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Ecr presentation ss chain - jeffrey - final
1.
Changing the Game
with Your Customers – A Supply Chain Strategy in Action ECR Asia Pacific Conference 2008, Thailand Jeffrey Russell, Accenture / Metta Siramongkholkarn, L’Oreal
2.
In order to
drive Consumer Products companies performance to the next level, many are adopting a ‘Game Changing Supply Chain’ strategy Copyright © 2008 Accenture All Rights Reserved. - Every Day Great Execution - Getting the basics right in terms of people process, systems, organisation and data. Cost optimisation through rationalisation of the cost base - Performance Optimization - Focus on service levels by raising the performance bar, fine-tuning the overall model and collaboration with the extended supply chain. - Game Changing Supply Chain - Supply chain differentiation based on customer / consumer behaviour and value to drive top-line growth Supply Chain Performance Journey Value
3.
4.
Typical benefits achieved
in FMCG companies through customer aligned supply chains Copyright © 2008 Accenture All Rights Reserved.
5.
6.
7.
Example Supply Chain
Re-design “fit for purpose” Copyright © 2008 Accenture All Rights Reserved. SC Manager Customer Care Sourcing / Procurement Physical distribution Segment 1 Segment 2 Segment 3 Segment 1 Segment 2 Segment 3 Segment 1 Segment 2 Segment 3 SC Manager Segment 1 SC Manager Segment 2 SC Manager Segment 3 Customer Care Sourcing / Procurement Physical distribution Customer Care Sourcing / Procurement Physical distribution Customer Care Sourcing / Procurement Physical distribution Challenges : - multi-skills Supply Chain Managers - Limit increase of headcounts 6 – 12 Months
8.
9.
Different supply chain
models are more appropriate depending on the demand predictability and the nature of the customer relationship Copyright © 2008 Accenture All Rights Reserved. Tight Loose Customer Relationship High Low Demand Predictability Segment 1 Segment 2 Segment 3 Segment 4 Lean Agile Transactional ‘ Base Model’ Flexible Collaborative Agile Joint Planning
10.
11.
12.
So in summary,
consumer goods companies need to change the game while continuing to deliver everyday execution Copyright © 2008 Accenture All Rights Reserved. - Every Day Great Execution - Getting the basics right in terms of people process, systems, organisation and data. Cost optimisation through rationalisation of the cost base - Performance Optimization - Focus on service levels by raising the performance bar, fine-tuning the overall model and collaboration with the extended supply chain. - Game Changing Supply Chain - Supply chain differentiation based on customer / consumer behaviour and value to drive top-line growth Supply Chain Performance Journey Value
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