MARCH 2017 DE CE M B E R 2 0 1 6
Planning the Future Supply Chain Putting the ‘O’ in TPO
Who’s
WHO in SUPPLY CHAIN
RECOGNIZING THE PEOPLE BEHIND THE TECHNOLOGIES, SYSTEMS AND PROCESSES THAT MAKE THE CONSUMER GOODS SUPPLY CHAIN RUN
CONTENTS March
V O L U M E 25 N U M B E R 3
Who’s
WHO in SUPPLY CHAIN
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05 I N S I G H T S From TPM to TPO: Six Pillars for Success Dr. Martin Burgard, Accenture Solutions for Consumer Goods 27 B E T W E E N T H E L I N E S Supply Chain Snapshot Lora Cecere, Supply Chain Insights
Features TECHNOLOGY SOLUTIONS GUIDE
14 Supply Chain Planning Solutions A comparison chart of key solution providers for the consumer goods industry in 2017. Plus, industry experts from Amber Road, Datalliance, EY, FedEx Supply Chain and GT Nexus offer guidance to companies that are navigating the challenges and opportunities driving change in the supply chain.
Consumer Goods Technology (USPS 0011-255, ISSN 1530-8421) is published 7 times per year: January/February, March, May, June, September, October, and December, by Ensemble IQ, 4 Middlebury Boulevard, Randolph, NJ 07869. Subscription rates: $89 for U.S. addresses; $99 for Canadian addresses; $109 for all other addresses. Single copies are $20; add $2 for postage to Canada, or $5 to other countries. For Air Mail, add $65. Copyright 2016 by Ensemble IQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or information storage and retrieval system without permission in writing from the publisher. Periodicals postage paid at Dover, NJ 07801-9998 and additional mailing offices. For article reprints & e-prints, please contact PARS International at (212) 221-9595, Fax (212) 221-9195 or email: edgellreprints@parsintl.com. POSTMASTER: send address changes to: Consumer Goods Technology, PO Box 261, Lowell, MA 01853.
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COVER STORY
Who’s Who in Supply Chain
Process and technology are two critical components of an efficient, effective, consumer goods operation. But they’re both worthless without the most critical component of all: the people who make them run. This month, CGT introduces a new editorial feature that will showcase noteworthy executives who are driving success in key business areas — starting with the supply chain.
COMPANY LISTING
Anheuser-Busch InBev ....................................... 7 Avon Products........................................................ 7 Campbell Soup Co................................................ 7 Church & Dwight .................................................. 7 Coca-Cola ..................................................7 Colgate-Palmolive......................................7 Combe Inc. ................................................7 Conagra Brands .........................................7 Constellation Brands .................................8 Dr Pepper Snapple Group .........................8 Edgewell Personal Care .............................8 Haggar Clothing Company .........................8 Hanesbrands .............................................8 Johnson & Johnson ...................................8 Kellogg Co. .................................................8 Keurig Green Mountain, Inc. ..................... 8 Kimberly-Clark .........................................10 Kraft Heinz ...............................................10 Lego Group ..............................................10 L’Oréal USA ..............................................10 Mars, Inc. ................................................11 Mattel, Inc. ..............................................11 McCormick & Co. ....................................11 Mondelēz International ..........................11 Morton Salt .............................................11 Nestlé USA ..............................................11 Nestlé Waters North America .................11 Newell Brands .........................................12 Nike Inc. ...................................................12 PepsiCo ....................................................12 Pinnacle Foods ........................................12 PVH Corp. ................................................12 Procter & Gamble ....................................12 Ralph Lauren ...........................................12 Shiseido ...................................................12 Stanley Black & Decker ............................13 Tasty Baking Co. .......................................13 Under Armour .........................................13 Unilever ...................................................13 VF Corp. ...................................................13 3M ...........................................................13
CONSUMERGOODS.COM | MARCH 2017 | CGT
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Expertise, in Good Supply
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In this issue, CGT recognizes 53 executives from 41 consumer goods companies who are playing key roles in the supply chains of their organizations. They represent some of the “who” behind the “what” — the systems, processes and technologies — that are being used to drive success in today’s ever-changing consumer goods landscape. No matter how much today’s industry conversation trends toward digital transformation, the IoT, automation, artificial intelligence and other topics that suggest an increasingly greater reliance on technology, a consumer goods supply chain is only as successful as the people behind those technologies, the ones who select them, deploy them and keep them working — and sometimes still need to save the day when they fail. This month’s feature is the first in a series of “Who’s Who” events that we’ll be staging throughout 2017 to cover key areas of the consumer goods industry. Later in the year, we’ll tackle Sales & Marketing, Data & Analytics, and Information Technology. For this initial outing, we kept things pretty close to home by recognizing some of the people we know best: members of our advisory
councils (who, you’ll soon find out, have far more noteworthy accomplishments), recent winners of our awards programs, content contributors and subjects, and other people who’ve crossed CGT’s path closely in recent years. We also took a look at some high-profile execs — hey, is CSCO an accepted acronym yet? — who are guiding change not only at their companies, but also in the consumer goods world at large. But recognizing 53 executives at 41 companies barely scratches the surface of the noteworthy people in the industry. While we plan to showcase a new and larger “Who’s Who in Supply Chain” group in print each year, we don’t want this simply to be an annual event. So we’ll be adding additional people to the list on consumergoods.com throughout the year. That means the executives we recently contacted who were too shy or too busy (or maybe a little bit of both) to get involved immediately still have an opportunity to get the recognition they deserve. We also welcome additional recommendations from bosses, coworkers or vendor partners. As that old saying goes (sort of), it’s not just what you know but who you know. We here at CGT want to help the industry get to know more of you. Peter Breen, Editor-in-Chief
RESEARCH Gene Alvarez Gartner Lora Cecere Supply Chain Insights Michael Forhez
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Peter Hatch Sr. Director, Information Management - Demand, Reynolds American Inc. Service Co. Chris Hobson VP, Business Systems, VF Corp. Constance Howlett VP, Packaging Operations The Estée Lauder Companies, Inc. Betsey Nohe VP, Supply Chain, Morton Salt, Inc. John Phillips SVP Customer Supply Chain & Global Go-To-Market, PepsiCo
EDITORIAL Kevin Barnes CIO, Ferguson Enterprises Tony Bender Global CIO, Edgewell Personal Care Rick Brindle VP, Industry Development Mondelez International Ann Dozier CIO, Southern Wine & Spirits Michael Ferrara CMO, HairUWear Jon Harding Global CIO, Conair Corporation Brian Girouard Capgemini Kimberly Knickle IDC Don Lanham Hitachi Consulting Meena Surti Patel Cognizant
Cheryl Perkins Innovationedge LLC Radha R Mindtree Steve Rosenstock Clarkston Consulting John Rossi Capgemini
CGT | MARCH 2017 | CONSUMERGOODS.COM
EDITORIAL Editor-in-Chief: Peter Breen pbreen@ensembleiq.com Editor: Alarice Rajagopal arajagopal@ensembleiq.com Contributing Editors: Tim Binder, Jamie Grill-Goodman, Nidhi Madhavan, Patrycja Malinowska, Charlie Menchaca, Samantha Nelson SALES Associate Brand Director: Diana Masurack Mann dmann@ensembleiq.com Director of Business Development: Mike Johnson mjohnson@ensembleiq.com Assistant to Brand Director: Jen Johnson jjohnson@ensembleiq.com EVENTS SVP, Events & Conferences: Maureen Macke mmacke@ensembleiq.com Director, Event Planning: Patricia Benkner pbenkner@ensembleiq.com Director, Event Content: John Hall jhall@ensembleiq.com MARKETING VP, Marketing & Communications: Bruce Hendrickson bhendrickson@ensembleiq.com MARKETING DIRECTOR: Kim Sterling ksterling@ensembleiq.com CIRCULATION Director of Audience Development: Gail Reboletti greboletti@ensembleiq.com Audience Development Manager: Jeffrey Zabe jzabe@ensembleiq.com ONLINE MEDIA Director Product Development: Jason Ward jward@ensembleiq.com Web Development Manager: Scott Ernst sernst@ensembleiq.com Online Project Manager: Whitney Ryerson wryerson@ensembleiq.com ART AND PRODUCTION Corporate Director of Production: Kathryn Homenick khomenick@ensembleiq.com
CGT ADVISORY BOARDS EXECUTIVE COUNCIL Tony Bender Edgewell Personal Care Justin Honaman PRGX, Inc. Michael Forhez Mike Gorshe Accenture Jon Harding Conair Corporation EJ Kenney SAP Doug Rammel BAI Suavecito John Rossi Capgemini Steve Sigrist Newell Brands
MANAGING DIRECTOR AND PUBLISHER Albert Guffanti aguffanti@ensembleiq.com
Kevin Puppe Senior Director, IT, Johnson & Johnson Doug Rammel VP Corp. Development, BAI Suavecito Steve Sigrist VP Customer Development Operations, Newell Brands Dan Woo Director, B2B and Technology, Nestlé USA Filiz Yavuz VP Business Process Engineering, Perry Ellis International
Sanjay Saigal Infosys Renee Sang Accenture Mark Smith Ventana Research Ben Stiller Deloitte Consulting LLP
Hans Kristan Van Delden Strategy& Andrew White Gartner
Creative Director: Colette Magliaro cmagliaro@ensembleiq.com Production Manager: Pat Wisser pwisser@ensembleiq.com Subscriptions: 978-671-0449 Reprints: edgellreprints@parsintl.com, 212-221-9595 CORPORATE OFFICERS Alan Glass Executive Chairman Peter Hoyt President & CEO Rich Rivera Chief Operating Officer Jeff Greisch Chief Brand Officer Len Farrell Chief Financial Officer Korry Stagnito Chief Business Development Officer & President, EnsembleIQ, Canada Ned Bardic Chief Customer Officer/ President of Strategic Platforms Joel Hughes Chief Digital Officer Greg Flores Chief Human Resources Officer
CORPORATE OFFICE 4 Middlebury Blvd, Randolph, NJ 07869-1111 (973) 607-1300 • Fax (973) 607-1395 PRINTED IN THE U.S.A. www.consumergoods.com MEMBER
Insights
I N D U S T R Y A N A LY S I S , D AT A & R E S E A R C H
From TPM to TPO: Six Pillars for Success
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DR. MARTIN BURGARD Software Product Manager TPM/TPO, Accenture Solutions for Consumer Goods
“Without the crucial data and intelligence that it generates, a TPO solution will have nothing to work with and the investment will be wasted.”
Consumer goods companies spend a significant proportion of revenues on trade promotion, but returns on that investment can be disappointing. Leaders in the industry are therefore considering trade promotion optimization (TPO) solutions, which take data from the TPM system to conduct post-event analytics that will generate performance-enhancing insights. The goal is a clear view of volume components such as baseline, promotional uplifts and sales cannibalization, enabling firms to improve the effectiveness and efficiency of their promotions and plan more accurately. So, how do you build a successful TPO?
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Invest in integration: A solid, widely used TPM system is essential if consumer goods brands are going to approach their trade promotion activities more strategically and with greater rigor. Without the crucial data and intelligence that it generates, a TPO solution will have nothing to work with and the investment will be wasted. With TPM in place, move on to TPO: The ideal option is a single system that integrates both, maximizing usability for all potential users and preventing the need to input data twice.
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Build support for the shift: Moving to TPO represents a fundamental mind-set shift for trade promotion professionals who’ve long relied on instinct and will have to adjust to algorithmically generated forecasts and recommendations. Their successful adjustment will depend on the leadership and support of senior managers to drive through change and offer encouragement during the potentially uncomfortable transition period. This support and awareness will need to flow down through the organization and across different functions, so everyone understands that TPM systems now incorporate TPO functionality.
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Invest in training: To ensure the business fully exploits TPO, training is key. Ideally, start with a proofof-concept exercise to identify likely business scenarios where TPO will prove valuable given the data available; use these scenarios to train key users who then can share their learning with colleagues; finally, roll out the training to all other users. Training should be ongoing, with key
users developing a “community of practice” to address issues as they come up.
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Avoid garbage in-garbage out: Unless you properly assess the business’s trade promotion data, you won’t know where you’re starting — and you’ll find it much harder to give meaningful information to your TPO solution. Assessing the data is a crucial task that is too often overlooked. When TPO solutions are fed inaccurate or incomplete data and “garbage” comes out the other end, people start to question the whole project. Assess data by market, by product category and by account, based on customer and product requirements. Look for as many different data sources as possible, both internally and externally — richer data, ranging from macro-economic inputs to weather information, will deliver greater insight than internal sell-in data alone.
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Test each model: Analytics modeling is an art as well as a science, with no single formula that guarantees success. There will be differences by market and industry; in some cases, there will be more (and better) data available than in others, and you may need to access third-party data. To get TPO solutions working effectively, it will be necessary to use a set of models, automatically testing and retesting until the best fit is identified; the fine-tuning will then continue to maximize accuracy.
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Set realistic targets and measure progress: Set up your TPO solutions to achieve your business’s specific goals and targets. Your TPO activities should supplement and support TPM processes, not operate in isolation. Measurement is key to the process. Measure what you’re achieving today with existing TPM activities, then add further gains as they’re generated by TPO activities. Results will vary from company to company and account to account, but measuring progress carefully will help build the case for moving to the next step. A shift from a 10% sales uplift to 20%, say, makes the case for exploring further functionality. Given the right data, TPO systems can help CPGs sell more volume, more profitably by helping planners more efficiently and effectively conduct account and promotion planning and post-event analysis. CGT
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Who’s
WHO in SUPPLY CHAIN
RECOGNIZING THE PEOPLE BEHIND THE TECHNOLOGIES, SYSTEMS AND PROCESSES THAT MAKE THE CONSUMER GOODS SUPPLY CHAIN RUN
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CGT | MARCH 2017 | CONSUMERGOODS.COM
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ANHEUSER-BUSCH INBEV
Peter Kraemer Chief Supply Officer
Dave Taylor Vice President, Supply
AVON PRODUCTS
Don Purdy Executive Director, IT Supply Chain
C
CAMPBELL SOUP CO.
Todd Stillwell Vice President, Integrated Business Planning
CHURCH & DWIGHT
Andrew Yeager Director, Supply Chain Planning
COCA-COLA
Darlene Nicosia Vice President, Commercial Products Supply At Coke, the top supply chain job puts Nicosia in charge of manufacturing and sales to the beverage maker’s global bottling operations. Before taking on the post, she served as chief procurement officer. Vinnie D’Agostino Director of Business Services
COLGATE-PALMOLIVE
Michael Corbo Chief Supply Chain Officer
COMBE INC.
Patrick Bower Senior Director, Global Supply Chain Planning & Customer Service The 10-year company veteran is helping Combe (Just for Men, Vagisil, Aqua Velva) prepare for a marketplace that demands supply chain “agility” and is “fast approaching marketing execution at the speed of thought,” he told CGT last spring.
CONAGRA BRANDS
Craig Weiss Vice President, Supply Chain Planning, Programs & Logistics
WHO
David Walsh
CIO Haggar Clothing Company Walsh was charged with aligning Haggar’s IT and business operations when he joined the company in 2014. He quickly developed a roadmap of process and technology improvements. The resulting impact led CGT to name Haggar as a finalist in its 2016 Dick Clark Supply Chain Award competition. Walsh’s 23-year career boasts a blend of consulting and industry roles. His “big push” into supply chain-related areas started in 2004, when he served as CIO/COO of a consumer goods company. “Like all companies, Haggar is full of data. The trick is to quickly turn it into actionable insights,” Walsh says. “We have to quickly figure out what’s going on, what adjustments we need to make and how we can boost sales for the next day and next week. We also have to push the sales information against our inventory plan to make sure trends are reflected.
“You can’t get same-day
delivery if you solely fulfill from centralized distribution.”
“For the past two years, we’ve been moving to an exception-based approach for managing this process. Our planning group has partnered quite nicely with Haggar Technology to create the dashboards and visual insights into the information. That, in turn, has allowed for better communication with our sourcing group.” Looking to the future, “There is real value in turning the retail store from a sales location only into a sales and distribution node. There is a balance you are trying to strike between centralized and store-based fulfillment,” Walsh says. “You can’t get same-day delivery if you solely fulfill from centralized distribution. “The ability to efficiently manage and leverage your supply chain is really based on your ability to manage and consume the right information,” he says. “We’re at an inflection point. In the next few years, we’re going to see tremendous advances in predictive and advanced analytics. The ability to cut through the data to get to the truth means lower costs, better service, and a better way of doing things.” CGT
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CONSTELLATION BRANDS
Terry Obele Senior Director, Logistics & Distribution
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DR PEPPER SNAPPLE GROUP
Maria Gonzalez Trayer Director, Controller Supply Chain & Operations
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EDGEWELL PERSONAL CARE
Robert Rosasco Vice President Global Supply Chain, Engineering
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HAGGAR CLOTHING COMPANY
David Walsh CIO See profile, page 7
HANESBRANDS
Craig Swecker Vice President, Global Supply Chain Finance
J
JOHNSON & JOHNSON
Anne Helmstetter VP, Supply Chain Excellence & PMO Ben Landis Senior IT Director, Worldwide Supply Chain Bruce Plotnick Director, Supply Chain Project Management
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KELLOGG CO.
Alistair Hirst
Senior Vice President, Global Supply Chain Talk about literally working your way through the supply chain: Hirst’s 33-year career at Kellogg began as a food technologist at a plant in Spring, South Africa. He took his current post in 2012. Kellogg recently announced plans to end all direct-store delivery.
KEURIG GREEN MOUNTAIN, INC.
Penelope Lambropoulos Director, Supply Chain Sustainability
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CGT | MARCH 2017 | CONSUMERGOODS.COM
WHO
Neil Ackerman
Global Director of Integrated Supply Chain, E-commerce & Product Technology Innovation Mondelēz International After four years in business development at Amazon, Ackerman joined Mondelēz in late 2015 to help ignite its global e-commerce business. Now with more than 20 years in supply chain roles (including 15 at Altria), he sees the function “as the imperative enabler to drive revenue and top-line growth for a company.” His focus now, not surprisingly, is on innovation. “When you can reimagine the supply chain, it leads to a long-term competitive advantage. I view our supply chain as extending from ‘the Bakery to the Consumer.’ Every touch on that cookie is part of the overall supply chain.” His time at Amazon is highlighted by the development of the Small and Light program, which lets the e-tailer ship items of small weight and price to consumers for free. “Shipping small, low-priced items for free was called the impossible problem and we solved it,” he remembers. “The experience taught me that anything can be solved with ingenuity, high judgment and a great team.”
“I view our supply chain as extending from ‘the Bakery to the Consumer.’” More recently, Mondelēz took the idea of directly selling holiday tins of Oreo cookies “from concept to consumer in 45 days. This was the first time we managed 100% of the direct-to-consumer supply chain. We also made a unique proposition that created great excitement in the marketplace.” While e-commerce brings new challenges, there are still more “traditional” issues that CGs face. “The most difficult challenge we’re currently facing in supply chain execution is how to ship chocolate in the hot weather at scale. Many start-ups and large organizations are trying to solve this problem because the upside revenue unlock is tremendous.” Looking ahead five years, “the core objective is to minimize touches, drive efficiency and lower costs for the supply chain. However, the supply chain will be a revenue generator as it will have more impact on keeping inventory in stock and enabling faster delivery to more locations.” CGT
CONSUMER GOODS
2017 DRIVING DIGITAL ENGAGEMENT
JUNE 5-7, 2017 THE ROOSEVELT HOTEL NYC
IF DRIVING DIGITAL ENGAGEMENT WERE EASY, EVERYONE WOULD DO IT WELL. GREAT REASONS TO ATTEND! • Interact with peers at the Data & Analytics or Trade Promotion share groups • Meet and connect with industry leaders and experts. Share real results and solutions in a fast-paced, dynamic environment. • Learn from an educational program crafted by the leaders at CGT. The agenda includes sessions on Consumer Direct; Consumer, Retailer and Shopper Connection Wins; the 2017 Sales & Marketing Report; Wall Street Perspective; Winning Consumers with Digital Promotions; Empowering Sales Organizations Through Digital Connections; Disrupting the Path to Purchase and Digital Disruption. • Get out in the real world! The final session is a live tour “Retail Safari” featuring New York’s most cutting-edge retailers.
Sponsorships are still available. For more information contact aguffanti@ensembleiq.com.
https://events.ensembleiq.com/sales-marketing-summit-2017
We are inviting qualified CG execs to register by April 16 for $199. Use reg code MARCGSMAD for special registration discounts. Or contact Angela Shaw, ashaw@ensembleiq.com, 973-607-1306 today!
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KIMBERLY-CLARK
Sandra MacQuillan Chief Supply Chain Officer MacQuillan joined K-C from Mars Petcare in early 2015 as the packaged goods maker’s first chief supply chain officer. In 2016, she helped launch a global sustainability initiative that ultimately aims to give the company “a footprint that gives back, rather than takes,” as she explained at the time.
KRAFT HEINZ
Brian Louis Head of Customer Supply Chain-Walmart/Sam’s Club
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LEGO GROUP
Bali Padda Chief Executive Officer Padda’s appointment to the toy maker’s top post last December was hailed by Forbes as the latest example of a “business to be headed by an executive rising out of supply chain to the role of CEO.” Ulrik Gernow Chief Business Transformation Officer “It’s our aim to achieve an agile and synchronized supply chain all the way from customers to upstream distribution and manufacturing operations,” Gernow recently stated as Lego announced a “broad digital transformation” of its existing model.
L’ORÉAL USA
Andrea Atwell Vice President, Direct-to-Consumer E-Commerce Her impact on the supply chain industry at large was strong enough to prompt a competitor to nominate her for a 2015 CGT Visionary Award. Maybe that’s why L’Oréal put her in charge of direct-to-consumer activity for its consumer products division last September. Travis Harrison Vice President, Global Supply Chain, Luxe Division After eight years at L’Oréal, Harrison took on his current role with Luxe in 2016. “There is a tendency within supply chain functions to gravitate toward process and system to improve results, but I’m a strong believer in starting with people and organization,” Harrison told CGT last year, when he was recognized as a Visionary.
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WHO
Betsey Nohe
Vice President, Supply Chain Morton Salt Nohe’s service on CGT’s Editorial Advisory Board barely scratches the surface of her contributions to the industry and beyond: She’s also on the executive advisory board for the Supply and Value Chain Center at Loyola University’s Quinlan School of Business; is a member of AWESOME (Achieving Women’s Excellence in Supply Chain Operations, Management & Education), an initiative launched in 2012; and acts as a mentor for the Women Unlimited LEAD (Learn, Engage, Achieve, Deliver) program. Nohe expects to earn her PhD in 2017. Nohe joined Morton Salt in 2011 after spending more than 20 years at McCormick & Company in various positions across supply chain, IT and commercial functions, including a stint as VP of Supply Chain Planning and Customer Fulfillment for the spice maker’s consumer products division. At Morton Salt, she leads demand planning, supply planning, customer supply chain, logistics procurement and logistics execution, as well as management of co-packer, 3PL distribution and stockpile operations. The Business Process Excellence function for the entire company also reports to her.
“[Our] top priority was to ensure 100% coverage to best meet our customers’ needs.” What makes Nohe’s job more challenging (and rather unique in the consumer goods world) is that she’s also responsible for the distribution of the municipal road salt that melts snow and ice around the country. Morton Salt was named “Shipper of the Year” by the National Shippers Strategic Transportation Council in 2015, largely in recognition of a successful RFP (request for proposal) process that led to nationwide improvements in the company’s truckload shipping. The effort “provided us greater visibility into our transportation network to help identify synergies and efficiencies. And I don’t mean just cost efficiencies,” Nohe told her team at the time. “While always mindful of cost, I am proud that this team’s top priority was to ensure 100% coverage to best meet our customers’ needs and timelines.” Current initiatives include rolling out a new 3PL distribution network in North America and implementing new TMS software for the bulk de-icing business. CGT
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MARS, INC.
Richard Ware Vice President, Supply, R&D and Procurement Ware first joined the candy maker as a research scientist in his native U.K. in 1988. He held a variety of roles in the trio of business functions that make up his current title before taking over all three in 2006.
WHO
Dan Woo
Director, B2B and Technology Nestlé USA
MATTEL, INC.
Linda Theisen Vice President, Global Supply Chain, Strategic Sourcing
McCORMICK & COMPANY
Waddell Daniels Vice President, North American Customer Supply Chain Collaboration & Demand Planning, Consumer Products Division Daniels joined McCormick in 2012 as director of demand planning & vendor managed inventory and was promoted to his current role in 2013. He is a member of both the executive leadership team for McCormick’s U.S. Consumer Products Division and the company’s Global Diversity & Inclusion executive steering committee.
MONDELĒZ INTERNATIONAL
Neil Ackerman Global Director of Integrated Supply Chain, E-commerce & Product Technology Innovation See profile, page 8
MORTON SALT
Betsey Nohe Vice President, Supply Chain See profile, page 10
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NESTLÉ USA
Dan Woo Director – B2B and Technology See profile, at right
NESTLÉ WATERS NORTH AMERICA
Ron Meredith Director, Logistics Operations
A 25-year supply chain veteran who was named to his current role in 2013, Woo was a consultant with Accenture before joining the world’s largest consumer goods company. He also serves on CGT’s Editorial Advisory Board. In recent years, Woo has helped Nestlé make significant advancements in its demand signal analytics capabilities, which has improved the depth and quality of its collaboration with retail partners to enable revenue growth, improve efficiencies, and better serve consumers. “It also has been exciting to see the supply chain team evolve to be a strategic partner with our sales and marketing teams,” he says. “As we gain insights into the ever-changing consumer landscape and business environment, the greatest supply chain challenge being tackled is the transformation of our old ways of working to a leaner operating model that enables greater agility to better meet consumer needs.”
“It has been exciting to see the supply chain evolve to be a strategic partner with sales and marketing.” That transformation requires an incredible amount of organizational and operational change that will take place very soon, Woo believes: “In five years, we will see an increasing need to adapt to greater customization of products. … The innovation cycle of products will need to shift from months to days. … More and more power will be shifting to the consumer to demand transparency of procurement, manufacturing, and supply chain processes. Companies who can transparently create a consumer bond through healthy, better for you, responsibly sourced, manufactured and supplied products will continue to win. … Lead time expectations for retailers and consumers will shift from days to hours. “Business integration speed will increase by leveraging the power of interconnected hubs along the value chain,” Woo continues. “This will start to make point-to-point integration with individual trading partners a thing of the past. … Businesses will expand usage of cloud computing and increase crowd sourcing for ideas and solutions. … And artificial intelligence and cognitive computing will augment or replace many of the human steps in planning and execution today.” CGT
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NEWELL BRANDS
Steven Sigrist Vice President, Customer Service North America See profile, at right
NIKE INC.
Jon Epstein Director, Global Supply Chain Performance Management
P
PEPSICO
John Phillips Senior Vice President, Supply Chain & Global Go-to-Market Leslie Starr Keating Senior Vice President of Supply Chain, Frito-Lay North America Clay Broussard Director, Customer Supply Chain & Logistics
PINNACLE FOODS
D. Michael Wittman Executive Vice President, Chief Supply Chain Officer
PVH CORP.
Jeff Sluder Executive Vice President, Global Supply Chain
PROCTER & GAMBLE
Yannis Skoufalos Global Product Supply Officer Another industry leader whose supply chain experience started in the trenches: His fi rst job at P&G, in 1984, was as a liquids-making engineer. Eitel Monaco Vice President, North America Product Supply
R
RALPH LAUREN
Mike Benemati Director-Analytics & Management Information, Global Supply Chain
S
SHISEIDO
Lauren Mialhe Executive Vice President, Supply Chain
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WHO
Steven Sigrist
Vice President, Customer Service North America Newell Brands Sigrist’s 16 years of service to Newell Brands has involved leadership roles in operations, sales ops and supply chain, including direct relationships with Walmart and other key accounts. The 28-year consumer goods professional has been in his current role since 2015, directing all order-tocash execution and customer support business activities for more than 10,000 trade partners. Sigrist’s team manages order processing, order management and post-sales follow-up support across Newell’s broad brand portfolio, dealing with order planning, replenishment processes, key promotional event execution, compliance requirements and lead-time reduction. One key objective: actions to eliminate variability in the supply chain.
“We’ll need to give customers faster delivery, more product information and better execution of services.”
Those duties can involve a great deal of complexity, which is why Sigrist points to the restructuring of Newell’s key account structure — which consolidated nine separate sales teams into one group — as a significant accomplishment. “We created a cohesive, coherent approach to working with customers across all our channels of distribution — one way of doing business for the company.” Chief among current goals is to better automate the communication process so that many of those 10,000-plus customers can more easily get the information they need. “It’s a real challenge, but it’s also one of our biggest opportunities,” Sigrist says. In five years, the traditional consumer goods supply chain “is going to be faster, and we’ll have more data to analyze,” he says. “But we’ll be smarter and more selective about filtering out the noise.” “Customer expectations will be even greater than they are today,” Sigrist continues. “We’ll need to give them faster delivery, more product information and better execution of services.” Sigrist’s contributions to the industry at large include membership on CGT’s own Executive Advisory Board and the Retail Industry Leadership Association’s supply chain steering committee. He also speaks regularly at a variety of industry events. CGT
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Xavier Vorilhon Director, Global Supply Management
T
TASTY BAKING CO.
Jeff Marthins Director of Supply Chain Operations Marthins has helped the century-old consumer goods company through a number of operational improvements, including the development of a robust sales and operations planning process.
U
UNDER ARMOUR
Paul Fipps Chief Information Officer & Executive Vice President, Global Operations The CIO since March 2015, Fipps took over Under Armour’s global operations last September. He’s leading an organization that’s doing more than most to exploit the power of IoT technology. Kip Fulks Chief Product Officer
UNILEVER
Marc Engel Chief Supply Chain Officer Just one year into his current position, Engel also previously headed up procurement (among other roles) at the global CG giant, which took a huge step into the future in 2016 by purchasing direct-to-consumer wunderkind Dollar Shave Club. Alvaro Mejia Director, Supply Chain Planning
V
VF CORP.
Thomas Glaser President, Supply Chain Chris Hobson Vice President, Business Systems & CIO, Global Supply Chain See profile, at right
3M
Nancy Seleski Director, Supply Chain Planning
WHO
Chris Hobson
Vice President, Business Systems & CIO, Global Supply Chain VF Corp. Hobson’s 30-year career in consumer goods began with two years as a programmer/analyst at St. Regis Paper Company. His first supply chain title came at the start of a nine-year stretch with The Gillette Company and future parent Procter & Gamble. Since 2007, he’s been climbing the ranks at VF Corp., where he started as Director of Global SAP Projects. His current role puts Hobson in charge of application strategies and project delivery across all supply chain and corporate systems. He works closely with the larger Global Supply Chain organization (which encompasses manufacturing, sourcing and operations as well) to ensure alignment with IT on projects, strategies and roadmaps.
“With the right leadership support
and the right team, you can achieve big things.”
Among his accomplishments was the successful integration of the worldwide systems and processes used by the Timberland & Smartwool brands following their acquisition by VF Corp. in 2011. That work involved directing a team of more than 400 people in North America through the development of a new integrated platform that consolidated 71 technology systems across eight different outdoor and action sports brands to support VF Corp.’s future growth. “We at VF are continually inspired by the lifestyles and activities our products enable,” Hobson told CGT last year. That’s why Mt. Everest climber Pete Athans (who’s sponsored by The North Face brand) was brought in to help motivate the team working on this particularly daunting project. “If Pete can climb Everest seven times, we told ourselves, our team can implement a massive technology undertaking. And we were right.” “With the right leadership support and the right team, you can achieve big things,” Hobson says. “You can climb mountains.” Among his more grounded activities, Hobson serves on CGT’s Editorial Advisory Board. CGT
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SALES AND MARKETING
INFORMATION TECHNOLOGY
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INNOVATION
2017 SUPPLY CHAIN PLANNING
SOLUTIONS
In this month’s edition of CGT’s Technology Solutions Guide series,
TY BORDNER Vice President, Solutions Consulting Amber Road
DOUG BETHEA Vice President, Consumer Goods Solutions Datalliance
MARIA REY-MARSTON Principal EY Advisory, Supply Chain & Operations Performance Improvement
RYAN KELLY Senior Director, Corporate Communications FedEx Supply Chain
experts from Amber Road, Datalliance, EY, FedEx Supply Chain and GT Nexus provide thought leadership for consumer goods companies that are navigating the challenges and opportunities affecting the field of supply chain planning.
Q
What trends and challenges are elevating the prioritization of supply chain management in the consumer goods landscape?
BORDNER: Whether it’s to access new developing markets or leverage low-cost labor, the globalization trend continues to drive a good portion of most corporate supply chain strategies. At the same time, the expansion of the Internet and the development of new apps effectively make the world
a smaller place. This is also true in the global supply chain realm. New applications that allow companies to collaborate with their suppliers and other third parties across the globe are being leveraged to greatly increase productivity, achieve better planning and speed up the supply chain. I think many companies are looking for better ways to solve their global challenges and are just now discovering these relatively new software solutions — hence the recent increase in investment and priority. We’re certainly seeing an uptick in the demand for these types of solutions. SPONSORED BY
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BRYAN NELLA Senior Vice President GT Nexus (an Infor company)
BETHEA: We’re focused on helping CG suppliers and retailers maximize the performance of their interdependent, efficient supply chains to ultimately serve consumers who expect on-shelf availability every day. This goal can only be achieved if retailers and suppliers embrace the mission together through a highly collaborative approach. Key to success is a replenishment process that enables collaboration and visibility into consumer demand as it is happening — all the way through to proactively addressing product availability issues. Many CG suppliers and their retail partners are meeting this challenge via
||||||| collaborative replenishment platforms. Together, they are seeing reduced outof-stocks, less inventory, reduced costs, and high truck fill rates, delivering the right items in the right quantity at the right time. The best technology solutions support retailers that can send store demand signals (time-phased order forecasts), as well as other retailers that can only send store sales and inventory data to create the store demand signals. REY-MARSTON: Consumer goods companies have the unique opportunity to automate transactional decisions and drive more cognitive decision-making in the business while freeing up the valuable time of leaders in specific functions. As more data comes into operations from demand signals, context-aware apps, and internal data, there is a unique need to increase the power of the processing analytical engines to drive better business performance — not just more reports and more reactive analytics, but better support for real-time decision-making driven by technology. The connected environment, the sharing economy, and the cognitive world ultimately drive the need for superior technology in supply chain planning and execution. As we move into a more algorithmic-driven supply chain, the connection between analytics, IoT and AI creates a very powerful ecosystem of technology-powered response networks to drive profitable growth and unique customer experiences in the sector. The human role will change, from monitoring and managing repetitive transactions and tasks, to building the rules of engagement of the business, managing exceptions and designing unique strategies to build differentiation from a supply chain perspective. Another key trend shaping and
“More and more, retailers demand real-time visibility into shipments, leaving manufacturers with a heavy investment in information technology infrastructure and supply chain management.” —RYAN KELLY, FEDEX SUPPLY CHAIN prioritizing supply chain management in consumer goods is the sharing economy. These Uber-like models have the potential to un-constrain the capacity to respond to demand. We are experiencing companies using these models to source not only transportation but also manufacturing, labor in operations, procurement, and design of new products. When capacity is “unlimited” yet external, we will need a new breed of supply chain managers. KELLY: As e-commerce continues to grow, retailers are under increasing pressure to create a customer-centric supply chain — one that is highly transparent and nimble. Free and fast shipping and returns are at the top of the list of demands for consumers, and that impacts the profitability of retail operations. Consequently, those pressures are pushed upstream to manufacturers. Retailers now require better visibility into incoming inventory, which goes well beyond advanced shipment notifications: More and more, retailers demand real-time visibility into shipments, leaving manufacturers with a heavy investment in information technology infrastructure and supply chain management. Add product returns into the equation and the relationship between retailers and manufacturers can become even more complex, making it essential to have sophisticated visibility capabilities in place.
NELLA: The challenge to carve out growth and profitability is driving industry leaders to penetrate new markets and reevaluate their product portfolios. Consolidation and reviews of product offerings continue to drive mergers and acquisitions. Consumer demand for variety and new products adds pressure for product innovation. More SKUs and packaging options create complexity in product development, sourcing, planning, production and fulfillment. All of these challenges require greater flexibility in the global supply chain. Unfortunately, common enterprise systems are rigid. Historically fragmented supply chain processes are obstacles to generating value in today’s marketplace. The pressure is on to transform the way consumer products are ordered, produced and delivered.
With the growing Q emphasis on omnichannel, e-commerce and even direct-toconsumer sales, how can consumer goods companies leverage technology to better manage the planning and fulfillment processes?
BORDNER: When we speak about e-commerce, omnichannel, and directto-consumer in the same sentence,
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“A key trend is the growing importance of integrating store-level data upstream into the supplier’s supply chain, enabling visibility and responsiveness never before possible.” — DOUG BETHEA, DATALLIANCE the first thought that comes to mind is complexity and volume. Most organizations and supply chain structures are not set up to handle this today, especially as part of their global supply chain. Technology solutions can be used to help manage this complexity and increased shipping volume. Software applications provide better visibility to pertinent information at the right time, which allows supply chain practitioners to make faster and better decisions on the spot. In addition, many software applications can automate certain aspects of the supply chain, which is imperative to supporting the shipping volumes for direct-to-consumer and e-commerce. Companies cannot afford to hire people at the same proportion to the increased shipping volume. Although each company can have different needs, I think there is a lot of potential to use the same supply chain strategies and solutions to support e-commerce, omnichannel, and directto-consumer paradigms.
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| BETHEA: Omnichannel and e-commerce are continuing to rapidly evolve, as evidenced by Amazon experimenting with a “click & Collect” model in 2016 that will threaten several existing mass merchandiser and grocery models. There is no straightforward answer to how CG suppliers and retailers will need to change as these models gain steam, but what is clear is the need to adapt to these online demand signals as they grow in popularity. To date, many of these models have been addressed with existing store planning and replenishment processes. The demand signals driving the supply chain are captured alongside normal store demand. As these concepts accelerate, we expect to see retailers sharing online demand signals with their suppliers as they’re happening, so they’re both able to respond better. Planning for the future, replenishment solutions will need to accept this emerging external demand signal and integrate it into store/DC replenishment solutions.
a shopper in action, in context and connected in real time allows companies the potential to capture demand signals and build real-time models to shape demand, to match demand with available capacity, to drive better fulfillment downstream, and to decide in a segmented way when and how to serve consumer/shopper/customer demand for better service experience and optimal, profitable growth. The partnership of supply chain and commercial strategy is fundamental to leveraging the ability to sense demand signals and drive profitable growth. That partnership involves the ability to quickly simulate and assess different service scenarios in real time and capture value from market opportunities while building customized shopper experiences. KELLY: Given the prevalence and complexities of executing an omnichannel strategy, laying the groundwork for predictive analytics is imperative for consumer goods companies. This is
“As we move into a more algorithmicdriven supply chain, the connection between analytics, IoT and AI creates a very powerful ecosystem.” — MARIA REY-MARSTON, EY
REY-MARSTON: Consumer-direct models and monitoring the actions of the omnichannel shopper provide the unique opportunity — for the first time in our lives, really — to build real-time demand curves. For the last three centuries, we operated under the paradigm of demand uncertainty; thus, all of our supply chain planning efforts focused on demand forecasting. The immediate connectivity with
especially true for businesses looking to add drop-shipping capabilities for direct-to-consumer sales. In accordance with those trends, we’ve seen major consumer goods companies and retailers alike invest in drop shipping and e-commerce. To complement those efforts, companies can also turn to thirdparty logistics providers to enhance fulfillment capabilities, enable a broader go-to-market strategy and obtain the
THE WORLD LEADER IN CLOUD-BASED GLOBAL TRADE MANAGEMENT SOFTWARE
COLLABORATE
CONNECT
COMPLY For more information, please visit www.AmberRoad.com
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Tech Solutions Guide
IT infrastructure for predictive analytics. Demand planning can then become more granular, allowing companies to break down demand by sales channel and location to improve the efficiency of their fulfillment operations. NELLA: Cloud technology and cloud-based networks provide the connectivity and visibility to fulfill demand and, more importantly, to do so profitably. When supply chain planning and execution are coupled together on a single network, manufacturers maintain a greater handle on inventory, costs, and customer service. The notion of “digital supply chain transformation” is rising to the top of the executive agenda for global industry leaders in consumer products. Digital transformation initiatives that approach the supply chain from a holistic view through the smart use of technology will be capable of addressing e-commerce challenges.
Consumer goods Q 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?
BORDNER: Clearly, consumer buying patterns and other marketing data are being heavily leveraged by consumer goods companies today to both increase sales and profitability. In fact, the trend has been for this type of data and analysis to continue to be more specialized with increased correlation to other market data. The more specialized data that is available, the more insight can be gained. I don’t think web browser cookies are going away anytime soon. Our solutions are geared toward helping customers increase the
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| “New applications that allow companies to collaborate with their suppliers and other third parties across the globe are being leveraged to greatly increase productivity, achieve better planning and speed up the supply chain.” —TY BORDNER, AMBER ROAD productivity and speed of their global supply chains. In addition to helping improve supply planning processes and better execute cross-border supply chains, the resultant data is ripe for inclusion in advanced analytics tools and models. Including elements like supply chain event data, import duties, global transportation costs, free trade agreement info and other streams as part of the overall analytics process can prove invaluable. BETHEA: A key trend we are seeing is the growing importance of integrating store-level data upstream into the supplier’s supply chain, enabling visibility and responsiveness never before possible. This data, and the right forecast and replenishment analytics, provide insight into what stores will be ordering in the coming days so suppliers can anticipate demand pulls at the retailers’ DC, assess the impact on current DC inventory, and create the resulting orders that reflect what’s happening all the way to the shelf. Effectively, we see a multi-level collaborative replenishment process that is directly targeted at keeping the right inventory in stores and respective DC. The key is to anticipate and react to the best demand signal possible. To that end, leadingedge solutions must be engineered to accept retailers that can send store order forecasts, as well as retailers that require suppliers to calculate the multilevel demand signals.
REY-MARSTON: The conversation today goes beyond what types of data can or have been incorporated into modern consumer goods analytics. Most of our clients today can leverage both internal and external, structured and unstructured data. The key issue today is what to do with the data deluge — how to drive better decisionmaking, not just more insights and reports, but better actions at the point of decision in the business. Better decisions should translate into better performance, and in many cases our focus is how to map the available data to the specific questions to be asked and decisions to be made. It is not just a matter of what data is available and how to harvest it. Cognitive analytics in supply chain is about the specific data nodes that are mapped to specific decisions and questions. These decisions are very tactical, local and with a short-term horizon for some processes, but also very strategic and with a long-term horizon for other processes. That said, companies are making tremendous progress connecting into live conversations from their sales force, into email trails, text messages and content analysis, to find patterns of behavior and insights that can drive specific actions in the market shaped by unstructured internal data sources. KELLY: CG companies can benefit greatly from the data and insights that come from what we call an integrated
Replenishment is Better Suited When Tailored to Fit Your Customer’s Needs
Retailers want to improve on-shelf availability while minimizing everyday order handling. They want the flexibility to choose the demand signal and the route to market that will best meet their goals. Manufacturers need to tailor their replenishment approach to meet these varying needs; but they don’t always know how. Datalliance can help.
Visit www.datalliance.com/tailor to learn more.
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“Digital transformation initiatives that approach the supply chain from a holistic view through the smart use of technology will be capable of addressing e-commerce challenges.” — BRYAN NELLA, GT NEXUS IT ecosystem, which can include their enterprise resource planning system, warehouse management system (WMS) and transportation management system, among others. To help develop advanced analytics, we tie their WMS to online marketplaces, creating a direct connection between the sales channel and the fulfillment center. This creates real-time inventory visibility for customers through their WMS and shows product availability in the online marketplace for the end
COMPANY/W EBSI TE
Amber Road
www.AmberRoad.com
PRO 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
Trade Automation
• General Mills • Kraft Heinz • Levi Strauss
Trade Automation is a cloud-based platform that plans, optimizes and executes all aspects of global trade. It claims to have the broadest functional footprint of any GTM solution in the market.
Confidential
Brillio’s Supply Chain Optimization Suite is an automated, pre-integrated stack that enables what-if analysis and cost modeling to optimize supply chain operations. It helps solve problems, such as identifying warehouse locations, maintaining serviceability, ideal production mix, inventory management and procurement, while saving cost and time.
SEE A D O N PAGE 17
Brillio
Brillio Supply Chain Optimization Suite
Cognizant
Integrated Business Planning (IBP)
www.brillio.com
www.cognizant.com
Datalliance
www.datalliance.com
Datalliance VMI
SEE A D O N PAGE 19
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consumer. As data is aggregated across those systems, automated reports can be generated to help CG companies make informed decisions regarding their business — from the introduction of new products to the redesign or repackaging of existing ones. An experienced operations management team also oversees customer fulfillment centers and reports on key performance indicators to drive continuous improvement throughout the facilities.
NELLA: It’s essential that consumer product companies obtain quality data. Otherwise, it turns into a scenario of “garbage in, garbage out.” So quality data is the first priority. The other key element for being data-driven is accessing data from all the nodes in the supply network. Eighty percent of the data needed to run your supply chain resides beyond your four walls — with suppliers and logistics partners. It’s essential to unlock that data and harness it to feed the analytics machine. And finally, turning this type of data into actionable insights is essential. It requires an ability to execute on decisions that optimize cost or value. The leading consumer goods companies are taking a business network approach to optimizing and transforming their global supply chains to support new top-line growth strategies while sustaining cost efficiencies. CGT
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6 of the top 10 CG companies are Cognizant clients.
• Kimberly-Clark • Ocean Spray • Procter & Gamble
Cognizant offers a strong digital framework aimed at driving tangible business benefits. It has deep expertise in implementing solutions with leading technology platforms backed by robust partnerships with leading product vendors.
As a cloud-based platform with extensive customer service, Datalliance Vendor Managed Inventory (VMI) helps leading CG suppliers increase the value and reduce the cost of their VMI programs through ongoing innovation.
Š 2017 EYGM Limited. All Rights Reserved. ED None.
Are drones changing the face of shopping, or you? advisory.ey.com #BetterQuestions
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COMPANY/W EBSI TE
PRO 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
Demand Solutions
Demand Solutions DSX SaaS
• Mizuno • Parmalat • The Roomplace
DSX SaaS offers functionality for demand planning, collaborative forecasting, inventory planning, production planning and scheduling, sales and operations planning, and integrated business planning. Demand Solutions serves customers in 79 countries.
Demand Sensing
• Procter & Gamble • Mondelēz International • Kimberly-Clark
E2open Demand Sensing uses algorithms and machine-learning to accurately predict demand for some of the world’s largest consumer goods manufacturers.
www.demandsolutions.com
E2open
www.e2open.com
The ECS addresses challenges involving forecasting, modeling, decision support, effect attribution/drivers, and optimization. Using semantic reasoning and computational intelligence, Aila can help address ambiguous analytic challenges plaguing today’s CPG companies.
Enterra Solutions, LLC
Enterra Enterprise Cognitive System (ECS)
Epicor Software www.epicor.com
Epicor Supply Chain Management
• Polk Audio • Yeti Coolers • PNY
Epicor offers supply chain management solutions designed to simultaneously handle make-to-order, make-to-stock and engineer-toorder processing, giving customers the flexibility to review and update plans as demand changes.
Exceedra
Exceedra S&OP
• ACH Foods • Bayer • McKee Foods
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.
Supply Chain Synchronization and Planning
• Procter & Gamble • Mondelēz International • Nike
EY offers an integrated end-to-end supply synchronization and planning process framework, which is supported by a global practice of process and technology enablement consultants that utilize proprietary methods and tools to drive strategy and implementation results.
www.enterrasolutions.com
www.exceedra.com
EY
www.ey.com SEE A D O N PAGE 21
FedEx Supply Chain
www.supplychain.fedex.com
Supply Chain Solutions
Fortune 500 CPG, electronics and automotive companies.
Contact FedEx Supply Chain for more information.
FedEx Supply Chain empowers companies to discover the full value of their supply chains by developing tailored, technology-based logistics solutions and nurturing strong relationships with customers.
SEE A D O N PAGE 23
GT Nexus
(an Infor company) www.Infor.com
Infor Supply Chain Planning
SEE A D O N PAGE 25
Hewlett Packard Enterprise GPAS
hp.com/go/authenticate
IBM Corporation
www.ibm.com/watson/ supply-chain/
22
GPAS: Global Product Authentication Service
Watson Supply Chain
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• Heineken • PepsiCo • Quimica Amparo
Includes some of the largest Food/Agri, CPG and Electronics enterprise brands. • Bonnie Plants • KeHE Distributors • Mondadori Group
Infor Supply Chain Planning offers a broad suite of supply chain planning solutions that provide best-in-class functionality including S&OP, demand planning and supply planning tailored for specific industries.
HPE GPAS is a secure brand and supply chain traceability/performance, anti-counterfeiting, and illicit activity-monitoring service borne from the need to globally protect the ninth largest supply chain – HP.
With the cognitive machine learning power of Watson Supply Chain artificial intelligence solutions, you get an embedded expert at your side that helps illuminate risks and opportunities to improve profitability.
FedEx Supply Chain, a subsidiary of FedEx Corp. (NYSE: FDX), is a leader in the third-party logistics industry offering a diverse service portfolio that enables commerce for businesses. With a proven track record of innovation and operational excellence, FedEx Supply Chain takes a consultative approach to optimize logistics processes, implement innovative technology and drive continuous improvement. By leveraging best practices and the world-renowned FedEx network, FedEx Supply Chain delivers leading solutions that provide exibility, enable scalability and improve cost-effectiveness for customers. For more information, go to supplychain.fedex.com.
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PRO 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
SAILS
• Keurig Green Mountain • Nestlé • Ocean Spray
Advanced modeling software with sophisticated optimization and simulation engines allows companies to analyze their complete supply chain operations, including procurement, manufacturing and finished goods distribution.
JDA Software Group Inc.
JDA Enterprise Supply Chain Planning and Optimization
• Conagra Brands • Kraft Heinz • The Hershey Company
JDA Enterprise Supply Planning automatically and dynamically updates plans in real time. With speed and scalability, JDA allows you to continuously plan as conditions change, driving speed and agility.
Jesta I.S.
Vision Sourcing & Demand
• Carter’s • Guess • Puma
Vision Sourcing & Demand gives complete visibility into supply and demand on a single platform. It also offers a unique sandbox environment to plan and adjust for changes using what-if scenarios.
LeanCor Supply Chain Group
Training, Supply Chain Consulting, Third Party Logistics
• Bose • Husqvarna • Whirlpool
LeanCor Supply Chain Group’s mission is to advance the world’s supply chains. Three integrated divisions specialize in lean principles to help organizations eliminate waste, drive down costs, and build operational excellence.
Logility
Logility Voyager Solutions
• ALDO Group • Hostess Brands • SPANX
End-to-end visibility enables CG companies to accelerate and streamline S&OP and IBP, synchronize supply with demand, optimize inventory across multi-echelon networks, improve forecast accuracy, lower transportation costs and provide greater visibility to enable better decision-making.
NeoGrid Supply Chain Synchronization Platform
• Bayer • Molson Coors • Mondelēz International
NeoGrid provides SCM solutions that are quick to implement, easy to use and complementary to existing systems — making more intelligent and flexible supply chains to continuously improve goods flow.
Integrated Business Planning
Companies in Food & Beverage, Toys and Global CPG.
COMPANY/W EBSI TE
Insight, Inc.
www.insightoutsmart.com
www.jda.com
www.jestais.com
www.LeanCor.com
www.logility.com
NeoGrid
www.NeoGrid.com
One Network Enterprises
www.onenetwork.com
https://cloud.oracle.com/ en_US/supply-chain-planning-cloud
Oracle Supply Chain Planning Cloud
• Kuwait Food Company • Sunny Fields/ Little Freddie Trade (Shenzhen) Co., Ltd. • Tramontina USA, Inc.
Planalytics, Inc.
Business Weather Intelligence
• Henkel • Johnson & Johnson • Unilever
Oracle
www.planalytics.com
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Multi-party: Collaborate and synchronize plans with external trading partners. Integrated: planning, execution, financials synchronized on one platform. Real time: Uses real-time customer demand and execution performance.
Oracle Supply Chain Planning Cloud enables companies to interactively balance demand and supply with superior collaboration and visibility tools to enable improved supply chain responsiveness and superior business performance.
Planalytics quantifies weather’s sales impact by location, time period, and category. Its insights provide a weather-neutral perspective of performance and enable companies to better plan for weather-driven opportunities and risks.
Get your supply chain into the cloud.
Global trade can open up a whole new world. Unless you’re doing it the same old way. There’s a world of opportunity out there for your company. But it’s not enough just to think globally; you need to act globally, too. At GT Nexus, we offer you the most powerful cloud-based, single-platform solution available anywhere. Instead of merely staying in touch with your trading partners, now you can turn your entire supply chain into a single, fine-tuned global moneymaking machine. On-demand and in real time, you’ll be able to respond to every opportunity and every challenge with the kind of speed and precision you’ve never known before. It’s time to say “out with the old, in with the new.”
gtnexus.com
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PRO 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
QAD DSCP
• Confluence Outdoor • LF Beauty • Michigan Turkey Producers
QAD DSCP is an enterprise-proven, functionally rich advanced planning solution that helps global manufacturers operate more effectively and improve their margins.
VELOCITY Demand Control Tower
• Abbott Nutrition • Levi Strauss • Revlon
Retail Velocity has successfully delivered large integrated DSRs, supporting a universal insights platform for sales, marketing, demand planning, customer logistics and finance. VELOCITY provides role-based dashboards and exception alerts that drive retail execution processes. It also provides an out-of-the-box solution for integrating store-level POS signals into SAP.
RightChain.com On-Demand Supply Chain Optimization and Education
• Coca-Cola • Colgate-Palmolive • Procter & Gamble
Proven, subscription-based optimization for inventory, supply chain, transportation, and warehousing. RightChain initiatives put 1% to 5% of sales on the bottom line and reduce inventory levels by 10% to 30%.
SAP
SAP Demand-Driven Business Planning
• Colgate-Palmolive • Kraft Heinz • Beiersdorf
Use SAP demand-driven business planning solutions to develop short-, mid-, and long-term views of expected demand across channels. Plan through cross-functional collaboration, analysis, and optimization of realtime demand signals, supply constraints, and inventory requirements.
Solvoyo
Cloud-based supply chain planning and analytics
• Duzey Group • Vestel • Yorsan
A single planning platform for consumer goods companies to forecast demand and plan production, replenishment, transportation, inventory, and network design. Harness big data analytics to make smarter supply chain decisions.
PlanStreaming
• Nokia • Lenovo • Southern Wine & Spirits
PlanStreaming combines predictive, prescriptive and responsive analytics and technology to equip organizations to be ready to act in time with opportunity, especially in highly competitive markets where continuous planning is essential and efficiently responding to changing conditions is advantageous.
Symphony GOLD, the Unified Platform for Retail
• Campbell Soup Company • Coca-Cola • Dr Pepper Snapple Group
Unifying the chain between data, decision maker and implementer, Symphony GOLD automates insights at the foundation stage, enabling transparent communications, and turning that knowledge and collaboration into effective action.
SO99+
• Absolut Vodka • Danone • Luxottica/ Lenscrafters
ToolsGroup is an experienced provider of demand analytics, inventory optimization and supply chain planning software — allowing customers to break through supply chain and business performance barriers.
COMPANY/W EBSI TE
QAD
www.QAD.com
Retail Velocity
www.RetailVelocity.com
RightChain
www.RightChain.com
www.sap.com/consume
www.solvoyo.com
Steelwedge (now part of E2open) www.steelwedge.com
Symphony GOLD
www.symphonygold.com
ToolsGroup
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CGT | MARCH 2017 | CONSUMERGOODS.COM
NEW CHALLENGES, TECHNOLOGIES AND PREDICTIONS INFLUENCING THE CG LANDSCAPE
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LORA CECERE Founder Supply Chain Insights
As stated in her own words, “Ask anyone about Lora Cecere and they will probably share that I am a woman of strong opinions. No denying the truth. I will never be known as a milquetoast.” She has a background entrenched in the production and distribution of facilities for large consumer goods companies such as Clorox, Dreyer’s Grand Ice Cream (now Nestlé), Kraft/General Foods (now Kraft/Heinz) and Procter & Gamble, which is why CGT tapped into her rich experiences to learn the challenges and trends that are impacting the CG supply chain, and how technology can help overcome these industry obstacles.
Confluence of Technologies Blockchain
Cognitive Learning
Hadoop
“Consumer goods companies will be limited by their own minds and the traditional activities that many accept as best practices — but are actually historic processes.”
AD INDEX Accenture .....................................28 Amber Road .................................17
What will the consumer goods supply chain look like in five years? CECERE: Disintermediation and the forces of ecommerce will create a new value chain. Household products and food manufacturers will ship products direct-to-consumer and focus on service. This service could be meals to the home, acne-free skin, cleaning services, or family care diaper services. The consumer supply chain will know its customers and will automate against the full spectrum of the moments of truth: 1. List before purchase. 2. In-store experience. 3. Checkout. 4. Sentiment and satisfaction with use. 5. Landfill impact.
What are the key challenges companies will face as they try to get there? CECERE: Current processes are inside-out. Companies cannot listen and translate easily across internal silos and data is not easily shared. Consumer goods companies have made the functions efficient, but not effective. Marketing will need to become market-driven and sales efforts will need to be redefined to sell services. The leaders will have the courage to develop and test new business models.
Datalliance ....................................19 EY ..................................................2, 21
Spark
What new technologies and processes can help consumer goods companies overcome these challenges? Consumer goods companies can look to the adoption of open source technologies to enable real-time data on massive parallel processing (Hadoop) along with blockchain (Hyperledger) and cognitive computing (pictured above). Autonomous vehicles will move goods and smart shelves will hold the goods for resale. The use of these streaming data architectures requires the redefinition of analytics. While ERP will remain the same, the consumer goods industry is on the cusp of redefining decision support, business-to-business commerce, supply chain fulfillment and visibility. Consumer goods companies will be limited by their own minds and the traditional activities that many accept as best practices — but are actually historic processes. CGT
CECERE:
FedEx Supply Chain .....................23 GT Nexus........................................ 25
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