Brand owners can visualize, plan and collaboratively manage end to end value chains across multiple tiers of partners on the supply side, demand side or end to end. Define the scope of an end to end supply chain visibility vision, and then define the. How consumer goods firms move faster with digital finance. Cpg supply chain solutions maintain margins, improve quality. In the end, the improvements enable a step change in service, cost, capital, and agility. This step can also involve a number of additional activities, in. The importance of endtoend supply chain collaboration has changed. Creating the integrated value chain for downstream oil 3 energy, utilities and.
Its always wise for company owners as well as their staff to know about business activities needed to create their product from beginning to end. Summary gartners 2015 research will show chief supply chain officers how to balance endtoend supply chain performance to support ceos bimodal business goals of cost reduction and topline revenue growth. But in the case of your endtoend supply chain, the ps and qs refer to the rfps and rfqs and rfis. At the other end are the consumers who eat, drink, wear and use the final products. Creating the integrated value chain for downstream oil 1 background energy, utilities and chemicals the way we see it. Role of analytics in consumer packaged goods industry 1.
How cpg supply chains are preparing for seismic change. End to end is a term used in many business arenas referring to the beginning and end points of a method or service, and endtoend theory embraces. Kpmg international provides no client services and is a swiss entity with which the independent member rms of the kpmg network are af liated. Value chain analysis of procter and gamble case study value chain analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. Using smart sensors to drive supply chain innovation 06 benefits of smart sensors in the supply chain value drivers for smart sensors smart sensors increase the level of automated collection and processing of data and broaden management visibility across the supply chain to help companies reduce operating costs, improve asset efficiency. Using smart sensors to drive supply chain innovation. As one consumer packaged goods cpg executive shares, supply chain leaders need to have an improved understanding of digital. In other words, a valuechain analysis looks at every step from raw materials to the eventual enduser right down to disposing of the packaging after use. Personalization is achieved where the brand and consumer story intersect. While most of the disruption is visible at the front of the value chain in retail, the effects reverberate across the supply chain that includes manufacturers, suppliers, and service providers. Fast moving consumer goods analytics framework deloitte. Disclaimer all the information, facts, figures and other data used in this presentation. At one end of the agricultural value chain are the producers the farmers who grow crops and raise animals.
Cpg companies have to keep pace with continuous technological advancements to streamline their supply chain operations to meet customer demands better. They must compete on cost while maintaining margins, improving quality while elevating customer service. Transforming your cpg company into an intelligent enterprise. No process in the endtoend cpg value chain spanning sourcing, manufacturing, distribution, salesmarketing, and consumer interactions has been left untouched by these trends. Deliver outcomes tailored to individual consumers, based on a deep understanding of their wants and needs, with sap solutions for consumer products. Digitization and advanced planning in cpg mckinsey. Cpg companies face a series of mulitfaceted challenges. Consumer goods firm distributor sales rep merchandizer retailers wholesalers consumers integrated digital rtm platform such disruptive technology will change the rules of the game in emerging markets too if the cpg companies get their act together on digitizing the rtm value chain. Entering a new era of cooperation 5 20 kpmg international cooperative kpmg international. Digital is blurring the boundaries between consumers, stores and consumer brands. Reengineering the supply chain for the omnichannel of. The gartner hierarchy of supply chain metrics has long been regarded as the industry standard for end to end supply chain performance measurement. The resulting cloudbased capabilities help propel your business toward transforming your business operating model to one of demanddriven operational excellence.
Pdf the indian fmcg sector is a lowmargin business where volume holds the key to success. Define the scope of an endtoend supply chain visibility vision, and then define the. Especially for parts moving at medium or high speed, the manual overwrites. Value chain analysis of procter and gamble case study. How blockchain can help retailers fight fraud, boost. Maximize global supply chain visibility is published by amber road. They can avoid the fingerpointing that often accompanies todays manual. One look at the present cpg value chain highlights the impact of digitization.
Growth in the future of consumer goods will require it. That speed is particularly important in the context of todays complex cpg supply chains, with their multiple valuechain tiers. Our fundamental belief is that supply chain strategy must support an organizations overarching corporate strategy, and that improve ments in the endtoend supply chain can help generate value and bottomline impact. Tcs scm services help simplify the complexities of cpg networks and value chain. As board sponsors they will actively drive and support the work of our e2e steering committee and present the committees work to their peers during biannual board meetings. Sap enables consumer products companies to provide. Editorial supplied by amber road is independent of gartner analysis. A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product i. There is currently a huge amount of rework and manual handling of data. Our clients get lasting value because we engage directly and meaningfully with stakeholders at each level of the enterprise from boardroom to shop floor and warehouse. Companies within the consumer packaged goods industry dont have it easy. Reinventing the cpg supply chain with zerobased budgeting by luke pototschnik, arnold kogan, jackie inglesby, mark austin, and julie graham. Operations practice excellence in supply chain management.
Aveva delivers endtoend value chain optimization that help you to redefine your processes, enable deeper collaboration, reduce value leaks, sustain productivity and innovation and ultimately make better and more robust decisions quicker across your operations lifecycle. To understand the process better, they should regularly perform value chain analysis as this will help them visualize. These requests for proposals, requests for quote and requests for information are the supply chain and sourcing managers tool to ensure that their suppliers are providing the highest quality, lowest costs, and latest innovation. The gartner supply chain hierarchy of metrics benchmarking. Ios founding team has deep roots in supply chain, distribution and the cpg industry, and weve built all of our services around the idea that once your goods are kept with us, we can add value and optimize everywhere needed. As every element of the cpgretail business is being driven by consumers now, the business has to master the art of demanddriven supply chain. For 78% of participating cpg companies, end to end data visibilityfrom pointofsale data to gps tracking data on shipmentsis a priority. Cpg supply chain management and design software llamasoft. Optimize endtoend supply chain performance primer for 2015. Provides unified leadership for the industry on endtoend supply chain topics. Role of analytics in consumer packaged goods industry.
Each person and each business performs one small step in the. Their experience includes cpg and retail, consulting, research and supply chain. Consumerpackagedgoods cpg companies are acutely aware that. Our services span integrated business planning, endtoend supply chain visibility, inventory optimization, supply. At the same time data analytics enables supply chain visibility and identifies potential risks.
Cpg companies will need to rework and refine network design more frequently to accommodate the markets rapidly changing needs. Cpg companies in india, for example, reach less than 30. Now gartner has translated this framework into a dynamic benchmark database that enables you to compare key supply chain performance metrics with your peers. Revolutionizing supply chain and operations to meet the demands of the digital era in my earlier blog, how artificial intelligence is reshaping cpg companies, i looked at the retail challenges and benefits of artificial intelligence ai for consumer packaged goods cpg companies. In a virtual version, its easy to experiment with new ideas in a riskfree environment, identify opportunities for cost savings, and empower people to rapidly put them into action. The whole process flow, from forecasting to delivery, needs to be integrated from end to endthis is where supply chain leaders can step up and drive change. Creating the integrated value chain for downstream oil. The value chain and the target cost play significant role in achieving competitive advantage in many areas where both concepts are complement to each other.
Reinventing the cpg supply chain with zerobased budgeting. Providing the correctmedicine dosage and form, to the right patient, in a convenient and timely manner is the. Value chain analysis is one way of identifying which activities are best undertaken by a business and which are best outsourced. In the marketingsales process of the fmcg value chain, analyses are geared towards. Llamasoft enables cpg companies to create a digital twin of your endtoend supply chain. Challenge a clients desired end state with regard to bi was a single integrated and shared reporting and analysis solution.
In such a scenario, advanced analyticsbacked supply chain planning and scheduling optimization solutions have turned out to be a gamechanger for. Consumergoods companies want supply chains that run smoothly from end to end, but their efforts are often thwarted. The concept comes through business management and was first described by michael porter in his 1985 bestseller, competitive advantage. To allow the local sector to better meet the requirements of the buyers, four main interventions were implemented. Typically, this would include design, production, distribution, and so on.
How blockchain can help retailers fight fraud, boost margins and build brands using blockchains distributed ledger, synchronized database and powerful encryption capabilities, along with its ability to generate smart contracts, retailers can gain earlymover advantage to more effectively collaborate and enhance trust across the value chain. The gartner hierarchy of supply chain metrics has long been regarded as the industry standard for endtoend supply chain performance measurement. Cpg major streamlines order fulfillment with sap hana infosys developed a solution for a. This is the reality and the challenge of the cpg supply chain. Now gartner has translated this framework into a dynamic benchmark database that enables you to compare key. It is important to understand how products are offered to the end consumers via. And in the middle are many thousands of men and women, and small and large businesses. Governance of the cgf endtoend value chain initiative. That means your supply chain operations add new sources of business value and competitive capabilities at every stage of the supply chain.
This is evident in the way the main supply chain 4. The purpose of this report is to increase awareness of the key current and future data challenges in the sector specifically the importance of building a foundation of accurate, timely and aligned data. Were proud to partner with these companies, who recognise that taking action to prevent tropical deforestation is not only a critical part of protecting our climate and our ecosystems, but is simply good for business. Consumergoods companies want supply chains that run smoothly from end to end, but their. Sean started working with it and supply chains back in. We commend the consumer goods forum for their pledge to help achieve net zero deforestation by 2020. Value chain resource planning vcrp enables companies to synchronize their end to end value chains to maximize business performance. How artificial intelligence is reshaping cpg companies.