direct store delivery & qad’s consumer centric solution
DESCRIPTION
Direct Store Delivery & QAD’s Consumer Centric Solution . Hank Canitz: Senior Director Vertical Solutions - QAD Allen Dickason: Executive Vice President- NCS. Agenda. Top consumer product manufacturing issues Direct Store Delivery for QAD Customers QAD’s consumer centric solution. - PowerPoint PPT PresentationTRANSCRIPT
Direct Store Delivery& QAD’s Consumer Centric Solution
Hank Canitz: Senior Director Vertical Solutions - QADAllen Dickason: Executive Vice President- NCS
QAD Proprietary
Agenda Top consumer product manufacturing
issues Direct Store Delivery for QAD Customers QAD’s consumer centric solution
35,000 New Products Annually
62 Days of Supply
(Average)
50% - 70% Forecast Accuracy
15% of Trade Promotions Turn a Profit
8% - 15% Out of Stock, 20%
During Promotions
Typical Dilemmas of a Customer-Centric Manufacturer
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Top 4 Consumer Product Manufacturing Issues
Ensuring global product safety & quality Complying with sustainability (Green) regulations
and customer demands Enabling the business imperative to do more with
less Meeting more demanding customer requirements– Lower Costs– Fresher product– Higher fill-rate at the shelf
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Consumer Centric Approach “A system of technologies and processes that senses
and reacts to real-time demand across a network of customers, suppliers, and employees”
Outside InInformation
Inside OutInformation
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Average = 10 days
The Time to Sense True Customer DemandQ. How long does it take your organization to sense true
customer demand in your primary value network?
20%
24%
15%
21%
7%
5%
4%
5%
Less than 48 hours
2-5 days
6-7 days
1 week to less than 2
2 weeks to less than 3
3 weeks to less than 4
4 weeks to less than 5
5 or more weeks
N = 164 manufacturers
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1- 30% out of stock rates at the SKU-location level depending on product & characteristics
Latency in Sensing Customer Demand
Manufacturer mentioned by “name” in stock out
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Deliver 20% More Perfect Orders…
68%
90%
Laggards
Leaders
…hold a third less inventory…Laggards
Leaders
72 Days
54 Days
…have lower SC costsequal to 5% of revenue
26%
21%
Laggards
Leaders
The Value of a Consumer Centric Strategy
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QAD’s Consumer Centric Solution Suite
Supplier Manufacturer Distributor Retailer Consumer
SupplyVisualization Product
Development
LeanManufacturing
Trade PromotionManagement
DemandManagement
S&OP
PLAN
Direct StoreDelivery
CustomerCollaboration
Global DataSynchronization
AutomatedData
CollectionVendor Managed
InventoryPOS Data &Analytics
PULL
Supplier Distributor Retailer CustomerManufacturer
To succeed today and into the future consumer products manufacturers must ensure their products are available when and where customers want them. Manufacturers can’t assume that customers will come back if their product is out of stock. Success is not assured operating with the average supply chain.
CustomerRelationshipManagementBI
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Product Distribution Strategies
9
Directly from Suppliers Shipments from wholesale distributors
Warehouse shipments DSD0%
5%
10%
15%
20%
25%
30%
35%
% o
f Re
spon
dent
s
Source: FMCG Retailers are Becoming Demand Driven- AMR Research, April 2008
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DSD Industry Issues & Drivers Industry analysts estimate that half of the top 10
packaged foods at retail today are delivered by DSD Many DSD categories are among the highest
revenue and margin performers DSD is becoming increasingly critical to maintaining
high sales levels in the industry Trends expected to continue as consumer demand
for "fresh" requires increased speed of product from manufacturer to retailer shelf
DSD presents a unique supply chain challenge– Extremely high turns drive a high frequency of deliveries
and merchandising services calls to individual stores– Extremely high impulse buying makes forecasting difficult– Large number of invoices and other in-store transactions
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Why Direct Store Delivery? Manage and maintain store shelf inventory Interface with store mgt & consumers multiple
times/week Move product to market faster Lower costs for yourself and your retail partners Provide a competitive speed edge against the
retailer’s own logistics services Facilitate more effective promotions Provide better package integrity & product safety Effectively compete against growing % of store
brands Sense & react faster to customer demand changes“The Last Mile is the
Hardest”
Direct Store Delivery for QAD CustomersAllen Dickason, Executive V/P, NCS
Numeric Computer Systems, Incwww.ncssuite.com
Your Solution Partner For In-StoreDirect Store Delivery Execution
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Company History NCS - established more than 25 years ago as a total software
solution provider for the Fast Moving Consumer Goods (FMCG).
Headquartered in New York with additional sales, support and development locations in San Francisco, Dallas, Sydney, Jakarta, Auckland, & San Juan
Primary business has been to automate the ‘Order to Cash’ Sales & Distribution cycle for FMCG firms including front end integration to back office ERP.
Successfully services a diverse group of FMCG companies.
Dairy
Ice
Crea
m
Bake
ry
Snac
k Fo
od
Chee
se
Juic
e
Toba
cco
Pet F
ood
Coffe
e
Ice
Beve
rage
Conf
ecte
ry
Othe
r
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Source: AMR Research powered by ChangeWave
5%
10%
10%
17%
28%
36%
50%
3%
10%
13%
45%
26%
58%
26%
0% 20% 40% 60%
Energy Efficient IT
Increased Flexibility
Regulatory Compliance
Security
Aligning IT with theBusiness
InfrastructureImprovements/Upgrades
Cost Control
CP Mfg (N=31)Total U.S. (N=532)
Driving Principles for I/T Budget Spending, November 2009
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eRMS Enables Quicker Information Movement
36%
27%
14%
9%
5%
5%
5%
Make information more timely and available forbetter and faster decision-making
Improve sales productivity
Improve return on marketing spend
To reduce the cost of selling /cost to serve
Improve internal collaboration between functions
Regulatory compliance
To reduce time spent on administrative processes
N=22
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FMCG Firms Face Unique Challenges
Unique business dynamics High volume of low value transactions Extraordinary product cycle velocity Challenging profit margins Direct store delivery (DSD) Cash collections & returnables policies Multiple points of inventory control Varied and fragmented sales channels Promotion flexibility and tracking Route Accounting & Control Container Management
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Examples of NCS Successes Integrated to UPS MobileCast for real time delivery fleet
communications for Northeast US based full service dairy manufacturer
Integrated e-Commerce applications for a leading US dairy manufacturer
Shortened order cycle time for an Indonesian division of a US based manufacturer
Assisted with centralizing business functions for a NE US based dairy and ice cream company.
Enabled GPS tracking of hazardous materials for a NE US based Gas and Welding supplier.
Streamlined intercompany transfers for one of the largest independent dairy and juice manufacturers with distribution throughout eastern United States.
Facilitated control of independent operator activities for a leading US based manufacturer of cakes, cookies, donuts, breads English muffins.
Enabled scan based trading for US leading natural health beverage company.
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NCS Customer Success Story Customer Background:
– Customer is a full line dairy and food distributor with 100 trucks on the road each day
– Wanted to track drivers real time with GPS coordinates– Wanted do to full Route Accounting – This solution needed two devices and two data plans and
duplicated work– Needed to use both systems at store Level
Solution:– Went to the GPS solution provider (UPS Mobile Cast) and
integrated data to their servers using NCS advanced technology and mobility solution
Results: – The design was one system/one device, which led to reduced
hardware costs, wireless radios and labor savings while increasing productivity and accuracy at store and route level
Savings were greater than $150K annually
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NCS Customer Success Story Customer Background:
– Customer is the leading provider of premium juices in the country
– Retailers were demanding a new trade arrangement that the provider couldn’t support and new prospects were demanding a solution that they didn’t have
Solution:– The solution was to install Xpress Route which is fully Scan
Based Trading capable– eRMS Route Accounting was able to support the difference
between consignment through the cash register and a sale at back door
Results: – They were able to attract the largest retailer in Michigan with
this solution and were able to keep their relationship with several chains that they would have otherwise lost
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NCS Customers by Category and Region
Sales by Category
Dairy 41%Bakery 19%Snack Foods 10%Juice 8%Beverage 6%Confectionary 4%Tobacco 3%All Other 9%
Sales by Region
North America 65%LA/PR 20%Australia 8.5%Asia 4.5%NZ 2.5%
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QAD-NCS Solution Diagram
QAD
XpediumxMobility
xLink
QXtend
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NCS Solution SuiteThe Solution Set has three different components:
eRMS, xLink & Xpedium xMobility
eRMS
xLink
XpediumxMobility
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eRMS Route Management SolutionRoute PlanningRoute Balancing
– UPS Mobile Cast– Turn by Turn Navigation
Route SettlementCash Inventory
Route OptimizationTrade AssetsContainers and CartsMerchandising SupportSurveysIn-Store Business Reviews
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xLink Middleware Components
Mobility Connector: Mobile Middleware DB Mobility Console: DB Extension, Doc Retrieval,
Monitoring, Scheduling Mobility Sync: Authentication, Encryption,
Security, Wireless/Wired Communications
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Technology is Microsoft CentricNext Generation Back Office Technology
Multiple User Interface– Browser, Text
Platform Independent– Windows, System-I, UX/Linux
Database Independent– SQLServer, DB2, Oracle
Scalable– Stateless
Next Generation Mobile Technology Service Oriented Architecture C# .NET SQLServer CE Separation of Process and
Presentation Third Party Interfaces
– UPS Logistics MobileCast– Turn by Turn
Advanced Middleware XML Data Document Management GPS Integration Fleet Management
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Xpedium xMobility Customer Detail
Screen on a Mobile DeviceDisplays the
Customer Profile details:– Customer Messages– Fully Custom Detail
Fields– Delivery Sequence– Unpaid Invoices– Directions– Inventory– History– No Call Reason
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Xpedium xMobility Example Supports Multiple Order
Types:– Pre Sold Deliveries– Sell Through Orders– Build Up Orders– Forecast Orders– Peddle Orders
Detail View– Customer Price– Product Details– Line Discount
Support for:– Merchandising– Auditing– Surveys– Customer Business
Reviews
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QAD Interface
Cust OrderLoad
ItemCust
ItemPriceProm
PriceProm
OrderLoad
QAD
eRMS
QAD Invoicing
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NCS is a perfectly matched solution partner for QAD
Experienced Professional StaffDeep Industry ExperienceAdvanced Technology Implementation MethodologyWeb Based Tracking SystemStrong Help Desk and Customer SupportMulti-Regional Experience
QAD’s Consumer Centric SolutionHank Canitz, Sr. Director Vertical Solutions - QAD
QAD Proprietary
QAD’s Consumer Centric Solution Suite
Supplier Manufacturer Distributor Retailer Consumer
SupplyVisualization Product
Development
LeanManufacturing
Trade PromotionManagement
DemandManagement
S&OP
PLAN
Direct StoreDelivery
CustomerCollaboration
Global DataSynchronization
AutomatedData
CollectionVendor Managed
InventoryPOS Data &Analytics
PULL
Supplier Distributor Retailer CustomerManufacturer
CustomerRelationshipManagementBI
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Supply Chain Portal (SV): Supplier Quality
Closed loop supplier performance Collaboration via shared scorecards Dashboard
– Regional metrics– Service levels– Stock outs/overages
Supplier risk assessment– Non-conformance– Corrective action– Inactivate
Ability to link to non QAD systems
“Supply chain visibility is the most important application investment area for supply chain strategies“
Aberdeen Group, September 2008
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Supplier Quality - Dashboard
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Kanban & Process Sizing Workbenches
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QAD Business Intelligence 3.0
• Browser-based delivery in an industry-standard portal framework
• Queries, reports, dashboards and scorecards
• Fully customizable and extensible via QAD-supplied and customer-developed views.
• Provides full support for Cognos and other third-party BI tools
“Value -- for customers, shareholders and employees -- is either created, compromised or destroyed every time a decision is made inside an organization.” Aberdeen Research
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Recommended ActionsVisit the NCS BoothContact Allen or myself for more
informationSchedule an on-site discovery session to
let us help you develop a business case for a turn-key DSD solution or other consumer centric improvements.1
2
3
Rapid value assessment
Map QAD potential solutions to bus goals, strategies, tactics & processes
Deeper ROI Potential Analysis
Recommendation4
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Where to go for assistance Allen Dickason, Exec. V/P– [email protected]– 1-214-734-9632
Hank Canitz – Sr. Director Vertical Solutions– [email protected]– 1-720-238-7439
Thank You & Questions