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2 RampUp Q2FY01 End DSI Q3FY01 End DSI Best Quarter End Performance Q4FY01 Process Change ?Multiple Metrics Tracked ?Formal Process / Feedback Loop ?Joint Business / IT Accountability 30 Copyright 169。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. CPFR Benefit Examples US Lead time 10 days to 11 WalMart/Warner Lambert US Nabisco/Wegmans Others 2 weeks 18% Inventory Decrease 13% Sales Increase 92% (+12%) Forecast Accuracy 98% (+ 11%) Instock Availability US WalMart/Sara Lee US Lead time – 67% Heineken and Distributors 14% 45% + % US Lead time – 50% Mitsubishi and Dealers US Kimberly Clark/Kmart 25% 14% 96% (+ 12%) US Sofamor Denek and Customers Europe Truck fill 9% Henkel/Eroski + 1015% + to 85% 97% (+ 12%) 98% Europe Rush orders – 63% Cartisa/Henkel/Condis Europe Vandemoortele/Delhaize 40% in 4 months 1 day 62% (+ 20%) 97% (+ 12%) Increased during promotions Europe Rush orders – 33% Procter amp。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 74%4%22%I nc r e a s e dD e c r e a s e dR e m a i ne d t he s a m eIn the past three years, the level of collaboration within panies has either increased or remained the same. Very few panies have seen a decrease in collaborative activity. Compared to 3 years ago, would you say the level of collaboration conducted with your trading partners has: Increased, Decreased, or Remained the Same? Source: Accenture 2020 Survey 24 Copyright 169。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Thames Water Business Challenge To keep its water and wastewatermanagement systems up and running, Thames Water must have more than 5,000 different items—pipes, valves, pumps, tanks and so forth — readily available. However, because it also is a private pany doing business in a highly regulated industry, the pany must be vigilant about controlling costs. For this reason, Thames Water came up with a unique way to save money and revolutionize the business: outsource all of its supply chain operations to Accenture. How Accenture Helped ? Develop a new collaborative outsourcing model through a joint enterprise: ―Connect 2020‖ ? Assume responsibility for procurement operations: ? Revamp purchasing processes ? Streamline acquisition of modity items, such as electricity, chemicals and MRO ? Help shrink Thames‘ stable of approved suppliers and negotiate new agreement frameworks ? Assume responsibility for logistics and distribution: ? Hire 300 Thames Water employees, including lorry drivers and warehouse staff ? Consolidate warehouse work into single Logistics Centre and marshaling yard ? Design handheld wireless munication device to improve productivity of field service personnel Innovation Delivered ? $150 million savings in overall operating costs ? 35 percent drop in the cost of service and materials ? 50 percent reduction in inventory ? Significant improvements in customer service ? Dramatic rise in materials availability (now 99 percent) ? Greater productivity from supply chain personnel ? 20 percent improvement in fieldsupport productivity and seven percent reduction in costs following implementation of wireless devices ? Opportunity to redeploy scarce resources to petitively critical areas Largest water utility in the United Kingdom ? Supplies 12 million customers covering 5,000 square miles in and around London 20 Copyright 169。 06 Proj.U s e r s % o f B u d g e t46% of Budget Northeastern University / Accenture 2020 Annual 3PL User and Provider Surveys Use of ThirdParty Supply Chain Services Survey Year 80% Use 16 Copyright 169。 0239。 9839。 9439。 enabling smaller providers to supply but BA maintains one key contact – Implementing Webbased approaches to buying, enabling easier management of tendering process for BA and simplifying the process for suppliers 13 Copyright 169。 continuous improvement ? Channel strategy ? Internal amp。 2020 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Executives surveyed for an Accenture, INSEAD, Stanford University research proj