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Bringing visibility and resilience to a complex supply chain

A telecommunications manufacturer uses E2open to connect with suppliers and manage disruption

Client

A leading specialty telecommunications manufacturer

Industry

Telecommunications

Primary goal

Re-engineer supply chain for better collaboration, data, and adaptability

Platforms

E2open supplier collaboration • E2open supply planning and response • Oracle Advanced Supply Chain Planning (ASCP)

test

When an acquisition doubles your revenue in your largest market, there are some big numbers at play—especially when you’re a $48 billion CPG company. And the bigger the numbers, the bigger the impact of every strategic and tactical decision you make. You can’t afford to have your visibility clouded and your decision-making hampered by having two disparate financial operations functions each with its own systems, software, and people. So, when a global CPG company found itself in this situation, it called on KPMG to drive fast, smooth, cost-efficient integration of financial operations.

Key outcomes

1

Increased engagement 

and global alignment between cross-functional teams

2

Greater visibility

 into consolidated spend driving meaningful insights and more proactive decisions

3

Days shaved off

the monthly close cycle

4

More accurate

revenue and sales forecasting

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As a leading supplier of equipment and software for specialized professional communications, our client relies on hundreds of suppliers for the components and materials that go into its  products. Managing this complex supply chain was never easy, and by late 2021 shortages and disruptions driven by the COVID-19 pandemic and other factors had made the need for better visibility and control critical. Planning, scheduling, and fulfilling customer orders had become difficult enough to impact revenues and create unwelcome surprises on quarterly earnings calls. To meet these challenges, the company turned to KPMG and e2open, a cloud software provider specializing in supply chain management.

KEY OUTCOMES

Making a measurable difference

  • Now able to analyze shortages of approximately 3,000 components—up from only 10 components before
  • 12 percent improvement in quarterly revenue prediction accuracy enabled via multi-tier supply allocation
  • Exclusively using scenario modeling and technology processes for projecting quarterly revenue

Client transformation journey

Click on each part of the journey to learn more about our client’s transformation.

Client transformation journey

Before

Poor visibility threatened business objectives.

Acquiring a large organic food and beverage business helped a global CPG company expand its operations and nearly double its revenue in the U.S. However, as with most mergers, the integration posed some challenges. Two disparate IT environments with different accounting and reporting models, separate enterprise resource planning (ERP) systems, and multiple business intelligence (BI) tools required extensive manual intervention and offline data manipulation, preventing uniform reporting and analysis. Data was trapped in silos. Visibility was insufficient. A new CFO and the finance and accounting teams lacked the insight to support effective forecasting and both strategic and tactical decision-making. In a sector as competitive and fast-changing as food products, this company needed to increase visibility quickly.

After

Unified financial operations support global success.

While this CPG company’s business is spread across two continents (and originates from a number of acquired companies), its financial operations are now centralized and unified. A cloud-based platform extracts and loads data from numerous global sources, then configures and stores it in a central location. Accounting staff across multiple back offices work within a single governance structure and with a single set of streamlined processes, enabling effective reporting and supporting a swift, accurate close. Across the enterprise, visibility is excellent, and insights are at the ready, because analysts can perform real-time calculations and drill down swiftly to the meaning behind the numbers. Unified financial operations helps this $48 billion player predict accurately, plan effectively, and act swiftly—all crucial in a sector where windows of opportunity close as suddenly as they open.

Future

A strong foundation that can keep pace with continued growth.

There will be more acquisition targets in the company’s future. And with a cloud-based platform, governance framework, and standardized processes in place, integrating financial operations will be a swift, sure process. A successful integration inspired the CFO and global finance team to consider other areas for transformation. From evolving multiple layers of the target operating model within Finance, to jump-starting transformation across other functional areas, a powerful ripple effect began and continues across the enterprise. Having the right tools and processes to support a grander vision driven by meaningful insights will continue to empower positive change.

Before

Poor visibility threatened business objectives.

Acquiring a large organic food and beverage business helped a global CPG company expand its operations and nearly double its revenue in the U.S. However, as with most mergers, the integration posed some challenges. Two disparate IT environments with different accounting and reporting models, separate enterprise resource planning (ERP) systems, and multiple business intelligence (BI) tools required extensive manual intervention and offline data manipulation, preventing uniform reporting and analysis. Data was trapped in silos. Visibility was insufficient. A new CFO and the finance and accounting teams lacked the insight to support effective forecasting and both strategic and tactical decision-making. In a sector as competitive and fast-changing as food products, this company needed to increase visibility quickly.

After

Unified financial operations support global success.

While this CPG company’s business is spread across two continents (and originates from a number of acquired companies), its financial operations are now centralized and unified. A cloud-based platform extracts and loads data from numerous global sources, then configures and stores it in a central location. Accounting staff across multiple back offices work within a single governance structure and with a single set of streamlined processes, enabling effective reporting and supporting a swift, accurate close. Across the enterprise, visibility is excellent, and insights are at the ready, because analysts can perform real-time calculations and drill down swiftly to the meaning behind the numbers. Unified financial operations helps this $48 billion player predict accurately, plan effectively, and act swiftly—all crucial in a sector where windows of opportunity close as suddenly as they open.

Future

A strong foundation that can keep pace with continued growth.

There will be more acquisition targets in the company’s future. And with a cloud-based platform, governance framework, and standardized processes in place, integrating financial operations will be a swift, sure process. A successful integration inspired the CFO and global finance team to consider other areas for transformation. From evolving multiple layers of the target operating model within Finance, to jump-starting transformation across other functional areas, a powerful ripple effect began and continues across the enterprise. Having the right tools and processes to support a grander vision driven by meaningful insights will continue to empower positive change.

Client transformation journey

  • Before

    Poor visibility threatened business objectives.

    Acquiring a large organic food and beverage business helped a global CPG company expand its operations and nearly double its revenue in the U.S. However, as with most mergers, the integration posed some challenges. Two disparate IT environments with different accounting and reporting models, separate enterprise resource planning (ERP) systems, and multiple business intelligence (BI) tools required extensive manual intervention and offline data manipulation, preventing uniform reporting and analysis. Data was trapped in silos. Visibility was insufficient. A new CFO and the finance and accounting teams lacked the insight to support effective forecasting and both strategic and tactical decision-making. In a sector as competitive and fast-changing as food products, this company needed to increase visibility quickly.The preconfigured assets and technology accelerators delivered by KPMG Powered Enterprise let ambitious leadership teams take advantage of embedded leading practices to speed up the decision-making process while instilling confidence.

  • After

    Unified financial operations support global success.

    While this CPG company’s business is spread across two continents (and originates from a number of acquired companies), its financial operations are now centralized and unified. A cloud-based platform extracts and loads data from numerous global sources, then configures and stores it in a central location. Accounting staff across multiple back offices work within a single governance structure and with a single set of streamlined processes, enabling effective reporting and supporting a swift, accurate close. Across the enterprise, visibility is excellent, and insights are at the ready, because analysts can perform real-time calculations and drill down swiftly to the meaning behind the numbers. Unified financial operations helps this $48 billion player predict accurately, plan effectively, and act swiftly—all crucial in a sector where windows of opportunity close as suddenly as they open.

  • Future

    A strong foundation that can keep pace with continued growth.

    There will be more acquisition targets in the company’s future. And with a cloud-based platform, governance framework, and standardized processes in place, integrating financial operations will be a swift, sure process. A successful integration inspired the CFO and global finance team to consider other areas for transformation. From evolving multiple layers of the target operating model within Finance, to jump-starting transformation across other functional areas, a powerful ripple effect began and continues across the enterprise. Having the right tools and processes to support a grander vision driven by meaningful insights will continue to empower positive change.

I think our client wanted to work with KPMG not just because we understand the e2open supply chain management solution, but because we also understand the related software, data, and processes that need to work with e2open to make it even more effective for manufacturers and their suppliers.

Sean Cassidy

Managing Director, Advisory, KPMG Consumer & Operations Commercial practice

KPMG and e2open deliver better planning, collaboration, and adaptation

1. Vision and validation phase

From assessment and analysis to a roadmap for change

The project began when the client asked KPMG for a strategic assessment of its supply chain. We conducted research and interviews with internal stakeholders and key suppliers, as well as an analysis of existing technical gaps and limitations. A key conclusion was that a successful technology solution would need to enable better information sharing and collaboration with suppliers as well as related supply chain participants such as shippers and logistics partners.

Working from this assessment, our team developed a supply chain transformation roadmap and worked with executive leadership to gather the support and funding required. We then provided an initial list of technology solutions providers and helped the company prepare an RFP to solicit and review bids. At the end of this review, e2open was selected for its advanced digital capabilities, including supplier collaboration and scenario modeling.

2. Design and construction phase

Optimizing e2open to meet specific needs

When work on the design and configuration of e2open began, the goal was to activate an initial version of scenario modeling within six months, followed by collaboration and other functions. Our team included a core group of KPMG technical consultants working directly with the company and e2open personnel, as well as additional programming executed at our KPMG Global Services (KGS) offshore delivery center.

Much of our work involved customizing e2open’s standard pre-configured solution to meet the manufacturer’s specific requirements. While e2open is designed to be more configurable than most cloud-based ERP platforms, keeping the initial deployment relatively simple for both the client and its suppliers was a priority. An overengineered solution with too many steps, rules, and alerts may deter supplier participation.

Another challenge was integrating new functions enabled by e2open with the client’s existing ERP solution. To address this, e2open uses extract, transform and load (ETL) middleware to connect data from supply chain participants that might not otherwise be accessible. It also offers a set of specific supply chain tools including channel partner collaboration applications, global trade compliance , and transportation management solutions.

3. Delivery phase

Initial deployments deliver rapid results

Deployment of the new e2open solution occurred in stages, starting with an initial release of scenario modeling running in parallel with the legacy process and a pilot release of collaboration to several suppliers over a three-month period. Feedback from the pilot was applied in a wider launch through a second release that enabled additional functions.

Today the client uses the e2open network to offer forecast collaboration, purchase order, Advanced Shipping Notice (ASN), and receipt collaboration functions to around 300 suppliers. Even at this early stage, scenario modeling and multi-tier supply allocation have significantly increased the number of component shortages analyzed, improved revenue prediction accuracy, and raised employee productivity. Scenario model testing also helped uncover and correct incorrect bill of materials (BOM) data, resulting in more accurate transmission of forecasts to suppliers. These improvements have in turn led to more consistent financial reporting and reduced the amount of time and effort required to assemble quarterly financial data for investors. 

4. Evolution phase

New suppliers and expanded functionality

The next steps for the client will be to release the current version of e2open to all of its suppliers and to make minor improvements to its range of functions. Looking ahead, other significant updates to the platform will enable new functions including:

  • Part shortage management, which helps offset shortages by expediting purchase orders and freight options
  • Buy-sell management, which allows manufacturers to buy components directly and then sell them to EMS or other supplier partners.

Working together, KPMG and e2open have helped the client maximize its complex supply chain by combining better visibility with the ability to analyze and apply data for better planning and resilience. 

Cut through complexity with the right tools and processes

In a recent KPMG global survey 70 percent of respondents described their supply chains as very or extremely complex. Lingering disruptions caused by COVID-19 and the Russia-Ukraine war are only adding to this challenge. KPMG can help you adopt the technology and processes to transform your supply chain. 

Learn more

Meet the team that can make the difference when it comes to your supply chain

Let’s talk about your specific supply chain challenges and how to address them. KPMG. Make the Difference.

Image of Sean Cassidy
Sean Cassidy
Managing Director, Advisory, KPMG LLP
Read bio
Image of Rob Barrett
Rob Barrett
KPMG Powered Leader, Principal, Advisory, KPMG US
Read bio
Image of Mary J. Rollman
Mary J. Rollman
Principal, Supply Chain Leader, KPMG US
Read bio
Image of Sean Cassidy
Sean Cassidy
Managing Director, Advisory, KPMG LLP
Read bio
Image of Rob Barrett
Rob Barrett
KPMG Powered Leader, Principal, Advisory, KPMG US
Read bio
Image of Mary J. Rollman
Mary J. Rollman
Principal, Supply Chain Leader, KPMG US
Read bio

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