FMCG industry: answers to your questions Example of a similar ...
2
FMCG industry: answers to your questions Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Please see www.deloitte.com/ru/about for a detailed description of the legal structure of Deloitte CIS. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of excellence. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2014 ZAO Deloitte & Touche CIS. All rights reserved. Company • International cosmetics company Issue Description • The Client requests that Deloitte consultants support optimization of the existing distribution network in terms of freight cost reduction while increasing delivery speed in Russia • The project includes definition of an optimal distribution network structure as well as selection of an optimal mix of logistics service providers by region and delivery type (delivery-to-address, delivery through order pickup points and postamates to support the optimized network Proejct • We conducted a benchmarking study on the Client’s distribution network performance (DC network, delivery types, shipping fees for consultants and delivery time) vs. those of its peers (MLM companies, retail chains) and internal analysis of the Client’s network (incl. order volumes, logistics costs by transportation mode, delivery type and LSPs) to identify areas for improvement • We proposed 3 options for optimizing the Client’s distribution network that will allow reduction of freight cost and improvement of the service level of delivery through reconfiguration of the network structure (DC network, freight flows, delivery types, transportation modes) • We created optimization models using each scenario and calculated target freight costs and delivery times for each region, taking into account the optimal mix of LSPs, transportation modes by delivery direction, and allocation of order volumes between DCs • We compared delivery tariffs and delivery times offered by existing LSPs vs. the market average in each region, conducted site visits to the LSPs’ order-handling hubs, and assessed their capabilities and capacities to deliver the Client’s forecasted order volumes. In collaboration with the Client’s experts, we prepared an operational and quality performance list for existing LSPs. We developed a qualification process and multi-criteria model for LSP assessment, and helped to select strategic partners for delivery to each region • We prepared a staged roadmap to implement changes in accordance with the selected scenario for the optimized distribution network, taking into account business constraints (incl. seasonality of delivery) and calculated benefits from freight cost reduction Project results samples Example of a similar logistics and purchases project up to 12% Reduction on Logistics Cost Per Order (CPO) up to 20% Delivery time reduction across all regions of Russian Federation 2014 First benefits from network optimization and LSP selection realized Launching new, order receiving options for clients, including round-the-clock order receiving from postamates.
Transcript of FMCG industry: answers to your questions Example of a similar ...
FMCG industry: answers to your questions
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Please see www.deloitte.com/ru/about for a detailed description of the legal structure of Deloitte CIS.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of excellence.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.
© 2014 ZAO Deloitte & Touche CIS. All rights reserved.
Company• International cosmetics company
Issue Description• The Client requests that Deloitte consultants support optimization of the existing
distribution network in terms of freight cost reduction while increasing delivery speed in Russia
• The project includes definition of an optimal distribution network structure as well as selection of an optimal mix of logistics service providers by region and delivery type (delivery-to-address, delivery through order pickup points and postamates to support the optimized network
Proejct• We conducted a benchmarking study on the Client’s distribution network performance
(DC network, delivery types, shipping fees for consultants and delivery time) vs. those of its peers (MLM companies, retail chains) and internal analysis of the Client’s network (incl. order volumes, logistics costs by transportation mode, delivery type and LSPs) to identify areas for improvement
• We proposed 3 options for optimizing the Client’s distribution network that will allow reduction of freight cost and improvement of the service level of delivery through reconfiguration of the network structure (DC network, freight flows, delivery types, transportation modes)
• We created optimization models using each scenario and calculated target freight costs and delivery times for each region, taking into account the optimal mix of LSPs, transportation modes by delivery direction, and allocation of order volumes between DCs
• We compared delivery tariffs and delivery times offered by existing LSPs vs. the market average in each region, conducted site visits to the LSPs’ order-handling hubs, and assessed their capabilities and capacities to deliver the Client’s forecasted order volumes. In collaboration with the Client’s experts, we prepared an operational and quality performance list for existing LSPs. We developed a qualification process and multi-criteria model for LSP assessment, and helped to select strategic partners for delivery to each region
• We prepared a staged roadmap to implement changes in accordance with the selected scenario for the optimized distribution network, taking into account business constraints (incl. seasonality of delivery) and calculated benefits from freight cost reduction
Project results samples
Example of a similar logistics and purchases project
up to 12% Reduction on Logistics Cost Per Order (CPO)
up to 20% Delivery time reduction across all regions of Russian Federation
2014 First benefits from network optimization and LSP selection realized
Launching new, order receiving options for clients, including round-the-clock order receiving from postamates.
FMCG industry: answers to your questions
Audit
Do you plan to audit your financial statements?
Do you want to strengthen internal business process
controls within your company or evaluate their
effectiveness???Our team:
Olga PapushaAudit partner, Food & Beverages group leader, Deloitte CIS will be glad to answer your questions.
Contact details:[email protected] Tel.: + 7 (495) 787 06 00, ext. 5400
Natalya KaprizinaERS partner, Deloitte CIS will be glad to answer your questions.
Contact details:[email protected] Tel.: + 7 (495) 787 06 00, ext. 2240
Tax & legal
Do you evaluate risks in regards to transfer pricing, including royalty payments?
Do you plan to create a strategy in terms
of the deoffshorization law? ??
Are you ready for the new amendments and explanations to tax legislation regarding: • New municipal fees for trading companies• The Supreme Arbitration Court decision on VAT (customer bonuses)?
Our team:
Svetlana FedorovaPartner, Tax & Legal, Deloitte CIS
Contact details:[email protected] Tel.: + 7 (495) 787 06 00, ext. 2329
Angelos BenosPartner, Tax & Legal, Deloitte CIS
Contact details: [email protected] Tel.: + 7 (495) 787 06 00, ext. 1100
Are you going to review your company’s M&A
strategy?
Are you going to look for investors in spite
of the current economic instability?
Do you analyze expenses for overstated purchase prices and potential kickbacks?
Do you have questions on major capital investments,
for example, increased costs and schedule overruns by construction contractors?
??Our team:
Maria BubnovaDirector, Corporate Financial Transactions, Deloitte CIS. Contact details: [email protected] Tel.: + 7 (495) 787 06 00, ext. 3007
Corporate financing
Our new “innovative” solutions:
• Preparation of the new VAT return using our Deloitte VAT Delight solution
• Implementation of legally binding Electronic Document Flow, enabling cost savings, an increase in business processes efficiency and mitigation of risks arising from using paper documents.
• Year-end adjustments, solutions enabling local companies to mitigate potential tax compliance exposure.
Our solutions in logistics and purchases
• Network structure definition
• Analysis of proposals and choice of logistic services providers
• Optimization of costs for retaining, transportation and delivery
• Choice of the most appropriate providers in terms of effective purchases
• Creation of effective strategies for purchases
Please take a look at an example of a similar logistics and purchases project that Deloitte completed for an international cosmetics company on the back side.
Supply Chain Management
Logistics• Are you going to review
the conditions for working with logistic partners?
• Are you thinking about closing / outsourcing businesses, warehouses, and transportation parks?
PurchasesAre you looking for the most effective strategy in terms of purchases and provider choice???
Our team:
Vardan GasparyanDirector, Consulting, Deloitte CIS will be glad to answer your questions.
Contact details:[email protected] Tel.: + 7 (495) 787 06 00, ext. 5255
We are pleased to invite you to our round table for Agricultural and Food & Beverages companies, which will be held on 5 February 2015. For more detailed information, please contact Elena Rakhlenko via tel. +7 (495) 787 06 00 (ext. 1051) or send an email to [email protected].
Ludmila GrechanikPartner, Deloitte CIS Forensic and Dispute Services,Consumer Products group leader, Deloitte CIS. Contact details: [email protected] Tel: + 7 (495) 787 06 00, ext. 3092
