Best of Breed for Coty’s Fulfillment Process

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Best of Breed for Cotys 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
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Agenda

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

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Coty perfumes, lotions, creams, cosmetics
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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 Walgreens
  Neiman-Marcus Bergdorf Goodman Macys Sears
  JC Penney Long Drugs Big Lots Dollar Store
  etc.
• 2000 Customers top 3 represent gt 50 volume

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Cotys High Volume Data Flows

• Customer Orders 5,000 to 10,000 per day
• 95 come by EDI lt5 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 skus, 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

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Cotys End-to-End Fulfillment Automation
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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

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Sterling GENTRAN
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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

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Oracle ERP

• Financials very strong
• Perpetual Inventory
• Real time
• Integrated to all systems
• Accounts Receivable
• Accounts Payable
• Manufacturing BOMs, Routings
• Capacity Planning
• Master Scheduling
• Manages Production Orders

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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

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Webplan RapidResponse
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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

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American Software COPS

• Customer Order Processing System
• Highly customized for Coty
• Manages customer orders from all sources
• Order Promising capability
• Allocation
• Containerization
• Invoicing

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American Software e-Store

• e-Store
• Order input from field reps
• Validates data on input
• Real time processing
• Real time order tracking

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Red Prairie DM Plus

• Warehouse Management
• Real time
• Tracks inventory locations
• Receiving
• Maintains inventory accuracy cycle counting
• Integrated to Oracle

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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

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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

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Synchronizing the Supply Network
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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

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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

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Best-of-Breed Upgrade Management

• Upgrade path based on business needs, not
  vendors 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

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Best-of-Breed Challenges

• Integration programming
• Integration maintenance
• Integration transaction timing
• Reliability Downtime
• Data Integrity - Error logs
• Realtime processes cycle time for updates

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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

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• QUESTIONS?