SITUATION
Reimagining a proven model for a fast-changing market
A leading consumer goods company had long relied on strong brands and a direct-to-store delivery model to drive success. But with rising customer expectations, evolving market trends and rapid advances in technology, maintaining that edge meant rethinking how the business operated. Staying competitive would require a value chain designed for speed, adaptability and growth. The question was where to begin — and how to turn data and digital tools into a smarter, more connected enterprise.
SOLUTION
Delivering the right products — faster, smarter and with less waste
With changing industry dynamics and the expectation of more disruption, transforming the value chain was a top priority for the company’s CEO. A PwC Strategy& team had worked with the C-suite leaders on an earlier project. When it was time to move from the back office to the supply chain, the CEO asked us to work with them to create a fully digitized enterprise. We suggested a holistic approach to transforming the value chain, integrating new ways to work, new go-to-market strategies and new ways to engage with retailers.
PwC specialists with deep experience in business and technology strategy, supply chain, consumer markets, digital design technologies, PwC’s SCOOP[1] Supply Chain analytics tool, PwC’s Demand Estimator tool, Salesforce and customer management and change management joined with leaders and managers across the company — from finance to IT, marketing to manufacturing — to apply our Connected Supply Chain solution. In an immersive experience with 40 company leaders, we explored the “art of the possible,” thinking together about what the future could look like.
Designing an integrated end-to-end value chain began with a scan of the entire business, benchmarking to evaluate the company’s digital maturity and the creation of dozens of user stories assessing the needs and impact of change on the company’s retail customers, its employees and, ultimately, on consumers. Where were the pivotal opportunities for change? Where could we take advantage of PwC’s alliances and joint business relationships to help the company make improvements using tools already in their digital portfolio?
Working closely with company leaders, we identified a handful of key leverage points that would help the company simultaneously predict demand to enhance the consumer experience, customize local product assortments and seamlessly connect an information superhighway across the enterprise from sourcing, through delivery, through real-time measuring of sales. A new more targeted way of looking at customer (retailer) segments, changes to the frontline salesforce (redefining jobs to be more desirable) and mobile apps to enable a connected frontline (e.g., digital tools for order placement and sales team connectivity) would build on the company’s proven direct-to-store delivery capability. Segmenting into differentiated supply “pipelines” would allow the company to respond more quickly and effectively to meet both high-volume stable and low-volume volatile demand — an “endless aisle” to support innovation and growth.
To bring the vision to life, we are testing and refining the capability system in multiple markets. As the company implements the system nationwide, they will continue to build and scale their capabilities. Recognizing that value chain transformation is a business transformation, the company’s leaders have their sights set on the system’s long-range benefits to help keep them at the top of the game for the long-term.
RESULTS
Faster. Smarter. Fully connected.
With its connected supply chain now in motion, the company is operating with greater flexibility, smarter insights and stronger alignment across teams. Strategic customer segmentation helps get the right products to the right places — at just the right time. A mobile-enabled ordering platform gives frontline teams the tools they need to respond in real time, while predictive analytics reduce guesswork and improve demand accuracy.
The company’s go-to-market models are now tailored by region and customer type, enabling faster responses to shifting demographics and trends. Differentiated supply pipelines allow the business to manage both high-volume demand and lower-volume, fast-moving products with ease. And with a more agile network, the company can get a wider product range to market faster, with less inventory and better lead times.
By connecting systems across sourcing, delivery and store shelves, the enterprise is now digitally integrated end to end. And with new digital tools improving the employee experience, the company is not just ready for disruption — it’s positioned to lead through it.
BUILD A SMARTER, MORE AGILE SUPPLY CHAIN.
See how we can help drive smarter, faster operations.
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