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Consumer Products & Retail the way we do it

Demand-Driven Supply Chain


Capgeminis Demand-Driven Supply Chain approach helps consumer products
and retail companies create a pull supply chain driven by consumer demand.

In a perfectly rational retailing supply- consumer or shopper demand. With multi-echelon/time-phased retail supply
demand chain, the consumer would this approach, retailers and consumer chain planning implementation, which
find the right product, in the right place, products companies can better successfully optimized service levels
at the right time. Achieving this scenario read and react to actual customer while minimizing inventory. We have
in the real world is challenging, due to purchases, thereby achieving more developed supply chain solutions
complex supply-demand chains, lack accuracy in assortments, more control for retailers and manufacturers
of synchronization between planning over inventory and more success representing more than $150 billion
and execution, and poor real-time data in merchandising. in revenues. Our solutions have helped
availability with no common view across clients realize the benefits of becoming
all businesses, channels and brands. REAPING THE BENEFITS a demand-driven enterprise:
All-channel retailing, in particular, OF A DEMAND-DRIVEN Providing retailers with a single
poses an extra challenge to the SUPPLY CHAIN system of record and clear visibility,
responsiveness of supply chains. allowing everyone to see and act on
Capgemini has deep experience the same data, at the same time.
The solution: a Demand-Driven designing and implementing Demand- Allowing manufacturers to help
Supply Chain, which enables a pull Driven Supply Chains for our consumer their retail customers leverage
business model where all supply products and retail clients. More than consumer insights to determine the
chain activities are focused around 15 years ago we completed our first most efficient supply chain strategy.
Capgeminis Demand-Driven Supply Chain approach comprises four solution frameworks.

1
Integrated Planning & Execution (IP&E)offers a Optimization, Inventory Planning Synchronization and Supply
framework to provide retailers with a common view of Chain Execution Collaboration. These concepts work together
supply and demand to better manage planning and as enablers to maximize revenue, margins and in-stocks at the
execution (Figure 1). IP&E provides a single system of record shelf while simultaneously removing costs across the entire
and clear visibility across all brands. We call it a synchronized supply chain.
view of demand.

3
SAP Retail, SAP Apparel & Footwear Solution
IP&E enables an organization to align top-down sales and (AFS) and SAP for Consumer Productsare
merchandise plans with bottom-up assortment, space and comprehensive, enterprise-wide solutions, which
demand plans. It synchronizes supply and demand plans with integrate planning, replenishment, supply chain logistics,
execution processes, making it possible to monitor purchase warehouse management and store operations with general
orders, shipments and inventory movement real-time SAP (or other) applications such as vendor portal, customer
down to the store level, while using exception management to relationship management, finance and accounting, human
enable a more efficient supply and demand chain. resources, financial planning and data warehousing. The result
is a remarkable competitive advantage: a single version of

2
Shelf-Connected Enterpriseenables consumer the truth.
products companies to better manage inventory and
retailer relations. The Shelf-Connected Enterprise These solutions are built on Capgeminis proprietary
framework (Figure 2) integrates the planning and execution SAP templates. The templates are based on our Consumer
processes across both manufacturers and retailers to Products and Retail Reference Models, which incorporate
drive revenue and margin increases by better supporting best practices from our extensive domain knowledge and rich
assortment optimization, space optimization, trade funds experience of SAP implementation for leading retailers and
management and demand planning. consumer products companies. In working collaboratively with
retailers, consumer products companies and SAP, Capgemini
The power of the Shelf-Connected Enterprise lies in five core helps deliver meaningful and measurable value: sustainable
concepts: Collaborative Category Management, Demand business benefits, rapid and long-term ROI, and scalability for
Planning Synchronization, Trade Promotion Management and future growth.

INTEGRATED PLANNING & EXECUTION Figure 1

Floor Plan Space Plan


Strategic Plan
Store Clustering

Product Lifecycle Suppliers


Management
Financial Plan

Merchandise Assortment Suggested Deployment Plan


Allocation & Suggested Purchase Order
Plan Plan

Merchandising/
Marketing
Consensus Replenishment
Demand Plan Size Scaling
Demand Plan Deployment Plan
Sales

Promotion/ Sales &


Reconcile
Markdown Plans Operations Planning
Logistics

Top-down planning processes


Bottom-up planning and execution processes
Approved Deployment Plan
Suppliers Finance
Approved Purchase Orders
Departments involved in the S&OP process

2 Demand-Driven Supply Chain


4
B2B Mobility and Supply
Chain Executionsolutions EXPERIENCE COUNTS
such as Transportation
Management, Warehouse Management
and Workforce Management help
support the movement of inventory Capgemini works with a number of retailers and consumer products
through the value chain. Improved manufacturers to bring them the benefits of a Demand-Driven Supply Chain:
collaboration together with new supply We helped a luxury retailer transform its planning and fulfillment operation.
chain/logistics technologies and The Demand-Driven Supply Chain solutions reduced the planning cycle time
information transparency enable a more by more than 30%, improved visibility and analytical capabilities, and have
synchronized value chain with greater enabled the retailer to implement rapid responses to changes in demand.
visibility and traceability. We worked with a large grocery retailer to develop and implement
collaborative supply chain processes, organization and systems to smooth
Especially in the age of all-channel supply chain responsiveness, automate manual processes, provide
retailing, the supply chain needs to information transparency for future events like promotions, decrease the
be able to accommodate individual bullwhip effect and improve margins.
customer orders across multiple For a large consumer products company, we performed a current-state
delivery options. Mobile solutions allow supply chain business assessment, future-state strategy, evaluation scope
your employees to collaborate with and ERP selection, and provided project scoping, solution design and
partners, automate data entry, extend program management support. The new solution provides smooth visibility
the power of business applications and across the supply chain.
manage a broad range of transactions We partnered with a manufacturer to design the processes and implement
anytime, anywhere. Oracles Transportation Management Planning and Freight Payment for
outbound and inbound transportation, enabling a scalable production
Capgemini works with leading environment to standardize transport management processes (planning,
technology partners such as SAP, execution and tracking).
JDA/RedPairie and Oracle to help our
clients achieve optimal results with our
Demand-Driven Supply Chain solutions.

SHELF-CONNECTED ENTERPRISE FRAMEWORK Figure 2

Manufacturing Account Management & Planning


Shelf-Connected Collaboration (Supply Chain) (Retail Supply Chain)

SALES & OPER ATIONS PL ANNING (S&OP)

Financial Planning
Optimized Local Assortments
Network, Sourcing and Inventory Optimization New Product Development

Collaborative Trade Promotion


DC Level Replen. Retail Execution/ Category
Planning Management &
Production Planning DSD Store Level Planning, Store
(Demand, Optimization Floor/Space
Planning & Forecasting Clustering & Shelf Analytics
Replen., Space, HQ Planning Planning
Scheduling DC Level Demand Marketing Replen. & VMI Assortment
Assortment, & Pricing
Planning Optimization Planning
Promo & Trade) Optimization

Order Promising, Inventory Deployment & Transportation

SUPPLIER
STORE CONSUMER
RETAIL DC
FACTORY
MANUFACTURER DC

Procurement Orders Production Orders Shipments Customer Orders Withdrawals Assortments POS Sales

3
Consumer Products & Retail the way we do it

We combine our understanding and experience of the consumer products and retail
industries with cutting-edge technology solutions. The outcome: faster, more tailored DIGITAL
solutions that help companies achieve superior performance.
TRANSFORMATION
THE CRESCENT ADVANTAGE OF SUPPLY CHAINS
Capgeminis Demand-Driven Supply Chain solutions are supported by our
Consumer Products & Retail Solutions Center (CRESCENT), located in Kolkata, India.
Digitization has touched
In collaboration with our global industry practitioners, CRESCENT has industrialized
all aspects of businesses,
leading practices, accelerators and frameworks for the consumer products and retail
including supply chains and
industries, as well as those specific to partner solutions.
operating models. Today,
technologies such as RFID,
The center offers a multitude of tools to help companies reach their objectives
GPS and sensors have enabled
more quickly, while minimizing risk and cost, and maximizing the overall quality of
organizations to transform their
the solution. These include:
existing hybrid supply chain
Proprietary industry reference models and solution templates for multiple
structures (combination of
retail and consumer products segments.
paper-based and IT-supported
Reusable tools, including enhancements, layouts, interfaces and reports,
which can reduce development time by an average of 30%.
processes) into more flexible,
Hundreds of ready-to-go test scenarios and scripts to streamline the open, agile and collaborative
testing process. digital models.
DELIVER, Capgeminis world-class delivery methodology, which enables clients
to quickly realize benefits without compromising the quality of implementation. Digital supply chains enable
Application maintenance tickets with solutions to enhance business process automation,
post-implementation support. organizational flexibility and digital
management of corporate assets.
THE STARTING POINT: DESIGN A We believe a holistic approach to
DEMANDDRIVEN SUPPLY CHAIN PLAN digital transformation of supply
chains, starting with a digital
An easy way to get started is to engage with Capgemini to develop a Demand- strategy and a digital operating
Driven Supply Chain Plan. A team collaborating with your key people can produce model, will set the direction for
a business case, technology roadmap, digital operating model and project plan, integrated execution.
including resources and cost estimates. With this approach, you can begin the
journey to optimize your supply chain and become more efficient by creating agile,
responsive supply chains driven by consumer demand.

About Capgemini For more details contact:


With more than 130,000 people in over 40 countries, Capgemini is one of the
worlds foremost providers of consulting, technology and outsourcing services. Chris McDivitt
The Group reported 2013 global revenues of EUR 10.1 billion. christopher.mcdivitt@capgemini.com
Together with its clients, Capgemini creates and delivers business and technology Erik de Veer
solutions that fit their needs and drive the results they want. A deeply erik.de.veer@capgemini.com
multicultural organization, Capgemini has developed its own way of working,
the Collaborative Business Experience, and draws on Rightshore , its Ben Pivar
worldwide delivery model. ben.pivar@capgemini.com

Learn more about us at www.capgemini.com

2014 Capgemini. All rights reserved. Rightshore is


a trademark belonging to Capgemini. The information
contained in this document is proprietary.