Challenge
A global leading foodservice retailer’s vast distribution network consisted of dozens of unique Distribution Centers (DCs) that serviced a wide range of products and shipped to more than 10,000 points of delivery. The DCs were regionally managed which led to a system of disparate processes and reporting tools that management used for evaluating performance and budgeting across DCs. It was clear the company needed a collaborative, enterprise-wide process for planning, forecasting and tracking and responding.
The client’s Budgeting and DC Performance Review process included other gaps:
- Comparing and evaluating DCs proved to be difficult
- Resulting budgeting process was conducted manually
- Multiple data sources
- Time consuming rounds of data collection, analysis, review and discussions between supply chain managers, DCs and others
- Difficulty tracking and monitoring budgeted costs and identifying variance drivers
Solution
SCA Technologies was engaged to facilitate the design, development and implementation of a new budgeting process. We implemented Analyzer™, the cornerstone of SCA Planner™, our hosted enterprise software for cost management and cost optimization that deploys best practice collaborative business processes to manage cost of goods and margins.
- Business Process Re-Engineering: SCA Technologies’ consultants worked closely with the organization’s field managers, distributors and other stakeholders to conduct a full Business Process ReEngineering (BPR) review to understand the company’s business needs, current budgeting processes and potential gaps. The team worked collaboratively to identify and build the appropriate process mapping, and prototypes.
- System Implementation: System Implementation Services are used for the business process transformation initiative of our customers. Once system specifications from the BPR were validated and agreed upon, SCA software engineers configured the software to meet the client’s needs. SCA staff then provided training that afforded full understanding and clarity of the system’s process, reports and software.
Analyzer provided the company with enterprise-wide budget analysis around financial and operational factors enabling collaboration with the different business units. The software allowed supply chain managers to quickly create a solution that met evolving business needs by evaluating historical trends and benchmarks. In addition, Analyzer empowered managers to identify potential cost variances and take appropriate and timely corrective action.
Results
- Standardized process for budget, actual and variance reporting using one source of record for budgeting information across all suppliers and business units
- Realized ROI of 6X – 12X
- Accelerated quarterly reporting cycle from 35 to 19 days
- Provided management with visibility into annual budget numbers two months earlier, allowing time for a collaborative and iterative approach that resulted in a more accurate budget for the
forthcoming year - Helped DCs to identify improvement opportunities by providing benchmark KPIs (On-Time %, Warehouse Productivity, Off -Load Rate) which allowed management to compare system averages and similar DCs
- Team worked collaboratively with the same data and assumptions, eliminating back and forth correspondence and leading to faster decision making