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TRANSCRIPT
Webinar: How a leading wine producer is making digital order
management a reality
August 2018
© 2018, HFS Research Ltd
Today’s Panel
Saurabh Gupta
Chief Strategy Officer
HFS Research
Gareth Bennett
Product Strategy and Services
OmPrompt
Claire Reaney
Head of Logistics,
Concha y Toro
Katherine Moorhouse
Head of Customer
Service, Concha Y Toro
What we’ll cover today
•Why supply chain management needs to adopt the Digital OneOffice vision
•The emergence of sentient supply chains
•Concha y Toro’s journey and lessons learnt
© 2018, HFS Research Ltd 3
The $3 trillion supply chain cost base1 continues to be a headache
1. HFS estimate for supply chain cost base for the global 2000 enterprises
Top- and bottom-
line losses
Inventory
sell-offs
Excessive
COGS
Unnecessary
overheads
Excessive
logistics costs
Poor CX and
customer churn
Negative
brand impact
Lack of data
& visibility
Ineffective
planning &
forecasting
Delayed
decision
making
Fragmented and
disjointed
processes
Process
inefficiencies
Ineffective
aftermarket
services
Ineffective
order
management
Faulty
datasets
Undetected
fraud, waste
& abuse
Production &
inventory
write-offs
Lagging
benchmarks
Transportation
chaos
Underperforming
CSAT
Lack of
standardizationRevenue leakage
Common
SCM pain-
points
Typical
reasons
Business
impact
Emerging technologies promise to transform business operations including supply chains
Digital organizations also need an operating framework that maps out how they operate in the future. Introducing the Digital OneOfficeTM
Breaking down silos
74% Say it’s business-critical to work without the rigidity of traditional organizational “silos”
© 2018, HFS Research Ltd 7
Source: Make Digital Your Core Strength!, 2018, HfS Research and Cognizant, n=395
Supply chains of the future need to follow the Digital OneOffice principles
• Collaborative (Collective outcomes)
• Unified (Without silos and hierarchies)
• Dynamic (Agile and scalable)
• Intelligent (Predictive, not reactive)
• Responsive (Real-time)
• Simple (Touchless and autonomous)
8 © 2018, HFS Research Ltd
Concha – Supply chain maturity
9 © 2018, HFS Research Ltd
More manual entry and more errors
Less time doing value added tasks
Higher costs and resources requirements
Less visibility of, and control over, customers’ orders
Printing EDI orders and keying them manually into our ERP system
EDI invoices were manually created and entered into EDI and customer portals
All orders sent to suppliers, transport companies, warehouses and freight forwarders sent on excel spreadsheets
No time for any value adding activity due to the manual nature of admin work
THE CHALLENGES WERE: EXAMPLES: WHERE WE WANT TO GO:
• Delivering a 40% increase in net margin from 2018-2020
• Delivering first class customer service
• Drive process and system efficiencies
• Design and implement more of OmPrompt’sSentient Supply Chain platform
• Fit to purpose customer contact strategy.
• Improve our customers’ perception of us
The top 3,000 global consumer
products makers deal with millions
of orders manually.
What Analog Order Management
Looks Like Today for Many Companies
Multiple, dis-jointed systems (e.g. ERP)
Cross-business silos
Manual, inefficient processes
Hidden operations/finance costs (DSO)
Inaccurate OTIF performance
Customer dis-satisfaction / retention
50%+ of companies
handle these transactions
with e-mail, spreadsheets
and paper.
Multi-Enterprise
Order Management ChallengesComplex processes and diverse data, systems, and stakeholders all combine to
make order management an extreme challenge.
CommunicationsStakeholders Master Data Misalignment
Documents & Information
Trading Terms & Requirements
Geography & Languages
Siloed Processes & Knowledge
Sold-To, Ship-To,
Bill-To, Customer
Material Codes,
UOM, Pricing
Email, EDI, AS2,
SFTP, API, BAPI
Structured,
semi-structured
and unstructured
Non-compliance
against agreed
terms of business
Disconnected
customer
interactions &
processes
Global operations
in multiple
languages
Customers,
Suppliers,
Warehousing and
Transportation
Enterprise Systems
Shortages, late
deliveries, failed
deliveries
Fulfilment Issues
ERP, TMS, WMS,
CRM, Middleware,
Legacy,
Disconnected, Non-
existent
Where is Your Supply Chain Today?
Implement New Technology
EDI, OCR, RPA,
NLP, Machine Learning, Cognitive computing
Digitize Siloed Data
Source and normalize data from any format and eliminate
manual order entry
Digitize Value-add Data
Standardize data in multiple formats for multi-enterprise communications
Enrich ALL Data
Structure and track information
relationships to find and fill gaps, first manually and then automatically
Monitor Processes
Auto-generate alerts and exception
management reporting
Build Supply Chain Picture
Total supply chain visibility across
fulfilment, logistics, customer care and
finance
Sentient Supply Chain
A supply chain
working to
improve itself
Where is your organization on the journey towards a more Sentient Supply Chain?
Concha Delivering First-class Customer Service
15 © 2018, HFS Research Ltd
1. Driving process & system efficiencies
and reducing the amount of manual
intervention and therefore errors
2. Seeking alternative perspectives to a
problem through AI and digital tools
3. Achieving end-to-end demand and
supply process visibility using
OmPrompt’s Sentient Supply Chain
Platform
4. Improving Advantage NF’s Score
Most importantly, all of these things result in INCREASED CUSTOMER SATISFACTION;
On-Time
In-Full delivery performance
Improved Forecast accuracy for the
business
Orders are the lifeblood of any company like ours and OmPrompthelps us run the circulatory system for Concha y Toro.
We do this by
Defining future business operations
HFSResearch.com | @HFSResearch