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Transcript of QAD Proprietary Direct Store Delivery & QAD’s Consumer Centric Solution Hank Canitz: Senior...
QAD Proprietary
Direct Store Delivery& QAD’s Consumer Centric Solution
Hank Canitz: Senior Director Industry Marketing - QAD
Robert Hochberg: President & CEO - NCS
QAD Proprietary
Agenda
Top consumer product manufacturing issues
Direct Store Delivery for QAD Customers
QAD’s consumer centric solution
35,000 New Products Annually
62 Days of Supply
(Average)
50% - 70% Forecast Accuracy
15% of Trade Promotions Turn a Profit
8% - 15% Out of Stock, 20%
During Promotions
Typical Dilemmas of a Customer-Centric Manufacturer
QAD Proprietary
Top 4 Consumer Product Manufacturing Issues
Ensuring global product safety & quality
Complying with sustainability (Green) regulations and customer demands
Enabling the business imperative to do more with less
Meeting more demanding customer requirements
– Lower Costs
– Fresher product
– Higher fill-rate at the shelf
QAD Proprietary
Consumer Centric Approach “A system of technologies and processes that senses
and reacts to real-time demand across a network of customers, suppliers, and employees”
Outside InInformation
Inside OutInformation
QAD Proprietary
Balancing Push – Pull Dynamics A consumer centric approach balances the pull from
customers with a push from the supply chain.Product & Service Innovation
Pull
Cu
sto
mer
s ,
Bu
yers
, U
sers
,
& C
on
sum
ers
Channel Demand
&Demand
Management
Demand Visibility
User/ Consumer/Demand Insights
Su
pp
liers & P
artners
Push
Reliable,Profitable Response
from Supply Based on Demand
Supply Visibility
decoupling
Demand Translation
& Trade Offs
Integrated Strategy, Business & Value Network Planning
QAD Proprietary
Average = 10 days
The Time to Sense True Customer DemandQ. How long does it take your organization to sense
true customer demand in your primary value network?
20%
24%
15%
21%
7%
5%
4%
5%
Less than 48 hours
2-5 days
6-7 days
1 week to less than 2
2 weeks to less than 3
3 weeks to less than 4
4 weeks to less than 5
5 or more weeks
N = 164 manufacturers
QAD Proprietary
1- 30% out of stock rates at the SKU-location level depending on product & characteristics
1- 30% out of stock rates at the SKU-location level depending on product & characteristics
Latency in Sensing Customer Demand
Manufacturer mentioned by “name” in stock out
Manufacturer mentioned by “name” in stock out
QAD Proprietary
Deliver 20% More Perfect Orders…
68%
90%
Laggards
Leaders
…hold a third less inventory…
Laggards
Leaders
72 Days
54 Days
…have lower SC costsequal to 5% of revenue
26%
21%
Laggards
Leaders
The Value of a Consumer Centric Strategy
QAD Proprietary
QAD’s Consumer Centric Solution Suite
Supplier Manufacturer Distributor Retailer Consumer
Supply
Visualization Product
Development
Lean
ManufacturingTrade Promotion
Management
DemandManagement
S&OP
PLAN
Direct StoreDelivery
CustomerCollaboration
Global DataSynchronization
AutomatedData
Collection
Vendor ManagedInventory
POS Data &Analytics
PULL
Supplier Distributor Retailer CustomerManufacturer
To succeed today and into the future consumer products manufacturers must ensure their products are available when and where customers want them. Manufacturers can’t assume that customers will come back if their product is out of stock. Success is not assured operating with the average supply chain.
CustomerRelationshipManagement
BI
QAD Proprietary
Product Distribution Strategies
10
Directly from Suppliers Shipments from whole-sale distributors
Warehouse shipments DSD
2007 0.19 0.24 0.320000000000002 0.24
2008 0.2 0.26 0.3 0.25
3%
8%
13%
18%
23%
28%
33%
% o
f R
espondents
Source: FMCG Retailers are Becoming Demand Driven- AMR Research, April 2008
QAD Proprietary
11
DSD Industry Issues & Drivers Industry analysts estimate that half of the top 10
packaged foods at retail today are delivered by DSD Many DSD categories are among the highest
revenue and margin performers DSD is becoming increasingly critical to maintaining
high sales levels in the industry Trends expected to continue as consumer demand
for "fresh" requires increased speed of product from manufacturer to retailer shelf
DSD presents a challenge to the industry’s SC – Extremely high turns drive a high frequency of deliveries
and merchandising services calls to individual stores– Extremely high impulse buying makes forecasting difficult– Large number of invoices and other in-store transactions
QAD Proprietary
Why Direct Store Delivery? Manage and maintain store shelf inventory Interface with store mgt & consumers multiple
times/week Move product to market faster Lower costs for yourself and your retail partners Provide a competitive speed edge against the
retailer’s own logistics services Facilitate more effective promotions Provide better package integrity & product safety Effectively compete against growing % of store
brands Sense & react faster to customer demand changes
“The Last Mile is the Hardest”
QAD Proprietary
Direct Store Delivery for QAD Customers
Robert Hochberg, President and CEO, NCS
Numeric Computer Systems, Inc
www.ncssuite.comYour Solution Partner For In-
StoreDirect Store Delivery
Execution
QAD Proprietary
Company History
NCS - established more than 25 years ago as a total software solution provider for the Fast Moving Consumer Goods (FMCG).
Headquartered in New York with additional sales, support and development locations in San Francisco, Dallas, Sydney, Jakarta, Auckland, & San Juan
Primary business has been to automate the ‘Order to Cash’ Sales & Distribution cycle for FMCG firms including front end integration to back office ERP.
Successfully services a diverse group of FMCG companies.
Dair
y
Ice C
ream
Bakery
Snack F
ood
Cheese
Juic
e
Tobacco
Pet
Food
Coff
ee
Ice
Bevera
ge
Confe
cte
ry
Oth
er
QAD Proprietary
Source: AMR Research powered by ChangeWave
5%
10%
10%
17%
28%
36%
50%
3%
10%
13%
45%
26%
58%
26%
0% 20% 40% 60%
Energy Efficient IT
Increased Flexibility
Regulatory Compliance
Security
Aligning IT with theBusiness
InfrastructureImprovements/Upgrades
Cost Control
CP Mfg (N=31)
Total U.S. (N=532)
Driving Principles for I/T Budget Spending, November 2009
QAD Proprietary
eRMS Enables Quicker Information Movement
36%
27%
14%
9%
5%
5%
5%
Make information more timely and available forbetter and faster decision-making
Improve sales productivity
Improve return on marketing spend
To reduce the cost of selling /cost to serve
Improve internal collaboration between functions
Regulatory compliance
To reduce time spent on administrative processes
N=22
QAD Proprietary
FMCG Firms Face Unique Challenges
Unique business dynamics
High volume of low value transactions Extraordinary product cycle velocity Challenging profit margins Direct store delivery (DSD) Cash collections & returnables policies Multiple points of inventory control Varied and fragmented sales channels Promotion flexibility and tracking Route Accounting & Control Container Management
QAD Proprietary
What kinds of companies are FMGC?
Baked Goods (Breads, Cakes) Beverage (Beer, Juice, Liquor, Soda, Water) Coffee Dairy (Cheese, Fluid Milk, Ice Cream) Food Service Meats (Beef, Chicken, Pork) Pet Food Tobacco Snack (Confectionary, Salty Snacks) Greeting Cards Automotive Aftermarket Flowers Welding Supplies Other
QAD Proprietary
Examples of NCS Successes Integrated to UPS MobileCast for real time delivery fleet
communications for Northeast US based full service dairy manufacturer
Integrated e-Commerce applications for a leading US dairy manufacturer
Shortened order cycle time for an Indonesian division of a US based manufacturer
Assisted with centralizing business functions for a NE US based dairy and ice cream company.
Enabled GPS tracking of hazardous materials for a NE US based Gas and Welding supplier.
Streamlined intercompany transfers for one of the largest independent dairy and juice manufacturers with distribution throughout eastern United States.
Facilitated control of independent operator activities for a leading US based manufacturer of cakes, cookies, donuts, breads English muffins.
Enabled scan based trading for US leading natural health beverage company.
QAD Proprietary
NCS Customer Success Story
Customer Background: – Customer is a full line dairy and food distributor with 100 trucks on the
road each day– Wanted to track drivers real time with GPS coordinates– Wanted do to full Route Accounting – This solution needed two devices and two data plans and duplicated
work– Needed to use both systems at store Level
Solution:– Went to the GPS solution provider (UPS Mobile Cast) and integrated
data to their servers using NCS advanced technology and mobility solution
Results: – The design was one system/one device, which led to reduced
hardware costs, wireless radios and labor savings while increasing productivity and accuracy at store and route level
Savings were greater than $150K annually
QAD Proprietary
NCS Customer Success Story
Customer Background: – Customer is the leading provider of premium juices in the country– Retailers were demanding a new trade arrangement that the provider
couldn’t support and new prospects were demanding a solution that they didn’t have
Solution:– The solution was to install Xpress Route which is fully Scan Based
Trading capable– eRMS Route Accounting was able to support the difference between
consignment through the cash register and a sale at back door Results:
– They were able to attract the largest retailer in Michigan with this solution and were able to keep their relationship with several chains that they would have otherwise lost
QAD Proprietary
NCS Customers by Category and Region
Sales by Category
Dairy 41%
Bakery 19%
Snack Foods 10%
Juice 8%
Beverage 6%
Confectionary 4%
Tobacco 3%
All Other 9%
Sales by Region
North America 65%
LA/PR 20%
Australia 8.5%
Asia 4.5%
NZ 2.5%
QAD Proprietary
QAD-NCS Solution Diagram
QAD
XpediumxMobility
xLink
QXtend
QAD Proprietary
NCS Solution Suite
The Solution Set has three different components: eRMS, xLink & Xpedium xMobility
eRMS
xLink
XpediumxMobility
QAD Proprietary
eRMS Route Management Solution
Route PlanningRoute Balancing
– UPS Mobile Cast– Turn by Turn Navigation
Route SettlementCash Inventory
Route OptimizationTrade AssetsContainers and CartsMerchandising SupportSurveysIn-Store Business Reviews
QAD Proprietary
Example of eRMS Efficient Routing
Optimized Routing
Route BalancingWeightCubeStopsTimeMileage
QAD Proprietary
Example of eRMS Route Settlement
Route Level Inventory
Van and Inventory Control
Cash CollectionsDriver SettlementVan Settlement
QAD Proprietary
xLink Middleware Components
Mobility Connector: Mobile Middleware DB Mobility Console: DB Extension, Doc Retrieval,
Monitoring, Scheduling Mobility Sync: Authentication, Encryption,
Security, Wireless/Wired Communications
QAD Proprietary
Xpedium xMobility
xMobility Development Suite:– Mobility Framework: Services– Mobility Designer: Report Writer, Screen Writer– Mobility Configurator: Rules, Work Flow
Xpedium Pre-Configured Applications:– xRoute, xMerchandiser, xPre-Sales, xVending
QAD Proprietary
Technology is Microsoft CentricNext Generation Back Office Technology
Multiple User Interface– Browser, Text
Platform Independent– Windows, System-I, UX/Linux
Database Independent– SQLServer, DB2, Oracle
Scalable– Stateless
Next Generation Mobile Technology Service Oriented Architecture C# .NET SQLServer CE Separation of Process and
Presentation Third Party Interfaces
– UPS Logistics MobileCast– Turn by Turn
Advanced Middleware XML Data Document Management GPS Integration Fleet Management
QAD Proprietary
Xpedium xMobility Customer Detail
Screen on a Mobile DeviceDisplays the
Customer Profile details:– Customer Messages– Fully Custom Detail
Fields– Delivery Sequence– Unpaid Invoices– Directions– Inventory– History– No Call Reason
QAD Proprietary
Xpedium xMobility Example Supports Multiple Order
Types:– Pre Sold Deliveries– Sell Through Orders– Build Up Orders– Forecast Orders– Peddle Orders
Detail View– Customer Price– Product Details– Line Discount
Support for:– Merchandising– Auditing– Surveys– Customer Business
Reviews
QAD Proprietary
QAD Interface
Cust OrderLoad
ItemCust
ItemPriceProm
PriceProm
OrderLoad
QAD
eRMS
QAD Invoicing
QAD Proprietary
NCS is a perfectly matched solution partner for QAD
Experienced Professional StaffDeep Industry ExperienceAdvanced Technology Implementation MethodologyWeb Based Tracking SystemStrong Help Desk and Customer SupportMulti-Regional Experience
QAD Proprietary
QAD’s Consumer Centric Solution
Hank Canitz, Sr. Director Marketing - QAD
QAD Proprietary
QA
D A
lig
nm
en
t to
th
e C
on
su
mer
Pro
du
cts
In
du
str
y
Complete Solution
for
Your Industry
QAD Proprietary
QAD’s Consumer Centric Solution Suite
Supplier Manufacturer Distributor Retailer Consumer
Supply
Visualization Product
Development
Lean
ManufacturingTrade Promotion
Management
DemandManagement
S&OP
PLAN
Direct StoreDelivery
CustomerCollaboration
Global DataSynchronization
AutomatedData
Collection
Vendor ManagedInventory
POS Data &Analytics
PULL
Supplier Distributor Retailer CustomerManufacturer
CustomerRelationshipManagement
BI
QAD Proprietary
38
Supply Chain Portal (SV): Supplier Quality
Closed loop supplier performance Collaboration via shared scorecards Dashboard
– Regional metrics– Service levels– Stock outs/overages
Supplier risk assessment– Non-conformance– Corrective action– Inactivate
Ability to link to non QAD systems
“Supply chain visibility is the most important application investment area for supply chain strategies“
Aberdeen Group, September 2008
QAD Proprietary
39
Supplier Quality - Dashboard
QAD Proprietary
Kanban & Process Sizing Workbenches
QAD ProprietaryQAD Proprietary
QAD Business Intelligence 3.0
• Browser-based delivery in an industry-standard portal framework
• Queries, reports, dashboards and scorecards
• Fully customizable and extensible via QAD-supplied and customer-developed views.
• Provides full support for Cognos and other third-party BI tools
“Value -- for customers, shareholders and employees -- is either created, compromised or destroyed every time a decision is made inside an organization.” Aberdeen Research
QAD Proprietary
Demand Management Suite
V6.0 Demand Management Engine – (Availability September 2010)– Full update of underlying code base to support unicode requirements
– New user interface with ribbon style menus and on-the-fly filters
– Improved usability based on customer feedback including; filters & exceptions, profiles & lifecycle planning
V6.0 Collaborative Portal – (Availability Sept 2010)– Update of user interface to improve configurability and look and feel of the display
– Expanded formula and hierarchical capabilities
“QAD Demand Management has improved our forecast accuracy by 50% percent. We have seen slight
improvements in customer service, but the biggest improvement for RF industries is streamlining to get the
right stock at the right time.”
Tony MacGregor, National Operations Manager, RF Industries
QAD Proprietary
Recommended Actions
Visit the NCS BoothContact Robert or myself for more
informationSchedule an on-site discovery session to
let us help you develop a business case for a turn-key DSD solution or other consumer centric improvements.
1
2
3
Rapid value assessment
Map QAD potential solutions to business goals, strategies, tactics & processesDeeper ROI Potential Analysis
Recommendation4
QAD Proprietary
Where to go for assistance
Robert Hochberg, President and CEO– [email protected]– (631) 486-9000 x301– (917) 754-1836 (m)
Hank Canitz – Sr. Director Industry Marketing– [email protected]– 1-720-238-7439
QAD Proprietary
Thank You & Questions