JANUARY 2010 | AN EDGELL PUBLICATION
EDITORS’ PICK: 30 UNIQUE
COMPANIES TO WATCH IN 2010
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CHATTEM GETS ACQUIRED, RECKITT
BENCKISER BOOSTS DEMAND INTELLIGENCE,
SCHWAN’S IMPROVES FIELD OPERATIONS
READERS RECOGNIZE THE
SOLUTION AND SERVICE
PROVIDERS THAT BEST
EMPOWER THEIR BUSINESSES
c o v e r s t o ry
Which of the following describes your area
of expertise (for all survey participants)?
Which of the following describes your area of
expertise (for survey participants working for
companies with revenue equal to or less than
$1 billion)?
26% Supply Chain
34% Sales & Marketing
8% Product Development
32% General IT
25% Supply Chain
33% Sales & Marketing
9% Product Development
33% General IT
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Chain Planning, Trade Promotion Management,
Demand Data Analytics, New Product
Development and Introduction, and more. To
ensure the integrity of the survey process, we
asked respondents to only vote in the categories
in which they are intimately involved.
Participants were asked to identify the
solution or service provider they currently
use in each applicable category and rank the
customer experience received using their chosen provider on a scale of one to five (one
being extremely dissatisfied and five being
extremely satisfied).
The Top 10 list (or Top 8 and Top 5 lists, in
some cases) for each category was determined
by assigning each company a combined score
that consists of the sheer number of votes
(indicative of their footprint in the consumer
goods industry) weighed against their average customer experience rating. The companies that received the highest combined scores
in each category were then ranked accordingly.
In addition, a measure titled “Category
Customer Experience” tabulates the average
customer experience rating in a category
based on all survey responses.
Breakout Favorites: In addition to our Top
10, Top 8 and Top 5 lists, CGT recognizes companies in each category that received special
accolades from readers in the following areas:
• Customer Experience: This recognition
identifies the one company that received the
highest average customer experience rating
from users in its respective category.
• SMB Market: This recognition identifies
the most used and valued solution or service provider in a category among the participating consumer goods firms with revenue
equal to or less than $1 billion. The methodology for this list follows the same methodology of the larger lists.
The Editors’ Pick Section: This year’s
Readers’ Choice survey contains 10 different
categories, but some companies do not fall
within the lines we have drawn due to their
size or focus. In response, an “Editors’ Pick”
section was created to recognize those companies that offer additional and/or unique support to your supply chain, sales and marketing
and innovation strategies.
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CGT R E A D E R S R E C O G N I Z E T H E S O L U T I O N A N D S E R V I C E
P R O V I D E R S T H AT B E S T E M P O W E R T H E I R B U S I N E S S E S
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BY ALLISTON ACKERMAN, KARA ROMANOW AND ALARICE PADILLA
For the tenth year in a row, CGT asked its subscriber base to identify their most valued and
used solution and service providers across
10 categories. Still in the midst of a recession,
the results of the 2010 Readers’ Choice Survey
may be more valuable than ever before as you
revisit and reevaluate your company’s business and technology choices past, present and
future. Here is a breakdown of the survey’s
methodology and content:
Assembling the Top 10 Lists: The list in
each category is derived from the feedback of
165 executives from consumer goods companies of all sizes. The ballot spanned 10 technology and service categories, including Supply
Survey Demographics
Exactly 165 consumer goods executives
pitched in to determine the results of this
year’s survey. Here is how the respondent
base breaks out in terms of company size
and job function.
What is your organization’s annual revenue?
56% More than $1 billion
44% $1 billion or less
C G T | J A N U A RY 2 0 1 0 | C O N S U M E R G O O D S . C O M
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Lora Cecere, former vice president and head CGT: What trends do you see in supply
of Research for AMR Research, believes that chain planning that will impact the conalthough the supply chain planning list is sumer goods industry?
similar year over year, the real story is under- CECERE: Business Intelligence will be redeneath the covers.
fined. It will be the new battleground for the
Cecere is seeing the consolidation of best definition of outside-in processes. Sentiment
of breed applications in this process area. analysis (reading of non-structured text),
At the same time, SAP and Oracle are start- social network and the definition of the diging to take the industry more seriously. ital consumer will drive innovation.
Supply Chain Planning leadership in 2010
Traditional back office applications like
will be driven by Business Intelligence as ERP and APS will increasingly be outsourced
well as the definition of outside-in, demand- and optimization applications will move to
driven processes.
Software as a Service applications.
In addition, traditional Enterprise CATEGORY
Also, Google applications will
Resource Planning (ERP) and C U S T O M E R
play an increasing role within the
E X P E R I E N C E:
Advanced Planning and Scheduling
enterprise.
(APS) will be foundational, but will
not define application leadership.
CGT: How have consumer
goods companies been able
CGT: How has the downturn in
to leverage new sources of data
the economy impacted initiatives in this and insights to improve their supply chain
process area?
planning process over the last year?
CECERE: The recession has level-set the conCECERE: Downstream data for the supply
sumer goods industry. Solution and service chain planning channel is becoming more
providers are more humble, and these available. Data at a daily level from the retailproviders are less likely to take their client ers is redefining what is possible in defining
relationships for granted.
the channel response.
SAP
www.oracle.com
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Supply Chain Planning
JDA Software Group
www.jda.com
Logility
www.logility.com
Terra Technology
www.terratechnology.com
i2 Technologies
www.i2.com
Infor Global Solutions
www.infor.com
CDC Software
www.cdcsoftware.com
SmartOps
www.smartops.com
TXT e-solutions
www.txtgroup.com
B R E A K O U T FAV O R I T E S
CUSTOMER EXPERIENCE: LOGILITY
“With Logility Voyager Solutions, we have eliminated manual processes,
increased forecast accuracy and reduced inventory to name just a
few of the significant benefits that we have achieved as a result of
our implementation. Logility has been a dedicated technology partner,
delivering outstanding customer service as we continue to build a
strong collaborative global supply chain.”
S M B M A R K E T: O R A C L E
“With the use of Oracle Value Chain Planning, Hatfield Quality Meats
was able to improve the forecast accuracy and lower inventory
levels while increasing order fill rates.”
— TOM MOYER, MANAGER, DEMAND PLANNING, HATFIELD QUALITY MEATS
— JENNIFER HUGHEY, VICE PRESIDENT, SUPPLY CHAIN, ELECTROLUX
HOME CARE PRODUCTS NORTH AMERICA
C O N S U M E R G O O D S . C O M | J A N U A RY 2 0 1 0 | C G T
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CGT: How have SCE processes and the
supporting technologies delivered on
cost savings and sustainability promises
CGT: How has the economic downturn
made by CG companies?
impacted SCE initiatives?
KNICKLE: There has been a negative impact KNICKLE: An IT investment isn’t a solution
on supply chain application investments, until it works! So if you’re asking if SCE tools
primarily with companies taking
have been able to deliver cost savmuch longer to make decisions CATEGORY
ings and sustainability improveabout investments. Investments C U S T O M E R
ments over the last few years, the
E X P E R I E N C E:
that did take place were justified
answer is definitely yes, by consolby expectations for clear cost savidating loads, better route planings or efficiency improvements.
ning, and basically optimizing
As a process, supply chain execusupply chain assets. A more intertion is still improving.
esting question is — can SCE tools
do better? The answer is also yes. And given
the fact that CG companies are still promisCGT: What SCE trends will impact the
ing their customers that they can achieve even
consumer goods industry?
more cost savings and green improvements,
KNICKLE: One trend that’s hard to miss is the
increase of supply chain outsourcing. In this there’s more work to be done. We’d like to be
case, a big impact is going to be related to able to assign sustainability “costs” to indimanaging the added complexity from hav- vidual customers, orders, product lines, proding more logistics and distribution options. ucts and more. And SCE applications are
The mixed approach to managing the sup- going to be a big part of the solution.
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ply chain ups the complexity of the process.
It’s also worth noting a couple macro trends
that will test the supply chain, including sustainability, whether it’s regulatory-driven or
not, and the globalization/localization trend.
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Practice Director at IDC Manufacturing
Insights, Kimberly Knickle, believes that the
best way to sum up the relative overlap
between 2009 and 2010’s results is to say that
IT buyers stuck with existing vendors and
investments for the most part to minimize
expenses in their IT budgets.
SAP
www.oracle.com
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RedPrairie Corporation
www.redprairie.com
Manhattan Associates
www.manh.com
Logility
www.logility.com
i2 Technologies
www.i2.com
Infor Global Solutions
www.infor.com
JDA Software Group
www.jda.com
LeanLogistics Inc.
www.leanlogistics.com
Jesta I.S.
www.jestais.com
B R E A K O U T FAV O R I T E S
CUSTOMER EXPERIENCE:
LEANLOGISTICS
“Providing our customers with accurate, timely shipment information
is vital. Using On-Demand TMS, we know the status of our shipments,
and our customers receive delivery performance reporting for all
their locations.”
— VP, SUPPLY CHAIN SERVICES, BARILLA
Source: LeanLogistics.com Case Study, 2009
C G T | J A N U A RY 2 0 1 0 | C O N S U M E R G O O D S . C O M
S M B M A R K E T: O R A C L E
“Six months after implementing Oracle Real Time Sales & Operations
Planning, we have seen a dramatic increase in forecast accuracy.
This resulted in an immediate 20 percent inventory reduction.”
— WENDY MALLOY, INVENTORY PLANNING MANAGER, WILTON
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CGT: What trends will impact ERP in the
consumer goods industry?
PARKER: Prior ERP investment has done a lot
(along with the availability of low cost offshore
CGT: As the economy improves, do
you expect to see the return of large
purchases of ERP applications in the
consumer goods industry?
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Oracle
www.oracle.com
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resources and hardware virtualization) to
lower the cost of IT at CG companies. In fact,
in the past decade companies have lowered
their spending from around 4 percent of revenue to 2.5 percent. In the next five years, companies will seek to lower costs (on a percent
of revenue basis) another 20 percent, through
taking advantage of cloud computing and
CGT: How has the economic downturn
more integrated analytics. The third area of
impacted ERP initiatives?
savings will be ERP where the ability to “virPARKER: Corporate objectives to preserve
tualize” instances will emerge.
cash put tight constraints on capSuppose the Wal-Mart account team
ital spending including large proj- CATEGORY
at a CP company wants to stand up
ects like ERP implementations and C U S T O M E R
E X P E R I E N C E:
a unique set of business processes
upgrades. Companies tended to
to support their efforts. A virtual
look for much smaller scope, faster
ERP instance can be created that
payback projects, which has helped
supports those processes without
Oracle as they can sell acquired
violating the integrity of a consolimodules like OTM (nee G-Log)
and Demantra into companies that run SAP. dated corporate information model. This will
Companies also continued to invest in BI to allow companies to become much more effeccreate greater visibility into operating circum- tive in their use of information and process
workflows contained in the ERP system.
stances and speed corrective actions.
Bob Parker, group vice president, Research at
IDC Manufacturing Insights was not surprised
by this year’s list. For example, he believes
that Lawson moving into the list was expected,
as the company has grown its base via acquisition and has a good back office story.
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Microsoft Corporation
www.microsoft.com
Infor Global Solutions
www.infor.com
Lawson
www.lawson.com
PARKER: To a certain extent. There is pent up
demand for new capabilities and getting to
the virtualized ERP vision discussed above
starts with a company being on the most current release built on a modern architecture.
However, this desire to invest will be somewhat tempered by the fact that companies
have learned that they can survive without
committing to large ERP projects. Demand
will return, but investment justification models will have to be reconsidered. Better business performance, not better bookkeeping
will be the key criteria.
B R E A K O U T FAV O R I T E S
CUSTOMER EXPERIENCE: ORACLE
“We’ve developed a great relationship with Oracle that’s been a part
of our success. Both companies have invested time at all levels of
the organization to develop strategic, win-win solutions.”
—ANDY PLATT, VICE PRESIDENT, INFORMATION, SERVICE & CIO,
JM SMUCKER CO.
S M B M A R K E T: S A P
“Silos of information had developed in certain areas of the company
over the years. The SAP ERP upgrade project and use of best
practices enabled us to harness this information quickly and make
one plus one equal three.”
— BOB TORKELSON, PRESIDENT AND COO, TRINCHERO FAMILY ESTATES
C O N S U M E R G O O D S . C O M | J A N U A RY 2 0 1 0 | C G T
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CGT: How has the economic downturn
impacted CRM initiatives?
CATEGORY
LANGHALS: While the downturn
CGT: How can CG companies
has certainly made it more challeng- C U S T O M E R
E X P E R I E N C E:
leverage technology to
ing for organizations to secure fundimprove collaboration and
ing for major capital investments, it
communication with retail
has served to increase the awareness
customers and consumers?
and importance on growth oriented
programs such as CRM. It has furLANGHALS: Collaboration is
ther created an intense focus on improving cus- enabled through a variety of core technolotomer insight data and retail trade investment gies to leverage available demand and supdecision-making. These conditions have been ply data. Consumer insights, driven from
a driver which has allowed CRM/TPM appli- demand signal information and mined
cations be more resilient to the downturn as the through advanced data aggregation and anaROI on such projects is more easily justified. lytical tools create actionable insights that
Those organizations that have invested in facilitate collaboration on product offerings,
growth efficiency programs will be better pre- marketing and sales programs and consumer
pared to capitalize on an improved economy.
incentives. Collaborative planning in the
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CGT: What trends will impact CRM in
the CG industry?
LANGHALS: A tighter alignment of consumer/customer demand signal information
and sales, fulfillment and operating strategies
of CG manufacturers will drive the business
case for technology investment. Using insight
information to drive product innovation decisions, consumer and trade marketing programs, and sales strategies will become core
competencies for all CG companies.
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Alan Langhals, principal at Deloitte Consulting
LLP believes that the companies shown here
represent the leading names in the CG industry customer relationship management (CRM)
space. Each provider has shown that it can
deliver new and value generating capabilities
to its customers and has delivered results across
a wide spectrum of companies.
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www.oracle.com
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Customer Relationship
Management
Microsoft Corporation
www.microsoft.com
CAS
www.cas.com
MEI
www.meicpg.com
Value Chain facilitates increased product
availability and lower stock-outs while lowering CG manufacturers required working
capital and inventory investments. The use
of collaborative planning in the area of consumer and retailer incentives can be used to
create volume accretive program structures
that also optimize profitability for both the
retailer and manufacturer. Advanced pricing
optimization technologies can be extended
through the Value Chain to determine optimal sales and promotional pricing between
manufacturers and retailers.
B R E A K O U T FAV O R I T E S
CUSTOMER EXPERIENCE: CAS
“The big reason we chose CAS for our sales force automation solution
was because it met our business requirements out of the box. In
addition, a big point of differentiation for us was that they are very committed to the consumer products/goods space. They know this space
very, very well, and the vision that they have of the product and where
they’re heading is very much in line with the vision we have at RJRT.”
—PETER K. HATCH, SR. DIRECTOR, INFORMATION MANAGEMENT
DEMAND, RJ REYNOLDS
C G T | J A N U A RY 2 0 1 0 | C O N S U M E R G O O D S . C O M
S M B M A R K E T: M I C R O S O F T
“The whole company operates off the same set of data, which eliminates
confusion and redundancy and speeds customer service. Marketing
can share customer records with accounting, and salespeople can
see inventory levels before they make commitments to customers.
I use inventory data to launch promotions, which I can manage easily
from within Microsoft Dynamics CRM.”
— FRAN RICHARDS, VICE PRESIDENT OF MARKETING, SPY OPTIC
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CGT: How has the economic downturn
impacted NPDI initiatives?
PRENDEVILLE: Despite the turbulence in the CGT: Why haven’t more CG compaeconomy clients have still undertaken proj- nies embraced technology to assist
ects in this space. However, the focus of the with NPDI?
work has been predominantly in
PRENDEVILLE: These processes
two areas; quick impact projects, CATEGORY
tend to be cross-functional rather
often focused on reducing COGS C U S T O M E R
than centrally owned, which
E X P E R I E N C E:
(cost of goods sold); and large founcan create doubt internally as
dational programs that are directly
to who owns the initiative. The
aligned to a strategic need or satcapital investment and size of
isfying regulatory requirements.
the product development/R&D
workforce required to bring a
CGT: What trends will impact NPDI in
product to market in other industries has
the CG industry?
forced those companies to take an enterprise view, mature PLM processes and
PRENDEVILLE: Firstly, a continued increase
in private label will drive retailers to invest in enable these processes using technology.
their product lifecycle management (PLM) As CG companies generally invest less per
capabilities to improve product development product but produce more new products
efficiency and effectiveness and to satisfy reg- in a year, and tend to drive these processes
ulations. Secondly, the virtualization of prod- in a fragmented way, then the need for
uct design data and improvements in 3-D and enterprise PLM technology is lower.
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2-D development tools will enable companies to reduce the need for physical product
prototypes for concept development, testing and customer feedback. Lastly, product
development/R&D budgets will come
under increased corporate pressure.
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This year, Kevin Prendeville, senior executive at Accenture Consumer Goods &
Services, provides his expertise on the state
of NPDI in the CG industry, trends, and more.
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New Product Development
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Oracle
www.oracle.com
Dassault Systèmes ENOVIA
www.3ds.com
Infor Global Solutions
www.infor.com
IBM
www.ibm.com
PTC
www.ptc.com
Siemens PLM Software
www.siements.com/plm
Paxonix
www.paxonix.com
Gerber Technology
www.gerbertechnology.com
B R E A K O U T FAV O R I T E S
CUSTOMER EXPERIENCE:
INFOR GLOBAL SOLUTIONS
“This platform was also integrated into our ERP solution and the SCM
platform and other ancillary solutions we have, to clearly represent
the single repository of all knowledge around formulas and experiments that go along with it.”
S M B M A R K E T: M I C R O S O F T
“We are constantly creating new products. The inspiration can come
from anywhere, but often it’s something we see on the internet. The
Snipping Tool (in Windows 7) makes it super easy to grab, save and
share the idea. What a great feature!”
— FRANK CERULLO, CEO, GAMEWEAR INC.
— MANISH CHOKSI, CHIEF CORPORATE STRATEGY & CIO, ASIAN PAINTS
C O N S U M E R G O O D S . C O M | J A N U A RY 2 0 1 0 | C G T
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CGT: How has the economic downturn
impacted BI initiatives?
HAGERTY: It was encouraging that organizations did not sit on their hands in 2009.
After years of investment to capture the right CGT: Given the vendor movement over
the last two years, has the
data, they knew it was time to
market settled down?
leverage that information to make CATEGORY
more informed business decisions. C U S T O M E R
HAGERTY: First of all, market conE X P E R I E N C E:
In a spending study conducted in
solidation is inevitable. While high
Q309, participants reported they
profile BI and performance manexpanded business intelligence (BI)
agement acquisitions were made
programs that delivered a host of
over two years ago by the mega venanalytics capabilities to signifidors, there will certainly be more.
cantly more people in the enterprise. While
Secondly, if I read the tea leaves correctly,
they didn’t necessarily spend at the same clip demand for industry-driven and content-speas in prior years, they didn’t stop buying cific analytics are accelerating. Business buyeither. The same will hold true for 2010.
ers are more involved than ever in BI and
analytics evaluations and selections, often
CGT: What trends will impact BI in the
providing the funding for these programs.
CG industry?
So, their satisfaction is critical. Most of the
HAGERTY: Two trends that will have signif- leading software providers have only begun
to scratch the surface on focused analytic
icant impact for consumer goods firms:
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Advanced analytics: providers are dialing
up the volume on analytics that couple technology and consulting to expand beyond backward facing reporting and metrics.
cloud computing and collaboration: CG
companies have been at the forefront of integrating internal and external demand data.
Deployment models in the cloud will expand
available data and opportunities for collaboration across the extended value chain.
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According to John Hagerty, vice president and
research fellow at AMR Research, while there
has been some movement amongst the top
four companies, the addition of Silvon to the
list indicates that buyers value companies that
deliver products tailored to industry content.
SAP
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Microsoft Corporation
www.microsoft.com
IBM
www.ibm.com
MicroStrategy
www.microstrategy.com
SAS
www.sas.com
Teradata
www.teradata.com
Silvon Software
www.silvon.com
applications because they have historically
come at this market demand from a do-ityourself tools angle. Acquisitions in these
spaces will accelerate and alter the landscape.
B R E A K O U T FAV O R I T E S
CUSTOMER EXPERIENCE: IBM
“Since we deployed IBM business analytics solutions, we have
consistently exceeded our customer expectations in all critical
aspects – from operational to customer service – resulting in
better relationships and increased sales.”
S M B M A R K E T: M I C R O S O F T
“In Microsoft, we saw a [BI] solution that met all our requirements,
that was a better fit with our current investments and skill sets,
and that would deliver a lower total cost of ownership.”
— TOM CESARIO, DIRECTOR OF IT, RADIO FLYER
— JIM MULHOLLAND, VP OF INFORMATION TECHNOLOGY, CREATIVITY INC.
(#20279) Reprinted from the January 2010 issue of Consumer Goods Technology. © Edgell Communications, Inc.
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