Transcript Solutions Graphics Project

Direct Store Delivery
& QAD’s Consumer Centric Solution
Hank Canitz: Senior Director Industry Marketing - QAD
Robert Hochberg: President & CEO - NCS
QAD Proprietary
Agenda
 Top consumer product manufacturing issues
 Direct Store Delivery for QAD Customers
 QAD’s consumer centric solution
Typical Dilemmas of a Customer-Centric Manufacturer
35,000 New Products
Annually
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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
 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
–
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Higher fill-rate at the shelf
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”
Inside Out
Information
Outside In
Information
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Balancing Push – Pull Dynamics
 A consumer centric approach balances the pull from
customers with a push from the supply chain.
Product & Service Innovation
Supply Visibility
Integrated Strategy,
Business & Value
Network Planning
User/
Consumer/
Demand
Insights
Channel
Demand
&
Demand
Management
Demand
Translation
&
Trade Offs
Reliable,
Profitable
Response
from Supply
Based on
Demand
decoupling
Pull
QAD Proprietary
Push
Suppliers & Partners
Customers , Buyers, Users,
& Consumers
Demand Visibility
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?
Less than 48 hours
20%
2-5 days
24%
6-7 days
15%
1 week to less than 2
21%
2 weeks to less than 3
3 weeks to less than 4
4 weeks to less than 5
5 or more weeks
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Average = 10 days
7%
5%
4%
5%
N = 164 manufacturers
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
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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
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72 Days
21%
26%
QAD’s Consumer Centric Solution Suite
Supplier
Manufacturer
Distributor
Retailer
PLAN
Customer
Collaboration
S&OP
Supplier
Manufacturer
Customer
Distributor
Retailer
Demand
Management
Customer
Relationship
Management
Direct Store
Delivery
Consumer
Global Data
Synchronization
PULL
POS Data &
Analytics
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.
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Product Distribution Strategies
35%
30%
25%
% of Respondents
20%
15%
10%
5%
0%
Directly from Suppliers
Shipments from
wholesale distributors
Warehouse shipments
DSD
2007
19%
24%
32%
24%
2008
20%
26%
30%
25%
Source: FMCG Retailers are Becoming Demand Driven- AMR Research, April 2008
QAD Proprietary
10
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 challenge to the industry’s SC
– 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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11
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
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“The Last Mile is the Hardest”
Direct Store Delivery for QAD Customers
Robert Hochberg, President and CEO, NCS
Numeric Computer Systems, Inc
www.ncssuite.com
Your Solution Partner For In-Store
Direct Store Delivery Execution
QAD Proprietary
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.
Other
Confectery
Beverage
Ice
Coffee
Pet Food
Tobacco
Juice
Cheese
Bakery
Snack Food
QAD Proprietary
Ice Cream
Dairy
 Successfully services a diverse group of FMCG companies.
Driving Principles for I/T Budget
Spending, November 2009
58%
Cost Control
50%
26%
Infrastructure
Improvements/Upgrades
36%
Aligning IT with the
Business
45%
28%
13%
Security
17%
10%
10%
Regulatory Compliance
26%
Increased Flexibility
10%
3%
5%
Energy Efficient IT
0%
QAD Proprietary
CP Mfg (N=31)
Total U.S. (N=532)
20%
40%
Source: AMR Research powered by ChangeWave
60%
eRMS Enables Quicker Information
Movement
Make information more timely and available for
better and faster decision-making
36%
Improve sales productivity
27%
Improve return on marketing spend
14%
9%
To reduce the cost of selling /cost to serve
Improve internal collaboration between functions
5%
Regulatory compliance
5%
To reduce time spent on administrative processes
5%
N=22
QAD Proprietary
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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What kinds of companies are FMGC?
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





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Baked Goods (Breads, Cakes)
Beverage (Beer, Juice, Liquor, Soda, Water)
Coffee
Dairy (Cheese, Fluid Milk, Ice Cream)
Food Service
Meats (Beef, Chicken, Pork)
Pet Food
Tobacco
Snack (Confectionary, Salty Snacks)
Greeting Cards
Automotive Aftermarket
Flowers
Welding Supplies
Other
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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.
QAD Proprietary
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
QAD Proprietary
NCS Customers by Category and Region
Sales by Category
Dairy 41%
Bakery 19%
Sales by Region
North America
65%
LA/PR 20%
Snack Foods 10%
Juice 8%
Australia 8.5%
Beverage 6%
Confectionary 4%
Tobacco 3%
All Other 9%
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Asia 4.5%
NZ 2.5%
QAD-NCS Solution Diagram
QAD
xLink
Xpedium
xMobility
QAD Proprietary
QXtend
NCS Solution Suite
The Solution Set has three different components:
eRMS, xLink & Xpedium xMobility
eRMS
xLink
Xpedium
xMobility
QAD Proprietary
eRMS Route Management Solution
Route
Planning
Route Balancing
– UPS Mobile Cast
– Turn by Turn Navigation
Route Settlement
Cash
Inventory
Route Optimization
Trade Assets
Containers and Carts
Merchandising Support
Surveys
In-Store Business Reviews
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Example of eRMS Efficient Routing
 Optimized Routing
Route Balancing
Weight
Cube
Stops
Time
Mileage
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Example of eRMS Route Settlement
Route Level
Inventory
Van and Inventory
Control
Cash Collections
Driver Settlement
Van Settlement
QAD Proprietary
xLink Middleware Components

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Mobility Connector: Mobile Middleware DB
Mobility Console: DB Extension, Doc Retrieval,
Monitoring, Scheduling
Mobility Sync: Authentication, Encryption, Security,
Wireless/Wired Communications
QAD Proprietary
Xpedium xMobility

xMobility Development Suite:
–
–
–

Mobility Framework: Services
Mobility Designer: Report Writer, Screen Writer
Mobility Configurator: Rules, Work Flow
Xpedium Pre-Configured Applications:
–
QAD Proprietary
xRoute, xMerchandiser, xPre-Sales, xVending
Technology is Microsoft Centric
Next Generation Back
Office Technology
 Multiple User Interface
– Browser, Text
 Platform Independent
– Windows, System-I, UX/Linux
 Database Independent
– SQLServer, DB2, Oracle
 Scalable
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
– Stateless





QAD Proprietary
Advanced Middleware
XML Data
Document Management
GPS Integration
Fleet Management
Xpedium xMobility Customer Detail
Screen on a Mobile Device
Displays 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
QAD Proprietary
QAD Interface
Cust
Item
Price
Prom
Order
Load
QAD
Cust
Item
Price
Prom
Order
Load
eRMS
QAD Invoicing
QAD Proprietary
NCS is a perfectly matched solution
partner for QAD
Experienced Professional Staff
Deep Industry Experience
Advanced Technology
Implementation Methodology
Web Based Tracking System
Strong Help Desk and Customer Support
Multi-Regional Experience
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QAD’s Consumer Centric Solution
Hank Canitz, Sr. Director Marketing - QAD
QAD Proprietary
QAD Proprietary
QAD Alignment to the
Consumer Products Industry
QAD’s Consumer Centric Solution Suite
Supplier
Manufacturer
Distributor
Retailer
PLAN
Customer
Collaboration
S&OP
Supplier
Manufacturer
Customer
Distributor
Retailer
Demand
Management
Customer
Relationship
Management
Direct Store
Delivery
Consumer
Global Data
Synchronization
PULL
POS Data &
Analytics
QAD Proprietary
Vendor Managed
Inventory
Automated
Data
Collection
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
“Supply chain visibility is the most
important application investment
area for supply chain strategies“
Aberdeen Group, September 2008
 Ability to link to non QAD systems
QAD Proprietary
38
Supplier Quality - Dashboard
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39
Kanban & Process Sizing Workbenches
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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
Proprietary
QAD
Demand Management Suite
 V6.0 Demand Management Engine – (Availability September 2010)
–
Full update of underlying code base to support unicode requirements
–
New user interface with ribbon style menus and on-the-fly filters
–
Improved usability based on customer feedback including; filters & exceptions, profiles &
lifecycle planning
 V6.0 Collaborative Portal – (Availability Sept 2010)
–
Update of user interface to improve configurability and look and feel of the display
–
Expanded formula and hierarchical capabilities
“QAD Demand Management has
improved our forecast accuracy by
50% percent. We have seen slight
improvements in customer service,
but the biggest improvement for RF
industries is streamlining to get the
right stock at the right time.”
Tony MacGregor, National Operations
Manager, RF Industries
QAD Proprietary
Recommended Actions
Visit the NCS Booth
Contact Robert or myself for more information
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
Rapid value
assessment
2
Map QAD potential solutions
to business goals, strategies,
tactics & processes
3
4
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Deeper ROI Potential Analysis
Recommendation
Where to go for assistance
Robert Hochberg, President and CEO
– [email protected]
– (631) 486-9000 x301
– (917) 754-1836 (m)
Hank Canitz – Sr. Director Industry Marketing
– [email protected]
– 1-720-238-7439
QAD Proprietary
Thank You & Questions
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