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Based
on the rapid changes in technologies for the consumer products (CP)
industry, AMR Research summarizes new developments in industry-specific
technologies every six months. This is the third article we’ve written
in this series, with each published right before our Supply Chain Executive Conference.
Our goal is to help CP executives best use AMR Research’s conferences
to improve networking opportunities with emerging technologies that can
help their business.
Before we start, let’s begin with a
disclaimer: for a technology to qualify for this article, it has to be
CP specific, have industry-specific references, and have a new angle on
solving an industry problem. Also, just because a technology isn’t
listed doesn’t mean we don’t consider it cool. It may only mean the
vendor is emerging and doesn’t have references, or the technology is
not specific for the CP industry.
Without further ado, here is our list of cool technologies for the CP industry from the first half of 2008.
Manufacturing performance management
While most companies have invested in
manufacturing operations, only 30% feel they are able to use
factory-level data for performance management programs. CDC Factory and Informance installed
factory-monitoring systems to give operating leadership visibility
of near-real time performance of factory operations. They saw
comparative results to other factories in their peer groups using
near-time industry benchmarks.
Lean
If improving lean capabilities is on your agenda, consider checking out the capabilities of Invistics or Synchrono.
Invistics’ product is designed to improve in-process inventory levels
in lean manufacturing systems, while Synchrono offers a
factory-scheduling technology designed to improve the pull-based signal
for make-to-order manufacturers.
Price management
Price management is normally tied to operations for demand-driven leaders to orchestrate demand. SignalDemand
is currently maximizing market opportunity in commodity markets with
reverse bill-of-materials (BOM) decisions on how to optimize
manufacturing mix to optimize performance.
DemandTec, meanwhile, is
working in the area of price and trade promotion management. At its
conference, called DemandBetter, we were pleasantly surprised by two
announcements:
- The company’s partnership with Market6 to improve market execution of trade promotions and pricing actions to the shelf
- The adoption of TradePoint by retailers
While Market6 is an add-on partnership,
TradePoint is wholly owned by DemandTec (which purchased the TradePoint
assets in 2007) to synchronize the timing of trade promotion and
pricing calendars between retailers and CP manufacturers.
Use of POS data
The use of the POS data to streamline the
demand signal and get closer to the customer may sound easy, but it’s
not. The data is often dirty, with the granularity and volume of the
data driving the redefinition of the predictive analytical layer for
demand forecasting. Traditional forecasting systems just don’t scale or
have the refined optimization for large amounts of POS data. Over the
last six months, several vendors have been working hard on taming this
new opportunity:
- John Galt Solutions—Its
shelf-level forecasting system is designed for account teams to better
forecast demand. The analytical data model focuses on forecasting in
the channel based on inventory data and POS movement on a daily basis.
- Relational Solutions—Performance
Books is designed with the sales executive in mind. The user interface
allows the sales executive to quickly flip though virtual pages of
account-specific interactive reports. The goal is to enable easy
customization to improve the interaction when meeting with a
merchandiser or engaging in a joint value creation meeting.
- Retail Solutions (previously T3Ci)—The
company’s work on shelf sensing for market execution has evolved into a
software-as-a-service (SaaS) application designed to detect promotion
compliance and display performance. Although still in its early stages,
Retail Solutions is proving that pattern recognition to drive custom
alerts on POS data is feasible in the long run, with compelling ROI in
the short term.
- Terra Technology—Even
though Terra is sticking to improving demand sensing, its early work
with clients using POS data is very compelling. We believe the
company’s early learning on how to use POS data to improve short-term
forecasting will lead to breakthrough innovation.
Improved innovation
NineSigma is looking to improve
innovation results for CP companies. Its focus is on helping these
companies discover innovative ideas and network with other
organizations that have related technologies that improve time to
market. With 49% of new ideas on chemistry and formulation happening
through open design networks, NineSigma specializes in helping
customers frame their searches for best results and provide quick
connections to technology innovation through its network.
Improved traceability
In this age of record recalls and
increased supply chain complexity, the need for product traceability
across a supply network is escalating. We continue to be impressed with
Lawson Software’s work in this area with its M3 product. With the strongest reference customers in the Northern Europe, Lawson has architected a network-based system for tracking products.
If we have missed something in the market you think is cool, please let me know—lcecere@amrresearch.com.
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