Digital Forecasting and Planning for a New Supply Chain

Digital Strategy
The Situation

The CIO and VP of Supply Chain of a global CPG company planned to embark on an ambitious project to redesign a new end-to-end supply chain.

Over time, planning had become a resource-intensive and untenable process. Therefore, they identified dynamic planning as a critical priority. With the right digital investment, dynamic planning could become a true competitive advantage.

The Challenge

The company had survived -- indeed thrived -- during the COVID-19 pandemic. However, a strained supply chain meant that consumer goods would sell out in some areas, while sitting unsold on retail shelves in other areas.

The company knew they needed a more agile solution. Therefore, they aimed to implement an integrated, end-to-end supply chain planning solution to drive competitive advantage and unlock three significant benefits.

First, they could accelerate growth by capturing improved insights. Second, they could lower cost s and improve customer service from a more responsive and agile process. And third, they could reduce churn, and improve resource efficiency from improved collaboration.

Our Solution

To implement an integrated, end-to-end supply chain planning solution, we needed to accomplish three tasks: (1) select a software vendor; (2) select an implementation partner; and (3) develop a business case.

First, we scanned the market for top-tier software solutions. Next, we crafted an RFP capturing our requirements and use cases, and shortlisted a set of potential vendors. We invited them to respond to the RFP, to present their business capabilities and technology stack, and to demo their software on real-world data.

Next, we prepared a second RFP for systems implementation partners. We invited three global firms to prepare a proposal on how they would transform the company's end-to-end supply chain, starting with blueprinting, through demand planning and supply planning, all the way to the change management that we would need to implement a new operating model.

Finally, using the vendors’ estimates for costs, we built a business case for the program. We estimated an NVP of over $30M, against an estimated cost of $30M, across 3 years. In the end, the company selected Kinaxis and Accenture as their partners for the journey.

Project in Brief

Company:

Global CPG Company

Client:

CIO, VP Supply Chain

Problem Domain:

Digital Strategy

Results:

3-year, $30M business case & roadmap

Completed:

Q2 2022