Overcoming Consumer Goods Partner Network Complexity with a Digital Twin
Operating successfully as a consumer goods company requires engaging with a large, extended value chain that includes suppliers, distributors, customers, and logistics and financial partners spread across the globe. This often means:
Varying partner tech capabilities
Siloe’d systems and non-normalized data
Inflexible and inefficient supply chains
Companies typically sit on huge amounts of data. However, such data is spread across multiple source systems, encapsulated in legacy IT solutions, and not curated.
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Because of this, many CG companies experience:
Limited network visibility
82% call inability to adjust or respond to fluctuations in demand in the supply chain a highest or medium priority
Source: CGT
Added costs
15% of their margins is what CG companies that fail to take adequate steps could lose by 2030 due to supply chain costs
Source: Bain & Co.
Delays in decision-making
47% call using data to operationalize decisions a primary challenge to driving profitable growth
Source: Publicis Sapient and Adobe
Vulnerability to disruption
73% call inability to make rapid adjustments with supply chain partners a highest or medium-priority supply chain obstacle
Source: CGT
To operate at the pace of today’s business, CG companies need
a way to:
Connect easily with all partners
Unify and harmonize data
Automate and optimize processes
Infuse artificial intelligence (AI) into decision-making
Achieve scalability and resilience
See how Mondelez International achieved these capabilities.
It’s often cost- and resource-prohibitive for a CG company to develop their own extended network platform to include these partners.
Instead, the solution lies in engaging with a DIGITAL TWIN of your extended enterprise network. This cloud-based, cognitive, connected network layers on top of your existing IT infrastructure to unify your value chain.
The full control enabled by a digital twin allows a company to anticipate risks and make critical optimization decisions far sooner than previously possible.
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See real-time network-wide inventory
CG companies can choose apps to run on their cognitive, connected network to help…
Better plan brand promotions
Discover and quickly onboard new customers
Improve demand forecasting
Access AI-driven processes
Tap intelligent order routing
Link to financial partners within the network
A cognitive, connected network helped a global CG get access data for better demand planning.
Better Connections Grow Your Business
A robust cognitive, connected network enables real-time access to critical partner data. And in turn delivers operational, financial, and strategic benefits across the value chain:
• Improves accuracy
• Expands visibility
• Speeds decision-making
• Saves money
Click here to learn more about digital twins and cognitive, connected supply chain networks.
FACT:
Early implementers of supply chain digital twins saw:
up to 5% sustained inventory reductions
up to 10% Capex reductions
EBITDA improvements of 1 to 3 percentage points.
Source:
41% of CGs call data and analytics a top three investment areas for FY21
Source: Publicis Sapient and Adobe
63% of CGs are using AI to analyze product or consumer data
Source: Publicis Sapient and Adobe
Mondelez Overcomes Partner Data Hurdles
Snack food and beverage leader Mondelez International experienced challenges in communicating with distributors:
• Inconsistent and unverifiable data
• Manual processes
• Little access to POS data
• Limited visibility, scalability, and consistency
NEXT
To address these, Mondelez deployed EdgeVerve’s TradeEdge cognitive, curated network. After a four-month implementation, Mondelez saw:
65–70% rise in employee productivity
Increased security
Greater value due to better data insights
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What's a Digital Twin?
According to IBM, “The digital twin is the virtual representation of a physical object or system across its life-cycle. It uses real-time data and other sources to enable learning, reasoning, and dynamically recalibrating for improved decision making.”
For partner networks, a digital twin is an exact virtual model of your network of suppliers, distributors, customers, and logistics and financial partners.
30% of CG companies are on focusing inventory planning as a top analytics strategy
Source: CGT
67% of CG companies are on focusing demand forecasting as a top analytics strategy
Source: CGT
By 2023 at least 50% of large global companies will be using AI in supply chain operations
Source: Gartner
28% of CG companies call optimizing the transportation and distribution network a top supply chain initiative
Source: CGT
CLOSE
Substantial cost savings
4-10% improvement in sales
Automated 90% of data acquisition and harmonization
NEXT
The challenges of managing data across thousands of partners was impacting a global CG health and conglomerate in sales and supply chain efficiency as well as in partner relationships and productivity. They included:
• Myriad unorganized data sources
• Varying data formats
• Questionable data quality
• Inconsistent data availability
• Sub-optimal Data synchronization
Global CG Company Unlocks Barriers to Demand Planning
By deploying TradeEdge Market Connect, the CG company was able to overcome its data acquisition challenges. Its initial project deploying to emerging markets led to:
Significant increase in quality of sales reporting and insights
Extended partner networks help consumer goods companies add value to their products. But they can also bring complexity that adds costs, delays decisions and limits visibility. Consumer goods leaders are breaking through these barriers with a new approach: a digital twin of their partner networks. Read on to learn how.
Operating successfully as a consumer goods company requires engaging with a large, extended value chain that includes suppliers, distributors, customers, and logistics and financial partners spread across the globe. This often means: