solutions guide - Consumer Goods Technology

TECHNOLOGY
S U P P LY C H A I N
PLANNING
SOLUTIONS
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T O T H E C O N S U M E R G O O D S M A R K E T.
SOLUTIONS GUIDE
2015
PLUS: Experts discuss key initiatives for
successful supply chain planning including
collaboration, data analytics and more.
SPONS ORED BY:
2015 supply chain planning Solutions
The Evolution of the Supply
Chain Planning Landscape
Supply chain experts from GT Nexus, Logility, NeoGrid, SAP and ToolsGroup, draw from their experience collaborating with consumer goods
(CG) clients to examine how the supply chain planning (SCP) landscape
is changing. They also reflect on the increasing requirements and complexity of the supply chain, as well as debate the impact of social media.
Supply Chain Planning processes are once again rising
to the top of the priority list
for many organizations.
Why the renewed interest?
What has changed in this area
over the last few years?
Pa l m q u i s t: Rigorous demands
from customers and consumers have
led companies to recommit to customer
service. This is driven through an agile
supply chain. In the consumer goods
space, where supply chains have grown
long and complex with multiple layers of partners, there are numerous
pressures and risks that threaten the
delivery of goods. Investments in planning have spiked as companies race
to get ahead of the curve and enhance
planning strategies that reduce friction.
Planning is an essential component in
consumer goods companies’ toolkits
to eliminate pains and ensure smooth
delivery of product. However planning
alone is not a solution to supply chain
volatility of today. Collaboration and
execution are key ingredients as well.
S m i t h : Changes in technology and
the ability to process data have been
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drivers, but the most important trend
is a shift from “depression era” thinking
to one of growth. Post 2009 most organizations were focused on cutting costs
and not growing the supply chain. With
an improving economy the emphasis is
now on revenue. Optimizing the supply
chain, freeing up working capital, adding new distribution channels/partners
create complexity — and opportunity.
Spreadsheets and legacy based solutions
no longer cut it. The next generation of
supply chain planning tools are more
focused on automation, leveraging advanced technologies such as machine
learning, and doing demand modeling
to better understand demand variability.
Viola: After any crisis, it’s only natural for companies to try to find ways
to be better prepared for the next one,
and supply chain planning plays a key
role in risk reduction strategies. Companies have always been pressured to
keep growing, to keep producing and to
keep selling more and more — justifying continued investments in production, marketing, innovation and internal efficiency. But, as companies grow
and partner with an increasingly larger
number of companies, their inter-company inefficiencies tend to grow too. If
not controlled, these gaps can impact
Ro u n dt a b l e P a r t i c i p a n ts :
Diane Palmquist
Vice President of
Manufacturing Industry
Solutions
GT Nexus
Karin Bursa
Vice President
Logility
PAulo Viola
CEO North America
NeoGrid
Mark Osborn
Global Lead, Consumer
Products Industry Marketing
SAP
Pat Smith
General Manager
ToolsGroup
2015 supply chain planning Solutions
the overall performance of the supply
chain and become the company’s bottleneck for further growth. Add to that the
fact that companies are pressured to do
more with less — to become leaner in
order to reduce vulnerability to outside
variables — and it becomes understandable why supply chain planning is gaining more attention than ever.
Osb o r n : Renewed interest in supply chain planning is resulting from
rapidly increasing market complexity
for consumer products (CP) companies.
Ongoing requirements to serve increasingly diverse retail formats, the proliferation of physical and virtual channels,
and new and different demand and fulfillment needs resulting from expansion
into emerging markets are all driving
significant complexity for supply chain
planning teams.
In order to drive a consensus view
of enterprise demand across formats,
channels and markets, it’s imperative
for the supply chain organization to
coordinate planning processes across
sales, marketing, finance and other
teams to align and integrate those plans
with their own.
B u r s a : Supply chain planning is
critical to the success of company performance. The supply chain, once seen
by many executives as a cost center, has
shifted to be a source of competitive
advantage for consumer goods companies. With the increased pace of new
“Some of the most beneficial types of data are related to understanding end-consumer demand and
behavior — like POS data in all its granularity and
detail.” – Paulo Viola, NeoGrid
product launches and the added complexity of multi-channel and globalization initiatives, the role of supply chain
planning continues to rise. As supply
chains grow more complex, many consumer goods companies have realized
that ERP or spreadsheet-oriented systems are unable to keep up — they are
simply outdated. These methods are
unable to support advances in sales
and operations planning, multi-echelon
inventory optimization, rapid multiscenario comparison and more.
Collaboration is still
key to many successful planning processes. What kind of collaboration, both internal and
external, has produced the
greatest results?
S m i t h : Collaboration that is aligned
to common metrics goes a long way in
producing results. On the demand side
we have seen that companies achieve
significant impact on revenue and prof-
“To drive a consensus view of enterprise demand
across formats, channels and markets, it’s imperative for the supply chain organization to coordinate
planning processes across sales, marketing, finance
and others to align those plans with their own.”
– Mark Osborn, SAP
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itability when sales, finance, marketing
and supply chain have weighted accountability (goals) for a variety of performance
metrics such as forecast accuracy, forecast
value-add (FVA), service levels, inventory
turns and trade promotion performance.
On the supply side we have seen collaboration with upstream suppliers work
effectively when forecast/time phased
requirements can be shared beyond leadtime. Therefore capacity and inventory
accountability can be negotiated to the
benefit of all parties.
Viola: Both internal and external collaboration are key to success, and the
greatest results are achieved when both
are combined by the right technology
and processes. Companies should tackle
internal collaboration first, establishing
processes that are as straightforward as
possible, and where responsibilities are
clear — people know the impact of their
part in the whole process and are accountable for their actions. External collaboration can then broaden the amount
of variables being considered in a more
efficient way, bringing information from
partners into the mix through the right
path and in a way it can be better interpreted and used. Having a streamlined
process with integration points for internal and external collaboration throughout the entire process is paramount for
increasing system responsiveness to constant variable changes — integration is
key to execution, while collaboration is
key to effectiveness.
Bursa: With the speed of today’s new
product introductions, the frequency
of promotions and increasing competi-
2015 supply chain planning Solutions
tive pressures, the need to closely work
with both suppliers and retail partners is
critical for consumer goods companies.
Advanced supply chain planning solutions help facilitate this collaboration,
simplifying the complexity of making
sure everyone works off the same plan.
Promotions are a good example as they
require internal (supply chain, marketing, sales, finance, etc.) and external partners (suppliers, retailers) to be in agreement on how the promotion will impact
demand and the capacity required to
support the promotion. There must be
a platform in place that all parties can
trust and use. Collaboration results in a
win-win environment for all partners in
the network. You will learn a lot about
your trading partners and even more
about the “levers” available to impact
your business for success.
Osb o r n : Collaborative planning
across teams is essential for effective forecasting. Supply chain teams are increasingly coordinating planning processes
across business functions, which is important as teams view demand in various
ways. For example, marketing may forecast product level demand resulting from
a consumer promotion, while sales may
forecast overall demand at the case level
and manufacturing has to plan SKU-level
demand in order to optimize inventory.
Retailers and CP companies are also
enabling new levels of collaboration
via POS and inventory data to better
predict store level requirements and adjust promotional performance. Effective
planning combines real-time market
and demand data to accelerate planning
cycles and ensure profitable and timely
demand response.
Understanding these relationship
dimensions, reconciling varying perspectives, and building inter- and intraenterprise consensus demand plans,
will help supply chain teams coordinate
with supply planning teams to ensure
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“Creating a global connected view means knowing
much further up the chain what is happening,
so better decisions can be made.”
– Diane Palmquist, GT Nexus
adequate supply to meet demand across
channels and markets.
Pa l m q u i s t: A supply chain that
is not truly connected is hindered and
reduced to operating in silos. A supply
chain operating in silos measures in silos
and therefore focuses on performance
only within those silos. There is no way
to translate what’s happening within a
silo into an overall customer experience.
It all starts with a plan. Expectations
are set when the plan is created. In an
ideal scenario, those expectations, at
both the macro and micro level, can be
translated and updated as the transaction lifecycle progresses. But this is only
possible with a connected supply chain
at the core, offering a complete global
view. Plans such as transportation or
procurement can be translated to factor
not only when goods are going to arrive,
but all kinds of cost figures. This allows a
company to look at not only customer experience but also customer profitability.
In scenarios where the glitches that
occur within a silo does have an impact on final delivery, companies want
to be proactive. The more proactive a
company can be, the better chance they
have of preserving the customer experience. Creating a global connected view
means knowing much further up the
chain what is happening, so better decisions can be made.
3
While the hype
around Big Data as a
stand-alone initiative
subsides, companies
are focused on leveraging data
and insights through advanced
analytics to make a difference
throughout the supply chain.
How are your customers incorporating new sources of data?
What types of data are most
beneficial? How is social media
data being managed?
Smith: Our customers are incorporating daily order line information, POS,
Nielsen, IRI and non-traditional demand
signals (such as the attributes of promotions) to drive a step change in business
performance. How this data is used varies
by customer. Machine Learning Technology can identify promotional lift over the
baselines and correlate the ROI of promotions against the impact of volume.
Social media within operational
planning is still in its infancy. Understanding metrics such as ‘likes’, page
views, and time spent on a page, are
being used to enhance the predictive accuracy of the demand signal – especially
for new product introductions. Other
attributes such as sentiment are still not
well defined yet.
B u r s a : The ability to analyze both
structured and unstructured data and
then present the data in an actionable
manner is key for consumer goods companies. They are now able to detect a
potential disruption to manufacturing
operations through social media signals
and receive a notification allowing them
to shift capacity to other locations sav-
2015 supply chain planning Solutions
ing money and, more importantly, continuing to provide the level of service its
customers had come to expect.
The concept of Analytics Everywhere is how we take advantage of the
vast amount of information available.
Advanced analytics provide a visual
means to keep consumer goods supply
chains focused and moving forward.
We see this as important enough to
make it a standard component of our
supply chain planning solutions.
V i o l a : New technologies and advancements in current ones (Big Data,
Cloud Computing, 4G LTE, etc.) are taking the power of analytics to a whole
new level. The amount of data that can
be stored, analyzed and quickly retrieved,
as well as shared with different parties,
has increased to a point where data can
be analyzed at any level to surface immediate insights for manufacturers and
retailers. Working with information at the
lowest levels allows companies to identify correlations that before were lost, helping to understand how an increasingly
high number of variables interact with
each other, and consequently how they
should go about to influence these variables. Some of the most beneficial types
of data are related to understanding endconsumer demand and behavior — like
POS data in all its granularity and detail,
and social media for collecting valuable
input for crafting marketing strategies.
Pa l m q u i s t: For consumer goods
companies, the future will center on in-
“The concept of Analytics Everywhere is how we
take advantage of the vast amount of information
available. Advanced analytics provide a visual
means to keep consumer goods supply chains
focused and moving forward.” – Karin Bursa, Logility
ventory intelligence. This means leveraging the right information technology
to take action about volatile demand. It
means using all available resources, like
supply chain network data, to analyze
and optimize, coordinate and communicate, and adjust expertly to any given
situation. Accurate planning, combined
with actionable big data, leads to smarter execution.
Leading companies are beginning to
become more outside-in focused. This
means sensing demand and sensing
what is happening in the supply network. This is a shift from being transaction focused to relationship focused.
This approach involves working closer
with suppliers and business partners.
Working closer involves integrating the
planning, data collaboration and execution stages, and empowering the entire
grid of supply chain partners.
For big data to have impact, consumer goods companies and their partners
need data that is relevant, clear and actionable. The only way to deliver this is
through networked connectivity, where
all parties have visibility to a single set
of true data. Each company and individual has access to the data they need
to perform better. All parties can begin
“Social media within operational planning is still in
its infancy. Understanding metrics such as ‘likes’,
page views, and time spent on a page, are being
used to enhance the predictive accuracy of the
demand signal.” – Pat Smith, ToolsGroup
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to work together to optimize the end
state. The value chain is integrated and
all trading partners focus on collaboration. And finally, analytics and preconfigured models can be deployed to
automate collaboration and decision
making to optimize big data across the
supply chain.
Osb o r n : CP companies have long
had access to retail measurement syndicated data as well as retail point of
sale data. Today, they have the capacity
to integrate these external data sources
with internal data elements — forecasts,
orders, shipments and more — in order
to assess actual customer and consumer demand, measure promotion and
marketing effectiveness and predict
future demand.
The capabilities available to CP companies today enable the integration of
massive volumes of highly granular,
high velocity data and provide realtime, self-service access to the data
enterprise wide, extending advanced
analytics and simulation beyond key
accounts to every aspect of customer,
consumer and product planning.
CP companies are able to correlate
qualitative data, such as consumer
research or social media sentiment
analysis, with quantitative data to assess, for example, positive or negative
changes in consumer sentiment from
a promotional offer, new packaging, a
pricing change or an out-of-stock situation. This information provides supply
chain teams with a valuable perspective
on the factors that influence demand to
improve future planning processes.
technology
2015 SUPPLY CHAIN planning
SOLUTIONS CHART
solutions guide
Company/Web Si te
P ro du ct
Key CG
C u s t o me r s
U n i q u e F e at u r e s /B e n e f i t s
Aspen Technology
Aspen Supply
Chain Planner
• Altria
• Owens Corning
• Tyson Foods
With the Aspen Supply Chain Planner, users have the ability
to maximize business profitability by determining optimal
production plans for even the most complex supply chains.
Blue Ridge Supply
Chain Planning
Cloud
• Henry Schein
• Procurator
• Stokke
The Blue Ridge Supply Chain Planning Cloud unifies demanddriven forecasting, supply and demand planning, end to end
collaboration, and analytics in a single platform to maximize
efficiency and effectiveness.
Cognitive
Value Chain
incorporating
DP2P
• Conair
• McCormick
An intelligent monitor sitting outside the client’s core systems
that semantically models the supply chain and DP2P experience
to discover insights, supply/demand imbalances, and other value
chain optimization opportunities.
Exceedra S&OP
• Bayer Consumer
Goods
• Bird’s Eye
• Dyson
The Supply Chain S&OP solution is focused solely on the
consumer goods sector. Exceedra S&OP supports Demand and
Supply Planning managing the complexity found in CPG.
GT Nexus
Platform
• Levi Strauss
• Nestlé
• P&G
Consumer goods companies connect all supply chain partners
in a cloud based network. All parties have visibility into the
same set of data for the physical and financial supply chain.
Infor Supply Chain
Management
• Harris Ranch
Beef
• Jelly Belly
• Organic Valley
Farms
Infor SCM offers industry-specific functionality and analytics to
enable customers across industries form Food & Beverage to
Automotive to plan and execute supply chain strategies faster
and more profitably.
SAILS
• Nestlé
• Ocean Spray
• PepsiCo
I N S IG H T combines strategic supply chain planning and simulation of your complete supply chain operations, including procurement, manufacturing, and finished goods distribution at a daily
level of detail to maximize profits.
www.aspentech.com
Blue Ridge
www.blueridgeinventory.com
Enterra Solutions,
LLC
www.enterrasolutions.com
Exceedra
www.exceedra.com
GT Nexus
www.gtnexus.com
SEE A D ON PAGE TSG 3
Infor
www.infor.com
INSIGHT, Inc.
www.insightoutsmart.com
Note: Participating companies identified only their primary solution in this space. Visit company web sites for info on additional solutions.
consu m e r g oo d s . co m | m a r c h 2 0 1 5 | c g t
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technology
2015 SUPPLY CHAIN planning
SOLUTIONS CHART
solutions guide
Company/Web Si te
JDA Software
Group, Inc.
P ro du ct
Key CG
C u s t o me r s
U n i q u e F e at u r e s /B e n e f i t s
JDA Flowcasting
• Dr Pepper
Snapple Group
• Scotts-Miracle
Gro
Flowcasting breaks down walls between manufacturers and
retailers to create a single, accurate, item-level forecast driving
a shared plan that is executed jointly by both partners to their
mutual benefit.
Jesta I.S. Vision
Suite
• GENESCO
• Perry Ellis
International
• Puma
A complete ERP solution engineered specifically for the apparel
and footwear industry. End-to-end deployment or modular
implementation, Vision Suite has a proven delivery method with
rapid implementation supporting today’s business requirements
for multi-level ROI.
JustEnough
Demand Planning
• Estée Lauder
• GlaxoSmithKline
• Levi Strauss
Available OnSite and OnCloud, JustEnough’s innovative endto-end demand planning solution helps companies to forecast
customer demand and plan, allocate and replenish inventory
with accuracy.
Logility Voyager
Solutions
• Moen
• Mondelez
• Red Wing Shoe
Company
Logility helps CG companies optimize their complete
supply chain, from sourcing to store, providing advanced S&OP;
demand, supply and inventory optimization; retail planning
and allocation; and transportation management solutions.
Cloud based
warehuose
management
systems
• Confidential
Cloud-based solutions built under a cost effective multi-tenant
infrastructure and a SaaS pricing model. Our customers benefit
from an all cloud-based infrastructure as well as software
upgrades and system support at no additional cost.
Manhattan SCOPE
(Supply Chain
Optimization
Planning through
Execution)
• Jack Link’s
Beef Jerky
• Sara Lee
• Reser’s Fine
Foods
Manhattan Associates makes commerce-ready supply chains
that bring all points of commerce together so you’re ready to
sell and ready to execute.
Microsoft Connect
Supply Chain
Offerings
• Hanesbrands
• Kimberly-Clark
• New Belgium
Breweries
Microsoft’s Connected Supply Chain offerings provide
dramatically improved visibility and collaboration across internal
and external global teams due to deep integration with Office
365, enabling real-time collaboration and sharing and advanced
analytics with PowerBI and Azure Machine Learning.
NeoGrid SCS
(Supply Chain
Synchronization)
• Bayer
• Kellogg’s
• PepsiCo
NeoGrid delivers quick time to value through our fast-to-implement next generation supply chain solution — which provides
analytics, planning and execution from production to store
shelves in a global cloud-based platform.
www.jda.com
Jesta I.S.
www.jestais.com
JustEnough
Software
www.justenough.com
Logility
www.logility.com
SEE A D ON PAGE 44
LogFire
www.logfire.com
Manhattan
Associates
www.manh.com
Microsoft
Corporation
www.microsoft.com/industry
NeoGrid
www.NeoGrid.com
SEE A D ON PAGE TSG 5
Note: Participating companies identified only their primary solution in this space. Visit company web sites for info on additional solutions.
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technology
2015 SUPPLY CHAIN planning
SOLUTIONS CHART
solutions guide
Company/Web Si te
Oracle
www.oracle.com/us/industries/
consumer
Park City Group
www.parkcitygroup.com
SAP
www.sap.com/consumer
SEE A D ON PAGE TSG 12
SAS
www.sas.com
Symphony EYC
www.eyc.com
Terra Technology
www.terratechnology.com
ToolsGroup
www.toolsgroup.com
P ro du ct
Key CG
C u s t o me r s
U n i q u e F e at u r e s /B e n e f i t s
Oracle Value
Chain Planning
• Darigold
• Land O’Lakes
• Michael Foods
Oracle Value Chain Planning and Execution enables you to
predict, shape and deliver to market demands in near real time
and can be deployed stand alone or in conjunction with existing
ERP systems.
Supply (Demand)
Chain Planning
Solutions
• Bush Brothers
• Jack Link’s Beef
Jerky
• J.M. Smucker
Proven supply chain visibility experts who provide big data
analysis, actionable insights, and interoperable forecasting and
planning solutions that enable trading partners to Sell More,
Stock Less & See Everything.
SAP Integrated
Sales & Operations Planning,
powered by SAP
HANA
• ColgatePalmolive
• Kraft Foods
• SC Johnson
Synchronize supply and demand, integrate supply network planning, balance inventory and align with corporate and stakeholder
team goals with enterprise integrated business planning available via a unified Cloud-based platform.
SAS for DemandDriven Planning
and Optimization
• Coca-Cola
• Kellogg’s
• Nestlé
Using patented capabilities, SAS generates accurate forecasts
and optimized distribution for structured, automated large-scale
new product forecasting, multiechelon inventory optimization,
and inventory auto-leveling.
Symphony EYC
G.O.L.D. Unified
Retail Platform
• Campbell Soup
Company
• Molson
• Talking Rain
The breadth of Symphony EYC solutions and services optimize
profitability by delivering highly targeted product assortments
across all channels supported by reliable and responsive retail
operations and supply chain execution.
Demand Sensing
• Mondelez
• P&G
• Unilever
Terra’s Demand Sensing is used in over 160 countries and
enables some of the world’s largest consumer products
manufacturers to improve service, ensure product availability
and operate efficiently.
SO 99+
• ColgatePalmolive
• Danone
• Granarolo
ToolsGroup accelerates business performance by helping
organizations overcome demand volatility (such as
promotions) through market-driven demand analytics and
supply chain optimization.
TXT S&OP —
Sales & Operations Planning
• Findus
• Galderma
• Greencore
TXT S&OP encompasses all aspects of financial planning, collaborative demand planning, supply, distribution and inventory
planning in one solution. Informed decision making is supported
through advanced scenario-based simulation capabilities and
integrated performance management.
SEE A D ON PAGE TSG 7
TXT e-solutions
www.txtgroup.com
Note: Participating companies identified only their primary solution in this space. Visit company web sites for info on additional solutions.
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