Logistics and Fulfilment
Logistics and Fulfilment
Making your supply chain agile enough for the 21st century
In the current economy, organisations are increasingly used to having to reduce prices on an ongoing basis in order to remain competitive. Organisations have addressed this issue through globalisation and importing goods and services from countries such as China. The impact of this is that logistics solutions are now considerably more complex than they were a decade ago. Consequently organisations need to address their existing supply chain structures in order to bring them up to the level of agility demanded by 21st century business.
This section includes:
- The benefits of Logistics and Fulfilment
- Capgemini’s Approach
- Capgemini’s Capabilities
- Success Stories
Benefits of Logistics and Fulfilment
Organisations with agile supply chain and logistics capabilities end up with lower levels of inventory at any given time.
They have increased agility in terms of handling and promoting products throughout seasonal periods. They are much less exposed to the danger of being left with obsolete stock, ends of line and stock write-downs.
Profitability is improved because carrying costs and operating costs will be lower.
The cost of infrastructure, such as warehouses and distribution plants, will be reduced.
Capgemini’s Approach
While our approach varies on a case by case basis, we typically have an initial 4-step process.
Step 1 - we validate that there is a business case for implementing a solution. This involves examining the clients existing situation and capabilities so that we can understand the degree to which our reference model can be applied. Then we can focus on the specific areas of the reference model where there is a tangible benefit to the implementation. We estimate that value followed by the development of a plan and transformation roadmap for the rest of the programme. This leads directly into the design phase.
Step 2 – we design the solution. This is a collaborative process in which we work with the client. There are core software applications that we can use again and again, but their use is not pre-judged.
Step 3 – we work with the client to implement the roadmap.
Step 4 – the client realises the benefits which have been planned for throughout the design and implementation phases.
Capgemini Capabilities
Having a logistical control centre is a key part of implementing a successful global supply chain
We have partnerships with the leading logistics software vendors including Oracle.
We have a global retail reference solution which gives us a basis for comparing all retailers in terms of their process maturity
We have a wide skills base of experienced logistics specialists. We have access to over 200 people with logistics experience, of which 70 are part of our dedicated supply chain team.
The majority of our consulting resources have come to us with real world experience from a background in industry with a significant number from third party logistics providers.
Success Stories
A global oil company
We designed and implemented a freight management capability for bulk shipments. We also designed their transportation management and global inbound management systems for specific markets. The key benefits that resulted included reduced operating costs and a resulting improvement in customer service.
A global consumer product company
We have designed a supply chain operating model for this global consumer product company, including designing how the global supply chain processes should work and what the organisational structure behind these processes need to look like. We have cascaded communications throughout the organisation so that everyone understands how this new supply chain works in practice. The key benefit has been a significant reduction in inventory of finished goods and a reduction in working capital as well as improved customer service levels.
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