1. Forecasting & Operations Overview
9/20/2018

2. Tropicana Business Overview
Who We Are
What We Make
How We Do It
Forecasting
Operations

3. Who We Are
Founded as a Fruit Segment Company 52 years ago by Anthony Rossi
Today we are the largest Orange Juice Company in the World with sales in excess of $ 2 billion
Manufacture and Distribute NFC (Not From Concentrate) and FC (From Concentrate) Juices and Juice Blends as well as fruit based and fruit flavored beverages
Independent Company until acquired by Beatrice Foods in late 70’s
After KKR LBO of Beatrice in 80’s - Acquired by Seagram
Acquired by PepsiCo

4. What We Make Chilled Ready to Serve Products (70%) (63 day code)
Paperboard Cartons (Single serve - 64 oz)
Plastic Bottles (96 oz)
Ambient Ready to Serve Products (25%) (6 mo. code)
Glass bottles (Single Serve - 64 oz)
PET Bottles (64 oz oz)
Frozen Concentrate Products (5%)

5. Business Background 1. Coca-Cola Classic, $1.991 billion
Tropicana accounts for more than 41% of the $2.7 billion U.S. chilled juice category.
The company's line of Dole juices is the leading 100% blended juice.
In Canada, Tropicana Pure Premium accounts for more than 55% of the chilled juice market.
Tropicana Pure Premium is now the #4 (and soon to be #3) brand in $ sales in Grocery Stores
1. Coca-Cola Classic, $1.991 billion
2. Pepsi-Cola, $1.756 billion
3. Campbell's Soup, $1.206 billion
4. Tropicana Pure Premium, $1.185 billion
5. Kraft Cheese, $1.174 billion

6. How We Do It Sales Channels Sales Model and Activities
Grocery: Shipped to Customer DC’s
Mass Club, C-Store, Food Service: Direct - Distributors
Route Sales: DSD
Sales Model and Activities
Heavy Promotional Activity: Trade & Consumer
Category Leadership: CPS, ECR, EDI
Relatively Short Order Lead Time
Excellent Customer Service

7. Manufacturing / Distribution Network

8. Fruit Extraction/Juice Storage
Bradenton
Fort Pierce
Vendors
Concentrate
Suppliers
NFC Juice
Toll Processor
Flavors/Other
Components
Fruit
Component
Product Packaging
Co-Pack
Network
Bradeton
International
C. I.
Fort Pierce
Manufacturing DC’s
Co-Pack
DC’s
Fort Pierce DC
CI DC
Bradeton
Regional DC’s
Portland DC
Jersey City
Midwest
DSD
Terminals
Customers
Customer
Stores
DCs
Finished Goods Flow
Fruit Flow
NFC Flow
F/C Flow
Component
/Other Flow

9. How We Do It Manufacturing Bradenton, Fl
Fruit Processing, including by-products
October - June (29,057, lb Boxes of Fruit in 98-99)
Juice, pulp, oils, cattle feed …
Juice Storage
Chilled Aseptic Tanks
Frozen Block
300 gallon “bag in a box”
Package Carton, Plastic and Glass Products
24 X 7 Operations
Dynamic capacity constraints
Considerable proprietary technology
On site Plastics, Glass and Corrugated Manufacturing (JIT Suppliers)

10. How We Do It Manufacturing (Con’t) Ft Pierce, Fl City of Industry, Ca
Fruit Processing, including by-products
October - June (12,700, lb Boxes of Fruit in 98-99)
Juice, pulp, oils, cattle feed …
Juice Storage
Limited Packaging
City of Industry, Ca
Package Carton and Plastic Products
Contract Manufacturing Network
Package Carton, Glass, Frozen and Plastic Products

11. How We Do It Manufacturing Highlights
Considerable Quality Management Activities
Key Packaging Components are Managed JIT
Cartons, Corrugated Shippers, Plastic Bottles
Scheduling is primarily “to forecast” with significant adjustments “to order”
300 (+,-) Finished Good SKU’s
Critically constrained “in plant” supply issues

12. How We Do It Distribution Full Service Distribution Centers
Bradenton, Fl
Customer Sales, Inter-Facility Transfers (Finished Goods, Raw Materials, WIP)
Truck, Tanker, Regular Rail, Unit Train, Piggy Back, Customer Pick-ups
Jersey City, NJ
Cincinnati, OH
City of Industry, CA
Portland, OR
Various Route Terminals

13. How We Do It Distribution Highlights
Unit Train Represents Strategic Advantage
Customized refrigerated rail cars
car trains per week to JC
Twice weekly train to Cincinnati
After raw materials (Juice) Distribution is where greatest costs (and opportunities) exist - Manufacturing cost is a close third

14. Sales Forecasting & Operations

15. Forecasting Process Planning Systems
Field Intelligence
History
Field Intelligence
History
Financial Plan
Key Promo Product Groups/Key Customers
70% Volume/30% SKU’s
Mega Product Groups/Channels
Mega Group Forecasts
-Assigned to DC-
Summarized Product Group Forecasts
-Assigned to DC-
Product Group/DC History
Product Group/DC Forecast
Mega Product/DC Forecast
Weekly SKU/DC History
Weekly SKU/DC Forecast
Weekly SKU/DC Forecast
Week 2-5
Week 6-52
Planning Systems
History

16. Weekly Sales Forecast Process (Mon-Tue) Suggested Purchase Orders
Weekly Forecast
By SKU;
By DC;
By Week
Prescient XE Sales
Forecasting Software
Tue Night
Replenishment Requirements
-Transfers from Designated MFG Site to DC’s
-Direct Customer Requirements from a MFG Site
Bills of Distribution
Inventory Planning Parameters
- Inv Targets, Safety Stock, Lead Time, Transit Time, Lot Sizes
On Hand and In-transit Inventory
DCS / DRP
Distribution Requirements Planning
Tue Night
Manufacturing Capacities
Inventory Planning Parameters
- Inv Targets, Safety Stock, Lead Time, Lot Sizes
On Hand Inv & Planned Orders
Planned Mfg Orders
-Estimated weekly production requirements
(Modified by Planning Groups)
AMAPS-MPS
Master Production
Scheduling
Tue Night
Materials Requirements Planning
- Inv Targets, Safety Stock, Lead Time, Transit Time, Lot Sizes
On Hand and In-transit Inventory
Purchasing Parameters
Suggested Purchase Orders
Packaging Components
Raw Materials
AMAPS-MRP
Material Requirements Planning

17. Master Requirements Planning
Demand Planning
Forecasting
Multiple
Hierarchies
Multi-dimensional
Analysis
Demand Planner
Consensus
Forecasts
Master Requirements Planning
Supply Chain
Visibility
Inventory
Planning
Aggregate
Constraints
Sourcing
Supply Chain Planner
Constrained
Production
Requirements
Production Planning
Procurement
Plan
Detailed
Constraints
Rate Balancing
Campaign
Management
Factory Planner
Production
Plan
Production Scheduling
Executable
Schedule
Maximize
Throughput
Sequencing
Rhythm Production Scheduler
Inventory Deployment Planning &
Transportation Scheduling
Production
Schedule
Load
Consolidation
Transport
Optimization
Inventory
Deployment
Supply Chain Planner & Transportation Optimizer

18. Customer Service Impacts
Forecasting is the foundation upon which many operations decisions are based. If the forecast is better, subsequent supply chain decisions should be better. In the absence of a reasonable forecast, subsequent decision making is suspect
Customer Service Impacts
Product Out of Stocks
Lost revenue
Lost customer satisfaction
Lost consumer loyalty (retail OOS)
Inability to commit and respond to customer inquiries
Loss of confidence by our customers in our ability to perform

19. Product Quality Issues
Customers receiving less than fresh product
Product running out of code in warehouse
Quality of Job Life Issues
Inability of employees to plan around work schedules
Unscheduled overtime
Working on Holidays
Extended work schedules (consecutive days at work)

20. General Planning Impacts
Inadequate Capital Planning
Expensive, Reactive Manufacturing and Deployment decisions
Convenient Excuse Hides Many Other Significant Issues

21. ? ? ? ? ?
Questions????