This section contains:

• The Benefits of Supply Chain Planning
• Capgemini’s Approach
• Capgemini’s Capabilities
• Success Stories

Benefits of Supply Chain Planning

• Decreased inventory levels
• Increased inventory Turns
• Increased manufacturing asset utilisation
• Increase order fill rate
• Increased sales due to product availability
• Reduced order lead times
• Reduced obsolescence
• Reduced variable distribution costs
• Continuous improvement culture
• Improved customer perception
• Improved supplier relations

Capgemini’s Approach

Capgemini’s Supply Chain Planning Approach is an integration of process, people and technology enablement, supported by methodology led programme management. We cover the complete project spectrum, from assessment and value proposition development, to Solution Design and Implementation.

Our approach is based around three strands:

People: We ensure commitment and consensus from all involved with clear roles and responsibilities

Process: We develop an approach which fits your needs and formalises your ways of working with a clear common language

Technology: We ensure that solutions are not over-engineered, are simple enough to be operationalised, are fit for purpose, reliable and timely in response to needs

Capgemini Capabilities

As well as having alliances with all of the major supply chain technology vendors, Capgemini has specific capabilities in the areas of:

Sales and Operations Planning (S&OP)

S&OP is a simple three step process; demand review, supply review and reconciliation. The global challenge lies in creating an effective and practical design that deals with the nuances of a multi continent, multi executive, distributed business environment with all of regional dynamics. Elements of effective S&OP include:

Organisational needs – the needs of sales regions may differ from the supply plants in the same region.

Business Maturity levels – some locations will have sophisticated process and technologies undertaken by highly competent and experienced staff, while others will have basic spreadsheets and staff with staff who are still learning.

Conflicting goals – S&OP processes frequently need to be structured to resolve the tension between local sales units and regional or global supply units (e.g. ultra-high service levels vs. minimised operational costs).

Communications – sales units may be on a different continent to the supplying factory. No longer are the same individuals present in all meetings so the use of formalised narratives and communications is vital.

Reconciling – within silos as well as between markets goes hand in hand with regional allocations and optimising the loading of factories across the supply network.

Demand generation

Accurate demand forecasts are a key input for optimising supply chain performance. In response to evolving customer requirements, increased competition and the desire for adaptive supply chains there is a clear need for reliable accurate demand forecasts. Demand sensing and generation focuses on using visibility and collaboration tools to create a direct view on the real demand from customers (as it happens) and uses this as intelligence to feed back up through the supply chain. It can also add intelligence to the long term demand direction.

Supply Chain Planning

SCP services include:

Planning transformation, planning assessment, forecast visibility, cost and inventory reduction, advanced planning systems implementation, package selection, scheduling and sequencing.

Success Stories

Global consumer product organisation

Capgemini Consulting supported the client in the development of a regional S&OP structure to connect the markets (over 30) with the two planning hubs their satellite factories and the regional management team. The S&OP design had to reflect the organisation complexity and the decision rights invested within different levels and functions. The process was integral to the development of their above factory planning model a corner stone of the newly developed operating model. The S&OP process had a strong focus on maintaining factory loadings to optimise production costs while increasing the responsiveness of the supply chain to bring new products to the market. The success of the solution developed within the European Region has lead to it being adopted as the Global Standard.

Large UK retailer

The client was looking to improve performance in its newspaper and magazine distribution business by more accurate forecasting of demand from retailers. Over-forecasts carry a cost in wasted copy, and under-forecasts a cost in lost sales. The client’s existing “moving average” forecasting method had served it well, but the client was seeking to understand whether accuracy could be improved upon by making use of additional data and new algorithms. They asked Capgemini Consulting to carry out prototyping work on new forecasting techniques. Historical data was obtained on demand, holidays and the promotions used by the publishers of the newspapers and magazines. Forecasting models were then built using multiple linear regression techniques and implemented in a prototype solution using SAS Enterprise Guide software. The resulting trial enabled the client to evaluate the benefits and implemented in a prototype solution.