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Best of Breed for Coty’s Fulfillment Process Presented to: Supply Chain World, North America Anaheim, CA April 5, 2005 B

Best of Breed for Coty’s Fulfillment Process Presented to: Supply Chain World, North America Anaheim, CA April 5, 2005 By: Dimitri Sinkel, Sr. Consultant, Clarkston Mark Newberry, VP Logistics, Coty US. Agenda. Who is Coty? Coty’s High Volume Data Flows

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Best of Breed for Coty’s Fulfillment Process Presented to: Supply Chain World, North America Anaheim, CA April 5, 2005 B

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  1. Best of Breed for Coty’s Fulfillment Process Presented to: Supply Chain World, North America Anaheim, CA April 5, 2005 By: Dimitri Sinkel, Sr. Consultant, Clarkston Mark Newberry, VP Logistics, Coty US

  2. Agenda • Who is Coty? • Coty’s High Volume Data Flows • Coty’s End-to-End Fulfillment Automation • The Best-of-Breed Systems • Coty’s IT Infrastructure • Best-of-Breed • Benefits • Challenges • Future Directions

  3. Coty perfumes, lotions, creams, cosmetics

  4. Coty • Coty is a world-leading consumer products marketing, manufacturing and distribution company, specializing in perfumes, lotions, creams, and cosmetics • Coty US serves North America, and operates as an independent entity, approaching $1B in sales • Coty US has 1 Manufacturing plant, 1 Distribution Center: Sanford, NC • Customers: Wal-Mart; Target; K-Mart; Walgreen’s; Neiman-Marcus; Bergdorf Goodman; Macy’s; Sears; JC Penney; Long Drugs; Big Lots; Dollar Store; etc. • 2000 Customers: top 3 represent > 50% volume

  5. Coty’s High Volume Data Flows • Customer Orders: 5,000 to 10,000 per day • 95%+ come by EDI; <5% entered manually through e-Store • Orders by store, consolidated deliveries to DC and DSD • 50% weekly replenishment; 50% promotions • 223,000,000 pieces delivered in 2004 • Item Master: 100,000 sku’s, with 100 changes daily • Multiple categories: Toiletries; Fragrance; Color; Spec. Bath • Widely varied Turn Rates • From $1.97 Lip Pencil to $150.00 Marc Jacobs perfume • Highly Seasonal, very heavy second half of the year

  6. Coty’s End-to-End Fulfillment Automation

  7. Sterling: Gentran • EDI Messaging • Messages supported: 204; 210; 214; 810; 820; 850; 856 • VAN Polled every hour • AS2 EDIINT transmissions in real time • Data Mapping • Item, Quantity, Price • Shipping window, Delivery window • UNIX-based • Efficient data handling

  8. Sterling: GENTRAN

  9. Manugistics: Demand Planning • Consumer Products: domain knowledge • Largest install base in the industry • Lewandowski Algorithm tailored to CP industry • Models for appropriate SKU lifecycle • Event planning • Collaboration • Allocation and Aggregation • Run weekly with monthly data • Based on historic sales data & informed judgment • Long Term Capacity Planning – 12 month horizon • Production Planning - 2 month horizon

  10. Oracle: ERP • Financials very strong • Perpetual Inventory • Real time • Integrated to all systems • Accounts Receivable • Accounts Payable • Manufacturing: BOM’s, Routings • Capacity Planning • Master Scheduling • Manages Production Orders

  11. Oracle: Database • Oracle Database - analysis-ready database with embedded Extract, Transform, and Load (ETL), Online Analytical Processing (OLAP), and Data Mining capabilities built into the data server, where analysis takes place • Facilitates integration between Oracle tables of many applications • Facilitates Data Warehousing: Object Data Stores

  12. Webplan: RapidResponse

  13. WebPlan: RapidResponse • Respond to Demand signal with immediate Supply • Demand drives Supply through inventory levels • Check component availability • Creates planned work orders • Automatic Order scheduling • Assumes infinite capacity • Uses lead time logic • Browser-based – visibility of production status • Re-plans all dependent demands instantly • “Compare” analysis of changes • Supply Planning: Outsourcing and Purchasing

  14. American Software: COPS • Customer Order Processing System • Highly customized for Coty • Manages customer orders from all sources • Order Promising capability • Allocation • Containerization • Invoicing

  15. American Software: e-Store • e-Store • Order input from field reps • Validates data on input • Real time processing • Real time order tracking

  16. Red Prairie: DM Plus • Warehouse Management • Real time • Tracks inventory locations • Receiving • Maintains inventory accuracy – cycle counting • Integrated to Oracle

  17. IASCO: Warehouse Control System • Manages “Picking” Operations • On-line, real time • Broken case, full case, bulk pallets • Assign sort lanes and pick sequence • Wave planning balanced across workcenters • Manages Sorter/Conveyer System • Manages label printing: cases, pallets • Finds missing cases • Shipping • Shipping documentation: VICS BOL; Manifest; Customs • Ship Verifies shipment departure • Integrates to COPS: backorder management • On-line, Real-time tracking of each shipping unit

  18. Manugistics: Transportation Mgt System • Transport - Optimizes all shipments • Chooses best mode, carrier, and route • Consolidates Truckload shipments • Optimizes routing and stopoffs • Calculates optimized Ship Date and Delivery Date • Delivery Management – manages inbound shipments • Visibility of status for all shipments, near-real time • Proactive problem resolution • Creates Payment Records - Autopay without invoices

  19. Synchronizing the Supply Network

  20. Coty IT Infrastructure • Networking strategy • Internal • Web-based • Partnerships – Coty customization • ASI • IASCO • Integration: Internal Development • PL/SQL • MicroFOCUS, COBOL • Flat file scheduled data interchange

  21. Best-of-Breed: Functionality • Customized to business needs – industry specific • Optimize business process – pick the best software • Demand-Driven: “Near-Make-to-Order” environment • Focus on improved customer service • Stay on bleeding edge: eStore; RFID; etc. • Maximizes business process savings

  22. Best-of-Breed: Upgrade Management • Upgrade path based on business needs, not vendor’s agenda • Put resources where biggest payback exists • Creates competitive advantage • Stagger implementation based on priority and resource availability • Cost justification in smaller pieces, more realistic • Project size in pieces, more manageable • Schedule during business slow season • Better management of impact

  23. Best-of-Breed: Challenges • Integration programming • Integration maintenance • Integration transaction timing • Reliability – Downtime • Data Integrity - Error logs • Realtime processes – cycle time for updates

  24. Best-of-Breed: Future Directions • Oracle Product Master • EDIINT – web-based, real time for all messages • UCCNET – XML via Oracle, ICCNET • Next generation Order Processing

  25. QUESTIONS?

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