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Building One Consensus Plan at Pernod Ricard China
Technology Category
- Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries
- Food & Beverage
Applicable Functions
- Business Operation
- Sales & Marketing
Use Cases
- Demand Planning & Forecasting
- Inventory Management
Services
- Cloud Planning, Design & Implementation Services
- System Integration
The Challenge
Pernod Ricard China, the world’s second largest distributor of wine and spirits, was heavily reliant on Microsoft Excel for its data analysis, which was very time-consuming. Their forecasts did not match demand, resulting in out-of-stocks and excess inventory. They wanted to automate their S&OP process to improve operational efficiency and align all functions to operate from one consensus plan. Pernod Ricard China operates in a fast-changing business environment. Their mostly manual processes had limited cross-functional communication and a lack of clarity. Forecast accuracy was only 40%. For over 40 years, Pernod Ricard’s ongoing growth has been bolstered by its commitment to continuous innovation, which enables it to quickly adapt to changes in trends, new consumer expectations and new consumption moments. But Pernod Ricard China’s forecasting process, based on Microsoft spreadsheets and manual processes, was a limiting factor in improving their supply chain.
About The Customer
Pernod Ricard is the world’s second largest distributor of wine and spirits with well-known brands such as Absolut Vodka, Ballantine’s, Chivas Regal, The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Beefeater and Kahlúa. The company has a strong commitment to continuous innovation, which enables it to quickly adapt to changes in trends, new consumer expectations and new consumption moments. However, Pernod Ricard China’s forecasting process, based on Microsoft spreadsheets and manual processes, was a limiting factor in improving their supply chain. They operate in a fast-changing business environment and their mostly manual processes had limited cross-functional communication and a lack of clarity.
The Solution
They decided that automating their forecasting and S&OP processes was the best way to provide a foundation for continuous improvement and innovation. Thanks to the implementation of Luminate Planning’s forecasting, replenishment and S&OP capabilities, Pernod Ricard China now operates a structured and well-orchestrated S&OP process. The consensus plan provides a platform for master data management, and it consolidates data from the company’s enterprise resource planning and customer relationship management systems for bottom-up demand analysis. And the replenishment capability helps calculate and maintain optimized stock levels. Since deployment, Pernod Ricard China’s forecast accuracy has increased from 40% to 65%. Pernod Ricard China worked with Blue Yonder consulting services to ensure that deployment of the new capabilities was completed on-time, within budget and with minimum risk.
Operational Impact
Quantitative Benefit
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