailers data for Category Management to
  a way of operating the business
• We are thinking, breathing and executing
  Demand-Driven across the network
• Value for every Partner in the Network
• Optimized push-pull boundaries
• Leveling activities in the DCs, Plants,
  Suppliers, etc. - minimizing bullwhip
• Mindset of Outside-In
• Aligning our metrics and measurements

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4. Demand-Driven DNA at Del Monte is
consistently Exceeding customer expectations
We are targeting
and the implications are

• Consistently supporting 99 in stock on the most
  profitable products, on the shelves of the most
  profitable customers
• Scoring in the top quartile of our key customers
  scorecard

• We are able to execute on differentiated services
  matched to our customer strategy
• We are able to spend more time on managing our
  categories with our customers

• Weve taken out the large variability in our
  supply chain
• We have full visibility to all promotions and key
  volume drivers within our execution horizon

• Consistently delivering minimum DC case fill
  rates of 99, including allocated products
• Delivering Perfect Order execution at 95 with
  much lower overall inventory levels

• We are influencing our customers supply chain
  strategy, not reacting to it

• Our customers trusted supply chain partner,
  consistently winning recognition for
  best-in-class service

• Able to monetize the service excellence

• Our supply chain has become a competitive weapon