Henkel's path to a new generation of VMI
Henkel Consumer Goods Inc. North America has been utilising VMI since 1990 and as of late 2012, VMI was used to manage about 15% of total sales across mass, grocery, and value CPG channels.
As customer demand for VMI continued to increase, Henkel recognised that their VMI program could not scale to the level they needed without a change in approach. Tracee Abu, Manager- Henkel Customer Supply Chain explains, “We did not have a fully integrated VMI system in place. The process was managed using manual data manipulation and Excel spreadsheets. That approach was very inefficient and non-standardised, which prevented us from applying more advanced VMI practices.”
In early 2012, Henkel Consumer Goods Inc. North America established a clear goal for their VMI program: find and implement a solution that would enable optimising the VMI process for existing VMI accounts and enable expansion of the VMI program to additional customers in a cost-effective, confident manner.
“When we considered all of the functional, technical and service aspects of what we wanted in a new generation VMI platform, TrueCommerce was the simple choice. They were a clear leader in VMI with 80+ current VMI customers and were already handling a number of very large CPG customers, processing millions of SKUs and managing thousands of locations around the world.
The Henkel team has seen significant benefits from the move to TrueCommerce. “Our VMI analyst productivity has increased on many fronts,” says Abu. “Dozens of daily processes that had required manual work are now automated. We also eliminated the need for Henkel IT to interpret retailer product activity and perform error-related reporting – now performed by TrueCommerce. We have much better tools for handling challenging activities like promotions and product changes.” Henkel has maintained or improved customer inventory metrics across the board since the move to TrueCommerce.