Deloitte — Brochure 2018

Enabling supply chain transfor– mations

Driving supply chain transfor– mations WRIT TEN BY

JA MES HENDERSON PRODUCED BY

RICHARD DURR ANT

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Deloitte’s supply chain practice is helping companies across Europe implement critical supply chain transformation and digitisation programmes

T

he role of supply chains is changing at breakneck speed, driven by a worldwide business movement

towards digitisation. Companies of all sizes are attempting to transform their supply chain and procurement functions, with varying degrees of success.

And while the arguments for digital transformations seem to have struck a chord with executives, implementation is not happening as quickly as one might have expected.

A recent industry study found that while 83% of respondents believe digital transformation will be impactful, only 5% of respondents have highly automated processes.

With such a discrepancy between aspiration and execution, companies are increasingly turning to global supply chain practices to help them devise a pathway to effective supply chain transformation and digitisation, with Deloitte being a prime example.

Key to this pathway, says Dr Stijn-Pieter van Houten, Director Supply Chain Strategy

Stijn-Pieter (front) and Arjan (back)

2016

Year of North Western Europe integration

30,000 Employees

London Headquarters

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& Operations for Deloitte NW Europe,

tailored products that suit their needs.

is changing the perception of FMCG

Further, established retailers are

businesses about how effective

being pressurized by e.g. ecommerce,

supply chains operate.

discounters and convenience channels.

“Companies often still pursue a ‘one

The result of these trends is that increas-

size fits all’ approach when it comes to

ingly different types of products are

supply chain where the way they plan,

coming to the market and that increas-

produce and distribute their products all

ingly the service levels demanded from

follows the same pattern from a supply

FMCG companies are becoming more

chain and even technology perspective,”

stringent. So, it makes sense for FMCG

he comments.

supply chains to move to a model

“But what we are seeing increasingly

whereby different (virtual) supply

is consumers are becoming more

chains are created and managed for

demanding, and they want to have more

distinct groups of products and/or

E X E C U T I V E P R OF IL E

Dr Stijn-Pieter van Houten “SP” is a Director at Deloitte Consulting in the Supply Chain Strategy service line of Deloitte’s Strategy and Operations Practice since February 2018. He has been working for over 11+ years with primarily Consumer Products clients in developing and delivering competitive supply chains in terms of cost, operating models and (digital) innovation.

His experience is focused on leading Supply Chain work in the areas of: • SC Strategy & Transformations • Operating Model Development • Supply Chain and Integrated Business Planning • Customer Centric SC Design

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customers. Organisations will have to ensure that their supply chains become more differentiated and adapt them to changing customer (and consumer) demands, while managing their cost to reach the right profit levels.” Besides differentiation, part of a successful future setup also requires supply chains to be truly synchronized from and end-to-end perspective.

What seems clear though is that for all the talk of collaboration, there are still stark disconnects between supply chain functions such as demand planning, warehousing, logistics and customer service, all of which have often their own separate set of targets driving particular behaviours and outcomes.

This is then besides the lack of integration between commercial, finance, innovation and supply chain. The lack of end-to-end planning and synchronisation, says van Houten, is hampering the supply chains of even some of the world’s largest organisations.

Analytics and increased supply chain visibility are also central to the supply chain transformation blueprint, he adds. “We know that the market place is volatile, so companies need to be aware of trends and changing customer demands. Products can very quickly become popular and gain traction cross social media, so companies need to have the insights & foresights (“sense” and

“ For supply chain we have a specific supply chain digital experience where we show the impact of technological disruptions and emerging trends” — Arjan de Witt, Manager at Deloitte Consulting

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capabilities that enable them to move quickly (“respond”) when that happens.

In an increasingly crowded and competitive market place, Deloitte’s clients are asking for non-traditional services in a bid to remain successful and be customer centric, according to Arjan de Witt, Manager at Deloitte Consulting.

“Across all of our projects, our clients are consistently asking us to help them adapt to this new world and advise them on new ways of working. In years gone by, a client would just want to see a presentation but now we’re providing them with proof of concepts or run pilot programmes with them.

Our clients recognise that change is going w w w. d e l o i t t e . c o m

on, and expect us to inform them what

As part of the journey to under-

that means for them as a business.

standing the ‘art of the possible,’

For us it means that we have to work

Deloitte leverages its ‘Digital Garages’

very closely with our partners and

– with a new one soon to be opened

leverage our eco-system to really

in Amsterdam. “These are really

provide our clients with a competitive

energetic, start-up like, environments

edge. What we have proven we can

where we take our clients and hold

do is bring fresh insights that inspire

discussions about the different digital

them – we help them to understand

building blocks, how they fit together

‘the art of the possible’.”

and how they should operate in our

“ What we have proven we can do is bring fresh insights that inspire them – we help them to understand ‘the art of the possible” — Arjan de Witt, Manager at Deloitte Consulting

clients’ companies,” says de Witt.

“For supply chain we have a specific supply chain digital experience where we also show the impact of technological disruptions, emerging trends and what you can do to adopt them in your supply chain and organisation. We do this by creating a serious game environment where we really want to not only showcase the technologies but w w w. d e l o i t t e . c o m

also give them subjects to think through.

We’re working in collaboration with our eco-system of partners to make the experience as valuable as it can be.”

But for any transformation to work, companies must ensure that their employees are prepared to embrace the ‘change journey,’ says van Houten.

“You can put in as many tools and new processes as you want, but if you don’t change the people, if you don’t change their behaviour and the way they look at their business then it’s never going to work on the mid- to long term. Ultimately, we train our clients’ people to change their businesses so they work end-to-end with their customer in mind. You have to really look at a business end-to-end and ask how do day-to-day activities and decisions impact the customer and consumer at the end of the supply chain?

“It’s also really important that companies encourage collaboration across all of their departments in an effort to really break down silos and business functions. That’s the best way to think about what is best for customers and develop the optimum organisational setup to sustain and improve a segmented way of working across function, while delivering the right services in a profitable way.”

“ Supply chains have to become more flexible and adapt to changing consumer and customer demands at an increasingly faster pace” — Dr Stijn-Pieter van Houten, Director Supply Chain Strategy & Operations for Deloitte NW Europe

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THE VISUALFABRIQ CONNECTION Deloitte utilises VisualFabriq’s AI Enhanced Revenue Management Platform, says: “The VisualFabriq platform greatly reduces the routine work load for consumer-packaged goods organisations by largely automating demand creation, demand and budget reviews and promotion planning and making all of these available at the commercial level on which the sales organisation operates.

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to instead focus on interacting

Besides these immediate benefits

strategically and tactically with their

for the commercial function, solutions

customers. In these interactions, the

like VisualFabriq are increasingly

AI-driven scenario planning further

becoming the forefront of customer

supports the account managers by

centric, synchronised supply chain

creating direct insight into a full range

setups driving better customer service

of options and showing the volume

and higher profit margins via tailored

and financial pros and cons in detail

supply chain responses.

with a much higher level of reliability than traditional estimations. It shows these outcomes both from the point of the manufacturer and the retailer, optimising for the choice for win/win scenarios.” w w w. d e l o i t t e . c o m

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