CGT_EdgeVerve_StoryScape_Mar22

Lack of Visibility

CGs consider “visibility capabilities” to be very important, but many say their capabilities “aren’t effective”

Data Silos

Data siloes and other impediments to data-sharing cause a breakdown between partners, putting additional strain on the supply chain

Lack of Alignment

Stakeholders within CP organizations are not aligned—their access to data is limited by siloes, which means they cannot collaborate on initiatives

Technology is the enabler here—and CGs recognize that.

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Lack of visibility causes delivery delays, stock-outs and other snafus. CGs consider “visibility capabilities” to be very important, but many say their capabilities “aren’t effective”

On a scale of 1 to 5, CGs rated the importance of supplier, manufacturing, logistics, and enterprise visibility at a respective 3.6, 3.7, 3.8, and 3.9…but effectiveness was rated at a respective 2.6, 3, 3.2, and 3

50% of Americans have experienced product shortages

The pandemic exacerbates out-of-stock rates. Typical out-of-stock percentages run anywhere from 7% to 10% in “normal times,” but are now at 22%. Within categories, out-of-stocks are 15% for food and beverages, 8% for household cleaning products and 6% for personal care products.

Data siloes and other impediments to data-sharing cause a breakdown between partners, putting additional strain on the supply chain

Large beverage company

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Fortune 50 consumer goods company

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Powering a Global Sports Merchandiser’s Growth Strategy by Enabling Visibility

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Strengthening Demand Planning With Scalable and Cost-Efficient Data Acquisition For a Global Consumer Goods Conglomerate

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An Industry In Crisis

However, myriad roadblocks litter the CG landscape...

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New Levels of Visibility, Connections and Internal Alignment

CGs can successfully navigate and overcome these obstacles. The key:

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Establishing and supporting a high degree of data and supply chain visibility

75% of CGs are engaged in improvements in supply chain planning.

Stakeholders within CP organizations are not aligned—their access to data is limited by siloes, which means they cannot collaborate on initiatives

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No Workarounds

There’s no sure way to overcome all supply chain threats and risks—especially high-impact, low-probability events like pandemic outbreaks and major terrorist attacks. And a lack of historical data means predictive statistical tools aren’t the way to contain these events.

Greater Urgency

The current pandemic has only made it more urgent for CGs to develop supply chain resilience. Enterprises need supply chains that not only recover from current crisis, but steer stability in the aftermath. A resilient supply chain is:

AI Adoption Is Rising

17% of CGs currently have AI in place to enable supply chain resilience, but 62% of CGs are expected to have implemented it within the next three to five years.

From Insights to Gaining an Edge

To learn more, visit www.edgeverve.com/tradeedge

EdgeVerve’s TradeEdge provides insights across the demand value chain:

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Establishing and supporting a high degree of data and supply chain visibility

The Way Ahead

Threats to CGs’ supply chain—natural disasters, accidents, and intentional disruptions—abound. Long, global supply chains; ever-shrinking product lifecycles; and volatile, unpredictable markets heighten the likelihood and consequences of these threats.

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Source: Consumer Brands Association

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Fill Rates Up, Stockouts Down…and More

World’s premier international brewer, with portfolio of more than 300 international, regional, and specialty beers and ciders.

• Inability to manage distributors with varying levels of technology maturity • Inconsistent, slow access to secondary sales data • Under-optimized stock replenishments and poor production planning • Inability to determine promotion access on sales

Harnessing Technology to Overcome Obstacles

74% of CGs are implementing projects aimed at driving better supply chain visibility.

Predictive Analysis Growing

Predictive analytics, currently at 31% penetration, is expected to grow to 79% penetration within the next three to five years.

Not long ago, a premier beverage company achieved a 15% to 20% reduction in stockout scenarios, an 8% to 10% improvement in case fill rates, and more by addressing its supply chain challenges. How? With a technology platform designed to standardize data capture, overcome data collection difficulties, and decrease delays in data flow. Read on to learn how this savvy CG and others kick these and other obstacles to the curb, using technology as a catalyst for change in an increasingly challenging supply chain environment.

The global CG industry is expected to exhibit a CAGR of 3% between 2020 and 2027, growing from $193 billion to $238 billion.

Shoring Up Demand Planning

Multi-billion-dollar global CG with operations in 60 countries; 20 million products sold daily in more than 200 countries

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Forging and maintaining partner-to-partner connections

Achieving internal alignment

75%

74%

Success Showcase

Source: 2021 MHI Annual Industry Report

and Foster Growth in an Increasingly

Challenging CG Environment

Presented by

Source: 2021 MHI Annual Industry Report

Connected, with end-to-end, near-time visibility across all of its “links”—distributors, retailers, and local stores

Cognitive, building on data derived from connectedness to learn and develop actionable insights

Taking the CG supply chain digital makes it happen—and it’s already a direction for forward-thinking CGs:

Accelerate profitable growth

Allow CGs to get one step closer to an autonomous supply chain

This cloud-based solution enables brands to:

Gain maximum channel visibility

Add new channel partners

Improve retail execution

Reach new markets faster

Technology makes it happen—and CGs not only recognize that; they’re seeing the benefits of implementation.

CGs’ experience with EdgeVerve’s TradeEdge cloud-based solution prove the point.

Growth Trajectory

Obstacle Course

2020

2027

$193B

$238B

IMP

EFF

Challenges:

Solution:

Results:

TradeEdge Market Connect data exchange platform, DMS (Distributor Management System), Distributor Management App

• Faster partner data acquisition and valuable insights • 15% to 20% reduction in stockout scenarios at distributor locations • 8% to 10% improvement in case fill rates

• 90% reduction in manual report generation • 40% to 50% improvement in distributor data accuracy

Clarity and Speed for Global Food and Beverage

Global food and beverage company offering pet products and veterinary services; operates in more than 80 countries.

Challenges:

Solution:

Results:

• Need to understand magnitude of data collected and how to collect it • Need to collect variable data attributes based on customer requirements, product type, and industry made it difficult for single ERP system to meet specific traceability requirements • Complexity of organization’s processes, plus challenges associated with varied technology maturity across supply chain, slowed down deployment

• TradeEdge Market Connect platform, leveraged to ingest data coming from multiple channels and varied ERPs (via APIs, emails, files, etc.) on a near real-time basis; manage parent-child hierarchical relationships in inventory data • Cloud-based, globally scalable solution enables rapid management of hold-and-release process

• Reduced time to track product at pallet level from two days to two hours • Faster time to market, leveraging out-of-box solution’s functionality • Single version of truth with unified, holistic data repository • Automated data mapping, cleansing, standardization, and structuring • Standardized hold-and-release process

• 90% reduction in manual report generation • 40% to 50% improvement in distributor data accuracy

Doing data right

World’s largest snack company, with leading market share in every category and region.

Challenges:

Solution:

Results:

• Complex network of distributors servicing high-frequency and modern retail stores • Distributors in many emerging markets lacked technology to collect data from ground • Inconsistency of other distributors’ technology maturity impeded consistency and quality of data transfer • Lack of data led to inadequate visibility into secondary sales and inventory status across entire supply chain • Overcoming challenges created need for globally scalable data exchange platform for fast-growing Indonesian and Malaysian markets

• TradeEdge Market Connect and Market Pulse to bring together distribution partners on one platform for exchanging, cleansing, and harmonizing business data • Solution geo-customized for and implemented in Malaysia, Japan, and Indonesia • Solution receives multiple forms of data—including transaction files (distributor sales to retail, distributor inventory, and order cut) and master files (product master, distributor master, sales hierarchy, geography hierarchy, and must-sell SKU) • Receives data from multiple distributors in any file format; accepts data from mode of transfer (email, EDI, sftp) • Processes distributor data through set of customized business rules • Harmonizes, transforms, and stores data

• Complete view of supply chain • Support for building cohesive distributor engagement system for mutually beneficial CG/distributor relationships

• 90% reduction in manual report generation • 40% to 50% improvement in distributor data accuracy

Shoring Up Demand Planning

Multi-billion-dollar global CG with operations in 60 countries; 20 million products sold daily in more than 200 countries.

Challenges:

Solution:

Results:

• Multiple distributor, retailer, and third-party data consolidator partners in disparate locations, of disparate sizes and at levels of technological maturity—resulting in marked lack of data from the ground • Varying data formats and levels of data granularity, leading to data falling through cracks and inability to obtain timely visibility into sales • Questionable data quality; lack of enterprise-wide master data validation system meant no single source of truth for secondary sales data to drive business insights • Inconsistent data availability impeded timely views of critical data • Sub-optimal data synchronization • Existing solutions expensive and unsatisfactory; data not complete or real-time • Data-related challenges had negative effect on sales efficiency, partner relationships, partner productivity, supply chain efficiency, and bottom line

• TradeEdge Market Connect to acquire near real-time data (inventory, retailer POS, retail execution, and e-commerce analytics) from distributors, consolidators, retailers, customer DMS, and online merchants—across various formats (spreadsheets, documents, xml, emails, and others) • Managed services, including shared support services and data extraction

• Increased near real-time visibility into data from eight markets and 80GB/month to 35 markets and 400GB/month over five-year period • Improved data consistency and quality, with 96% SKU-to-data mapping • Managed services team consistently meets 98% data delivery SLA targets • 4% to 10% improvement in sales • Significant cost savings from cloud-based infrastructure and automation of 90% of data acquisition and harmonization efforts • Unprecedented business efficiencies, including optimization of must-have stock levels and more effective demand planning, resulting from near real-time visibility into secondary sales and inventory data

• 90% reduction in manual report generation • 40% to 50% improvement in distributor data accuracy

Scoring Big With Visible Sell-Through Data

Global, multi-billion-dollar designer, developer, and distributor of footwear, apparel, and sports equipment.

Challenges:

Solution:

Results:

• Difficulty collecting data from various disparate multi-national teams and multiple vendors • Non-standardized data capture methods used by retailer/distributor/partners impeded efficient data flow to parent organization; any existing data captured was asynchronous and, in turn, made useless • Onboarding partners to data acquisition system frequently took 12 to 18 months; data from onboarded partners unavailable to demand planners for several weeks • Lack of accurate, timely data flowing to headquarters prevented sales and supply chain leaders to optimally manage existing inventory of finished goods across markets • Lack of real-time visibility into sales performance data across regions, products, and other dimensions impeded demand planning; demand planners could use only imprecise sell-in data rather than more precise sell-through data • Data received deemed untrustworthy or reliable by lack of streamlined, consolidated data from across retail landscape

• EdgeVerve facilitated alignment of all retailers’ end-to-end processes and CG’s processes, with allowances for local and market-specific needs • Implemented TradeEdge Market Connect to connect CG’s key partners across the globe; and accept/retain data in multiple formats and complexities (integration format, granularity, frequency, calendars, follow-up mechanism, and more

• Harmonized, highly accurate data, with complexities retained • 60% increase in partner network and brand visibility (omni-channel visibility, with harmonized data enabling cross-channel analysis by client to glean more meaningful insights) • Up to 30% increase in inventory turn, allowing transition from sell-in approach to more competitive demand planning stance • Transformation of business processes that impact 2,500+ trading partners • Furthering of growth strategy to double impact of innovation, increase speed to market, and forge direct connections with consumers, with resources to target growing cities and 10 nations within next five years

Seeing the Way Clear to Trade Data Visibility

Fortune 50 home and personal care products company engaged in markets around the world.

Challenges:

Solution:

Results:

• Poor market service, masked by high rate of growth and demand for product • Long wait for and need to chase trustworthy product demand data • Desire to maximize sales potential for given trade spend

• Market Connect module for TradeEdge data exchange platform

• Gained trade data visibility; multiple metrics include sales, inventory, order fulfillment, order cuts, and NPI • Focused brand distribution by store • 8% to 10% improvement in case fill rates • 3% to 4% reduction in non-productive inventory at distributor level • 80% reduction in manual order touches

Fill Rates Up, Stockouts Down…and More

World’s premier international brewer, with portfolio of more than 300 international, regional, and specialty beers and ciders.

Challenges:

Solution:

Results:

TradeEdge Market Connect data exchange platform, DMS (Distributor Management System), Distributor Management App

• Faster partner data acquisition and valuable insights • 15% to 20% reduction in stockout scenarios at distributor locations • 8% to 10% improvement in case fill rates

• 90% reduction in manual report generation • 40% to 50% improvement in distributor data accuracy

Doing data right

World’s largest snack company, with leading market share in every category and region

Read the case study

Clarity and Speed for Global Food and Bev

Supply Chain Visibility in Emerging Markets with TradeEdge MarketConnect

Read the case study

Fill Rates Up, Stockouts Down…and More

World’s premier international brewer, with portfolio of more than 300 international, regional, and specialty beers and ciders

Read the case study

Seeing the Way Clear to Trade Data Visibility

Fortune 50 home and personal care products company engaged in markets around the world

Read the case study

Scoring Big With Visible Sell-Through Data

Global, multi-billion-dollar designer, developer, and distributor of footwear, apparel, and sports equipment

Read the case study

17% of CGs currently have AI in place to enable supply chain resilience, but 62% of CGs are expected to have implemented it within the next three to five years [2021 MHI Annual Industry Report]

57% of CGs plan to spend more than $10 million on robotics and automation; 48%, on cloud computing; 43%, on predictive and prescriptive analytics; and 26%, on artificial intelligence. These four proactive investments can help improve supply chain agility and resiliency in times of disruption [2021 MHI Annual Industry Report].

83% of CGs believe digital supply chains will be the predominant model by 2026, and 22% believe they are now [2021 MHI Annual Industry Report]

Predictive analytics, currently at 31% penetration, is expected to grow to 79% penetration within the next three to five years [2021 MHI Annual Industry Report]

Sources: 1 Supply Chain Insights, LLC Analytics Data Transformation Study; 2 Supply Chain Insights, LLC Analytics Data Transformation Study; 3 Consumer Brands Association; 4 IRI