Walking the BPM Talk at Littlewoods with TM1

1
Walking the BPM Talk at Littlewoodswith TM1

• Mark Bodger BA ACMA
• Business Information Controller
• BPM Make it live in 2005
• Tuesday 19th April 2005, IOD

2
Contents

• Company Background
• BPM Requirement
• Why Olap? Why TM1?
• Case Study
• BPM Reports
• Conclusion

3

• Company Background
• - Largest Mail Order business in the UK
• Recent merger with GUS Home Shopping
• Combined Turnover 2bn
• 4.5m Customers

4
Definition of BPM

• BPM is a set of integrated, closed-loop
  management and analytic processes, supported by
  technology, that address financial as well as
  operational activities
• BPM is an enabler for businesses in defining
  strategic goals, and then measuring and managing
  performance against those goals
• Core BPM processes include financial and
  operational planning, consolidation and
  reporting, modelling, analysis and monitoring of
  key performance indicators (KPIs) linked to
  organizational strategy.
• BPM Standards Group March 2004

5
BPM Requirement

• To satisfy every managers dream of being able to
  access budget, forecast and actual performance
  data from one source
• To remove the pain of information retrieval and
  simplify weekly performance reporting
• To deliver information to decision makers that is
  relevant, timely and summarised
• To integrate business planning information across
  functional areas (Marketing, BM, Operations and
  Finance) one plan!

6
Why Olap? Why TM1?

• Planning process dependent upon hundreds of
  (undocumented) Excel spreadsheets
• Lack of version control poor communication of
  changes
• Inconsistent use of activity drivers and
  assumptions across the business
• Large complex business required robust solution
  to data management
• TM1s key strengths
• Real-time data refresh
• Multi-cube architecture
• Flexible reporting and consolidation
• Integration with Excel
• Fast implementation

7
TM1 Case Study

• A multi-cube solution to support the Financial
  and Operational Planning process
• Activity Planning Model
• Marketing Sales Plan linked to BM Sales Plan
• Converts Marketing Sales to volumes that drive
  activities
• Weekly sales, margin and volume reporting
• Carriage Model
• Calculates the carriage cost plan by carrier
• Weekly cost of carriage by brand
• Stock Intake Model
• Calculates the stock intake plan by warehouse
• Weekly activity performance monitoring
• Contact Centres Model
• Calculates contact centre activities
• Call handling capacity planning

A modular approachtailored to business
requirements
8
TM1 Multi-Cubes
All cubes are driven by the same sales data and
volume drivers
9
TAPS Model
TM1 Activity Planning Model

• This cube has 7 dimensions and allows weekly
  performance monitoring of key activity drivers,
  actual against budget and latest forecast
• MeasuresTimeVersion
• BrandProduct GroupHandling TypeSales Outlet
• Purpose
• To plan and monitor Sales, Margin and volumes by
  Brand, Product Group, Sales Outlet and Week
• Actual data
• Data is loaded weekly and is used for performance
  reporting (compared to budget, forecast and last
  year)
• Model used by Finance, Marketing, Trading, Supply
  Chain
• Reports issued to Board, Executives and Senior
  Management

10
Carriage Model

• Carriage costs are analysed using a 6 dimension
  cube
• Measures Time Version
• Brand Carriers Handling Type
• Purpose
• To plan and monitor the cost of parcel delivery
  to the customer by Carrier by Brand
• Planning data is driven by volumes created in the
  TAPS cube (which is fed automatically)
• Actual data
• Data is loaded weekly directly into the
  application from TM1 input templates using Excel

11
Stock Intake Model

• This cube has 6 dimensions and allows weekly
  performance monitoring of key activity drivers,
  actual against budget and latest forecast
• Measures Time Version
• Product Group DC Location Handling Type
• Purpose
• To plan and monitor stock intake and stock
  movements by DC and Product Group in s and units
• To calculate the cash flow required to support
  merchandise stock intake
• To produce activities (units) by DC location to
  drive Warehouse Manpower planning
• Actual data
• Data is loaded weekly and is used for performance
  reporting (compared to budget, forecast and last
  year)
• Model used by Finance, BM and Warehouse
  operations

12
Stock intake profile reflects seasonality of
catalogue launches (Summer and Winter)
13
Weekly chart comparing actual picking activity to
budget
14
Contact Centre Model

• This cube has 7 dimensions and allows weekly
  performance monitoring of key activity drivers,
  actual against budget and latest forecast
• Measures Time Version
• Brand CC Location Customer Type Activity
• Purpose
• To produce activities by Contact Centre to drive
  Manpower planning and budgeting
• To determine manpower resource requirements and
  to identify peaks
• Actual Data
• Weekly actual data loaded for reporting against
  budget and forecast

15
High volatility in the pre Christmas period as
customer demand increases hire temporary staff
for peak
16
BPM Checklist
17
Finance and Operations
18
TM1 Users by function
19
Conclusion

• Integrated business planning process
• Financial planning
• Operational planning
• Analytical capability
• Weekly performance reporting
• KPI monitoring
• Using TM1 technology
• A working BPM solution!

20
Contact details
Mark Bodger Business Information Controller SJMB,
13th Floor 100 Old Hall Street Liverpool L70
1AB 0151 235 4890 Mark.Bodger_at_Littlewoods.Co.Uk