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    A large FMCG company

    Digital transformation.

    Client Challenge

    1. As a FMCG company operating in different divisions e.g. personal care, food, dairy and beverages, the client had been struggling to get a clear view of profitability across divisions affecting its ability to take informed business decisions. With a lot of manual number crunching, both speed and accuracy of reporting was a challenge.
    2. There was a need to refine the client’s reporting framework and sales hierarchy before finalising the technology solution design.
    3. The key objective of the engagement was to provide the management a clear and accurate view of cost and profitability starting at the division level going up to region, brand and SKU levels.
    4. We also took up this opportunity to introduce a number of improvements and automation in the operations, especially around finance, supply chain and logistics.

    Benefits achieved

    1. Real-time reporting providing drill-down information of profitability to SKU level.
    2. Management of inventory and products with better shelf-life usage for ever-increasing demands of the customer.
    3. Optimisation of the production process by creating demand and capacity-based production planning across multiple plants both owned and exclusive third-party units.
    4. Reduce transportation and freight cost from 6 per cent to approx. 3 percent of the SKU cost
    5. Increased order fill rate by optimising the supply-chain and logistics process
    6. Use of S4/HANA Transport Management module to optimise truck utilisation, routing of trucks and estimating costs for freight.
    Benefits

    Our Approach

    1. KPMG in India charted out a digital-transformation roadmap for the organisation across two years and three phases
    2. The first phase consists of greenfield implementation of S/4HANA, SAP BPC (planning) and analytics on cloud to set up a digital core, enabling further adoption of intelligent automation
    3. Phase I started with us establishing business and functional KPIs with the top management and drew business processes aimed at seamless reporting of the agreed KPIs.
    1. To ensure result-oriented implementation of S/4HANA, we jointly identified six KPIs across the core functions that would be tangibly improved using relevant S/4HANA features – Project KPI approach
    2. With a Powered Enterprise enabled approach, we ensured incorporation of leading CPG practices in solution design
    3. KPMG in India proposed consolidation of all the interfaces using process orchestration for seamless exchange of data within existing system and set up a robust platform for future systems.

    Client Benefits

    1. While most of the technology implementation projects do not have a clear ROI, KPMG in India worked along with the management team to identify six KPIs across diverse functions such as finance, supply chain, logistics and operations with a clearly defined target for improvements
    2. This ensured that the business case for the project was accepted and owned by business
    3. Monitoring mechanisms have been deployed for the KPIs since going live on 1 April 2019 and improvements have been observed so far in line with the expectations.
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