5 minute read

In Part One of this discussion on standard tools and methods for late-stage product/packaging customization, we highlight the customization challenges faced by consumer packaged goods companies (CPGs) and their external supplier partners. Now we turn attention to the benefits to be gained through the use of Nulogy solutions.

The next 10 years will bring an estimated $2.95 trillion in revenue and efficiency savings by CPGs such as L’Oreal, Mondelez, Unilever and Procter & Gamble, who are investing in digital transformations, per a 2017 report from Accenture and the World Economic Forum (as we mentioned in Part One.)

To cope with market trends, the report advised CPGs to develop new, hybrid business models; to adopt a “modern intelligent enterprise” for greater agility, and to “unleash business value through new business models.” At present, the researchers say, 28% of digitizing their supply chains using Internet of Things (IoT) and “only 53% have used big data analytics to manage their supply network.”

The customization value chain

While much attention is given to big data at the highest level and transportation downstream, few of today’s Great Thinkers are aware of the benefits to be gained by digitizing the “customization value chain.” That is, the business processes and information exchange requirements of CPGs and external partners working together to modify packages and products to suit the ever-increasing need for customization and fulfillment in traditional retail channels as well as direct-to-consumer e-tail models..

  • Kellogg Co. has gained visibility into orders being manufactured, packaged and customized by suppliers around the world — from planning and scheduling to inventory control. Where deployed, the solution has improved retail customer service through gains in efficiency, regulatory (safety/quality) compliance and ultimately, profitability across its packaging and manufacturing network. Additionally, where implemented, the technology has boosted the salvage rate for damaged product returns from under 10 percent to more than 50 percent. “Standardizing the recall process has enabled Kellogg Co. to reduce a four- to five-hour process to under a minute,” says Nulogy CEO Jason Tham.
  • Nestlé Purina Petcare, the leading petcare CPG, implemented a strategic partnership that integrated data flows and process workflows at multiple sites operated by contract manufacturing service provider ARI Packaging. The ERP and EDI aspects of the collaboration figured prominently, eliminating error-prone spreadsheets and manual data entry into the brand’s SAP system. In turn, automated real-time inventory adjustments helped speed orders to retailers by up to three days.
  • Summit Container’s use of this technology to saves millions of dollars annually in waste reduction across roughly 20 sites. Single-platform data visibility enhances decision-making for labor optimization and much-improved inventory tracking, rotation, and ordering. In the first two years after rollout, OTIF delivery performance improved from 80% to 99.7%.
  • Another international multi-site supplier implemented Nulogy’s platform across nine of its North American services sites, leading the project’s lead business system manager to deeper, more actionable insights:
This project has helped standardize the workflow from initial estimates through execution. It has provided a tool to measure and monitor efficiency and leverage use of rate data to improve profitability. In addition, it has provided the ability to conduct month end closings and invoicing from one centralized location.

Change doesn’t happen overnight, but CPGs should follow the advice Nulogy has given suppliers: Establishing successful supply chain partnerships is a matter of running a marathon, not a race.

The right tool for the right job

Years of experience in the “customization sector” have led brands and outsourced service providers to agree: Nulogy Corp. — is the first and by many accounts only solution provider that establishes a proven standard for optimizing interactions in this arena. The company’s SaaS-based technology and exclusive focus on connecting contract manufacturing networks, manages billions of dollars of annual transactions in a unified platform that requires no modifications to outlying systems (ERP, WMS, etc.). This technology transforms internal systems across multiple sites into a unified whole:

  • CPGs gain a single environment from which to view, manage and improve operations across multiple contract service-provider firms.
  • Suppliers gain a standard for communicating with all clients, and a standard for managing multiple sites.

Moreover, this standardization spans both form and function with an IT platform based on secure, real-time cloud and EDI communications and unique best-of-breed functionality. Instead of making limited gains with inflexible, generic systems or ad-hoc fixes, users gain a broadly integrated, collaborative platform with detailed order execution of SOPs based on established industry best practices, terms and business processes. In short, Nulogy provides…

  • A service platform that unlocks network data and transforms disparate information to a state that is standardized, accurate, consistent, visible and real time.
  • A framework for standardization, sharing best practices, root cause analysis, data quality, data governance, legacy system integration and partner compensation plans.
  • A strategic solution partner with experience and knowledge of the ecosystem of CPGs and their late-stage customization suppliers.

When suppliers to the retail supply chain — both brands and their external service suppliers — commit to a standard platform, the benefits of real-time collaboration create new opportunities for innovation. These value-added partners, in turn, add greater value to the retail customers and end-consumers they collectively serve.

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Jason is a co-founder, CEO and brand ambassador for Nulogy. He is focused on corporate development, executive leadership, and understanding the evolving landscape of Nulogy’s clients. He is also on Nulogy’s board and speaks throughout the industry on the agile supply chain.

Written By
Jan 18, 2018

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