This document discusses achieving visibility and control over sales and supply chain operations for FMCG manufacturers. It begins with lessons from history on the failure of Allied forces to defend Malaysia from Japanese invasion in 1941 due to "mindset inertia". Next, it argues that manufacturers must effectively defend the general trade to protect margins from aggressive modern trade growth. Several case studies are presented on distributors and manufacturers implementing systems to gain better data visibility, which improved performance metrics like inventory levels, sales growth and costs. Finally, future scenarios are envisioned involving GPS, GIS, network rationalization and sales/logistics collaboration enabled by new technologies.
To survive in today’s changing retail environment, smart organizations are working to optimize their (1) Shopping experience, (2) Operations, (3) Merchandizing and supply chain.
To survive in today’s changing retail environment, smart organizations are working to optimize their (1) Shopping experience, (2) Operations, (3) Merchandizing and supply chain.
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Globally manufacturers are facing a more complex and demanding environment, with slower economic growth, volatility in commodity prices, higher cost of warehousing, and a growing complexity of their supply chains to accommodate shifts in market demands. To achieve sustained growth and competitiveness in this environment, most industrial companies have by now, implemented ERPs and other technologies that help them capture data along their value chain. However, the underlying processes are still lacking in connectivity, rigor and controls, and the data gathered is difficult to interpret and analyze for real-time and accurate decision-making. Genpact has developed the insights and operational practices to power intelligent manufacturing enterprises with smarter processes, smarter analytics and smarter technologies to help them grow and outcompete.
Oplægget blev holdt ved arrangementet "Get F'IT marts 2011", der blev afholdt den 29. marts 2011. Læs mere om arrangementet her: http://www.infinit.dk/dk/hvad_kan_vi_goere_for_dig/viden/reportager/koeb_din_oel_med_oejnene.htm
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This session reviews “Big Data” case studies from media analysis, retail analytics and customer loyalty that go beyond the data warehouse and Hadoop. Disruption from the “Facebook generation,” armed with iPads, Droid Phones and netbooks brings a melee of new tools, devices and data sources. An analytical platform is the ‘Golden Spike’ to hitch stable, proven, and mature BI solutions with the data frontier—deep analytics, predictive modeling, sentiment analysis, etc. to enable competitive advantage.
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These are Analytical platforms that enable a sudden spurt of performance improvement. Designed to answer specific problems that retailers face, these solutions use BI, Analytics, Big Data and Mobility based approaches to provide a clean wrap.
Zed-Sales™ - a flagship product of Zed-Axis Technologies Pvt. Ltd.Rakesh Kumar
Zed-Sales™ is a completely web-based solution which streamlines channel sales & distribution activities of manufacturers, distribution partners and everyone involved in the sales function of the company. Zed-Sales™ helps the manufacturers and distribution partners to seamlessly collaborate on a single platform and fuel business growth in the ever dynamic business environment.
W001 - World Visions
Orario 09.30 – 13.00
Sala 4
TECHNOLOGIES, PARTNERSHIPS & BUSINESS MODELS
Developing new value-added services in the navigation markets
Airline ancillaries: What is working in today’s marketplaceKevin May
New airline ancillary products and the technology and processes behind them are a fascinating and vital part of how the travel industry is evolving.
Three innovative travel brands share insights about recently released capabilities and the best practices for integrating these services into a managed travel program.
On this 60-minute webinar, you’ll hear how airlines are enhancing their products and learn from industry practitioners about what it takes to actually bring them to market.
Technology providers, travel suppliers, travel agencies, and travel buyers should bring their questions and comments for this interactive sessions with our panel of experts.
Featured presenters:
Shelly Terry, Vice President, Sabre Travel Network
Aldo Ponticelli, Vice President Distribution, Alitalia
Liz Mandarino, President, World Travel Inc
Kevin May, Editor & Moderator, Tnooz
Gene Quinn, CEO & Producer, Tnooz
Broad analisis of the biggest company in the world. It includes WalMart history, internal and external analysis and a focus on WalMart's internationalization with some suggestions for the future.
Globally manufacturers are facing a more complex and demanding environment, with slower economic growth, volatility in commodity prices, higher cost of warehousing, and a growing complexity of their supply chains to accommodate shifts in market demands. To achieve sustained growth and competitiveness in this environment, most industrial companies have by now, implemented ERPs and other technologies that help them capture data along their value chain. However, the underlying processes are still lacking in connectivity, rigor and controls, and the data gathered is difficult to interpret and analyze for real-time and accurate decision-making. Genpact has developed the insights and operational practices to power intelligent manufacturing enterprises with smarter processes, smarter analytics and smarter technologies to help them grow and outcompete.
Oplægget blev holdt ved arrangementet "Get F'IT marts 2011", der blev afholdt den 29. marts 2011. Læs mere om arrangementet her: http://www.infinit.dk/dk/hvad_kan_vi_goere_for_dig/viden/reportager/koeb_din_oel_med_oejnene.htm
Big data and the bi wild west kognitio hiskey mar 2013Kognitio
This session reviews “Big Data” case studies from media analysis, retail analytics and customer loyalty that go beyond the data warehouse and Hadoop. Disruption from the “Facebook generation,” armed with iPads, Droid Phones and netbooks brings a melee of new tools, devices and data sources. An analytical platform is the ‘Golden Spike’ to hitch stable, proven, and mature BI solutions with the data frontier—deep analytics, predictive modeling, sentiment analysis, etc. to enable competitive advantage.
-or- “Big Data and the BI Wild West: Don’t Bring an Elephant to a Gun Fight!”
-or- “Big Data and the BI Wild West: Don’t Bring an Elephant to a Gun Fight!”
These are Analytical platforms that enable a sudden spurt of performance improvement. Designed to answer specific problems that retailers face, these solutions use BI, Analytics, Big Data and Mobility based approaches to provide a clean wrap.
Zed-Sales™ - a flagship product of Zed-Axis Technologies Pvt. Ltd.Rakesh Kumar
Zed-Sales™ is a completely web-based solution which streamlines channel sales & distribution activities of manufacturers, distribution partners and everyone involved in the sales function of the company. Zed-Sales™ helps the manufacturers and distribution partners to seamlessly collaborate on a single platform and fuel business growth in the ever dynamic business environment.
Similar to John talbot achieving visibility & control (20)
1. Achieving Visibility and Control over
Sales and Supply Chain Operations
– With a Discussion of Future Scenarios
John Talbot, Partner
Agenda
• A lesson from history?
• Effective defence of the General Trade
• Some case studies
• The near future
2. A lesson from history?
8 Dec 1941:
Japanese land in Kota Bharu
11 Jan 1942:
Kuala Lumpur falls
15 Feb 1942:
Singapore surrenders
What went wrong?
Allied defence was a management failure
The primary cause: Mindset Inertia
10 Dec 1941:
The Japanese road bicycles through Malaya’s
Prince of Wales & Repulse, without air-
“impenetrable jungle and mangrove swamps”
support, sunk by Japanese bombers off
Kuantan
In fact, Malaya had SE Asia’s most developed
road network.
It was built by the British
3. Why are we talking about events 70 years ago?
At a time of aggressive Modern Trade (MT) growth in Asia, FMCG
manufacturers must comprehend that an effective defence of the
General Trade (GT) is required to protect margins
The 1941/42 Malayan campaign demonstrated that, until the crisis hits,
it is a human trait to ignore whatever evidence threatens our
comfortable existence
Could parts of the FMCG industry be suffering from Mindset Inertia?
What is an effective defence?
The most effective defence is to visualize and sponsor a progressive, service
orientated GT that plays to its strength in providing consumers with
convenience and proximity.
What could this look like?
Manufacturers harvesting
real-time data – and having
the analytical capability to Distributors with the will
use it to effectively drive (mindset), competency and
growth through well tools to manage their
coordinated sales and supply Salesmen trained
business effectively –
chain operations and equipped to
continually tracking (and
be effective and
reporting on) sales and
productive at the
inventory performance
point of sale
Better Service at Lower Cost
4. Some quick comments on the GT
• The GT’s core is made up of (family owned) distributors contracted to serve retailers
in a given geography.
• Key roles are penetration the market and to handle the credit risk
• The GT is amazingly resilient, despite:
– Poor service from manufacturers
– Erratic reporting demands, 3rd rate systems
– Lack of training in modern best practices
– Push orientated manufacturer sales practices
– Lack of clear guidelines
– Uneven playing field (master-servant relationship)
• But ultimately the GT will only survive if develop ability to get product on shelves:
– Consistently
– At right price
– In good condition
– Well presented and supported
• Fragmentation has been the chief obstacle to development of this sector
What people are doing today?
1. A Malaysian distributor
2. Malaysian based manufacturer
3. Indonesian based manufacturer
5. Case 1: A Malaysian distributor
Actions:
• Upgraded facility
• Installed a WMS
• Drove disciplined work practices
(despite initial resistance)
Results (from his biggest agency):
• 34% Y-O-Y sales growth (vs. 13% national average)
• Inventory down by 40% (in days cover)
• Stock availability much higher
• Improved productivity
• Reduced returns and rejections
• Near zero shrinkage
Case 2: Malaysian based manufacturer
Action:
• Rolled out Distributor Management System (DMS) across 26 sites
• Continual system monitoring & support
• Systematic data harvesting and analytics
Results:
• Reduced average distributor inventory from 30 to 14 days
• Increased retail service levels
Action phase 2 (current):
• Automating VMI based on pre-defined rules
(promo-forecasts/sales/vehicle capacities)
• Salesforce Automation across both MT and GT
6. Case 3: Indonesian based manufacturer
Similar roadmap to Malaysian manufacturer ( but over 90 depot & distributor sites)
But then using the new transparency/control to rationalize their Java network:
3 DCs
27 Depots
Traditional fleet 2 DCs
5 Depots
22 Transship points
Modern fleet
Benefits:
Windfall benefit from sale of properties
Halving of finished goods inventory
Marginally reduced operating costs
Simplified planning
Massive carbon-footprint reduction
Exponentially improved flexibility for future network development
Some future scenarios
1. GPS and GIS systems
2. Network rationalization
3. Collaboration
7. Prediction: Salesmen will all have mobile technology
Why?
•Lower cost hardware
•Lower cost software
•Better, more intuitive user
interfacing
•Increasing accurate GPS
•Lower cost connectivity
•Me too effect!
……
Geographic Information Systems (GIS)
Outlets Pasar Mini Effis
Category: Convenience
Contact: Mr. Tan 0122345678
Sales Performance
Cost-To-Serve
Demographic
Points of Interest
8. GPS will provide
100% salesmen tracking
So now we know:
+Travel to outlet
+Time at outlet
+Travel from outlet
+Sales at outlet
+Returns from outlet (with
associated cost allocations)
Allocate in warehouse and
inventory based costs
= cost-to-serve by
outlet
Cost to serve reporting
• Cost-to-Serve
– Calculated as Salesman cost + Delivery cost + Cost of handling and processing returns
represented as a % of sales
• Apportioned travel time
– Proportion of total time spent travelling, either by salesman or delivery vehicle that is
spent on reaching a particular outlet
• Average time spent at outlet
– Time spent by salesman or delivery vehicle at outlet to make a sale / waiting time +
loading and unloading time
9. If we have CTS by outlet, then we have it by…
By sales territory
By salesmen
By distributor
By sales region
Nationally (with apologies to EM)
Geographic Information Systems (GIS)
Average household incomes
Upper tier
Pasar Mini Effis
Category: Convenience
Middle tier
Contact: Mr. Tan 0122345678
Lower tier
Sales Performance
Cost-To-Serve
Demographic
Points of Interest
Schools
10. Some future scenarios
1. GPS and GIS systems
2. Network rationalization
3. Collaboration
Network rationalization
Once you have a live (geo-coded) database, you have enormous
potential to explore options to improve network productivity
Example 1:
Salesman
and delivery
territory
optimization
- run Example 2:
quarterly for Review of
each distributor
distributor boundaries,
based upon:
- Area sales
effectiveness
- Overall
cost-to-serve
11. Some future scenarios
1. GPS and GIS systems
2. Network rationalization
3. Collaboration
Sales collaboration
Pasar Mini Effis
Category: Convenience
Manuf. 1 Contact: Mr. Tan 0122345678
Manuf. 2
Manuf. 3
Manuf. 4 Sales Performance
Cost-To-Serve
Demographic
Points of Interest
12. Sales Collaboration:
Outlet performance vs. peers
Logistics Collaboration: Today’s structure
Manufacturers
Manufacturers’ DCs
(increasingly operated by
3PLs) directly replenish
distributors:
• Intermittent deliveries
• High inventories
• High storage costs
Distributors
Despite high inventories
the most common cause
of underperformance is
Missed sales due to
stock-out at distributor
Outlets
Outlets suffer poor service
and look elsewhere for
product
13. Logistics Collaboration: Tomorrow’s structure?
Manufacturers
2) Send one
bulk order to
each DC Bulk pick of single order
FTL delivery to cross-dock
-DOCK
1) Generate daily CROSS
Daily scheduled delivery
replenish request
via VMI process (multi-product) to each
distributor
Distributors
Reduced or zero
inventory
Outlets
Improved service & availability
In conclusion….
The convergence of…
Need
Infrastructural development
Low cost technology
Low cost connectivity
Embryonic collaboration forums
...opens up a massive opportunity to rethink how
we serve the consumer.
Will we take it?