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READERS RECOGNIZE THE SOLUTION AND SERVICEPROVIDERS THAT BEST EMPOWER THEIR BUSINESSES

JANUARY 2010 | AN EDGELL PUBLICATION

EDITORS’ PICK: 30 UNIQUE COMPANIES TO WATCH IN 2010PLUSCHATTEM GETS ACQUIRED, RECKITT BENCKISER BOOSTS DEMAND INTELLIGENCE, SCHWAN’S IMPROVES FIELD OPERATIONS

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CGT READERS R ECOGN I Z E THE SOLUT ION AND SERV I C EP ROV I D E R S T H AT B E S T EM POWER T H E I R B U S I N E S S E SB Y A L L I S T O N A C K E R M A N , K A R A R O M A N O W A N D A L A R I C E P A D I L L A

CGT | JANUARY 2010 | CONSUMERGOODS.COM

Which of the following describes your area of expertise (for all survey participants)?

26%Supply Chain

34%Sales & Marketing

8% Product Development

32%General IT

Which of the following describes your area ofexpertise (for survey participants working forcompanies with revenue equal to or less than$1 billion)?

25%Supply Chain

33%Sales & Marketing

9% Product Development

33%General IT

Survey DemographicsExactly 165 consumer goods executivespitched in to determine the results of thisyear’s survey. Here is how the respondentbase breaks out in terms of company size and job function.

by assigning each company a combined score

that consists of the sheer number of votes

(indicative of their footprint in the consumer

goods industry) weighed against their aver-

age customer experience rating. The compa-

nies that received the highest combined scores

in each category were then ranked accordingly.

In addition, a measure titled “Category

Customer Experience” tabulates the average

customer experience rating in a category

based on all survey responses.

Breakout Favorites: In addition to our Top

10, Top 8 and Top 5 lists, CGT recognizes com-

panies in each category that received special

accolades from readers in the following areas:

• Customer Experience: This recognition

identifies the one company that received the

highest average customer experience rating

from users in its respective category.

• SMB Market: This recognition identifies

the most used and valued solution or serv-

ice provider in a category among the partic-

ipating consumer goods firms with revenue

equal to or less than $1 billion. The method-

ology for this list follows the same method-

ology of the larger lists.

The Editors’ Pick Section: This year’s

Readers’ Choice survey contains 10 different

categories, but some companies do not fall

within the lines we have drawn due to their

size or focus. In response, an “Editors’ Pick”

section was created to recognize those compa-

nies that offer additional and/or unique sup-

port to your supply chain, sales and marketing

and innovation strategies.

What is your organization’s annual revenue?

56%More than $1 billion

44% $1 billion or less

For the tenth year in a row, CGT asked its sub-

scriber base to identify their most valued and

used solution and service providers across

10 categories. Still in the midst of a recession,

the results of the 2010 Readers’ Choice Survey

may be more valuable than ever before as you

revisit and reevaluate your company’s busi-

ness and technology choices past, present and

future. Here is a breakdown of the survey’s

methodology and content:

Assembling the Top 10 Lists: The list in

each category is derived from the feedback of

165 executives from consumer goods compa-

nies of all sizes. The ballot spanned 10 technol-

ogy and service categories, including Supply

Chain Planning, Trade Promotion Management,

Demand Data Analytics, New Product

Development and Introduction, and more. To

ensure the integrity of the survey process, we

asked respondents to only vote in the categories

in which they are intimately involved.

Participants were asked to identify the

solution or service provider they currently

use in each applicable category and rank the

customer experience received using their cho-

sen provider on a scale of one to five (one

being extremely dissatisfied and five being

extremely satisfied).

The Top 10 list (or Top 8 and Top 5 lists, in

some cases) for each category was determined

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CONSUMERGOODS.COM | JANUARY 2010 | CGT

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Lora Cecere, former vice president and head

of Research for AMR Research, believes that

although the supply chain planning list is

similar year over year, the real story is under-

neath the covers.

Cecere is seeing the consolidation of best

of breed applications in this process area.

At the same time, SAP and Oracle are start-

ing to take the industry more seriously.

Supply Chain Planning leadership in 2010

will be driven by Business Intelligence as

well as the definition of outside-in, demand-

driven processes.

In addition, traditional Enterprise

Resource Planning (ERP) and

Advanced Planning and Scheduling

(APS) will be foundational, but will

not define application leadership.

CGT: How has the downturn inthe economy impacted initiatives in thisprocess area? CECERE: The recession has level-set the con-

sumer goods industry. Solution and service

providers are more humble, and these

providers are less likely to take their client

relationships for granted.

CGT: What trends do you see in supplychain planning that will impact the con-sumer goods industry?CECERE: Business Intelligence will be rede-

fined. It will be the new battleground for the

definition of outside-in processes. Sentiment

analysis (reading of non-structured text),

social network and the definition of the dig-

ital consumer will drive innovation.

Traditional back office applications like

ERP and APS will increasingly be outsourced

and optimization applications will move to

Software as a Service applications.

Also, Google applications will

play an increasing role within the

enterprise.

CGT: How have consumergoods companies been able to leverage new sources of data

and insights to improve their supply chainplanning process over the last year? CECERE: Downstream data for the supply

chain planning channel is becoming more

available. Data at a daily level from the retail-

ers is redefining what is possible in defining

the channel response.

“With Logility Voyager Solutions, we have eliminated manual processes,increased forecast accuracy and reduced inventory to name just afew of the significant benefits that we have achieved as a result ofour implementation. Logility has been a dedicated technology partner,delivering outstanding customer service as we continue to build astrong collaborative global supply chain.”

— JENNIFER HUGHEY, VICE PRESIDENT, SUPPLY CHAIN, ELECTROLUXHOME CARE PRODUCTS NORTH AMERICA

Supply Chain Planning

CUSTOMER EXPERIENCE: LOGILITY

CATEGORYCUSTOMER EXPERIENCE:

3.77

“With the use of Oracle Value Chain Planning, Hatfield Quality Meats was able to improve the forecast accuracy and lower inventory levels while increasing order fill rates.”

— TOM MOYER, MANAGER, DEMAND PLANNING, HATFIELD QUALITY MEATS

SAPwww.sap.com

Oraclewww.oracle.com

JDA Software Groupwww.jda.com

Logilitywww.logility.com

Terra Technologywww.terratechnology.com

i2 Technologieswww.i2.com

Infor Global Solutionswww.infor.com

CDC Softwarewww.cdcsoftware.com

SmartOps www.smartops.com

TXT e-solutionswww.txtgroup.com

SMB MARKET: ORACLE

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Practice Director at IDC Manufacturing

Insights, Kimberly Knickle, believes that the

best way to sum up the relative overlap

between 2009 and 2010’s results is to say that

IT buyers stuck with existing vendors and

investments for the most part to minimize

expenses in their IT budgets.

CGT: How has the economic downturnimpacted SCE initiatives?KNICKLE: There has been a negative impact

on supply chain application investments,

primarily with companies taking

much longer to make decisions

about investments. Investments

that did take place were justified

by expectations for clear cost sav-

ings or efficiency improvements.

As a process, supply chain execu-

tion is still improving.

CGT: What SCE trends will impact theconsumer goods industry?KNICKLE: One trend that’s hard to miss is the

increase of supply chain outsourcing. In this

case, a big impact is going to be related to

managing the added complexity from hav-

ing more logistics and distribution options.

The mixed approach to managing the sup-

ply chain ups the complexity of the process.

It’s also worth noting a couple macro trends

that will test the supply chain, including sus-

tainability, whether it’s regulatory-driven or

not, and the globalization/localization trend.

CGT: How have SCE processes and thesupporting technologies delivered oncost savings and sustainability promisesmade by CG companies?KNICKLE: An IT investment isn’t a solution

until it works! So if you’re asking if SCE tools

have been able to deliver cost sav-

ings and sustainability improve-

ments over the last few years, the

answer is definitely yes, by consol-

idating loads, better route plan-

ning, and basically optimizing

supply chain assets. A more inter-

esting question is — can SCE tools

do better? The answer is also yes. And given

the fact that CG companies are still promis-

ing their customers that they can achieve even

more cost savings and green improvements,

there’s more work to be done. We’d like to be

able to assign sustainability “costs” to indi-

vidual customers, orders, product lines, prod-

ucts and more. And SCE applications are

going to be a big part of the solution.

“Providing our customers with accurate, timely shipment informationis vital. Using On-Demand TMS, we know the status of our shipments,and our customers receive delivery performance reporting for alltheir locations.”

— VP, SUPPLY CHAIN SERVICES, BARILLA Source: LeanLogistics.com Case Study, 2009

Supply Chain Execution

CUSTOMER EXPERIENCE: LEANLOGISTICS


3.58

SMB MARKET: ORACLE

“Six months after implementing Oracle Real Time Sales & OperationsPlanning, we have seen a dramatic increase in forecast accuracy.This resulted in an immediate 20 percent inventory reduction.”

— WENDY MALLOY, INVENTORY PLANNING MANAGER, WILTON

SAPwww.sap.com


RedPrairie Corporationwww.redprairie.com

Manhattan Associateswww.manh.com

Logilitywww.logility.com

i2 Technologieswww.i2.com


JDA Software Groupwww.jda.com

LeanLogistics Inc.www.leanlogistics.com

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Bob Parker, group vice president, Research at

IDC Manufacturing Insights was not surprised

by this year’s list. For example, he believes

that Lawson moving into the list was expected,

as the company has grown its base via acqui-

sition and has a good back office story.

CGT: How has the economic downturnimpacted ERP initiatives?PARKER: Corporate objectives to preserve

cash put tight constraints on cap-

ital spending including large proj-

ects like ERP implementations and

upgrades. Companies tended to

look for much smaller scope, faster

payback projects, which has helped

Oracle as they can sell acquired

modules like OTM (nee G-Log)

and Demantra into companies that run SAP.

Companies also continued to invest in BI to

create greater visibility into operating circum-

stances and speed corrective actions.

CGT: What trends will impact ERP in theconsumer goods industry?PARKER: Prior ERP investment has done a lot

(along with the availability of low cost offshore

resources and hardware virtualization) to

lower the cost of IT at CG companies. In fact,

in the past decade companies have lowered

their spending from around 4 percent of rev-

enue to 2.5 percent. In the next five years, com-

panies will seek to lower costs (on a percent

of revenue basis) another 20 percent, through

taking advantage of cloud computing and

more integrated analytics. The third area of

savings will be ERP where the ability to “vir-

tualize” instances will emerge.

Suppose the Wal-Mart account team

at a CP company wants to stand up

a unique set of business processes

to support their efforts. A virtual

ERP instance can be created that

supports those processes without

violating the integrity of a consoli-

dated corporate information model. This will

allow companies to become much more effec-

tive in their use of information and process

workflows contained in the ERP system.

CGT: As the economy improves, do you expect to see the return of largepurchases of ERP applications in theconsumer goods industry?

“We’ve developed a great relationship with Oracle that’s been a partof our success. Both companies have invested time at all levels ofthe organization to develop strategic, win-win solutions.”

—ANDY PLATT, VICE PRESIDENT, INFORMATION, SERVICE & CIO, JM SMUCKER CO.

Enterprise ResourcePlanning

CUSTOMER EXPERIENCE: ORACLE


3.20

SMB MARKET: SAP

“Silos of information had developed in certain areas of the companyover the years. The SAP ERP upgrade project and use of best practices enabled us to harness this information quickly and makeone plus one equal three.”

— BOB TORKELSON, PRESIDENT AND COO, TRINCHERO FAMILY ESTATES

SAPwww.sap.com


Microsoft Corporationwww.microsoft.com


Lawsonwww.lawson.com

PARKER: To a certain extent. There is pent up

demand for new capabilities and getting to

the virtualized ERP vision discussed above

starts with a company being on the most cur-

rent release built on a modern architecture.

However, this desire to invest will be some-

what tempered by the fact that companies

have learned that they can survive without

committing to large ERP projects. Demand

will return, but investment justification mod-

els will have to be reconsidered. Better busi-

ness performance, not better bookkeeping

will be the key criteria.


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Alan Langhals, principal at Deloitte Consulting

LLP believes that the companies shown here

represent the leading names in the CG indus-

try customer relationship management (CRM)

space. Each provider has shown that it can

deliver new and value generating capabilities

to its customers and has delivered results across

a wide spectrum of companies.

CGT: How has the economic downturnimpacted CRM initiatives?LANGHALS: While the downturn

has certainly made it more challeng-

ing for organizations to secure fund-

ing for major capital investments, it

has served to increase the awareness

and importance on growth oriented

programs such as CRM. It has fur-

ther created an intense focus on improving cus-

tomer insight data and retail trade investment

decision-making. These conditions have been

a driver which has allowed CRM/TPM appli-

cations be more resilient to the downturn as the

ROI on such projects is more easily justified.

Those organizations that have invested in

growth efficiency programs will be better pre-

pared to capitalize on an improved economy.

CGT: What trends will impact CRM inthe CG industry?LANGHALS: A tighter alignment of con-

sumer/customer demand signal information

and sales, fulfillment and operating strategies

of CG manufacturers will drive the business

case for technology investment. Using insight

information to drive product innovation deci-

sions, consumer and trade marketing pro-

grams, and sales strategies will become core

competencies for all CG companies.

CGT: How can CG companiesleverage technology toimprove collaboration andcommunication with retailcustomers and consumers?LANGHALS: Collaboration is

enabled through a variety of core technolo-

gies to leverage available demand and sup-

ply data. Consumer insights, driven from

demand signal information and mined

through advanced data aggregation and ana-

lytical tools create actionable insights that

facilitate collaboration on product offerings,

marketing and sales programs and consumer

incentives. Collaborative planning in the

“The big reason we chose CAS for our sales force automation solutionwas because it met our business requirements out of the box. In addition, a big point of differentiation for us was that they are very com-mitted to the consumer products/goods space. They know this spacevery, very well, and the vision that they have of the product and wherethey’re heading is very much in line with the vision we have at RJRT.”

—PETER K. HATCH, SR. DIRECTOR, INFORMATION MANAGEMENTDEMAND, RJ REYNOLDS

Customer RelationshipManagement

CUSTOMER EXPERIENCE: CAS


3.38

SMB MARKET: MICROSOFT

“The whole company operates off the same set of data, which eliminatesconfusion and redundancy and speeds customer service. Marketingcan share customer records with accounting, and salespeople cansee inventory levels before they make commitments to customers. I use inventory data to launch promotions, which I can manage easilyfrom within Microsoft Dynamics CRM.”

— FRAN RICHARDS, VICE PRESIDENT OF MARKETING, SPY OPTIC

SAPwww.sap.com



CASwww.cas.com

MEIwww.meicpg.com

Value Chain facilitates increased product

availability and lower stock-outs while low-

ering CG manufacturers required working

capital and inventory investments. The use

of collaborative planning in the area of con-

sumer and retailer incentives can be used to

create volume accretive program structures

that also optimize profitability for both the

retailer and manufacturer. Advanced pricing

optimization technologies can be extended

through the Value Chain to determine opti-

mal sales and promotional pricing between

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This year, Kevin Prendeville, senior execu-

tive at Accenture Consumer Goods &

Services, provides his expertise on the state

of NPDI in the CG industry, trends, and more.

CGT: How has the economic downturnimpacted NPDI initiatives?PRENDEVILLE: Despite the turbulence in the

economy clients have still undertaken proj-

ects in this space. However, the focus of the

work has been predominantly in

two areas; quick impact projects,

often focused on reducing COGS

(cost of goods sold); and large foun-

dational programs that are directly

aligned to a strategic need or sat-

isfying regulatory requirements.

CGT: What trends will impact NPDI inthe CG industry?PRENDEVILLE: Firstly, a continued increase

in private label will drive retailers to invest in

their product lifecycle management (PLM)

capabilities to improve product development

efficiency and effectiveness and to satisfy reg-

ulations. Secondly, the virtualization of prod-

uct design data and improvements in 3-D and

2-D development tools will enable compa-

nies to reduce the need for physical product

prototypes for concept development, test-

ing and customer feedback. Lastly, product

development/R&D budgets will come

under increased corporate pressure.

CGT: Why haven’t more CG compa-nies embraced technology to assistwith NPDI?

PRENDEVILLE: These processes

tend to be cross-functional rather

than centrally owned, which

can create doubt internally as

to who owns the initiative. The

capital investment and size of

the product development/R&D

workforce required to bring a

product to market in other industries has

forced those companies to take an enter-

prise view, mature PLM processes and

enable these processes using technology.

As CG companies generally invest less per

product but produce more new products

in a year, and tend to drive these processes

in a fragmented way, then the need for

enterprise PLM technology is lower.

“This platform was also integrated into our ERP solution and the SCMplatform and other ancillary solutions we have, to clearly representthe single repository of all knowledge around formulas and experi-ments that go along with it.”

— MANISH CHOKSI, CHIEF CORPORATE STRATEGY & CIO, ASIAN PAINTS

New Product Development& Introduction

CUSTOMER EXPERIENCE: INFOR GLOBAL SOLUTIONS


3.69


“We are constantly creating new products. The inspiration can comefrom anywhere, but often it’s something we see on the internet. TheSnipping Tool (in Windows 7) makes it super easy to grab, save andshare the idea. What a great feature!”

— FRANK CERULLO, CEO, GAMEWEAR INC.


SAPwww.sap.com


Dassault Systèmes ENOVIAwww.3ds.com


IBMwww.ibm.com

PTCwww.ptc.com

Siemens PLM Softwarewww.siements.com/plm

Paxonixwww.paxonix.com

Gerber Technologywww.gerbertechnology.com10


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According to John Hagerty, vice president and

research fellow at AMR Research, while there

has been some movement amongst the top

four companies, the addition of Silvon to the

list indicates that buyers value companies that

deliver products tailored to industry content.

CGT: How has the economic downturnimpacted BI initiatives?HAGERTY: It was encouraging that organi-

zations did not sit on their hands in 2009.

After years of investment to capture the right

data, they knew it was time to

leverage that information to make

more informed business decisions.

In a spending study conducted in

Q309, participants reported they

expanded business intelligence (BI)

programs that delivered a host of

analytics capabilities to signifi-

cantly more people in the enterprise. While

they didn’t necessarily spend at the same clip

as in prior years, they didn’t stop buying

either. The same will hold true for 2010.

CGT: What trends will impact BI in theCG industry?HAGERTY: Two trends that will have signif-

icant impact for consumer goods firms:

Advanced analytics: providers are dialing

up the volume on analytics that couple tech-

nology and consulting to expand beyond back-

ward facing reporting and metrics.

cloud computing and collaboration: CG

companies have been at the forefront of inte-

grating internal and external demand data.

Deployment models in the cloud will expand

available data and opportunities for collabo-

ration across the extended value chain.

CGT: Given the vendor movement overthe last two years, has themarket settled down? HAGERTY: First of all, market con-

solidation is inevitable. While high

profile BI and performance man-

agement acquisitions were made

over two years ago by the mega ven-

dors, there will certainly be more.

Secondly, if I read the tea leaves correctly,

demand for industry-driven and content-spe-

cific analytics are accelerating. Business buy-

ers are more involved than ever in BI and

analytics evaluations and selections, often

providing the funding for these programs.

So, their satisfaction is critical. Most of the

leading software providers have only begun

to scratch the surface on focused analytic

“Since we deployed IBM business analytics solutions, we have consistently exceeded our customer expectations in all criticalaspects – from operational to customer service – resulting in better relationships and increased sales.”

— JIM MULHOLLAND, VP OF INFORMATION TECHNOLOGY, CREATIVITY INC.

Business Intelligence

CUSTOMER EXPERIENCE: IBM


3.57


“In Microsoft, we saw a [BI] solution that met all our requirements,that was a better fit with our current investments and skill sets, and that would deliver a lower total cost of ownership.”

— TOM CESARIO, DIRECTOR OF IT, RADIO FLYER

SAPwww.sap.com



IBMwww.ibm.com

MicroStrategywww.microstrategy.com

SASwww.sas.com

Teradatawww.teradata.com

Silvon Softwarewww.silvon.com

applications because they have historically

come at this market demand from a do-it-

yourself tools angle. Acquisitions in these

spaces will accelerate and alter the landscape.

(#20279) Reprinted from the January 2010 issue of Consumer Goods Technology. © Edgell Communications, Inc.For more information about reprints from Consumer Goods Technology, contact PARS International Corp. at 212-221-9595.

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