Collateral:Enabling the Shelf-Connected Enterprise

Brief Overview

An integrated model for managing at the shelf can help consumer packaged goods manufacturers and retailers maximize revenue, margins and in-stocks while removing costs across the value chain.

Benefits include:

Through the Shelf-Connected Enterprise model, CPG manufacturers can achieve the benefits of higher in-stocks/service levels, faster new product introductions, improved margins and higher inventory turns. Implementing an enterprise approach can result in benefits in the following areas (illustrative sample):

Top-Line Growth

• 1% – 3% incremental revenue increase
• 1% – 5% reduction in cost per incremental unit

Margin Enhancement

• 5% – 15% margin increase
• 3% – 5% in markdown reduction improvement

Efficiency/Cost Reduction

• 2% – 5% sales associate productivity gain
• 10% – 30% deduction in days outstanding and cycle time reduction
• 5% – 10% fewer deductions

Working Capital Improvements

• 5% – 35% overall reduction in network inventory
• 9% – 42% promoted volume forecast accuracy improvement
• Reductions in changeovers, rush shipments and raw material write-offs