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Direct Store Delivery & QAD’s Consumer Centric Solution
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Direct Store Delivery & QAD’s Consumer Centric Solution

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  1. Direct Store Delivery& QAD’s Consumer Centric Solution Hank Canitz: Senior Director Industry Marketing - QAD Robert Hochberg: President & CEO - NCS

  2. Agenda • Top consumer product manufacturing issues • Direct Store Delivery for QAD Customers • QAD’s consumer centric solution Typical Dilemmas of a Customer-Centric Manufacturer

  3. 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

  4. 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” Inside Out Information Outside In Information

  5. Supply Visibility Integrated Strategy, Business & Value Network Planning Demand Translation & Trade Offs decoupling Balancing Push – Pull Dynamics • A consumer centric approach balances the pull from customers with a push from the supply chain. Product & Service Innovation Demand Visibility Customers , Buyers, Users, & Consumers Channel Demand & Demand Management User/ Consumer/ Demand Insights Suppliers & Partners Reliable, Profitable Response from Supply Based on Demand Push Pull

  6. The Time to Sense True Customer Demand Q. How long does it take your organization to sense true customer demand in your primary value network? Average = 10 days N = 164 manufacturers

  7. Latency in Sensing Customer Demand 1- 30% out of stock rates at the SKU-location level depending on product & characteristics Manufacturer mentioned by “name” in stock out

  8. The Value of a Consumer Centric Strategy Deliver 20% More Perfect Orders… 90% Leaders 68% Laggards …hold a third less inventory… Leaders 54 Days Laggards 72 Days …have lower SC costsequal to 5% of revenue 21% Leaders 26% Laggards

  9. Customer Supplier Manufacturer Distributor Retailer QAD’s Consumer Centric Solution Suite PLAN Customer Collaboration S&OP Global Data Synchronization Demand Management Customer Relationship Management Direct Store Delivery Lean Manufacturing BI Trade Promotion Management Supply Visualization Product Development PULL Automated Data Collection POS Data & Analytics Vendor Managed Inventory 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.

  10. Product Distribution Strategies Source: FMCG Retailers are Becoming Demand Driven- AMR Research, April 2008 10

  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

  12. 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”

  13. Direct Store Delivery for QAD CustomersRobert Hochberg, President and CEO, NCS Numeric Computer Systems, Inc www.ncssuite.com Your Solution Partner For In-Store Direct Store Delivery Execution

  14. 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.

  15. Driving Principles for I/T Budget Spending, November 2009 Source: AMR Research powered by ChangeWave

  16. eRMS Enables Quicker Information Movement N=22

  17. 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

  18. 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

  19. 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.

  20. 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

  21. 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

  22. NCS Customers by Category and Region

  23. QAD-NCS Solution Diagram QAD QXtend xLink Xpedium xMobility

  24. NCS Solution Suite The Solution Set has three different components: eRMS, xLink & Xpedium xMobility eRMS xLink Xpedium xMobility

  25. eRMS Route Management Solution • Route Planning • Route Balancing • UPS Mobile Cast • Turn by Turn Navigation • Route Settlement • Cash • Inventory • Route Optimization • Trade Assets • Containers and Carts • Merchandising Support • Surveys • In-Store Business Reviews

  26. Example of eRMS Efficient Routing • Optimized Routing • Route Balancing • Weight • Cube • Stops • Time • Mileage

  27. Example of eRMS Route Settlement • Route Level Inventory • Van and Inventory Control • Cash Collections • Driver Settlement • Van Settlement

  28. xLink Middleware Components • Mobility Connector: Mobile Middleware DB • Mobility Console: DB Extension, Doc Retrieval, Monitoring, Scheduling • Mobility Sync: Authentication, Encryption, Security, Wireless/Wired Communications

  29. 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

  30. Technology is Microsoft Centric Next Generation Back Office Technology 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 • Multiple User Interface • Browser, Text • Platform Independent • Windows, System-I, UX/Linux • Database Independent • SQLServer, DB2, Oracle • Scalable • Stateless

  31. Xpedium xMobility Customer DetailScreen on a Mobile Device • Displays the Customer Profile details: • Customer Messages • Fully Custom Detail Fields • Delivery Sequence • Unpaid Invoices • Directions • Inventory • History • No Call Reason

  32. 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

  33. QAD Interface Cust Item Price Prom Order Load QAD Cust Item Price Prom Order Load eRMS QAD Invoicing

  34. NCS is a perfectly matched solution partner for QAD • Experienced Professional Staff • Deep Industry Experience • Advanced Technology • Implementation Methodology • Web Based Tracking System • Strong Help Desk and Customer Support • Multi-Regional Experience

  35. QAD’s Consumer Centric SolutionHank Canitz, Sr. Director Marketing - QAD

  36. QAD Alignment to the Consumer Products Industry Complete Solution for Your Industry

  37. Customer Supplier Manufacturer Distributor Retailer QAD’s Consumer Centric Solution Suite PLAN Customer Collaboration S&OP Global Data Synchronization Demand Management Customer Relationship Management Direct Store Delivery Lean Manufacturing BI Trade Promotion Management Supply Visualization Product Development PULL Automated Data Collection POS Data & Analytics Vendor Managed Inventory

  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

  39. Supplier Quality - Dashboard 39

  40. Kanban & Process Sizing Workbenches

  41. QAD Business Intelligence 3.0 “Value -- for customers, shareholders and employees -- is either created, compromised or destroyed every time a decision is made inside an organization.”Aberdeen Research • 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 QAD Proprietary

  42. 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

  43. Recommended Actions • Visit the NCS Booth • Contact Robert or myself for more information • Schedule 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 Rapid value assessment Map QAD potential solutions to business goals, strategies, tactics & processes 2 3 Deeper ROI Potential Analysis 4 Recommendation

  44. Where to go for assistance Robert Hochberg, President and CEO Robert.Hochberg@ncssuite.com (631) 486-9000 x301 (917) 754-1836 (m) Hank Canitz – Sr. Director Industry Marketing HCC@QAD.com 1-720-238-7439

  45. Thank You & Questions