Professional Documents
Culture Documents
Rakesh Churiwala
Sameer Nagpal
FEBRUARY 2012
Abstract
The consumer services industry is changing fast and becoming a lot more
competitive. Rapid technology changes combined with a hyper
connected and evolving consumer, means that organizations need to be
able to respond to these changes fast, and ensure a more dynamic decision
making process.
One of the key strategies organizations will need to adopt to survive and
flourish in this environment, is to optimize supply chain planning to
maximize return on investment.
An effective supply chain strategy will be imperative to not only address
market challenges but also proactively meet fluctuations within the
demand and supply chain. At HCL, we understand these challenges and
the risks and provide solutions that enable Retail organizations to
accelerate revenues and profits. By leveraging in-depth industry
knowledge and insights, HCL provides end-to-end solutions that
optimize processes across critical business functions such as merchandise
planning, demand planning and replenishment. In addition, our
solutions can be integrated with the core business processes to ensure that
the business stays in line with the customers need.
Some of the key industry trends in Supply Chain:
?
Customer-driven responsive supply shain
?
Shelf connected supply chain
?
Shelf analytics
?
Demand synchronization
?
Collaboration on forecasting and store replenishment
Target Audience
This whitepaper focuses on the key industry trends and challenges and
how HCLs service offerings delivered through the Supply Chain Center
of Excellence helps address these changes.
2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
Changing Landscape
Increasing globalization of the supply chain and shortening product
lifecycles means organizations will have to optimize their supply chain
planning to maximize the return on investment. Getting the right
product, at the right place, at the right time, and at the right price has
become a basic necessity. Apart from these business challenges,
organizations today are struggling to keep IT costs under control. Adding
to this challenge is the lack of standards in a complex, highly customized
IT environment, which leads to integration difficulties and makes any
additional development cumbersome and expensive.
The critical risks organizations face today:
?
Product complexity
?
Shortening of product life cycles
?
Extended supply chain
?
Managing multi-channel operations
?
Process complexity
?
High demand volatility
?
Increasing lead times
?
Lost sales and brand erosion due to stock outs
?
Highly competitive and margin sensitive industry
2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
?
Leverage and extend the value of the current transaction system
Logistics
Supply
Demand
Collaboration
ERP
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processes that connect the virtual shelf to the entire supply chain,
enabling them to develop localized assortments, shorten cycle times, set
profitable flow strategies, reduce inventories, trim costs and improve
shelf availability.
Shelf Analytics
Retailers today are not just leveraging historic data, but are adopting new
practices and solutions to analyze the shelf with an eye on the future.
Root cause analysis to identify phantom/ghost inventory, inappropriate
ordering parameters, inaccurate demand forecasts, insufficient shelfspace allocation and poor in-store execution is conducted to identify
which items are likely to be out of stock. Leveraging this information,
manufacturers can collaborate with retailers to adjust forecasting and
replenishment parameters, and correct inventory inaccuracies.
HCL Offering
HCLs JDA Practice is a hub for knowledge sharing and capability
building in domain areas such as retail, CPG, manufacturing,
pharmaceuticals and automobile industries and for specific JDA product
suites around supply chain planning, merchandising, store operations,
category management, etc. In the product-based service offerings, HCLs
JDA Practice has been both fast and extensive, and is offering muchneeded flexibility, productivity, cost and resource efficiency to
companies in managing their branching global businesses. The solutions
are focused on implementation, migration, health checks, application
support and maintenance, and integration and development around
supply chain planning and retail solutions.
2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
HCL works with industry specialists and customers through our Centers
of Excellence in supply chain. Our involvement in the industry ranges
from improving supply chain efficiency, streamlining store operations,
Gap Fit
Analysis
Deploy
Design
Build
Prototyping
CRP
Technical
Design
Integration
Testing
Business
Model
Design
Unit Testing
Requirement
s Gathering
Project
Planning
Customisation
Acceptance
Walkthrough
Deployment
& Training
Production
Set-up
Operate
Support
Analysis
ement
Project Manag
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Demand Planning
Up
gra JDA
de
C
Me OE
tho
do
log
y
Demand Classification
Exception Graphs
? Technical
? Upgrade
Functional
Upgrade
Automated Migration
Scripts
Quick Data
Setup for POC
Pre-upgrade
& Post-upgrade
checklist
Training
Template
nt
me
ge
na
Ma
m
gra
Pro
Replenishment Planning
POC
Accelerators
Solution Differentiator
The EZUpgrade framework is the perfect fit for the upgrade
landscape as it incorporates the following capabilities:
?
Besides being a technical upgrade, it increases the benefits for the
to a standard approach
?
Accurate time and cost estimates at an early stage of the upgrade
2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
?
Estimation of the required effort is more accurate due to better
2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
results in:
?
Decrease in end-user wait time by 31%.
?
Reduction in batch time by 12% - 15%.
2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
Integrated
Delivery
Model
Process
&
Methodology
Services
SLA Management
Framework
&
Reporting
Tools, Technology
&
Infrastructure
Engagement &
Project
Governance
Man Hours.
?
Adaptors on the JDA Manugistics suite of products Demand
Fulfillment, Market Manager and Collaborate.
?
Developed Indian Taxation as shelf ware, standard interfaces to
SAP/Oracle financials, and RAPID implementation framework
to bring down TCO.
?
Built an integration layer on Oracle PL/SQL for the Manugistics
suites of applications for a furniture retailer in Europe. This was
done by eliminating point-to-point interfaces and moving into a
subscription/publish based integration layer.
?
Supporting new developments on Manugistics version 7.x
Store Replenishment Planning, Days of the Week, Lost Sales,
New Capacity Planning, Global Replenishment Planning, etc.
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2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
Solutions
1
Demand
Management
Fulfillment
Management
Merchandising
Store Operations
Category
Management
Production Planning
& Scheduling
Inventory
Optimization
Implementation
Services
Product Version
Upgrade
Application
Integrations &
Development
Product
Evaluation and
Health Check
Hi-Tech
Application
Support &
Maintenance
Life Sciences
J
D
A
A
l
l
I
a
n
c
e
Tele
Communication
D
o
m
a
I
n
11
2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
?
Trained Consultants in domain, function and technology
?
Proven maturity to deliver optimized cost/value
implementation services
?
Early realization of product features with a framework for Rapid
implementation
?
Early movers in helping IKEA upgrade Manugistics version 6.x
Business Benefits
Through HCLs proven methodology and deep industry knowledge,
manufacturers and retailers can achieve the benefits of higher turnover,
improved margin, optimized inventory and service levels and reduction
in cost. Business benefits can be achieved in the following areas:
?
Synchronized demand and supply plans to result in higher
turnover.
?
Consumer insights to determine the right products to be
included in assortments, right pricing, and appropriate planning
for different locations to improve the top-line and margin.
?
The ability to sense demand signals all the way to the store and
hence bring forecast accuracy improvements and better in stock
levels.
?
Optimized local market assortments for each retail store leading
to a significant reduction of total supply network inventory and
less out-of stock situations.
?
Near real-time analysis capabilities for demand and supply that
allows retailers to gauge impacts of trade promotions, consumer
marketing activities, seasonality, and new products.
Case Study:
HCL helps a Global furniture retailer to revitalize its supply chain
The Global furniture retailer, with an annual turnover of 22.7 Bn, is the
leading market player with more than 300 stores in 30+ countries. Its
supply chain spans across geographies, with China, Poland, Italy and
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2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
Global Requirement
Planning
Supply Chain Planning Information Exchange
(Integration Layer on Oracle PL/SQL)
Store Replenishment Planning
Application Clustering
Support for Demand & Supply Planning
(Demand & Fulfillment v7.x)
Benefits
Support & Maint of Ver 6.x
-7%
Cross-skilling (Demand &
Fulfillment) and multi-skilling (DBA,
Sys Admin, Technical)
?
JDA Demand
?
JDA Fulfillment
?
JDA Market Manager
?
JDA Monitor
Business Challenges
?
Support growing complexity in business and increasing
operation pressures.
?
Complex forecasting model - High demand fluctuations and no
single forecast model for the entire supply chain.
?
Changes required in DFU hierarchy to support new ways of
working.
?
Lack of a platform to support higher business demands e.g. direct
deliveries, global replenishment planning and store
collaboration.
?
Introduction of new integration solutions to communicate with
external legacy systems.
?
Performance management and support challenges such as
multiple legacy applications, longer response and execution
times, and insufficient performance in batches.
?
Dependency on high cost JDA resources
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2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
Value Delivered
The key business benefits of this engagement:
?
Improved global view of the business which led to 5-7% forecast
problem management.
?
Lower TCO as the project was executed in the Distributed
(Onsite-Offshore) model
?
Increased batch execution runtime by 20-30%
?
Reduction in total incidents by 15% leading to reduced support
expenses
?
Reduction in the installation time from 30 man hours to 16 man
hours with least manual intervention through automated JDA
patch installation scripts created by HCL
?
Expandable architecture, thus improving maintenance,
scalability and leading to a more efficient system
Real Results:
?
Reduced TCO: Reduced cost of implementation, execution, and
Conclusion
The major trends and challenges we are witnessing across the industry
have a deep impact on profits and revenues. While changes in the supply
chain process will vary from company to company, they must freeze on
these changes in advance and then implement them in stages. It is also
important to remember that supply chain processes are interrelated,
compelling companies to evaluate how optimization fits into their longterm solution architectures. An integrated process consisting of a
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2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
Rakesh Churiwala
Deputy General Manager
Rakesh has over 19 years of experience in the retail domain and IT
Consulting. Rakesh is an accomplished PMP practitioner and has been
associated with the JDA practice, since its inception. He has been
instrumental in forging the partnership with JDA, growing the practice
and taking it to the Global level in a short period of time. He has served as
program manager for many JDA projects and his focus over the last few
years has been further developing the JDA relationship and capabilities.
Sameer Nagpal
Deputy General Manager
Sameer Nagpal has over 15 years of leadership experience with Fortune
100 companies in the area of Supply Chain Planning. Sameer is heading
the JDA Practice at HCL and involved in the Delivery to many Key
Accounts in the JDA Area. Sameer is season speaker and many of his
papers are published in India and International forums. Sameer is a
certified Supply Chain Professional (APICS CSCP). Sameer is an
Engineer in Production and Industrial Engineering and MBA in Supply
Chain Management from NITIE, India.
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2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
CUSTOM APPLICATION
SERVICES
ENGINEERING AND
R&D SERVICES
ENTERPRISE APPLICATION
SERVICES
ENTERPRISE
TRANSFORMATION SERVICES
IT INFRASTRUCTURE
MANAGEMENT
ABOUT HCL
HCL Technologies
BUSINESS PROCESS
OUTSOURCING
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