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6 CASE STUDY PROBLEM SOLUTION Digitizing The Supply Chain From Planning and Procurement To Execution Codex4544

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51 views27 pages

6 CASE STUDY PROBLEM SOLUTION Digitizing The Supply Chain From Planning and Procurement To Execution Codex4544

6 CASE STUDY PROBLEM SOLUTION Digitizing the Supply Chain From Planning and Procurement to Execution Codex4544

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Ataul Aziz Ikram
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 27

Digitizing the Supply

Chain, from Planning and


Procurement to Execution
Here’s how 19 leading businesses have increased efficiency, realized cost savings
and prepared for growth by applying digital technologies.

June 2019
Index
3 The Digital Path to Supply Chain Leadership

Planning 5 Supply Meets Demand with Major Toy Maker’s New Global Planning System
6 Integrated Business Planning Sets Up Dutch Electronics Business for
Future Growth
7 Better Intelligence Means Better Business for a Global Manufacturer
8 With Improved Inventory Visibility, Automotive OEM Improves Control Over
Supply, Demand and Partners

Execution 10 Warehouse Management System Boosts Efficiency, Accuracy for Global Business
11 A New Approach to Transportation Management Reaps Savings and Agility for
Leading Retailer
12 Retailer Boosts Accuracy, Slashes Costs with Warehouse Management Upgrade
13 New Warehouse Management System Boosts Productivity and Reduces TCO
for Major Retailer

Procurement & Sourcing 15 Pharma Services Provider Streamlines Procure-to-Pay, Speeds Supplier Activities
16 Automated Procure-to-Pay Reaps Cost Savings, Better Vendor Relationships
for Corporate Properties Group
17 Multi-brand Restaurant Company Streamlines Enterprise Business Processes
18 Waste Management Company Increases Financial Control with ERP Overhaul
19 An Optimized Contract Lifecycle Management System Delivers Spend Visibility
to Education Publisher
20 Large Healthcare System Streamlines Disjointed Workflows and Unifies Data
through the Cloud

Digital Supply Chain 22 With Better Visibility into Inventory and Costs, Biotech Business Improves
Forecasting and Profitability
23 By Revamping Supply Chain Processes, Packaging Provider Realizes Cost
Savings, Agility
24 Online Retailer Enables International Growth with New Global Stock
Management Strategy
25 Global Commodity Trader Expands Business with Scalable Trading Platform
26 Fleet Analytics Improves Productivity and Optimizes Capital Spending for
Mining Operation

2 / Digitizing the Supply Chain, from Planning and Procurement to Execution


The Digital Path to Supply Chain Leadership

As consumers, we have ever-increasing expectations for convenience (e.g., one-touch


orders), personalization (e.g., recommended purchases), visibility (e.g., order tracking)
and delivery (e.g., one-day free shipping). These experiences have trained us to have
similar expectations in our business environment.
Businesses that aren’t able to adjust and respond to this new level of expectation face higher hurdles to retaining
market relevance. This is why industry leaders are relentlessly pressing their advantage to distance themselves from
the crowd. Catching up will require a dedicated approach to attaining customer insight, scale and reach.

At the same time, an increasing number of technologies and capabilities — Internet of Things (IoT), artificial intelligence
(AI), machine learning (ML), robotic process automation (RPA), intelligent automation, blockchain, robotics, etc. —
are being touted as solutions for managing and responding to ongoing disruption. Most enterprises have had at least
a proof-of-concept or pilot to test out and gain more experience with these new digital enablers, but only a few have
been able to take these enablers and deploy them at scale in production environments.

At Cognizant, we believe supply chain leaders succeed when they leverage detailed insight about their products,
customers and operations to formulate a distinctive customer experience. These leaders take their desired customer
experience design and implement it into their processes, policies, data, systems and measurements. And they use
enabling technologies to boost speed, visibility and intelligence in their supply chains.

To help businesses get started, we’ve developed snapshots of enterprises that have implemented building blocks of
success across the supply chain domains of planning, execution, procurement and digital. Successful transformation
across the entire enterprise will require more than just success in one domain area; that’s why the challenge for supply
chain professionals is to take these building blocks and assemble them into an operating model that enables them to
deliver a distinct and differentiated customer experience.

We hope these case studies will be helpful as a starting point on your own endeavors. Best wishes on your journey!

Hong Mo Yang
Senior Vice President, Supply Chain Practice leader,
Cognizant

3 / Digitizing the Supply Chain, from Planning and Procurement to Execution


Planning
Consumer Goods

Results
Supply Meets Demand with Major Toy Maker’s New Global ❙❙ Improved planning efficiency
by 11%.
Planning System
❙❙ Reduced inventory
obsolescence by 20%.
The Challenge
❙❙ Improved in-stocks by 1.4%.
One of the largest toy manufacturers
in the world wanted to improve the ❙❙ Reduced air freight by 15%.
transparency of its planning and
❙❙ Improved finished-goods
execution system, with the goal of
inventory turns by 0.6%.
expanding its global presence and
maintaining a competitive edge.
This required it to leverage new-
generation digital technologies while
sustaining its core commercial and
operational functionalities.

In the face of constrained supply


and frequent global bottlenecks,
a key goal was to prioritize supply
based on multiple demand types and
reduce supply chain friction resulting
from fluctuating demand. The
company’s highly seasonal products The Solution regional and local distribution
centers, using pooling techniques.
experienced sharp demand peaks We worked with the manufacturer
To resolve scarce supply situations, it
and troughs, with short lifecycles. to design new business processes
also provides fair-share and demand-
However, the company’s current and streamline current ones as part
type prioritization based on business
system required continuous manual of a new global planning system.
requirements.
intervention by planners to manage Inventory allocation is now based on
and resolve exceptions, leading to weekly demand signals at a micro The toy maker can now operate with
reduced productivity. level, with visibility on inventory fast, transparent and fact-based
positions. Using system simulations, decision-making. By reducing
The toy manufacturer also needed the company can explore multiple manual intervention, employees can
to reduce forecast bias and options for supply response to refocus on higher-value work. The
inaccuracies to avoid inflating sudden demand changes. increased visibility and optimized
inventory coverage or stock-outs.
process flows make the system
Other challenges included high air The system is designed to use multi-
highly scalable and encourage cross-
freight and inventory holding costs. echelon optimization to ensure
organizational standardization.
optimal allocation of stock between

BACK TO INDEX
5 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Consumer Goods

Results
Integrated Business Planning Sets Up Dutch Electronics Business ❙❙ Created the foundation for
integrated business planning,
for Future Growth data-driven decision-making
and business growth.
The Challenge ❙❙ Improved forecasting,
To support business growth, a Dutch resulting in:
electronics company needed to
➢➢ 20% reduction in weighted
improve its forecasting capability by
mean average performance
establishing an integrated business
exception.
planning approach. The company
creates meaningful innovations in ➢➢ 15% reduction in
the areas of healthcare, consumer forecast bias.
lifestyle and lighting.
➢➢ 10% improvement in
The business needed to close silo customer service level KPI.
gaps between its market groups
and improve supply and demand
visibility. It knew it needed to shift
into data-driven decision-making
by enhancing its data analysis
capabilities and establishing a single
set of data.
We first rolled out the templates to capability. Through its improved
The Solution the legacy ERP backend system, forecasting capability, it can now
and then transitioned them to the sell and deliver the right product at
We designed, built and implemented company’s new SAP environment. the right moment. Standard weekly,
a supply chain planning and execution monthly and annual review cycles
capability for the company, starting We conducted a limited deployment identify gaps and issues early in
with its personal health market. to the North America market, and the process, reducing last-minute
then fully rolled out the template for problems, and the various markets
The solution is based on several JDA several modules to personal health
modules running on the JDA Supply are better able to collaborate. The
markets throughout Europe. We also company can also support smarter
Chain Planning platform: ESP & defined extensions to Asia Pacific
Order Promiser, Sales & Operations and leaner processes, working
and Latin American markets. with a single set of data, and is fully
Planning (S&OP), Demand, Demand
360 and Inventory Optimization. Through the program, the company prepared to shift to data-driven
is well on its way to shaping the future decision making.
of its integrated business planning

BACK TO INDEX
6 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Manufacturing

Results
Better Intelligence Means Better Business The manufacturer is now able to:
for a Global Manufacturer ❙❙ Measure progress toward
organizational success factors
and goals via key performance
The Challenge indicators of actual and
With its disjointed business operating plans.
intelligence systems, a global ❙❙ Perform detailed analysis
manufacturer lacked an enterprise (with recommendations) of
reporting and analytics capability. KPIs by month, quarter, year,
The company had no unified area, region, country, business,
dashboard for estimating key division and commodity.
manufacturing metrics and no
visibility into cross-network inventory. ❙❙ View KPIs on net factory cost,
Its existing rebate claims process was inventory balance, inventory
also manual and cumbersome. turns, nonworking inventory,
etc.
The company operates several
diversified businesses that ❙❙ Analyze data in U.S. dollars or
manufacture more than 50,000 in a region’s native currency.
products, ranging from office
supplies to high-end materials
used for medical and astronomical
research across five continents.

The Solution
We provided an array of solutions statistics. An additional application for different geographies and
to the manufacturer, including a provides inventory reporting by purchaser profiles.
dashboard for global manufacturing capturing inventory over time by
metrics, with product manufacturing location, supplier and organization. We also designed and implemented
and order fulfillment data. We also a supply chain scorecard that
enabled dynamic supply chain We also established a regional self- presents a set of key performance
planning via an application that loads supply capability that incorporates indicators, based on the
exception histories, adds root cause key metrics such as net sales, net manufacturer’s requirements. A
to all exceptions, analyzes trends and factory cost, intercompany purchases, sales analysis and reporting system
enables inventory visibility and vital imports and vendor purchases. analyzes sales by product, customer
Freight cost reports are now available and territory/sales organization.

BACK TO INDEX
7 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Manufacturing

Results
With Improved Inventory Visibility, Automotive OEM Improves ❙❙ Reduced premium shipments
by 15%, which lowered logistics
Control Over Supply, Demand and Partners costs, reduced “noise” in
the system and improved
The Challenge availability of materials.
To ensure its competitiveness, ❙❙ Improved forward visibility
one of the world’s largest automotive of supply/demand issues,
OEMs needed more timely and resulting in a 12% reduction in
accurate information to make critical stock-outs and excess stock.
business decisions. The North
❙❙ Enabled risk-pooling by
American-based business needed
improving the management of
a transparent view into the global
globally shared parts, leading
requirements for any given part
to 10% inventory reduction.
number, as well as visibility into the
supply and demand data stored in its ❙❙ Increased efficiency of
scenario simulation toolset. supplier management and
collaboration, leading to agile
The company also needed to procurement processes.
improve its ability to collaborate
with and manage its suppliers.

The Solution
After helping the company define
its goals and objectives for a global
constraint management solution,
we developed a conceptual design
and a plan to implement the Kinaxis
RapidResponse concurrent
planning system.
We analyzed the as-is and to-be developed the data strategy. We
processes and validated the conducted a test plan and validation
processes to be built, and then strategy before rolling out the
identified the data sources and system globally.

BACK TO INDEX
8 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Execution
Consumer Goods

Results
Warehouse Management System Boosts Efficiency, Accuracy for ❙❙ Reduced manual effort
by 15%, enabled by
Global Business system-determined put-
away; automated location
The Challenge management; label printing
and allocation; and system-
A global health, beauty and
generated picking and
homecare company wanted to
replenishment.
improve its inventory accuracy and
fulfillment timeframes, while also ❙❙ Increased cost savings
boosting its efficiency and cost by $200,000 annually,
savings. enabled by racking space,
consolidation of warehouse
Based in the U.S., the company operations and optimized
specializes in the use of multi-level cartonization.
marketing to sell health, beauty, and
homecare products. It manufactures ❙❙ Established inventory
and sells its own products, as well as accuracy of greater than 98%,
brand-name products from other enabled by inventory tracking
companies, through a network to item, lot, location, pallet and
of three million independent inventory status; automated
distributors worldwide. location management
and removal of bin card;
The Solution and automated inventory
We worked with the company expiration management.
to build a robust warehouse ❙❙ Established picking accuracy
management system to standardize of greater than 98%, enabled
warehouse operations across the expirations. To ensure cost-effective an accurate and efficient method of by system-managed and
region. The system’s capabilities packaging, we also optimized paperless picking, putting or sorting triggered replenishment,
include automated put-away, cartonization logic. and assembling products. leading to better distribution
allocation, picking, packing and of inventory.
replenishment. To enable these capabilities, we We also established an effective
implemented the JDA Warehouse way to assign airway bill numbers for ❙❙ Decreased fulfillment time by
We also established a highly detailed Management System, and integrated each consignment, and seamlessly 20%, enabled by automated
approach to inventory management, it with a new parcel-tracking and integrated the solution with shipping label and picklist
including management of product pick-to-light system, a light-directed upstream and downstream systems. generation; automated
picking technology that provides inventory allocation;
introduction of “pick to light”
and picklist-based picking for
repack cartons.

BACK TO INDEX
10 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Retail

Results
A New Approach to Transportation Management Reaps Savings ❙❙ Saved over $20 million in
annual costs.
and Agility for Leading Retailer
❙❙ Improved capacity utilization
over 20% through increased
The Challenge backhaul (from 10% to
With the need to reduce costs and over 20%).
improve capacity utilization, a leading
❙❙ Improved visibility for planning
U.S. general merchandise and
and execution from 30%-
grocery retailer decided to upgrade
40% to over 80% of domestic
its JDA-based transportation
transportation.
management system from Version
6.3.1 to Version 8.0, and adopt ❙❙ Established network flexibility,
best practices in transportation with the goal of closing down
management. remote distribution centers
and optimizing transport
The business wanted to increase via hubs.
routing productivity by utilizing
system-generated routes; improve ❙❙ Enabled support for roundtrip
efficiency by identifying and and advance backhaul moves
exploiting backhaul opportunities; for all merchandise types.
prepare for future initiatives and ❙❙ Significantly decreased
enable backhaul by rebuilding tariffs; operational costs due to a
and update its financial system and simplified tariff structure and
processes to take advantage of these lower invoice volume.
new functionalities.
❙❙ Improved tariff governance
The Solution and planning performance for
We redesigned the retailer’s more than 30,000 shipments
transportation planning processes continuous moves/trips. To improve acted as a managed services provider per day.
to enable more systematic load operational efficiencies, we enabling to execute program delivery, ❙❙ Laid the foundation for further
and route planning, with the goal of trip-level communications via implement change control, ensure transportation planning/
increasing system autonomy. We also redesigned EDI capabilities. infrastructure support and enable an optimization and cost
redesigned the backhaul process to effective project hand-over. allocation for future initiatives.
leverage the system’s ability to plan We worked with the retailer to
rationalize its tariff structure, and

BACK TO INDEX
11 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Retail

Results
Retailer Boosts Accuracy, Slashes Costs with Warehouse ❙❙ Eliminated an estimated
$2 million per year in
Management Upgrade maintenance and
support costs.
The Challenge ❙❙ Ensured zero disruption to
The second largest home normal business operations
improvement retailer in the during the migration, with
U.S. needed to upgrade its JDA warehouses exceeding their
Software warehouse management normal capacity on Day 1 of
system. Because it was using an their operations with the
outdated version, it was unable new version.
to move to newer versions of its
❙❙ Improved replenishment
operating system, and it faced
processes and fulfillment
an unmanageable number of
accuracy.
customizations, leading to very
high maintenance costs and system ❙❙ Reduced integration errors
instability. Its aging infrastructure also 80% by enhancing the
affected the stability and scalability of advance shipment notice/
the IT landscape. purchase order/item
download process.
The company serves 16 million clients
per week and has over 1,800 stores ❙❙ Reduced manual effort 70% by
in North America, with sales of $59 automating the pre-paid order
billion per year. process.
❙❙ Increased shipment accuracy
The Solution
We helped the retailer adopt best To address open issues, we 80% by improving the order-
Through close collaboration with building process and near-
industry practices, such as the incorporated “daily war room” and
the retailer and JDA Software, real-time inventory snapshot
use of a configuration matrix and sync meetings with onsite and
we planned, designed, built and capability.
checklist that ensured no gaps offshore teams. And we developed
implemented the new system, and
in the business’s configuration batch scripts for automated ❙❙ Improved inventory
ensured a successful migration from
requirements. We also helped code rollouts ­­­— a first-of-its-kind accuracy 80%.
RP 2006 to JDA WMS 8.2.
connect vendors in meaningful and innovation.
accountable ways by utilizing an
integrated program plan tracked by
the program management team.

BACK TO INDEX
12 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Retail

Results
New Warehouse Management System Boosts Productivity and ❙❙ Reduced total cost of
ownership for the warehouse
Reduces TCO for Major Retailer management systems by
40% by providing an up-
The Challenge to-date common platform
and rationalizing the server
In order to improve its inventory
landscape.
management and product flow, the
largest specialty lifestyle retailer in ❙❙ Improved the productivity of
the U.S. wanted to transition the warehouse resources by 45%
warehouse management systems by implementing a customized
in all its data centers from SAP to labor management solution,
Manhattan, with its distribution which also reduced labor costs
network split between the two by $1.2 million annually across
vendors. all facilities (space, labor,
equipment, tasks and material
With over 1,300 stores, the retailer flows).
also wanted to align processes within
the majority of its networked data ❙❙ Reduced application
centers. downtime by 60% by
incorporating standardized
The Solution and simplified processes, thus
We collaborated with the retailer to providing consistency in the
design, support and implement the warehouse network.
new system while rationalizing the ❙❙ Increased pick rates by 35%
server landscape and standardizing after one week of go-live by
processes. suggesting a new customized
picking process, resulting in
We also provided advice and
a revenue increase of $0.8
guidance on additional functionality,
million in the first quarter.
such as a new customized picking
process and tools/accelerators, ❙❙ Reduced manual effort by
that were ultimately rolled out 250 hours by leveraging tools/
to all facilities based on this accelerators for major pre-go-
implementation. live activities.

BACK TO INDEX
13 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Procurement
Life Sciences

Results
Pharma Services Provider Streamlines Procure-to-Pay, Speeds ❙❙ Reduced latency time by 25%
in purchase order process.
Supplier Activities
❙❙ Sped contract creation
process by 20% due to
The Challenge template consistency.
After experiencing limitations with
❙❙ Streamlined sourcing process
its decentralized procurement
with templates and library.
system, a leading drug development
and manufacturing services ❙❙ Expect to reduce latency from
provider decided to shift to requisition to order.
an integrated procure-to-pay
system. The organization provides
services to global pharmaceutical,
biotechnology and specialty
pharmaceutical companies.

With its current system, the business


had difficulty gauging supplier
performance, and reporting
was cumbersome, with contract
documents spread across multiple
systems. It relied on multiple ERPs,
with decentralized master data.
Another issue was significant latency the Ariba Supplier Information & With the new system, the business
in the requisition-to-purchase- Performance Management module now has a single window for
order process due to bottlenecks in to centralize supplier information and monitoring all tasks, resulting in fewer
the approval process. High manual manage performance. data issues. It also has better visibility
intervention was also required, into spend analysis, which will lead
Legacy contracts were migrated to to increased savings. Supplier
causing contract delays.
the Ariba system, with best-in-class onboarding and enablement is much
The Solution supplier enablement methodologies. quicker, with contracts centralized in
We standardized global process a single Ariba storage system. Best-
We developed a roadmap for
templates, documents, tasks and in-class analysis reports can now
implementing best practices across
processes for use across sites, with the be generated to identify potential
the company’s procurement,
flexibility to include local documents. problems.
sourcing, contracts, spend analysis
A single interface for all master data
and supplier information. We used
was developed, and integration was
done using Ariba tools.

BACK TO INDEX
15 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Hospitality

Results
Automated Procure-to-Pay Reaps Cost Savings, Better Vendor ❙❙ Automated creation of
purchase orders by 75% after
Relationships for Corporate Properties Group shopping cart approval.
❙❙ Increased automation
The Challenge of invoice receipt from
A U.S.-based corporate properties 0% to 30%.
group needed to integrate its
❙❙ Increased invoice receipt from
sourcing and procurement
67% paperless to 95%.
processes. The business was
experiencing a lack of spend ❙❙ Increased automation of
compliance and poor policy purchase order invoice
enforcement. Its communication processing from 0% to 95%.
and collaboration with suppliers was
❙❙ Improved end-to-end
disjointed, and it was constrained in
touchless transactions from
its ability to take advantage of early
0% to 50%.
pay discounts.
❙❙ Ensured 99% of in-scope
As a result, the organization was spend is influenced by
suffering from high operational sourcing.
costs, missed cost savings,
user dissatisfaction and vendor ❙❙ Reduced cycle time 10% for
frustration. “RFX” (request for information,
request for proposal, request
The Solution for quote and request for bid)
We worked with the business to due to improved supplier
establish a transaction network enablement.
that would transmit procure-to- ❙❙ Reduced purchase order
pay transactions electronically with enablement of strategic and As a result, the business has now creation and dispatch cycle
vendors. We established a guided tactical sourcing. To do this, we reduced paper transactions and time by 100% (post financial
buying process, offering catalogs integrated and updated existing is able to take advantage of early approval) for automated
and contract compliance, as well as SAP applications, and integrated an payment discounts or extended purchase orders.
guided sourcing for electronic electronic invoicing capability. payment terms. Reporting is also
enhanced due to improved data ❙❙ Reduced purchase order
quality and vendor relationships. invoice cycle time by 30%.

BACK TO INDEX
16 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Hospitality

Results
Multi-brand Restaurant Company Streamlines Enterprise ❙❙ Support for 1,400 active users
using new Oracle ERP cloud
Business Processes applications.
❙❙ Enabled 40 successful
The Challenge automated interfaces.
With its reliance on multiple financial
❙❙ Created over 700 expense
applications and processes, a global
reports in one month after
multi-brand restaurant company
go-live.
lacked a centralized reporting
capability. Its processes were also ❙❙ Received over 7,250 accounts
inefficient due to various work receivable payments worth
streams, numerous integration points over USD $15 million in two
and manual spreadsheet loads. months of go-live.

Other pain points included long ❙❙ Completed more than 7,150


lead times of two to three weeks payments worth over USD
for general ledger period closings, $50 million, using ACH
cumbersome reporting due to sub- check printing, EFT, bank
optimal configuration of chart of integrations.
accounts rollups, and undocumented,
informally managed master data
management. The company’s cost
We simplified integrations by We streamlined master data
center segment values also deviated
establishing defined patterns for management and established a
from leading chart of accounts
efficient maintenance, error handling, formal data flow across systems,
(COA) best practices.
performance reporting, scalability and created a portal-based billing
The company runs 8,300 restaurants and portability. solution for franchisee account
worldwide, with 250,000 members receivables in Oracle ERP Cloud.
We implemented a best-in-class
and 700 franchisees spread across 16
COA redesign, and improved We’re now developing a franchisee-
countries, and is ranked among the
the month-end close process by friendly, GUI-based accounts
top five largest restaurant companies
implementing a financials suite, receivable portal solution to manage
in the U.S.
streamlining segregation of duties franchisee billing and payments
The Solution and automating manual journals. related to royalty, marketing co-
The business can now add vendors op funds, etc.; enable updates to
Working closely with the business, preemptively, which enables more monthly sales and print certificates;
we rationalized the company’s efficient invoicing. and create journals using sales
financial applications and processes. estimates.

BACK TO INDEX
17 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Energy & Utilities

Results
Waste Management Company Increases Financial Control ❙❙ Increased month-end closing
process efficiency by 40%.
with ERP Overhaul
❙❙ Realized significant savings
through centralized
The Challenge purchasing due to the ability
With its highly customized legacy to negotiate better rates
ERP system, an industry-leading with vendors.
waste management services
❙❙ Increased control over capital
business needed to improve its
expenditures with budget
reporting, analytics and budgetary
management solution.
control capabilities. The system was
not extensible and allowed limited ❙❙ Achieved 100% reconciliation
integration, resulting in complex through automated asset
procurement and financial closing management processes, as
processes. well as 10% to 15% savings in
insurance premiums for
The business is spread across 34 retired assets.
states in the U.S., and owns and
operates 14 landfills, 32 solid waste ❙❙ Eliminated reconciliation
collection businesses, 46 waste errors and reduced financial
transfer stations and 18 recycling risk through automated bank
facilities. reconciliation process.
❙❙ Enhanced reporting
The Solution
capabilities with out-of-the
To help the waste management box and customized KPIs,
company meet its goals, we enabling faster decision
streamlined its budgetary and enhanced and automated an included procure-to-pay, general making.
management processes and intercompany journal entry process. ledger/reporting, fixed assets and
established a centralized purchase revenue management. ❙❙ Increased data transparency
The system was then integrated with real-time dashboards.
and payment management system.
with third-party suite apps, and we The system was based on a highly
We implemented several customized delivered application support and configurable and customized Oracle
workflows for the fixed-asset, enhancements through an onsite- NetSuite ERP system, a strong
purchase order and billing functions, global sourcing delivery model. foundation for future innovations.
In total, implemented modules

BACK TO INDEX
18 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Communications & Media

Results
An Optimized Contract Lifecycle Management System Delivers ❙❙ Increased control over spend.
Business spend data can
Spend Visibility to Education Publisher now be tracked during the
lifetime of each contract, with
The Challenge complete visibility.
The world’s leading education ❙❙ Established contract-backed
publishing and learning company invoicing. Non-PO invoicing
was facing issues in its deployment can now be done by backing
of the Coupa contract lifecycle the invoice with a contract.
management system because of
❙❙ Increased efficiency of
the difficulty in configuring a large
approvals by automatically
number of approval workflows. As a
routing contracts to
result, contract creation and approval
corresponding groups based
was being performed offline, with
on commodities and other
Coupa only used as a repository to
metadata.
store published contracts.

For business users, creating and


publishing a contract was very
complicated and time-consuming,
with manual intervention required
to obtain contract approvals. There
were no forms available to author or
create contracts, and there was little
visibility into spend data.

The company offers educational


courseware, assessment and management system. Specific quick access to contract forms, and
qualifications, as well as a range updates included new lookup for we configured custom roles for
of teaching and learning services contract commodities; new lookup business users.
powered by technology. values; configuration of over 200
approval chains based on business With these changes, the business
The Solution requirements; addition of custom now has more control over spend,
fields; and customized contract with improved visibility into live
Through application enhancements
forms. data and tracking of spend on
and support services, we helped
contracts for PO-backed and non-
the company successfully deploy
We also made changes to the home PO-backed invoices.
the Coupa contract lifecycle
page content, enabling users with

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19 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Healthcare

Results
Large Healthcare System Streamlines Disjointed Workflows and ❙❙ Expected cost savings of
$700,000 per year, with IT
Unifies Data through the Cloud costs projected to drop 30% to
35% annually.
The Challenge ❙❙ Standardized and modernized
After a period of growth through the user experience, including
mergers, acquisitions and affiliations, mobile capabilities.
one of the largest nonprofit
❙❙ Replaced disjointed workflows
healthcare systems in the U.S. was
with seamless, end-to-end
working with numerous disparate
processes, from requisition to
systems that hampered operations
journal entry.
and impeded access to critical
decision-making data. ❙❙ Accelerating the monthly
close cycle by more than a
The organization’s key corporate day through a new budget
systems, including finance, HR allocation process.
and supply chain, were heavily
fragmented across multiple
platforms, with no “single version of
the truth.” The business’s subsidiaries
and affiliates found it difficult to
work in unison, and there was no
easy way to get a 360-degree view
of an employee. Additionally, the cloud modules, encompassing one workflows with seamless, end- to-
company’s core financials system of the first full-suite Oracle cloud end processes. It now operates on
— an early version of PeopleSoft — migrations in the healthcare payer a common financial platform, using
badly needed an upgrade. space. industry best practices for tasks such
as expense approvals, procurement
The Solution The modules encompassed many and budgeting. In HR, everything
business functions, including human from compensation cycles to goal-
Rather than pursuing a series of
capital management, recruitment setting is increasingly standardized,
complex upgrades and integrations,
and onboarding, enterprise and it now uses a unified reporting
we proposed that the healthcare
resource planning, procurement platform with drill-down capabilities.
organization move its entire
and enterprise performance
infrastructure and enterprise
management, as well as an analytics These efficiencies have enabled
applications to the cloud. We devised
platform. the organization’s staff to turn their
a plan to migrate 16 PeopleSoft
attention to activities that drive
applications from three different After an 11-month migration, the customer value.
companies onto 21 Oracle SaaS organization has replaced disjointed

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20 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Digital Supply Chain
Life Sciences

Results
With Better Visibility into Inventory and Costs, Biotech Business The organization anticipates
590% ROI in five years’ time and
Improves Forecasting and Profitability is now able to:
❙❙ Support the sales and
The Challenge operations planning process.
A U.S. biotechnology company was ❙❙ View current global inventory
struggling with manual planning levels, with drill-down
processes and a lack of end-to- capabilities.
end supply chain visibility, which
hampered demand forecasting ❙❙ Forecast inventory levels.
and diminished profitability. The ❙❙ Conduct data visualization,
organization’s business is to scenario-planning and what-if
discover, develop and commercialize analyses.
treatments for cancer and
inflammatory disorders. ❙❙ View real-time work-in-
progress and logistics for
With high levels of product suppliers and contract
inventory and expired products, manufacturing organizations.
the organization realized it needed
to automate the batch traceability ❙❙ Source and visualize detailed
process to reduce errors and improve data on logistics costs and
the traceability of finished goods performance.
inventory back to manufacturing/
planning origin.
The Solution The organization now operates with
The organization also wanted to interactive inventory reports with
receive status updates and other Through workshops and surveys, we
projected inventory levels, and a
key performance metrics such as developed an understanding of the
current and accurate “single version
“delivered on-time, in-full” (OTIF) organization’s business processes
of the truth” for demand forecasting,
for logistics service providers (LSP) from the end-user experience point
supply execution and logistics data.
and distributors, as well as real-time of view. We developed a business
It has automated batch traceability
visibility into LSP-created orders case to enhance visualization and
and genealogy tracking, and ensured
and real-time alerts from freight. analytics throughout the supply
internal logistics visibility for intra-
The company also needed detailed chain planning and delivery process,
company shipments, with tracking
logistics-related costs from and helped the company procure
and alerting capabilities, as well
third parties. and implement a supply chain
as real-time order visibility into
control tower to increase end-to-
LSP orders.
end visibility.

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22 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Manufacturing

Results
By Revamping Supply Chain Processes, Packaging Provider Realizes ❙❙ Projected $10.5 million
annual savings.
Cost Savings, Agility
❙❙ Improved paper machine/
extruder efficiency by 10%.
The Challenge
❙❙ Increased open stock
A U.S.-based global packaging
availability by 20% with
solutions provider had made
automated inventory
numerous attempts over the previous
replenishment.
decade to improve innovation, boost
collaboration and reduce costs ❙❙ Reduced customer account
across its supply chain, with the representatives’ call handling
goal of creating a more responsive, time by 10% by migrating a
flexible organization. portion of order placement to
the Web (and via EDI).
However, it had been stymied
by its disparate, non-standard ❙❙ Improved data availability and
manufacturing systems, including consistency by 30% across the
procure-to-pay, order fulfillment, organization.
paper trimming and production ❙❙ Reduced inventory
management, warehouse obsolescence by 15%.
management and shipping
transportation planning, and order-
to-cash. The result: inefficient order The Solution By using SCOR, we increased
the efficiency of scheduling
management, high inventory levels, We used the Supply Chain
machines, reduced waste and
underutilization of assets, poor Operations Reference (SCOR)
improved customer service through
delivery performance, excessively framework to help the company
integration. Information from third-
manual processes and lack of harmonize its core supply chain
party applications now flows directly
common data. business processes across its three
to enterprise applications that
paper manufacturing mills, two
The company turned to us to bring all manage production, transportation
converting locations, distribution
supply chain and mill operations onto and warehousing, thus making it far
plants and warehouses. The
a single, integrated platform to drive easier for employees to see, track and
system includes integration with
business improvements and growth. manage inventory and orders.
a knowledge management portal
and mobile access to reports and
applications.

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23 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Retail

Results
Online Retailer Enables International Growth with New Global Stock ❙❙ Localized product offerings,
next-day delivery and click-
Management Strategy and-collect delivery options
for EU customers.
The Challenge ❙❙ Increased flexibility and
A large UK-based online fashion granularity for determining the
retailer wanted to offer best-in- optimal fulfillment center for
class delivery capabilities and more servicing customer orders.
product offerings to its international
❙❙ Reduced capacity constraints
customers. It was hampered,
on the UK fulfillment center.
however, by reliance on its UK-based
fulfillment center, which drove the ❙❙ Ability to launch websites
product display on its global website for new geographies, such
and was nearing its maximum as Asian and Scandinavian
throughput and stock-holding countries, to further scale
capacity. international growth.

The retailer — with eight international


websites and free shipping and
returns to customers in over 250
countries — decided to build a
scalable fulfillment model to enable
continuous international market
growth.

The Solution
We helped the retailer introduce By decoupling the current website
The company launched a fulfillment
new features, such as geography- view from the UK fulfillment center,
center in Germany to cater to its
based intelligent fulfillment, localized the retailer now offers a flexible,
top-growth market (Europe), which
delivery options and geography- plug-and-play, geography-based
shifted its model from UK-centric to
based product offerings on the product view that leverages its global
global. We worked with the retailer’s
website. We also helped build an EU- warehouses.
team on defining the product
compliant solution for shipment to
roadmap for building a global stock
non-EU customers from the German
management model.
fulfillment center.

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24 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Energy & Utilities

Results
Global Commodity Trader Expands Business with Scalable ❙❙ Created an adaptable and
scalable digital platform that
Trading Platform can handle multiple lines
of business.
The Challenge ❙❙ Harmonized business
A top-three multinational processes across commodity
commodity company needed a lines and the trading lifecycle.
scalable trading platform to improve
❙❙ Improved risk management
control of its trading operations,
and operational control,
profit & loss and risk management.
leading to loss avoidance and
It also needed to digitally enable its
better compliance.
business channels in order to expand
into new geographies and markets. ❙❙ Created online digital
marketplaces for commodity
The Solution trading to reach specific
To establish a digital platform geographies and customer
strategy, we conducted due diligence channels.
of the company’s processes ❙❙ Anticipate ability to manage
and applications, and devised a volumes of over $125 billion
phased approach to commodities annually.
onboarding. We created more than
12 process streams, covering the
lifecycle across five commodity areas.

We aligned the functional


architecture with regulatory needs,
and created roadmaps for enterprise
applications and data warehouse/ We launched a change management physical delivery of the commodities
business intelligence, with plans initiative for adoption of the new in select markets and prioritized
to leverage artificial intelligence, platform across business lines. the business module for phased
machine learning, big data, robotic development of the platform.
process automation and blockchain. Additionally, we conceptualized and
developed an online marketplace for

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25 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Energy & Utilities

Results
Fleet Analytics Improves Productivity and Optimizes Capital ❙❙ Established a repeatable and
highly customizable process
Spending for Mining Operations for integrating data from
group-wide operations.
The Challenge ❙❙ Standardized data across sites.
To optimize its capital investments,
❙❙ Reduced manual effort
a large organization needed
through automation, including
to improve the availability and
156 man-days annually
utilization of its haul trucks across its
for maintenance report
mining operations. With its multiple
generation.
fleet management systems, and
different versions at various sites, ❙❙ Increase productivity 10% due
the company lacked a standard to faster analysis and issue
approach to measuring utilization. resolution.

The business also relied on a manual


and thus lengthy approach to
mapping delay data from the fleet
management system to work orders
from its SAP system. Data quality
issues ranged from duplicate to
missing data.

The Solution
To improve data availability,
we worked with the company
to integrate data from its fleet
management and SAP systems. This We improved visualization and data from the fleet management
involved validating the data against analytics with production and system with SAP work orders, and
existing processes and datasets and maintenance dashboards, using a we ensured that dashboard data is
establishing connectivity for a daily standard reporting framework. We validated against existing reports.
data refresh. also established an intelligent data The data was also made accessible
matching process to integrate delay through mobile devices.

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26 / Digitizing the Supply Chain, from Planning and Procurement to Execution
Learn More
For more information and to
view our full library of client
case studies, visit
www.cognizant.com/
case-studies.

About Cognizant Enterprise Applications Services — Supply Chain Management Practice


Cognizant Enterprise Applications Services (EAS) offers high-value digital and business transformation solutions focused on customer experience,
human capital management, supply chain management, finance/enterprise performance management, intelligent business process management and
digital integration. Our digital supply chain and business transformation services cover the gamut, from business strategy and advisory services,
product consulting and implementation, through post-implementation value-enhancement services. Our group works closely with clients to simplify,
modernize, secure and digitally enable their enterprise applications environment. We partner with major enterprise applications vendors such as SAP,
Oracle, JDA, Manhattan and Kinaxis. Clients leverage our deep industry experience, analytical insights and strategy and transformation capabilities to
improve operational performance, as well as enhance employee productivity and engagement across the enterprise. To learn more, please visit
www.cognizant.com/cognizant-digital-systems-technology or email us at [email protected].

About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology
models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient businesses.
Headquartered in the U.S., Cognizant is ranked 193 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn
how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.

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