sales & supply chain solutions -...
TRANSCRIPT
SALES & SUPPLY CHAIN
SOLUTIONS
About Beacon
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• Our team comprises alumni from Indian Institutes of Management (IIMs) and Indian
Institutes of Technology (IITs) with extensive training and experience in consulting,
statistics, analytics & operations research.
• Our Advisory Board includes distinguished names in the Indian Academic and
Industrial Circles.
• With Analytics & Advisory practices working in tandem, Beacon has grown at rapid
pace to create a niche as an Implementation Partner.
• We have provided substantial benefits to large & mid size firms including
4 ‘Fortune-200’ companies with our frameworks & methodology.
Beacon is a consulting & analytics firm providing a wide range of
services to its clients with a clear focus on delivering high ROI !
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Why Beacon ?
S k i l l O n D e m a n d • We have a wide variety of skills and expertise to handle most of your needs
• We are constantly acquiring new skills to offer to our clients through training, recruitment and experience in live projects
• We have access to leading research, tools and industry best practices
H i g h R O I • We have several deployable tools and frameworks which cuts down on
development cost and time
• Our Investments in Tools & Trainings are spread over several clients and projects
• Highly experienced hands-on teams ensure faster turn-around of projects, thereby lowering costs
L e a v e i t t o t h e S p e c i a l i s t s • Our Associates and Team Leads have undergone extensive training and
specialize in handling complex business processes
• We have successfully executed numerous projects of all sizes, across all functions / verticals
• Team Leads collaborate regularly on projects to ensure that only the most relevant processes & techniques are deployed on each assignment
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Indicative Clientele
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Beacon has carried out high-involvement engagements with some of
the most respected companies in India
Our analytics expertise combined with our vast industry experience has
enabled us to deliver high value across industries & sectors
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Our Team
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Our Management Team and Advisory Board has an excellent
background…
…and they bring complementary skills on-board
Abhinav Jain B. Tech IIT Delhi, MBA IIM Ahmedabad
More than Eight years of experience in industry and consulting. Has worked in areas of Sales Strategy,
Distributor Management, Vendor Management, Data Analytics and Data Modeling. Abhinav has
specialist skills in business analytics, research design and handling tools like SPSS, WinCross.
Prof Abraham Koshy Head, Marketing, IIM Ahmedabad
Fields of special interest include product management, strategic marketing, international marketing,
and public distribution system. Co-authored the book “Marketing Management” with Philip Kotler.
Consultant to public and private sector organizations in marketing & management.
Mayank Premi B. Tech TIT&S Bhiwani, MBA IIT Delhi
More than Nine years of industry and consulting experience. Has worked in areas of supply chain
operations, key client management, business planning, project management, data modeling and
analytics, etc. Mayank has specific expertise in business modeling and handling statistical tools like SAS,
SPSS.
Prof P. K.Sinha Head, Centre of Retailing, IIM Ahmedabad
Fields of special interest include media strategy formulation, Point of Purchase communication, shopping
behavior, retail promotion, and store format design. Consultant to large number of public and private
sector organizations in retailing and strategy.
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ENTERPRISE SOLUTIONS Brief about some of our…
ENTERPRISE SOLUTIONS
Delivering Value in Sales & Supply Chain
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DC
Distributor
Wholesaler
Retailer
Supplier
Factory
Strategic Sourcing
Procurement Analytics
Transportation Management
Demand Planning Inventory Mgmt
CORD©
Retail Analytics
Promotion Planning
Sales Analytics
Supply
Chain
Control
Tower
Enterprise Solutions
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IPMS©
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Coordinated Order Management & Fulfillment (CORD©)
CORD Model is also loaded with Data Analytics capabilities, which helps to continuously improve it with respect to client specific business
processes
CORD is an end-to end order management solution that provides the capabilities for customers, partners and employees to place and execute „The Perfect Order‟
How do I manage Month Ends Skews
and Dispatches
How do I Reduce Stock- Outs and increase Range
Availability
How do I keep my team, my
Distributors and my Customers Happy
How do I manage Inventories and cut down Cycle Time
Apart from robust algorithms and multiple modeling capabilities, CORD is also loaded with multiple value added features which make it an indispensible product.
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CORD – Model Architecture
Historical Sales, Stock holding & Investment Guidelines , Inventory
Positions , Product Substitution, Promotion
& Seasonality data
Pristine Orders
Investment Mapping
Rationalized Orders
Distributor-SKU Wise Final Order
Invoice Values
Fill Rates
Stock Outs
Distributor
Performance
Stock Out
Prediction
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IPMS© - Integrated Planning & Mgmt System
IPMS is a powerful Planning and Execution Management system which integrates demand capturing , production planning and dispatch management into a common set of procedures. This is implemented across multiple locations and controlled by set of process
and technological frameworks supported by our 24 X 7 support center..
Supply Chain Control Tower
KPI
Dashboard
End to End
Visibility
Integrated
Decision
Analytics
Improved
Responsiveness
Optimal
Inventory Levels
Reduced
Transportation
Costs
Integrated
Processes
Exception
Management
Towards Enterprise Integration..
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ONE
SUPPLY
CHAIN
..Simplifying The Supply Chain
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Strategic Sourcing
Contract Life Cycle
Management
Mapping of Business Requirements with
Procurement Practice
Gap identification and rectification in new
and existing contracts
Drafting Contracts, KPIs, Penalties
Develop Best Practices in Contract Creation
Process Standardization
Creation of SOPs around sourcing
process
Development of vendor evaluation
framework
Creation of check sheets at all stages of
sourcing cycle
Share of Business Standardization
Practice Development
Aligning Sourcing objectives with
Business Strategy
Spend Rationalization
Vendor Categorization
Risk mitigation by better controls
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As Is Study
Data Collection
Gap Analysis & Opportunities
Following processes are studied- Order Management, Demand Planning, Store Management, Inventory Counting Methods & Inventory Management practices being followed
Subsequent to process understanding, we put forward request for Inventory & Cost data related to various aspects of Inventory Management
Detailed analysis with respect to data and process study by appropriate use of our tools and methodologies. Subsequently, we suggest opportunities for Cost Reduction via better Inventory Management
Implementation
Post Opportunity assessment, a phase wise implementation road map is prepared in agreement withy the client. We can take over the ownership of implementation till the process has stabilized to be handed over to the client
Inventory Management
Few of our Analytical Frameworks
Inventory
Profiling Spend
Analysis
Analytical
Comparative
Risk
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Processing Delivering
Algorithm Run
Manual Input
Data Cleansing
Profile Management
Promotion Management
Final Output
Base lining
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Demand & Supply Planning
We leverage our strong analytical background to develop and run
demand and supply planning processes
• Customized Algorithm • Common platform for
Sales & Planning team • Run Scheduling
• Multi Level processing as per user requirement
• Master Data Management
• Customized Reports • Forecast Error Analysis • Inventory Report • Supplier Performance
• Promotion Impact • KPI Reporting
• Algorithm Design • Life Cycle
Planning • Promotion
• Trend & Seasonality
• Cannibalization • Safety Stock
Calculation • Data Harmonization
We also help clients in functional designing and development of add
on features over existing ERP packages
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ENTERPRISE SOLUTIONS Brief about some of our…
FOCUSSED SOLUTIONS
Delivering Value in Sales & Supply Chain
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DC
Distributor
Wholesaler
Retailer
Supplier
Factory
Focused Solutions
SKU
Rationalization
Stock Out
Predictor Route
Optimization
Freight
Analytics
Performance
Score card
Production
Planning
Vendor
Evaluation
Scorecard
Distributor
Performance
Matrix
PDP Alignment
Norm
Automation
Network
Re-design
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Supply Chain
Network
Inventory Profiling
Order Size and Frequency
Demand Planning
Dispatch Planning
Channel Management
Service Levels
SC Costs & Contracts
Stock outs
Theft/ Pilferage
Time Sensitivity & Criticality
Driving Network
Efficiency
Network Re-Design
“One size does not fit all” – For Supply Chains to be effective in delivering the value to business, the network must be responsive to reflect market behavior
With this belief, our approach is built on 6 fundamental principles
• Understand the Objective
• Velocity / Agility / Cost
• Bottom-up Approach
• Leverage your Assets
• Every Market is Unique
• Eliminate Hidden Costs
• Feasible Implementation
That‟s why a holistic perspective is required to drive a re-design initiative!
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Route Optimization
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- Delivery Cost - Vehicle Classification - Transporter Classification - Driver Performance - Route Simulations - Dispatch Analytics
Analytics Capabilities
Direct interface with end customer and high sensitivity to service levels make last mile a critical component in distribution management
Our route optimization model focuses
on the following aspects • Determine best fit route to ensure
on-time delivery • Schedule delivery vehicles to
optimize to cost
• Configure product size categorization to optimize Truck Load Building
• Factor in reverse logistics to retrieve procured material
• Flexibility – to be able to manually manage parameters to be
optimized • Dynamic – to capture daily
variations • Scalable to a national level
Direct Outputs -Detailed Vehicle Schedules
-Routes
-Transit times
- Web Based Interface - Batch programming - Automatic data alignment - Graphical outputs on Maps - Compatibility with GPS inputs - Real time vehicle tracking
Custom Features
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SKU Rationalization
Key Features
• Optimization approach
based on Key Success
Factors (KSFs) that capture
the entire essence of SKU
segmentation
• Identifies product attributes
aligned to business
requirements, and use
them as a basis for refining
the mix of product lines to
improve sales.
• Multidimensional
segmentation of product
portfolio and developing
customized action plans for
each SKU
• P&L Impact built from
granular level SKU action
plans
Our SKU Rationalization framework focuses not just on segmenting the
portfolio but about linking the financial performance to product portfolio
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Norm Automation Tool
Our In House tool for Norms generation provides an automated platform to
ensure that Distributor Level norms are accurate and effectively reflect the
market realities.
Weekly / Monthly
Forecastin
g System
Last „X‟
months
sale
Market
Inputs
Multi Level Norm
Generation tool
First Cut
Norms
Distributor Level
Segregation
Distributor
Level Norms
Finalized DB-SKU Level
Norms
Distributor Inputs
Fund Constraints
Key Features • Capable of handling multi
level Norms generations • Highly automated thereby
minimizing manual intervention
• Auto correct feature which works on insights from historical norms
• Easily configurable to varied business requirements
• Multi-Loop feature with
Manual corrections for custom changes
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ENTERPRISE SOLUTIONS Presenting a Few Success Stories…
SHOWCASE
Showcase -1 : Transport Optimization
Client: Confectionary Multinational Duration: 8 Months
“Key challenges: : Multiple transport contracts, low dispatch plan adherence leading to
wasted capacity and high cost per kg”
Business Area: Route Optimization, Load Building, Warehousing & Dispatch Processes,
Contract Alignment
Deliverables & Results
8% improvement in Load Factor
11% improvement due to efficient routes
4% saving from contract management
Our Approach:
Deep dive into operations and data
Develop solution framework & software model (used CPLEX Optimizer)
Deploy the model & train personnel on new procedures
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23% Reduction in Costs
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Showcase -2 : Replenishment Management
Client: Leading FMCG company Duration: Sept 2011 onwards
“Key challenges: Lack of focus on fringe SKUs, Sales Team time spent in non value adding activities,
high distribution cost due to month end skew”
Business Area: Replenishment Streamlining, Distributor ROI, Product Penetration (Width & Depth),
Sales Efficiency, New Product Introductions, Dashboards
Deliverables & Results
26% increase in Range Availability
Over 5% Savings in Distribution Spend
40% Reduction in Month End Skew
Our Approach:
Technology Driven Solution based on
Operations Research & Analytics
Strong Change Management Principles to obtain buy-in & deliver results quickly
Smooth Implementation by integrating with the clients operating team
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2.7% Top-Line Growth
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Showcase -3 : Sales Performance Analytics
Client: Leading Agro-Chemical Multinational Duration: 2 months
“Key challenges: Sales are governed by uncontrollable factors like weather patterns, pest
attacks etc. Making sales performance evaluation highly subjective and opinion driven”
Business Area: Performance Evaluation for Sales Force
Deliverables & Results
User friendly “TSM Ranking Tool”
Incorporates both actual performance &
quality / quantity of effort
Directional inputs for enhancing training of TSMs
Our Approach:
Identify UMDs (Underlying Micro Drivers) of sales performance
Evaluate quantum & quality of effort rather than just eventual sales numbers
Reciprocal Matrix, eigen vectors for normalization of territories, polynomial estimation
curves for quantifying parameters, AHP for parameter weightages
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Showcase -4 : Price & Profit Volatility
Client: Large Manufacturing Company Duration: 7 months
“Key challenges: Despite Hedging, Volatile Input Prices (RM, Commodities, Energy) are causing
large profit drains. Need to have dynamic sales & marketing plans linked to input price volatility
risks”
Business Area: De-risking Profit Margins
Deliverables & Results
User friendly “PPV Risk Model”
Cross-portfolio marketing
spend optimization
Robust drill downs for effective decision making
Our Approach:
Monte Carlo Simulation at the core of the risk model
Drill Downs of potential EBIT deviations
Scenario based forecasting of most volatile and significant input costs
Prioritization of SKUs / Products based on Profit Pool & Cost Surge Potential
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Corp HQ
Project Office
Contact Us
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Corporate Head Quarters
5th Floor, Tower B, Technopolis, DLF Golf Course Sector Road, Sector 54, Gurgaon - 122002, INDIA Tel: :+91-124-4626414 Fax: +91-124-4375888
Abhinav Jain Director, Beacon Analytics
Email : [email protected] Cell : +91 99716 64451
Mayank Premi Director, Beacon Analytics
Email : [email protected]
Cell : +91 99717 67202
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THANK YOU