Martini & Rossi: Improving Its Supply Chain to Achieve High Performance

Accenture's High Performance Business research shows that supply chain excellence is one of the cornerstones of high performance.

As a leading global company, Martini & Rossi was intent on streamlining its logistics and distribution function to reach customers more efficiently and ultimately pave the way for high performance.

Martini & Rossi decided that it would use technology to solve these challenges by enhancing its existing JD Edwards EnterpriseOne 8.0 application from Oracle. They turned to Accenture for help based on the strong relationship we forged during the original implementation of the system. The company was also familiar with Accenture's combination of deep JD Edwards skills and knowledge—both of industry and business processes.

Martini & Rossi decided to redesign its distribution network within Italy. They planned to move from a single, centralized warehouse serving 12 depots across the country to a dual warehouse system, with logistics hubs in Northern and Southern Italy to serve clients more directly. By reducing the number of transit points, this would streamline the whole function, reducing costs and increasing efficiency.

A related challenge was to support Martini and Rossi's 100 sales agents more effectively. The company wanted to allow its agents to place orders directly into the system in real time through their laptops. This would help reduce sales inventories and make the sales force more flexible and effective.

Like many other consumer goods companies, Martini & Rossi also faced challenges at the retail end of the supply chain. The company maintains different pricing regimes with each retailer through binding agreements. Prices change according to promotions and whether sales teams achieve their targets. These transactions must be closed out at the end of each year or each quarter, with prices depending on year-to-date sales performances. Pricing accuracy is vital in this complex environment—miscalculations can have severe financial consequences for the manufacturer.

At the same time, Martini & Rossi's holding company, Bacardi, required the company to bring its IT governance into line with the requirements of the Sarbanes-Oxley Act.

Accenture worked closely with the Martini & Rossi team across the project's entire life cycle—from analysis through to final release. We developed a comprehensive project plan to ensure that this important project stayed on track to deliver the required business benefits.

"Accenture's High Performance Business research has shown that high performers like Martini & Rossi see their enterprise systems as tools to create competitive advantage. Such companies realize significantly more value from their enterprise systems than their counterparts," said Accenture's project manager, Marcello Burzi. "We knew that this project was an opportunity to take full advantage of the innate functionality of the existing JD Edwards EnterpriseOne system to create distinctive capabilities and open up new avenues to value."

Accenture took advantage of our industry and technology skills to make the necessary enhancements to the existing JD Edwards EnterpriseOne 8.0 finance, distribution and manufacturing modules. In this way, all the new business processes are now managed within JD Edwards, including the sales force. In some instances, we had to create interfaces with third-party software. To manage transactions with retailers, we had to convert a great deal of data from external sources and other applications.

With Accenture's help, Martini & Rossi has successfully created solutions to all its challenges—delivered on time and on budget. The Oracle JD Edwards system enhancements have improved business processes and have made employees more productive.

Built on a solid, integrated technology platform, the new logistics model now constitutes a competitive advantage and a platform to reach high performance. The company now has real-time control of order management and receipts for its sales force. Furthermore, Accenture helped dramatically improve the complex pricing and promotions reconciliation with retailers. The process is much more accurate and has been reduced from two months to two weeks.

With certain minor enhancements by Accenture, the JD Edwards application also enables Martini & Rossi to meet its Sarbanes-Oxley compliance obligations. "With Accenture's help, we have been able to leverage further our existing Oracle JD Edwards application, creating capabilities to help us meet new challenges and gain competitive advantage," concluded Paolo Daperno.