Varun Wadhwani (09BM8060)

S. Srikanth (09BM8049)VGSoM, IIT Kgp

Computer based techniques used in spotting, digging-out and analyzing business data.

•Quicker, fact-based decision making •Simplified reporting

•Combination of multiple data sources put together, resulting increase in efficiency.

•Solutions are mapped as per user requirement

What BI helps you do in FMCG

Increase the value of customer relationshipsRespond quickly to changing markets and

company sensitivitiesLaunch new products soonerReduce inventory investmentImprove planning, scheduling, and the

procurement scheduleMaintain high quality standards

What BI helps you do in RetailAlign their corporate and store operations

around critical revenue and profitability targets

Identify report on, and analyze trends Gain visibility into key metrics across the

chain Monitor turnover and employee productivity. Increase cost savings by comparing and

benchmarking performanceOptimization

Source: ITC Infotech

BI at a US Food Distribution Major

StrategicGoals

DemandInitiatives

• General Analysis• Sales Force Effectiveness• Trade Promotion Effectiveness• Marketing Effectiveness• Market Analysis

• Spend Analysis• Supplier Performance Analysis• Item & Brand Analysis• Bid Analysis• Competitive Analysis

Business Functions - Functional Metrics, Reports, Alerts, Scorecards,

IT Functions - Dashboards, BI Tools, Databases,

SourcingInitiatives

Supply ChainInitiatives

CustomerInitiatives

Some Analysis Areas• General Analysis• Segmentation Analysis• Contract Compliance• Business Review Analysis• Customer Profitability Analysis

• Delivery Effectiveness• SKU rationalization Effectiveness• Backhaul Effectiveness• Carrier Performance Analysis

Some Analysis Areas Some Analysis Areas Some Analysis Areas

Source: Business Standard

Data Transformation

Source: IBM

POS

Logistics

Suppliers

Manufacturing

POS Retail

Date Key (FK)Product Key (FK)Store Key (FK)Promotion Key (FK)Customer Key (FK)POS Transaction Number (DD)Sales QuantitySales AmountCost Amount

Date Dim

Date Key (PK)DateDay of WeekCalendar WeekCalendar MonthQuarterCalendar Year

Promotion Dimension

Promotion Key (PK)Promotion NamePromotion TypePromotion Begin DatePromotion End Date

Store Dimension

Store Key (PK)Store NameStore NumberStore DistrictStore RegionFirst Open DateLast Remodel Date

Product Dimension

Product Key (PK)Product DescriptionSKU NumberBrand DescriptionSubcategoryCategory DescriptionDepartmentPackage TypeFat Content

Customer Dim

Customer Key (PK)Customer NameCustomer AddressCustomer ClassAdvantage Card id

Retail Sales Schema

Balance Scorecard-Retail

KPI Plan Actual Variance

Loyalty 50% 40% -20.00%Cost of Services per Customer

50$ 60$

20.00%Rate of service charges / profits

20% 15%

-25.00%Cost per agent per month

100$ 95$-5.00%

Store-1291

Characteristics of KPI Satisfy the SMART criteriaLeads to action. Easy to understand.Periodically reviewed and refreshedBalanced not undermine each other.To gauge their progress overtime.Connected with the corporate goals.Accountability of an individualFew in number.

Supply Chain Dashboard Report-FMCGRaw Material Vendor Performance

RM Category Vendor Name Shpmnts Cost/Unit Del.Shpmnt % Avg. Del.Days OTIF % Lot Rej

% Qty Rej%

Colors & Pigments

Clariant Chem. 22 10 5% 0 86% 12% 2%

B 2 20 50% 7 50% 1% 1%

C 2 15 0% 0 100% 0% 0%

Fatty Substance

Cognis GmbH 1 14 100% 43 0% 0% 0%

D 1 12 0% 0 0% 0% 0%

GODREJ IND. 10 13 70% 10 10% 0% 0%

FMCG- Supply Chain KPIsSupplier Perspective:Supply Lead timeReponse DelayRejection rateOnline RejectionsOTIFPercentage delayResponsiveness to urgent deliveries

FMCG- Supply Chain KPIsManufacturing Perspective:Rejection RateMaterial utilizationCapacity utilizationStockout lossWrite offsSpace utilizationVolume contribution of top 20% SKUsOverall Equipment EfficiencyEquipment failuresProduction service level Inventory days of supplyCost per operation hourPower consumption per ton producedWastage/scrap loss

FMCG- Supply Chain KPIsShipment Perspective:Forecasting errorFill ratesOTIFbackorders

FMCG- Supply Chain KPIsFinancial Perspective:Inventory TurnsSalesAsset turnsTotal supply chain cycle timeInput Freight CostsTax and SurchargesManufacturing CostInventory Carrying cost

Thank You!