Report optimization in the FMCG industry

1. Reporting

• Multidimensional sales reporting along with profitability.

Reporting sales volume (quantity and weight), revenues, discounts, manufacturing costs, commercial costs, total costs and logistics by various dimensions (customers, customer groups, indexes, categories, index groups, markets, sales channels, etc.).

• Inventory reporting.

Inventory trend analysis (inventory history for each day is stored in Qlik) and analysis of demand for raw materials.

• Reporting on the rotation of goods and raw materials.

Inventory turnover analysis, batch retention analysis and analysis of goods with the shortest shelf life.

• Reporting of customer service quality indicators (CSL).

CSL indicator reporting by all available dimensions (channels, markets, customers, commodity groups, etc., KAM’s rankings, sales order analysis, sales order hold reason analysis, etc.).

• Reporting of raw material and time deviations for production.

Analysis of raw material deviations (execution vs. recipe) for production orders (both quantity and amount), analysis of time deviations (execution vs. recipe) with division into machine hours and working hours and analysis of deviation costs (raw materials, working hours, machine hours).

• Reporting of raw material purchases.

Purchase price analysis (trends, supplier comparison), on-time delivery of raw materials analysis (by supplier, merchant, etc.) and analysis of purchase discounts.

1. Sales planning

• Sales volume planning.

Data is initially taken from source files prepared by the Operations Planning Department and imported into the K4 system. Then, the Controlling Department plans specific product volumes on individual Customers in various layouts (categories, groups of goods, etc.).

• Discount planning.

Model discounts are downloaded from the SAP system. In the next step, the user has the option to plan specific discounts, having regard to the expected profit on products depending on their planned quantity.

• Planning manufacturing costs.

Model costs for individual products are also downloaded from the SAP system. The Controlling Department can modify costs on many levels (including costs of labor, raw materials, packages, depreciation, etc.).

• Sales price and promotion planning.

The ability to plan sales prices of individual indexes along with their discounts. Base prices and historical discounts are downloaded from the SAP system. The planning user can enter their new planned values in the system for a given planning period. The system additionally calculates the effect of price changes and discounts on revenue or margin on an ongoing basis.

• Sales cost planning.

Possibility of planning such costs as marketing, transportation, etc. Historical values are downloaded from the SAP system. The user can enter their planned values and monitor their impact on revenue and margin.

• Product margin planning.

All changes in parameters such as sales volume, prices, discounts or costs affect the final sales result. The user can monitor this impact on an ongoing basis, properly manipulating input parameters accordingly to maximize the result.

1. Production and inventory planning

• Planning production volumes based on the sales plan and current inventory.
• Planning of production cells occupancy.
• Planning production workers requirement.
• Raw material inventory planning.

Based on the sales volume plan, production planners can plan production volumes taking into account the capacity of each production cell, the number of employees and the inventory of products, among other things. The demand for raw materials required for production is also planned, taking into account currently held inventory and supplier lead-times, as well as the production of semi-finished products. This approach ensures minimization of inventory and facilitates inventory management. All recalculations are made considering recipes downloaded from the SAP system.