Performance Management in Retail and the Consumer Goods Industry (eBook)

Best Practices and Case Studies

Michael Buttkus, Ralf Eberenz (Herausgeber)

eBook Download: PDF

2019 | 1st ed. 2019
XV, 442 Seiten
Springer International Publishing (Verlag)
978-3-030-12730-5 (ISBN)

Infos

This book offers essential insights into various management concepts for retail and consumer packaged goods companies. Addressing a range of topics in the field of performance management, it presents concepts for management control, management reporting, planning & forecasting, as well as digitization-related aspects. The contributing authors share valuable lessons learned from real-world consulting projects and present innovative approaches to successful and effective management control at retail and consumer packaged goods companies.

Michael Buttkus is a partner at Horv?th & Partners, where he heads the retail and consumer goods competence center. He has extensive practical experience in the areas of performance management, management accounting and finance, strategic business management, and process and organizational management.

Prof. Ralf Eberenz is a senior advisor at Horv?th & Partners and teaches business administration at the NORDAKADEMIE Graduate School in Elmshorn, Germany. He gained comprehensive practical experience in the consumer goods industry in various leadership positions at Beiersdorf. His major areas of expertise are strategic business management, management accounting, risk management, and mergers & acquisitions.

Inhalt

Foreword 5
Preface 7
Contents 12
Part I: Controlling Versus Management Accounting: How German and Anglo-American Understanding Differs 15
Understanding the Benefits of German Controlling and Management Accounting 16
1 Do You Know the Difference? Between Controlling and Management Accounting in Germany and the USA 16
2 The Job of the Controller in the USA 17
3 The Controlling Profession in Germany 17
4 Benefits of the German Perspective 18
5 Gaps in the US Perspective 19
6 Need for Change in the US Perspective 20
7 Evolution of US and German Management Accounting 21
Reference 22
Cost Accounting Systems in Germany and the USA: A Cross-National Comparison and Empirical Evidence 23
1 Introduction 23
2 National Specifics in German Versus US Cost Accounting 24
2.1 Terminology 24
2.2 Conceptual Design of Cost Accounting Systems 25
2.3 Cross-Country Influences and Convergence of Cost Accounting Systems 28
3 Empirical Evidence on Cross-National Differences in Cost Accounting Systems of MNCs 30
3.1 Research Design 30
3.2 Results 31
3.2.1 Overview 31
3.2.2 Cost Type Accounting 33
3.2.3 Cost Center Accounting 34
3.2.4 Cost Object Accounting 34
3.2.5 Determinants of Cross-National Differences 35
3.2.6 Decision Usefulness of Anglophone Cost Accounting Systems 35
4 Summary and Outlook 36
References 37
Part II: Something New on the Agenda: Challenges and Trends Controllers Have to Cope with 39
Current Challenges for Consumer Goods and Retail Companies and Their Implications for Controlling 40
1 Introduction 40
2 Current Developments Relevant for Both Industries 42
2.1 Globalization 42
2.2 Demographic Change 43
2.3 Digitization 45
2.4 Volatility 47
2.5 Sustainability 48
3 Implications for the Controlling of Retailing and Consumer Goods Companies 49
3.1 Strategic Controlling and Risk Controlling 49
3.2 Marketing Controlling 51
3.3 Sales Controlling 52
3.4 Supply Chain Controlling 53
3.5 Corporate Controlling 54
4 Conclusion 55
References 57
Digitization of Corporate Performance Management: Revolution or Evolution? 59
1 Digitization of Corporate Performance Management 59
2 Real Shift in Performance Management´s Paradigm 60
2.1 Predictive Models Create Forecasts with High Quality and Accuracy 61
2.2 The Advent of Statistics in Performance Management 62
2.3 Operationalization: Altered Management Cycles and Content 63
2.4 Measures With Future Relevance Are Embedded Within Performance Management 64
2.5 Machine Performance Management: The Autopilot 64
2.6 Nothing Is Possible Without Seamless Data History 65
3 Corporate Performance Management´s New Approaches 66
3.1 Business and Driver Models Constitute the New Foundation of Performance Management 66
3.2 Good Scenarios, Finally Manageable: Driver- and Model-Based 68
3.3 Performance Management: Now Really Across Companies and Across the Value Chain 68
4 The New World of Big Data 69
4.1 Internal and External Data with a High Degree of Detail 69
4.2 New Data and a Strong Central Governance 70
5 The New Finance Function in the Digital World 71
5.1 Data Analysis: A New Field of Competences for Highly Trained Specialists 71
5.2 Consequences for the Finance Function 72
6 Outlook: What´s Next? 74
Part III: How to Approach Performance Management: Best Practice Concepts 76
Approaches for Steering Multichannel Retail Companies 77
1 Introduction 77
2 The Fundamentals of Multichannel Retail 79
2.1 Defining the Objectives of a Multichannel Strategy 79
2.2 Functions and Specifics of Sales Channels 80
2.3 Structuring the Multichannel Strategy 81
3 Approaches for Steering Multichannel Retail Companies 82
3.1 Objectives of Multichannel Management Accounting 82
3.2 Prioritizing the Observation of Customers in Management Accounting 83
3.3 Developing Customer Segmentation 83
3.3.1 Customer Groups: Cohorts 83
3.3.2 Customer Groups: Frequency of Buying 84
3.4 Prioritizing Channel Observation Within Management Accounting Concepts 85
3.5 Crosschannel Harmonization of Data and KPIs 87
3.6 Management Accounting Crosschannel Cause-Effect Relations 88
3.7 Developing Management Accounting Aspirations 90
4 Conclusion 91
References 92
Managing Retail and Wholesale Business by Performance Indicators 93
1 Definition of Performance Indicators 94
1.1 Performance Indicators and System of Key Figures 94
1.2 Criteria for Performance Indicator Development 95
1.3 Performance Indicators in Retail and Wholesale Businesses 97
2 Operational Management Based on Performance Indicators at METRO 99
2.1 METRO Business Model 99
2.2 Performance Indicators for Operational Management of Brick and Mortar 101
3 Conclusion 106
Reference 107
Enabling Data-Driven Management Information at the REWE Group Through a Value-Adding Integrated Management Data Warehouse 108
1 Introduction 108
1.1 Basic Conditions for a BI Project at the REWE Group 108
1.2 General Benefits of a New Management Data Warehouse 110
1.2.1 Merging Different Data Sources for Enhanced, Harmonized, and Seamless Analysis 110
1.2.2 A Hub with Interpreter Qualities Ensures Central Control of Data Provision 110
1.2.3 Transformations Help to Solve Data Quality Issues but Need to Be Handled with Care 111
1.3 The Underlying Technique 111
2 Practical Examples for Adding Value with the SPOT 112
2.1 Adding Value for Analysis by Creating Seamless and Consistent Financial Data 113
2.2 Adding Value Through Comprehensive Non Financials 114
2.3 Breaking the Frontier Between Finance and Merchandise Management Data 115
2.4 Establishing Value-Added Methods 116
3 ConCERT Architecture 117
3.1 Stable Operation Is a Key Requirement for a Software Decision 117
3.2 Enhancing the Typical Three-Layer Model for ConCERT 118
3.3 Technical Features and Functions of a Modern Management Data Warehouse 120
3.3.1 Harmonized Data Model 120
3.3.2 Integrated Financial Data Mart (IFDM) 121
3.3.3 Integration of Planning Data and Non Financial Data 122
3.3.4 Monitoring and Validation 122
4 Procedure Model 123
4.1 Top-Level Schedule 124
4.2 Setting the Scene During Backlog Initialization 124
4.3 Sprinting to Deliver 124
4.4 Nothing Is as Constant as Change 125
5 Outlook 126
Part IV: Digital Performance Management: New Opportunities to Boost Efficiency 128
The Digital Strategy: The Guide to Systematic Digitization of the Company 129
1 The Digital ``Patchwork Carpet´´ 129
2 Yes to Digitization, but with Strategy 131
3 Some Thoughts About the Project Team 132
3.1 Analysis of the Market Environment and Internal Situation 132
3.2 Development of a Digital Mission Statement as a Central Element of the Strategy 133
3.3 The Digital Business Model 134
3.3.1 Digitization of Business Models 135
3.3.2 Digitization of Products and Services 137
3.3.3 Digitization of Customer Interaction 138
3.3.4 Digitization of the Primary and Secondary Value Chain 140
3.3.5 Derivation of Enabler 141
3.4 Anchoring the Digitization Strategy: Goals, Key Figures and Measures 141
4 Conclusion 142
References 142
SAP S/4HANA: Performance Management in Real Time? 143
1 The Path Toward Performance Management in ``Real Time´´ 143
1.1 Increasing Performance Management Requirements 143
1.2 Digitization of Performance Management Processes Provides the Basis 145
1.3 What Are the Respective Key Changes for Performance Management? 146
2 Does It Change the Game? 148
2.1 SAP S/4HANA for an Integrated Financial Performance Management 148
2.2 How Are Operational Performance Management Instruments Affected? 150
2.3 The Role of the New Condition Contract Management (CCM) 156
3 Conclusion 157
How to Use Robotics Within Finance Functions? 158
1 Future-Oriented Roles and Tasks of Financial Organization 158
2 A Target-Oriented Transformation of the Financial Organization 160
3 Digital Financial Transformation 161
3.1 Future-Oriented Performance Management with Advanced Analytics 162
3.2 Efficient Processes with Robotic Process Automation 163
4 The Altered Role Model of Digital Financial Organization 167
Big Bang Based Decision Automation 170
1 Artificial Intelligence (AI) as a Part of the Technological Business Competence 171
2 Daily Supply Chain Routine 172
3 The Origin of New AI Technologies and Their Application 174
4 Added Value Through Machine Learning 176
5 Setting Up Self-Learning Predictive Models 178
6 Artificial Intelligence as a Fully Automated Replenishment Tool 181
7 Customer Examples of Artificial Intelligence in Retail 183
8 Artificial Intelligence: A Competitive Advantage 185
References 186
Performance Management of the Digital Pure Play Zalando 188
1 Introduction 188
2 Digitization at Zalando 189
2.1 Customer Access in a Digital Environment 190
2.2 Internationalization 190
2.3 Tracking and Customer Journey 191
2.4 Interactivity 192
2.5 Digitization of the Supply Chain 193
2.6 Scans 193
2.7 Product Characteristics 193
3 Management Accounting in a Digital Environment 194
3.1 Granularity 194
3.2 Speed 195
4 Development of Digital Business Models 196
4.1 From Start-Up to Grown-Up 196
4.2 New Business Fields 197
5 Performance Management Concepts in a Digital Economy 198
5.1 Big Data and Predictive Analytics 198
5.2 Working Methods in a Digital World 199
Part V: Planning, Forecasting and Management Reporting: Suggestions for Doing It the Smarter Way 201
Corporate Planning in Retail Companies: Efficient, Robust, and Flexible 202
1 Introduction 202
2 Basics for the Planning Process in Retail Companies 204
2.1 ``Retail Is Detail´´ 204
2.2 ``Retail Is Simple and Therefore Requires Simple Planning Activities´´ 205
2.3 ``Retail Means Change´´ 205
3 Integrated Planning Instruments and Processes 206
3.1 Planning Process 208
3.2 Coordinating All Planning Instruments 209
4 Planning Content 210
4.1 Planning Content per Instrument 210
4.2 Differentiation Model to Increase Acceptance 211
4.3 Cost Types and Cost Centers 212
5 Integrated Planning 212
5.1 Functional Planning 212
5.2 Integrating Profitability and Liquidity Planning 214
6 Conclusion 215
References 216
Shorter Planning, Better Management 218
1 Planning and Steering in the Retail Industry 219
2 Starting Points for the Optimization of Planning and Steering Processes 220
3 Forecasts: A Proactive Steering Instrument 220
4 Consistent Definition of Measures and Tracking 222
5 Dynamic Personnel Planning 223
6 Reducing the Required Time and Effort for the Budgeting Process 224
7 Product Rollout 225
8 Learnings and Factors for Success 225
Reference 226
Planning 2.0 at REWE Group: Identifying Potential for Efficiency and Optimizing Planning Processes 227
1 Initial Situation and Objectives 228
2 Frontloading: Using Target Setting and Benchmark Planning to Ensure a Focused and Efficient Planning Process 233
3 Year-End Projections, Budget, and Midterm Planning: The Core Elements of Operational Planning 238
4 Forecast and Management Forecast Building the Bases of Planning for the Upcoming Fiscal Year 243
5 Planning Occasions and Sub-plans Merge into a Holistic and Integrated Planning Process 245
6 Conclusion and Outlook 247
References 248
Enhanced Sales Management: Using Digital Forecasting 249
1 Introduction 249
2 Using Digital Forecasts for Sales Management 251
2.1 General Statements to Digital Forecast 251
2.2 Components of Digital Forecasts 251
2.3 Procedure Model for Developing and Introducing Digital Forecasts 253
3 Digital Forecasts: Application Examples 255
4 Conclusion 258
References 258
KPI Systems for PENNY Discount International 259
1 Requirements for Corporate Performance Management in Food Retailing 259
1.1 PENNY International 259
1.2 The Challenges of Transnational Performance Management 260
1.3 Project for Improving Performance Management and Reporting 261
2 A New Performance Management and Reporting Concept for PENNY International 262
2.1 Performance Management Logistics and KPI Set 262
2.2 Harmonized Leadership and Communication Processes for All Countries 265
2.3 Reporting Concept 266
3 Implementation and Use 269
3.1 Interim Implementation with Excel 269
3.2 Utilization and Outlook 269
Part VI: Functional Controlling: Business Specific Value Proposition 271
A 360 Portfolio Strategy in the Consumer Goods Industry 272
1 Portfolio Strategy: Caught Between Diversity and Complexity: A Double-Edged Sword 272
2 Eight Steps Towards Achieving a Holistic Portfolio Strategy 274
2.1 Strategic Framework 275
2.1.1 Strategic Guidelines 275
2.1.2 Market Structure 275
2.2 Portfolio Logic 277
2.2.1 Portfolio Structure 277
2.2.2 Target Portfolio 278
2.3 Portfolio Specification 279
2.3.1 Product Alignment 279
2.3.2 Market Anchoring 280
2.4 Steering Model 281
2.4.1 Resource Allocation 281
2.4.2 Portfolio Scorecard 282
3 Conclusion 283
Risk Management in Retail and the Consumer Goods Industry 284
1 The Basics of Risk Management 284
1.1 Functions and Elements of Risk Management 285
1.2 Performance Risk Management: An Overview 286
1.3 The Organizational Embedding of Risk Management 287
2 Digital Transformation in Risk Management 287
2.1 Digital Megatrends 288
2.2 Algorithms for Risk Identification 289
3 A Practical Example from Retail and the Consumer Goods Industry 291
3.1 Semantic Data Analysis 293
3.2 Horvth and Partners Innovation: Business Radar Suite 294
3.2.1 Global Risk Radar 294
3.2.2 Global Treasury Radar 295
3.2.3 Global Innovation Radar 296
4 Conclusion and Outlook 297
Corporate Controlling 2020: Trends and Challenges 298
1 Current Tasks of Corporate Controlling 298
2 A Regulatory Framework for an Operating Model 299
3 Nine Theses on the Future of Corporate Controlling 301
3.1 Thesis 1: Data Analytics Competes with Corporate Controlling 301
3.2 Thesis 2: Corporate Controlling Needs Less Controllers 302
3.3 Thesis 3: External and Internal Accounting Systems Become One 303
3.4 Thesis 4: Controlling Is Increasingly Important for a Good Corporate Governance 305
3.5 Thesis 5: Tax Requirements Must Be Integrated More 306
3.6 Thesis 6: Corporate Controlling Is Increasingly Social and ``Green´´ 307
3.7 Thesis 7: The CFO Turns into a CPO 307
3.8 Thesis 8: The Controller as Business Partners 308
3.9 Thesis 9: The Pressure of Adapting Rises 309
4 Conclusion 310
References 311
Revision of Financial Performance Management Systems in the Swarovski Group 312
1 The Initial Situation for the Revision of the Swarovski Group´s Company Performance Management 312
1.1 The Swarovski Group 313
1.2 The Business Area Swarovski Crystal Business (SCB) 313
1.3 The Initial Situation for the Revision of Company Performance Management 314
2 The Project´s Background for the Revision of Financial Performance Management 315
3 Project Objectives and Requirements for the Development of an Indicator Set 316
4 The Composition of Functional Profit-Loss Accounting 318
5 The Composition of Balances 320
6 The Implementation Within IT Systems 321
7 The Central Challenges of a Project for the Revision of Company Performance Management 323
8 Conclusion 323
References 324
Marketing and Controlling as Business Partners in the FMCG Industry 325
1 Introduction 325
2 Marketing Challenges in the Consumer Products Industry 326
3 The Role of Marketing in the FMCG Industry 327
4 The Key Success Factors of Brand Leadership 328
4.1 Consumer Understanding 328
4.2 Differentiating Positioning 330
4.3 Convincing Product Offer 331
4.4 Consumer Involved Communication 332
4.5 An Integrated Marketing Mix 333
4.6 Clarity in Strategy 335
4.7 Marketing Planning 336
4.8 Innovation Management 337
4.9 Leadership 339
5 Conclusion 340
Holistic Management Accounting of Brand Performance in the Consumer Goods Industry 341
1 Introduction 341
2 Foundations for an Effective Brand Management Accounting System 342
3 Evaluation the Efficacy of Marketing Campaigns 346
4 Evaluating the Efficiency of Marketing Campaigns 358
5 Conclusion 365
References 367
Basket Analysis in Practice: Mathematical Models and Applications in Offline Retail 368
1 Introduction 368
2 Applications of Basket Analyses in Offline Retail 370
2.1 Required Preconditions for Application of a Basket Analysis 370
2.2 Typical Questions Addressed by Basket Analyses 371
3 Mathematical Methods Used in Basket Analyses 373
3.1 Cluster Analysis 373
3.2 Association Rule Analysis 375
3.3 Time Series Analysis 377
3.4 Descriptive Statistics 379
4 Conclusion 382
References 382
Sales Performance Management 384
1 Introduction 384
2 Challenges of Sales Performance Management 385
2.1 The Extent of Sales Performance Management 386
2.2 Product Success and Its Allocation 386
2.3 Reasons for an Individual Sales Performance Management Function 388
3 Elements of Sales Performance Management 390
3.1 Unambiguous Targets 390
3.2 Comprehensible Key Performance Indicators 391
3.3 Instruments of Sales Performance Management 393
3.3.1 Planning and Budgeting 394
3.3.2 Reporting 396
3.3.3 Modeling and Assessment of Specific Measures 397
3.3.4 Trusting Controlling Tools in the Sales Department 399
4 Conclusion 401
References 401
Digitized Performance Management Along the Supply Chain 403
1 An Introduction to Supply Chain Management 403
1.1 Definition and Significance of Supply Chain Management 403
1.2 Requirements Concerning Supply Chain Management 404
2 Data Technological Preconditions as Driving Forces Behind Digital Supply Chains 405
3 Impacts of Digitization on Supply Chains 407
4 Potentials and Control Levers of a Digital Supply Chain 408
4.1 Digitization Approaches for Logistics 408
4.1.1 Digitization Approaches for Supply Logistics 409
4.1.2 Digitization Approaches for Distribution Logistics 409
4.1.3 Use Case: Digitization Approaches for Process Cost Accounting in Logistics 410
4.2 Outlook and Paths of Development Towards Digital Logistics 411
4.3 Digitization Approaches for Production 411
5 Smart Factory as Version of the Future 413
6 Industry 4.0 and Existing Production Systems 415
7 Outlook and Paths of Developments Toward an Industry 4.0 Factory 415
8 Digitization in Supply Chain Management 416
9 Outlook and Paths of Development Toward Digital Supply Chain Management 418
10 Success Factors for the Digital Transformation of Supply Chains 418
11 Summary and Outlook 420
References 421
Opportunities for Supply Chain Processes by SAP S/4HANA 422
1 Supply Chain Process Efficiency in Retail 423
1.1 General Relevance of Integrated Process Operations 423
1.2 The Processual Effect of Omnichannel Integration 423
1.3 Integrated Planning as a Core Operations Process 425
2 SAP S/4HANA: New Potentials for Supply Chain Management and the Retail Industry 427
2.1 Infrastructural Challenges Resulting from Process Complexities 427
2.2 Integrated Business Planning Functions as Process Components 429
2.3 Predictive Analytics Functionalities and Data Platforms 431
3 Transformation of a Global Operating Retail Company with SAP S/4 433
3.1 Customer, Initial Situation and Objectives 433
3.2 Governance and Operations: Target Processes and Master Data as a Basic Framework for System Transformations 435
3.3 Processes and Interfaces: Organizational Structure as Enabler for Effective Planning Control 436
3.4 Skills and Qualifications: Advancing from Planner to Business Analyst 437
3.5 IT Systems and Infrastructure: Choosing Between On-premise Systems and Cloud Transformations 438
4 Success Factors and Lessons Learned 438

Produkt-Details

• Erscheint lt. Verlag: 21.6.2019
• Zusatzinfo: XV, 442 p. 167 illus., 6 illus. in color.
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management
• Schlagworte: CFO • Consumer Goods Industry • Controlling • Cost Accounting • Forecasting • KPI • Management Control • Performance Management • Planing • Reporting • Retail
• ISBN-10: 3-030-12730-3 / 3030127303
• ISBN-13: 978-3-030-12730-5 / 9783030127305