business intelligence in fmcg
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Varun Wadhwani (09BM8060)
S. Srikanth (09BM8049)VGSoM, IIT Kgp
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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
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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
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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
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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
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Source: Business Standard
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Data Transformation
Source: IBM
POS
Logistics
Suppliers
Manufacturing
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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
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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
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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.
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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%
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FMCG- Supply Chain KPIsSupplier Perspective:Supply Lead timeReponse DelayRejection rateOnline RejectionsOTIFPercentage delayResponsiveness to urgent deliveries
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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
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FMCG- Supply Chain KPIsShipment Perspective:Forecasting errorFill ratesOTIFbackorders
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FMCG- Supply Chain KPIsFinancial Perspective:Inventory TurnsSalesAsset turnsTotal supply chain cycle timeInput Freight CostsTax and SurchargesManufacturing CostInventory Carrying cost
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Thank You!