Consumer Packaged Goods (CPG)
As food/beverage and consumer packaged goods (CPG) firms respond to slackening demand, slower growth, continuous cost pressures, and increased global competition, fundamental business practices are facing greater scrutiny than ever before. Now is the time to dramatically improve cost efficiency, strengthen collaborative relationships with customers and suppliers, maximize IT investments, and renew commitments to customer service.
Collectively, these challenges all have a direct bearing on the supply chain activities — and the initiatives takes in response can spell the difference between success and failure. Make sure your organization is prepared to:
- Improve the accuracy of your demand forecast
- Maximize customer satisfaction while minimizing logistics costs and inventory
- Manage product shelf life
- Minimize inventory across the distribution network and supply chain
- Achieve a consensus demand forecast with participation from sales, marketing, and production
- Optimize capacity allocation according to seasonal factors
- Maintain the proper quantities of materials — even during fluctuating demand
- Balance conflicting needs for customer responsiveness and production throughput
Benefits & Features
Investments in CPG operations and supply chain management have historically been subordinate to sales and marketing. But as revenue softens and expenses climb, CPG firms understand that real ROI value lies in rationalizing and streamlining global supply chains. Automated supply chain solutions, integrated ERP systems, and extranet solutions can all play a critical role — but only if they’re optimized effectively. Adexa helps make it happen.
Optimize Resource Investments — Compare financial KPIs and tie them to value-driving processes to ensure response to business opportunities and threats in a timely manner.
Stabilize Demand Planning — Integrate demand data from multiple sources, throughout the distribution network, into reliable consensus forecasts in real-time.
Reduce Inventory Exposure — Extend visibility across the supply chain to optimize usage of short-lived ingredients. Increase flexibility in response to short-term or seasonal demand fluctuations. Hedge against inaccurate forecasts and make the entire supply chain lean, responsive, and reliable.
Increase Production Schedule Accuracy — Easily accommodate complexities in planning and scheduling production for different product colors, grades, flavors, sizes, SKUs, and packs.
Consolidate Planning — Integrate sales, inventory and operations to establish a common language for capturing demand and supply information and feeding decisions directly to varied enterprise, plant, and shop floor systems.
Improve Global Capacity Utilization — Automatically communicate front-end demand changes to enable responsive reallocation of back-end resources. Optimize capacity across a multi-tier supply chain and streamline the asset base through a single integrated view.
Synchronize Multi-Site Production — Establish a common language for capturing data and feeding decisions back to varied legacy systems and shop floor applications.
Enable Collaboration — Deliver better information faster so trading partners can react quicker to changes in the supply chain, helping to reduce inventories, increase freshness shelf-life, and improve customer responsiveness.
Enhance Customer Service — Increase flexibility and accelerate order promising with better inventory management and real-time ATP.
Measure, Monitor, Notify, and Adjust — Use hundreds of pre-built, audit-ready approved KPIs
Benefits from Adexa
Adexa Network Optimizer helped us to reduce inventory by 30% across all of our DC’s
… the Adexa suite delivered centralized monitoring of the supply chain across the enterprise, and “what-if” analysis to ensure the impact of change, from any source, was visible to all stakeholders.
The number of SKUs, packaging, fresh or frozen, size and variation of customer base can amount to hundreds if not thousands of combinations. Through the use of Adexa’s supply chain applications, we have maintained the same or higher forecast accuracy and delivery performance despite doubling the number of SKU’s. Currently, we are performing at close to 99% SERVICE LEVELS for our Customer Secondary Distribution and close to 90% for Principle Secondary Distribution. In both cases the forecast accuracy was up by 6-8% DESPITE A 57% INCREASE IN THE NUMBER OF SKUs.
Although the economic recovery is well underway, a pragmatic approach needs to be taken when analyzing supply chain solutions. Proof of implementation scenarios need to document the time they’ll take to achieve objectives, the return on investment period and their overall impact on manufacturing assets.
A white paper on how Adexa solutions make suppliers and contract manufacturers more responsive, and accountable.
For makers of food, beverage and consumer packaged goods (CPG), “optimized supply network management” (o-SNM) can decrease total system cost, inventory and cycle times while significantly increasing stock availability and inventory turns. Taken together, these results translate into greater profits, improved customer service and that ever-elusive competitive advantage.
CPG Case Studies
If Hindustan Lever Limited (HLL), India’s largest consumer goods company, was in another market space, say, for example, publishing, it would, first of all, teach its prospect base to read. If it sold cars, HLL would open driver education schools to teach prospects how to drive safely.
Pulmuone Co., Ltd. is a South Korean company that produces perishable foods such as tofu and soybean sprouts. It was founded in 1981, is based in Seoul, South Korea and sells its products both within Korea as well as internationally
Since its deployment Adexa has provided one of the leading breweries in Bavaria, with forecasting accuracies of close to perfection leading to a much higher delivery performance to their clients
Maytag, one of the biggest brand names in the industry selected Adexa so that it could deliver the right product at the right time and in the right place using Adexa’s S&OP suite. Results: Tens of millions of dollars in inventory savings as well as huge improvement in planning cycle time.