TXT e-solutions, an international provider of demand & supply chain management solutions, reports that it is contributing to millions of Euros in benefits from customers, from key projects within the CPG and manufacturing sectors.
TXT points out that its TXTPERFORM2008
Supply Chain Management (SCM) suite has already been rated several years running by analyst firms as a leading S&OP solution; TXT has over 740 customers worldwide, including consumer goods leaders such as: Chiesi Farmaceutici, Eckes-Granini, Findus Group, Sony Music, Sperian Protection, Weetabix and many more. TXT has made a considerable investment in Sales and Operations Planning (S&OP) and in developing a solution that not only helps a more effective running of operational aspects of the S&OP process but also enables executives to monitor and control critical aspects of the process to make timely strategic decisions. Some typical challenges are lengthening cash to cash cycle times, extending supply chains carrying hidden costs and building a competitive and predictable Supply Chain.
Gartner Research indicates "consumer products (CP) companies that have matured their sales and operations planning (S&OP) processes to the collaborative stage or beyond experience a 2% to 5% improvement in revenue, 10% to 15% improvement in working capital and a 20% improvement in new product launch (NPL) commercialisation".* As a best of breed SCM vendor TXT is able to help companies achieve these kinds of benefits which are so vital in today's business climate. Examples of some of the key benefits TXT customers have seen include:
15% reduction in inventory and a 30% improvement in MAPE (Mean Absolute Percentage Error index) after only one year. This was followed by a further 15% reduction in inventory and an additional 20% improvement in MAPE after the second year of going live
Planning times cut by 40%
60% reduction in stock-outs for fast-moving goods
Over the course of four years: Product availability increased from 82% to 95% and forecast accuracy boosted from 30% to 71%
Reduction in working capital
Decrease in supplier deliveries from 2 -- 3 to 1 per week
Alexandria Rumble, Global Product Marketing Director, says: "These benefits are the recognition of TXT's expertise and ability to provide companies with a solution that is well suited to their needs. Delivering ROI and real business value is of critical importance to TXT and leading companies are expected to invest to gain capabilities to balance costs and service by better managing demand, reduce operating costs and thus improve their bottom line. I believe that TXT is right in line with this and the above snap shot of benefits across geographies, is a great example of why TXT continues to be selected by organisations. Findus is one such company and talked of their experience in achieving a Business Driven S&OP process and the role technology played at the recent Customer Driven SC 2010 in London. "
* Gartner Research, Sales and Operations Planning:
The Challenge Remains for Consumer Products Companies, Steven Steuterman, July 6, 2010.