consumer in order to drive sustainable, long-term performance while
capturing short-term, process-driven benefits.
We will also see companies optimize their product portfolios
through effective SKU rationalization technologies. These initiatives
increase top-line profitability by
examining the product attributes
that appeal most to consumers and
removing unprofitable products
from the portfolio.
Another area of technology
investment will be trade promotion management systems that
more effectively plan, execute
and evaluate promotions to optimize cost to serve and increase
return on trade dollars.
What value can consultants
bring to CG companies in
these troubled economic
times? How does this differ
from services provided in
the best of times?
COLEMAN: In challenging economic times, consultants help
companies focus on cost reduction activities as well as strategic
questions that are needed to
streamline spending. Through
informed, fact-based analysis we
identify opportunities to better
manage costs and keep companies
focused on the objective, rather
than reacting abruptly to market
ups and downs. In short, consultants help organizations react more
quickly during recessions because
we can supply a temporary but
“In challenging economic times, consultants help
companies focus on cost reduction activities as well
as strategic efforts to position organizations for
greater advantage when the market rebounds.”
— JAMES COLEMAN, ACCENTURE
GIROUARD: Capgemini expects
technology budgets to be much
more tightly managed in 2009.
Projects will need to show a rapid
return on investment by taking
cost out of operations, or directly
contributing to top-line growth.
Large-scale, enterprise-wide ini-
tiatives will be highly scrutinized
and possibly scaled back in scope
or postponed.
From speaking with our clients,
we expect CG companies will continue to invest in technology-related initiatives that:
•Improve insight of and
intimacy with the consumers
•Shorten the time for introducing new products
•Allow a better understanding
of demand and a stronger link
to supply (forecasting and
replenishment, sales and
operations planning)
•Improve on-shelf availability,
while reducing investment in
inventory
•Take actions to optimize the
distribution network and
make transportation and
logistics more efficient
•Improve the ability to source
materials globally and at
lower cost
•Reduce information technology
and business process costs
(think outsourcing!)
efforts to position organizations
for greater advantage when the
market rebounds.
On the cost side, consultants
bring objectivity, speed and focus.
We contribute an objective business perspective, asking the tough
experienced team of resources
equipped with proven, repeatable
cost management processes.
For example, our rapid and sustained cost management approach
carries out cost reductions that aim
to be sustainable for the CG com-
