Supply Chain and ERP

Hyper-competitive consumer markets are driving change at unprecedented rates due to globalization, consolidation, expansion into international markets, innovation, etc. On May 15, 2007, supply chain executives from leading consumer goods companies gathered in Chicago for the first faceto- face meeting of the CGT Supply Chain/ERP Share Group. There, members posed questions and revealed experiences during interactive presentations delivered by respected peers on building and maintaining an effective supply chain organization.

Stephen Brant, consumer industry practice leader for Hitachi Consulting, opened the meeting by outlining how the ever-changing consumer goods market requires rapid response from its players via a market responsive supply chain. While Brant says that active collaboration with supply and channel partners is most valuable to a market responsive company -- it ensures connectivity to market, customer and supply dynamics -- most companies are not collaborating effectively. In fact, only one company in attendance could claim it was truly partnering with suppliers. What was encouraging, however, was that most companies in attendance are making the right moves to become market responsive by having hands in at least one of the following key areas:
> Making assets more responsive to market changes
> Managing pricing and trade promotion management to be more accountable
and more effective in driving targeted demand and margins
> Extending into, and collaborating better with, channel partners

Next up, 27-year Procter & Gamble (P&G) veteran Jake Barr, who directs the company's Global Supply Network Design and value creation efforts, shared details on how P&G is effectively bringing the voice of the consumer into the supply chain despite complexity caused by its massive size. Barr also answered "how to" questions presented by share group members. Topics of particular interest included a shelf-back design model; strengthening retail partnerships; measuring in-store performance; matching point-of-sale data to innovation; and the building blocks needed to become demand driven. CG