ORACLEEXECUTIVEBRIEF

ORACLEAGILEPLMFORTHE
CONSUMERPACKAGEDGOODS
INDUSTRY

EnterprisePLMisastrategicapproachto
managingthelifecycleofaproduct
throughoutitsfullvaluechain:frominitial
requirementsgatheringthroughtodesign,
prototyping,production,customization,
serviceandretirement.

AGILE
PRODUCTLIFECYCLE
MANAGEMENT

Formorethanthreedecades,theconsumerpackagedgoodsindustrygrew
exponentially,spurredbyinnovationandbrandproliferation.However,with
therecentrecession,thattrendbegantoreverse,andsuddenly,companieswere
seeingtheirmarketvaluesgoflatforthefirsttimeinrecentmemory.Today,
facedwithslowerpopulationgrowth,morediscerningcustomersandan
economicenvironmentthatmakesraisingpricesdifficult,thepressureisonfor
packagedgoodscompaniestobemoreefficientthanever,achieving
productivitygainsandcollaborationthatarekeytoremainingcompetitivein
todayschallengingmarket.OraclesEnterprisePLMsolution,AgilePLM
makesthistaskmucheasierbyprovidingacompleteandindustryprovensuite
ofapplicationsthatenableconsumerpackagedgoodsmanufacturerstogain
controlovereveryaspectoftheproductlifecycle.

DrivingBusinessValueintheConsumerPackagedGoodsIndustry

Tosucceedintodayshighlycompetitivemarketplace,consumerpackagedgoods(CPG)
companiesmustacceleratethepaceofproductinnovation,developmentandintroductionsto
takeadvantageofnarrowwindowsofopportunity,whileatthesametimeleveraging
outsourcedmanufacturingandensuringregulatorycompliance.Addingtothechallengeare
marketconsolidation,morechoicesforcustomersandburgeoningcategories,allofwhich
meanthateffectivemanagementoflargeproductportfoliosandtheabilitytoreactrapidlyto
marketinformationcanadduptothedifferencebetweendominatingamarketandbecoming
irrelevant.

Astheeconomybeginstoshowsignsof
recovery,consumergoodsmanufacturers
areagainrecognizingtheinherent
complexityoftheirbusinesses.Manyare
seekingtoimprovecoreprocesses
aroundproductdevelopment,forecasting,
marketingandpromotion,and
collaboration.
IDCManufacturingInsights,Good
IdeasAreNotEnough:ExecutionIs
theKeytoSustainedProductSuccess,
December2011

OraclesAgilePLMfortheCPGindustryenablescompaniestostandardizeandoptimize
productlifecycleprocesses,achievingnewlevelsofefficiencyandcompliance.Acomplete
suiteofsolutionsaddressingeverystagefromconcepttocommercialization,AgilePLM
deliversenhancedprocessvisibilitysupportingstreamlinedpackagingandspecification
management,fasterregulatoryreportingandacceleratedtimestomarket.
Providingabroadsuiteofbestpractice,enterpriseclassPLMsolutions,AgilePLMhelps
companiesgetthemostfromtheirproductsbyfacilitatingasingleenterpriseviewofthe
productrecordacrosstheextendedenterprise.Builtonasecureandscalablestandardsbased
architecture,AgilePLMcanbequicklyandcosteffectivelyimplementedtoprovideseamless
interoperabilitywithexistingITenvironments,comprehensivedecisionsupportandglobal
supportforcollaborativelifecycleprocesses.
Withitssinglesourceofproductdata,powerfulproductportfolioanalyticscapabilitiesand
clearvisibilityacrosseverystageintheproductdevelopmentandcommercializationcycle,
AgilePLMsolutionsarealreadyhelpingindustryleaderslikeCocaCola,Heinz,Tysonand
Herbalifeandtobringworldclassproductstoaglobalmarketquickly,profitablyand
efficiently.

ORACLEEXECUTIVEBRIEF

JOINTHEMANYCPGCOMPANIES
THATHAVEIMPLEMENTEDAGILE
PLM
ChickFilA
CocaCola
Herbalife

AgileProductLifecycleManagementforCPG
Includedamongthecoreconsumerpackagedgoodsprocessesandrequirementssupportedby
AgilePLMarethefollowing:
Newproductdevelopmentandintroduction.CompaniescanuseAgilePLMsbestpractice
templatestomanageinnovationandcrossfunctionalproductdevelopmentduringthenew
productdevelopmentandintroductionphase.

Kroger
Leapfrog
McDonalds
SugarFoods
TysonFoods

Packagingandartworkmanagement.AgilePLMmakesitpossibleforcompaniesto
streamlinepackagingandartmanagementprocessessothatnewproductscanbereleased
quicklyandexistingproductscanberefreshedfrequently.Inaddition,AgilePLMsolutions
makeiteasytoviewandcontroloutsourcedpackagingandart(includingpackagingdesign,
reprographicsandmore),whileensuringregulatorycompliance.
Programandportfoliomanagement.UsingAgilePLM,companiescancreateacentralized
viewofprogramsandrelatedproductinformation,includingproducthierarchy,operational
informationandassociatedchanges.Inaddition,theycantakeadvantageofAgilePLMsbest
practicetemplates,centralizedissuesmanagement,andconfigurablealertstomanageteam
deliverablesandprograms.AndbecauseofAgilePLMsdashboarddisplayofresources,costs
andopportunities,companiescangiveexecutivedecisionmakerscontroloftheproduct
portfolio.
Specificationsmanagement.WithAgilePLM,companiescanmanagerawmaterials,
intermediatefinishedgoods,packaging,labels,artworkandtestmethods.Theycanalsouse
AgilePLMtocreateandmanagespecificationsaccordingtorigorousstructuredchange
processes,andtoassociatespecificationswithvariousproducts,maintainingtheabilityto
trackchangesandhistory.
Externalandinternalcollaboration.UsingAgilePLM,companiescanmanagebusiness
processbasedaccesstoproductinformationbothinternallyandexternally(foroutsourced
partnerssuchasdesigners,packagers,productionhouses,manufacturers,andsuppliers).
CompaniesalsorelyonAgileProductLifecycleManagementtoproviderolesbasedvisibility
andaccessaswellasattributelevelsecuritytoprotectconfidentialinformation.
Brandrefreshmentandreview.Theworkisntoveronceaproducthasbeenlaunched.After
aproducthasbeenreleased,AgilePLMcanbeutilizedtorefreshthebrandandreviewitfor
extension opportunities,toreleasenewproductvariants,andtocontinuouslymanageproduct
associatedcosts.
ProductLifecycleAnalytics:Deliverspreconfigured,yetflexibledashboardsandreporting
facilitiesfortheproductionofaccurate,detailedreportscoveringeveryaspectoftheproduct
lifecycle

ORACLEEXECUTIVEBRIEF

QuantifiableResults

ConsumerpackagedgoodscompaniesdeployingOraclesAgilePLMsolutionshaveseen
quantifiableimprovementsinanumberofareasincluding:

60%reductioninproductintroductiontime

5%reductionindirectmaterialcosts

25%reductioninoperationalcosts

Inaddition,thesecompaniesaremoreeasilyabletocomplywithincreasinglystrictregulatory
requirements.Asaresult,suchcompanieshavebeenabletosustainthebenefitsoffaster
timestomarket,betterqualityproducts,costeffectivecomplianceandincreasedbrand
equityallkeyfactorsinkeepingcompetitiveintodaysconsumerpackagedgoodsmarket.

CaseStudy:Herbalife

Herbalifeisaglobalnutritioncompanywithproductsdesignedtohelpweightmanagement,
delivertargetednutritionandenhanceenergy,fitnessandpersonalwellbeing.

OraclesEnterprisePLMapplicationsare
vitaltoourabilitytoachieveournumber
onegoalconsistentlydeliveringthebest
nutritionandweightmanagement
productsintheworld.

Herbalifeneededtoeffectivelymanagetheglobaldevelopmentofmorethan1,600products.
Previously,thecompanysextensiveproductdatacontainingcomplexformulasand
historieshadnotbeenunified,makingitdifficulttoshareproductinformationboth
internallyandwithregulators.Thecompanywantedtoacceleratetimetomarketforitsnew
productsandspeeddeliverytoanetworkofovertwomillionindependentdistributors.

MarkSchissel,CIO,Herbalife

OracleEnterprisePLMenabledHerbalifeto:

Createasingle,unifiedsourceoftruthforproductinformation

Improvecollaborationandaccountabilityacrossitsglobaloperations

Clearlylog,trackandrespondtoanymanufacturingdefectsanddistributorcomplaints

Introducetimely,standardizedandsecurereporting

Asaresult,thecompanyhasenhancedefficiencyandvisibilitythroughoutitsproduct
developmentandproductchangeprocesses,supportingbetterinformeddecisionsand
regulatorycompliancewhileincreasingthespeedwithwhichdevelopmentissuesare
resolved.

ContactUs
FormoreinformationaboutOracleAgilePLMapplications,visitoracle.comorcall+1.800.ORACLE1tospeaktoanOraclerepresentative.

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