CPG






Our solutions for the CPG market

CPG market

CPG products are generally sold in large quantities with low profit margins. Small percentage variations of these margins can have a significant effect on the company’s profitable gains. These features require that the company pays specific attention to the significant impact the production has on the overall logistic management. Process mapping, logistics and production are widespread and require a certain complexity in the planning and control of the entire network. Low contribution margins force the company to keep under constant control the price of goods and trading costs (bonuses), which if managed efficiently, will definitely make a difference.

AKERON PROPOSES INTEGRATED AND SYNERGIC PROCESSES IN SUPPORT OF ALL PROBLEMS RELEVANT TO CPG COMPANIES

Processes

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Integrated Production Planning: this acronym generally indicates a weekly process whereby a review of the sales forecast is conducted and consequently produces a forecast of the production demand and thereafter, a proper programming of the final competence.
The forecast of the Sales Demand is a collaborative process which involves the sales force, from which an estimate of sales is required (often only in quantity) using the customer/product detail. From the Sales Demand it is possible to determine what the production demand is (or rather a requirement of sale which will then be determined as  the production demand net of stocks) via the allocation of sales on the warehouses or factories. Together with the forecast of inertial quantities, which do not take into consideration possible promotional events, the Sales Demand and consequently the Demand Planning is enhanced by what is considered to be the promotional phenomenon.
By programming shifts/man or shifts/product, it is possible to make a macro verification of the sustainability of the Demand and then through a collaborative (and reiterative) process we can determine the master production schedule or main plan of production. This is then passed on to the scheduler which determines the scheduling and planning of supply lines.
This process is achieved through the joint use of Tagetik and the Akeron Supply Chain. Thanks to the skills of our technical (on app) and functional (on problem) consultants, we are able to guarantee extremely short project deadlines creating a significant improvement in efficiency within the companies: reduction of stocks and a higher level of customer service.

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Integrated Financial Planning is an integrated process which usually operates on a monthly basis and combines in one model both planning and monitoring activities both in the financial and operative area. IFP was designed to provide a close integration between sales (either budget, estimate at completion or rolling forecast) and operational forecasting as the planning of purchasing, stock and production. Each change to the sales plan involves a reassignment of the operational part, a recalculation of cost of sales and inventory, causing in some cases even a recalculation of the part relating to the income and expenses of financial management. This kind of approach is well supported by the built-in functionalities found in CCH Tagetik, that Akeron designed and transferred in OEM. Thanks to this specific expertise, our consultants can guarantee successfully projects within a short deadline. This methodology of integrated planning may be used in an efficient way both in CPG companies and manufacturing plants that use a mass production process.

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Our idea of Sales and Operational Planning is the sum of the two processes mentioned above. Theoretically, S&OP is defined as integrated planning processes involving Sales, Supply chain and production. From our experience we have seen that it is rarely possible to do this by using an analytical process. Our point of view is that such a process must be dealt with in an aggregated way orientated towards the CFO, as above indicated in the IFP, and in an analytical way orientated towards sales and production as illustrated in the IPP.

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The profitability analysis is a process that reconciles the margin analysis created as if it were a financial report of the management of retail in the Sales department (customer/product). In fact, it is referred to often as Product or Customer Profitability. This process ensures that the revenues deriving from re-invoicing systems are integrated and reconciled with financial reporting. The calculation of the sales cost is done in a rigorously actual way, and if such a calculation is made at a SKU level, the total should perfectly square with the same item in the balance sheet (perhaps expressed as in purchases and unsold stock). All other costs (generally referring to those that are within the trading margin but may be extended to Full Cost processes) are then allocated analytically on each line of the invoice. In the event that the logical model with which the budget is made (not just revenues but also the cost of goods sold) is consistent with the final model, it is possible to calculate and value the analysis of variances. These may be basic variances of revenues (delta price, quantity, change, mix) or more complex variances of the cost of sales (therefore on the margin), including commodity (price, mix and quantity) and manufacturing (rates and efficiencies) effects. This whole process is entirely supported by the CCH Tagetik features of the PCP&C module (production, cost, planning & control) that Akeron developed and transferred in OEM to CCH Tagetik.

Our Aim

  • Improve sales planning related to the actual margin by assessing the impact of the advertising campaign and the introduction of new products
  • Optimize demand planning to help improve production processes and policies on stocks
  • Make budgeting, planning and forecasting (BP&F) processes faster and more frequent to promote the concept of collaboration in order to analyze the profitability meticulously, and manage closing procedures in a timely manner to quickly provide accurate information to both  management and investors
  • Increase the control on margin and planning analysis from both an economic and financial point of view
  • Improve the system of production planning by increasing the service and decreasing stocks

Our Solution

THANKS TO THE PARTNERSHIP WITH CCH TAGETIK, THE SOLUTION PROPOSED BY AKERON IN CFO AREA IS DEVELOPED AROUND THE FOLLOWING TWO MAIN ASPECTS:

retail market ico 1Unity,
collaboration,
builtin

retail market ico 2

Specific features

This is a complete and integrated CPM solution for the management of cross industries processes. Solutions market leader with worldwide acknowledgments and high level ratings given by analysts like Gartner and Forrester. All of which has created the following benefits:

 

  • The use of one single database and dimensional module allows processes to be unified and integrated making collaboration among contributors easier
  • Using the same platform per the actual and provisional data provides perfect conditions for the analysis of variances
  • Created with a built-in feature which helps reduce project deadlines
  • A fully integrated solution for financial planning/forecasting and sales/operational planning

There are program-specific features in the software solution that offer a prompt response to typical processes found in the CPG market:

 

  • Planning and management of production costs and analysis of variances using the CCH Tagetik PCP&C module
  • Management of problems related to promotional bonuses by using Akeron TP
  • Planning and management of costs and investments using the CCH Tagetik Expense Management module
  • Planning and scheduling of production and sales using Akeron SC

Key Features and Advantages

STRATEGY AND EFFICIENCY

The model we propose allows the management of highly strategic processes for the CPG industry by ensuring strong efficiency in the production process planning and management control.

STRUCTURAL SAVING

Our module can be integrated into existing business processes without requiring disposal in the event that they are already well-functioning or alternatively they can replace those that are near termination.

MODULE MANAGEMENT

The module that controls CPM is centrally managed on a single application guaranteeing coherence among the various project areas.

BUDGET RECONCILIATION

The entire planning process is managed on a single platform, therefore the reconciliation and collaboration among the various parts of the company is guaranteed.

VARIANCES ANALYSIS

The structure of our solution allows you to make an immediate analysis of the variances, as both forecasting and final balance processes are united in one single area. It is possible to verify these analyses in the classic field of business trading, but above all in those related to production costs, off-invoice in general.

BUILT IN A AND VERTICAL COMPETENCES

Our product is one of a kind as it completes CCH Tagetik’s offer by adding to the benefits of its built-in modules specific skills of our vertical products (not in CPM): Akeron TP for the management of promotional bonuses and Akeron SC  for production scheduling and planning of supply.

COST- EFFECTIVE APPROACH

The solution we propose is able to manage the complex matters of company growth by reducing in a significant way all operating costs, such as  hardware infrastructure, licenses, fees, consultancy services and application maintenance.


 

Some of our clients

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