Direct Store Delivery QADs Consumer Centric Solution Hank
- Slides: 38
Direct Store Delivery & QAD’s Consumer Centric Solution Hank Canitz: Senior Director Vertical Solutions - QAD Allen Dickason: Executive Vice President- NCS
Agenda 5 Top consumer product manufacturing issues 5 Direct Store Delivery for QAD Customers 5 QAD’s consumer centric solution Typical Dilemmas of a Customer-Centric Manufacturer 35, 000 New Products Annually QAD Proprietary 62 Days of Supply (Average) 50% - 70% Forecast Accuracy 15% of Trade Promotions Turn a Profit 8% - 15% Out of Stock, 20% During Promotions
Top 4 Consumer Product Manufacturing Issues 5 Ensuring global product safety & quality 5 Complying with sustainability (Green) regulations and customer demands 5 Enabling the business imperative to do more with less 5 Meeting more demanding customer requirements – Lower Costs – Fresher product – Higher fill-rate at the shelf QAD Proprietary
Consumer Centric Approach 5 “A system of technologies and processes that senses and reacts to real-time demand across a network of customers, suppliers, and employees” Inside Out Information Outside In Information QAD Proprietary
The Time to Sense True Customer Demand Q. How long does it take your organization to sense true customer demand in your primary value network? Average = 10 days N = 164 manufacturers QAD Proprietary
Latency in Sensing Customer Demand 1 - 30% out of stock rates at the SKU -location level depending on product & characteristics Manufacturer mentioned by “name” in stock out QAD Proprietary
The Value of a Consumer Centric Strategy 90% Leaders Deliver 20% More Perfect Orders… Laggards 68% Leaders 54 Days …hold a third less inventory… Laggards Leaders …have lower SC costs equal to 5% of revenue Laggards QAD Proprietary 72 Days 21% 26%
QAD’s Consumer Centric Solution Suite Supplier Manufacturer Distributor Retailer PLAN Customer Collaboration S&OP Supplier Supply tion Visualiza Manufacturer Lean ring u n Ma factu Product nt Developme Distributor Retailer Demand Management BI Customer otion Trade Prom nt Manageme Customer Relationship Management POS Data & Analytics Direct Store Delivery Consumer Global Data Synchronization PULL Vendor Managed Inventory Automated Data Collection 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. QAD Proprietary
Product Distribution Strategies 35% 30% % of Respondents 25% 20% 15% 10% 5% 0% 2007 2008 Directly from Suppliers 19% 20% Shipments from wholesale distributors 24% 26% Warehouse shipments DSD 32% 30% 24% 25% Source: FMCG Retailers are Becoming Demand Driven- AMR Research, April 2008 QAD Proprietary 9
DSD Industry Issues & Drivers 5 Industry analysts estimate that half of the top 10 packaged foods at retail today are delivered by DSD 5 Many DSD categories are among the highest revenue and margin performers 5 DSD is becoming increasingly critical to maintaining high sales levels in the industry 5 Trends expected to continue as consumer demand for "fresh" requires increased speed of product from manufacturer to retailer shelf 5 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 QAD Proprietary
Why Direct Store Delivery? 5 Manage and maintain store shelf inventory 5 Interface with store mgt & consumers multiple times/week 5 Move product to market faster 5 Lower costs for yourself and your retail partners 5 Provide a competitive speed edge against the retailer’s own logistics services 5 Facilitate more effective promotions 5 Provide better package integrity & product safety 5 Effectively compete against growing % of store brands 5 Sense & react faster to customer demand changes “The Last Mile is the Hardest” QAD Proprietary
Direct Store Delivery for QAD Customers Allen Dickason, Executive V/P, NCS Numeric Computer Systems, Inc www. ncssuite. com Your Solution Partner For In-Store Direct Store Delivery Execution
Company History 5 NCS - established more than 25 years ago as a total software solution provider for the Fast Moving Consumer Goods (FMCG). 5 Headquartered in New York with additional sales, support and development locations in San Francisco, Dallas, Sydney, Jakarta, Auckland, & San Juan 5 Primary business has been to automate the ‘Order to Cash’ Sales & Distribution cycle for FMCG firms including front end integration to back office ERP. 5 Successfully services a diverse group of FMCG companies. QAD Proprietary
Driving Principles for I/T Budget Spending, November 2009 QAD Proprietary Source: AMR Research powered by Change. Wave
e. RMS Enables Quicker Information Movement N=22 QAD Proprietary
FMCG Firms Face Unique Challenges Unique business dynamics 5 High volume of low value transactions 5 Extraordinary product cycle velocity 5 Challenging profit margins 5 Direct store delivery (DSD) 5 Cash collections & returnables policies 5 Multiple points of inventory control 5 Varied and fragmented sales channels 5 Promotion flexibility and tracking 5 Route Accounting & Control 5 Container Management QAD Proprietary
Examples of NCS Successes 5 Integrated to UPS Mobile. Cast for real time delivery fleet communications for Northeast US based full service dairy manufacturer 5 Integrated e-Commerce applications for a leading US dairy manufacturer 5 Shortened order cycle time for an Indonesian division of a US based manufacturer 5 Assisted with centralizing business functions for a NE US based dairy and ice cream company. 5 Enabled GPS tracking of hazardous materials for a NE US based Gas and Welding supplier. 5 Streamlined intercompany transfers for one of the largest independent dairy and juice manufacturers with distribution throughout eastern United States. 5 Facilitated control of independent operator activities for a leading US based manufacturer of cakes, cookies, donuts, breads English muffins. 5 Enabled scan based trading for US leading natural health beverage company. QAD Proprietary
NCS Customer Success Story 5 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 5 Solution: – Went to the GPS solution provider (UPS Mobile Cast) and integrated data to their servers using NCS advanced technology and mobility solution 5 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 5 Savings were greater than $150 K annually QAD Proprietary
NCS Customer Success Story 5 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 5 Solution: – The solution was to install Xpress Route which is fully Scan Based Trading capable – e. RMS Route Accounting was able to support the difference between consignment through the cash register and a sale at back door 5 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 QAD Proprietary
NCS Customers by Category and Region Sales by Category Dairy 41% Bakery 19% Snack Foods 10% Juice 8% Beverage 6% Confectionary 4% Tobacco 3% Sales by Region North America 65% LA/PR 20% Australia 8. 5% Asia 4. 5% All Other 9% NZ 2. 5% QAD Proprietary
QAD-NCS Solution Diagram QAD x. Link Xpedium x. Mobility QAD Proprietary QXtend
NCS Solution Suite The Solution Set has three different components: e. RMS, x. Link & Xpedium x. Mobility e. RMS x. Link Xpedium x. Mobility QAD Proprietary
e. RMS Route Management Solution 5 Route Planning 5 Route Balancing – UPS Mobile Cast – Turn by Turn Navigation 5 Route Settlement 5 Cash 5 Inventory 5 Route Optimization 5 Trade Assets 5 Containers and Carts 5 Merchandising Support 5 Surveys 5 In-Store Business Reviews QAD Proprietary
x. Link Middleware Components 5 5 5 Mobility Connector: Mobile Middleware DB Mobility Console: DB Extension, Doc Retrieval, Monitoring, Scheduling Mobility Sync: Authentication, Encryption, Security, Wireless/Wired Communications QAD Proprietary
Technology is Microsoft Centric Next Generation Back Office Technology 5 Multiple User Interface – Browser, Text 5 Platform Independent – Windows, System-I, UX/Linux 5 Database Independent – SQLServer, DB 2, Oracle 5 Scalable Next Generation Mobile Technology Service Oriented Architecture C#. NET SQLServer CE Separation of Process and Presentation 5 Third Party Interfaces 5 5 – UPS Logistics Mobile. Cast – Turn by Turn – Stateless 5 5 5 QAD Proprietary Advanced Middleware XML Data Document Management GPS Integration Fleet Management
Xpedium x. Mobility Customer Detail Screen on a Mobile Device 5 Displays the Customer Profile details: – Customer Messages – Fully Custom Detail Fields – Delivery Sequence – Unpaid Invoices – Directions – Inventory – History – No Call Reason QAD Proprietary
Xpedium x. Mobility Example 5 Supports Multiple Order Types: – Pre Sold Deliveries – Sell Through Orders – Build Up Orders – Forecast Orders – Peddle Orders 5 Detail View – Customer Price – Product Details – Line Discount 5 Support for: – Merchandising – Auditing – Surveys – Customer Business Reviews QAD Proprietary
QAD Interface Cust Item Price Prom Order Load QAD Cust Item Price Prom Order Load e. RMS QAD Invoicing QAD Proprietary
NCS is a perfectly matched solution partner for QAD 5 Experienced Professional Staff 5 Deep Industry Experience 5 Advanced Technology 5 Implementation Methodology 5 Web Based Tracking System 5 Strong Help Desk and Customer Support 5 Multi-Regional Experience QAD Proprietary
QAD’s Consumer Centric Solution Hank Canitz, Sr. Director Vertical Solutions - QAD
QAD’s Consumer Centric Solution Suite Supplier Manufacturer Distributor Retailer PLAN Customer Collaboration S&OP Supplier Supply tion Visualiza Manufacturer Lean ring Manufactu Product nt Developme Distributor Retailer Demand Management BI otion Trade Prom nt Manageme Customer Relationship Management POS Data & Analytics QAD Proprietary Customer Direct Store Delivery Consumer Global Data Synchronization PULL Vendor Managed Inventory Automated Data Collection
Supply Chain Portal (SV): Supplier Quality 5 Closed loop supplier performance 5 Collaboration via shared scorecards 5 Dashboard – Regional metrics – Service levels – Stock outs/overages 5 Supplier risk assessment – Non-conformance – Corrective action – Inactivate “Supply chain visibility is the most important application investment area for supply chain strategies“ Aberdeen Group, September 2008 5 Ability to link to non QAD systems QAD Proprietary
Supplier Quality - Dashboard QAD Proprietary
Kanban & Process Sizing Workbenches QAD Proprietary
QAD Business Intelligence 3. 0 “Value -- for customers, shareholders and employees -- is either created, compromised or destroyed every time a decision is made inside an organization. ” Aberdeen Research • 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 QADProprietary QAD
Recommended Actions 5 Visit the NCS Booth 5 Contact Allen or myself for more information 5 Schedule 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 4 QAD Proprietary Rapid value assessment Map QAD potential solutions to bus goals, strategies, tactics & processes Deeper ROI Potential Analysis Recommendation
Where to go for assistance 5 Allen Dickason, Exec. V/P – Allen. Dickason@ncssuite. com – 1 -214 -734 -9632 5 Hank Canitz – Sr. Director Vertical Solutions – HCC@QAD. com – 1 -720 -238 -7439 QAD Proprietary
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