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Enhancing the Core
Consumer goods companies have traditionally leveraged ERP solutions to automate processes and support end-to-end enterprise-wide integration while implementing regional or global operating models.
Standard ERP deployment integrates discrete functions such as order to cash, finance, controlling, manufacturing and procurement. Yet your business is managing core functions that extend far beyond those that fall within the traditional ERP scope. CPG companies aiming to become a digital enterprise can begin a logical evolution from this ERP foundation.
The focus on back-end standardization of global operations has neglected multiple front-office domains such as retail execution, customer service, trade promotion management, product innovation and product lifecycle management processes as well as the extended supply chain including enhanced capability in integrating manufacturing, warehousing and transportation. For these areas, many companies have been integrating legacy and country or brand-specific solutions which are now poised for further improvement.
Extending the core ERP project to areas such as supply chain management, F&A, warehousing, CRM, human resources and global S&OP can replace local or legacy solutions with ERP functionality that flexes with the changing needs of the business. Making front-office functions, such as sales and marketing, part of your ERP program will better equip your business to deliver a personalized, differentiated and seamless experience that fulfills your brand promise across channels. Extending the ERP to these additional areas also allows the business to easily upgrade to new features and functions—and leveraging the latest technologies is essential for winning today’s tech-savvy digital consumer.
Consumer goods leaders understand that in these domains, one size does not fit all. They must balance the high degree of peculiarity with the need to drive standardization of processes, data and solutions to drive scale and leverage leading practices. This can be done through the application of an archetypes model when building capabilities. As an example, in the front-office and secondary distribution space different markets can be grouped around a small number of archetypes representing different route to markets. Also, in the manufacturing and supply chain space, processes and solutions may be grouped based on category differences.
A mix of prioritization and change management will help facilitate this evolution.
Design and deploy by Archetypes. “One size fits all” and “every market is different” are approaches that have lead to failure in extending the Core. Define your “North Star” Business architecture balancing complete localization and full standardization grouping similar processes and capabilities in Archetypes to accelerate deployment, reduce costs and increase speed to value.
Be smart about scope. You can’t do everything at the same time. Many companies try to put too much in the scope for an ERP deployment. Set your sights on initial strategic initiatives that will yield greater value for the business.
Align stakeholders. The technical complexity with ERP deployment calls for a robust change management program that helps users to adapt to change while fully leveraging the data, logic and processes that live in the ERP system.
Accenture has extensive experience in helping clients to set up enhanced capabilities beyond the boundary of the core ERP platform.
Using a proven approach to defining archetypes and delivering processes and solutions, our consumer goods clients are effectively designing, building and deploying new capabilities on a global scale to extend the core and improve performance in supply chain, front-office, and back-office.
We bring a deep understanding of CPG industry challenges and couples that with solutions and approaches that address these challenges. Through a mix of core SAP and an approach that accelerates change management adoption, we help deliver clear value to your business.
March 10, 2014
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