Genpact and Advantage Solutions to Expand Collaboration to Boost Supply Chain Efficiencies for CPG and Retail Sectors

⇨ Genpact and Advantage Solutions are expanding their strategic alliance to tackle inefficiencies in order-to-cash and supply chain management within the consumer packaged goods and retail sectors.

⇨ The collaboration aims to leverage advanced analytics, AI, and automation technologies to address revenue leakage and enhance operational efficiencies, facilitating better client recovery strategies and improved supply chain processes.

⇨ The introduction of a SaaS-based solution is expected to digitize order management and trade promotions, offering small to midsize businesses cost-effective operations and data-driven insights for better demand forecasting and inventory management.

Genpact (NYSE: G), a global professional services and solutions firm and SAP Solution Resell and Consulting Service Partner, recently announced its intention to expand its strategic alliance with Advantage Solutions (NASDAQ: ADV), a provider of business solutions to consumer goods companies and retailers, to address supply chain challenges in the consumer packaged goods (CPG) and retail sectors.

The new collaboration between Genpact and Advantage Solutions is expected to address order-to-cash and supply chain management inefficiencies, including deductions leakage, poor recovery of invalid claims, manual customer service operations, as well as inefficient supply chain planning, logistics and fulfillment. As the collaboration evolves, the companies plan to introduce new solutions aimed at meeting the changing needs in the CPG and retail sectors, ensuring clients benefit from cutting-edge innovations and improved operational efficiencies.

Recent SAPinsider research shows a continuing focus on mitigating the rising complexities and risks within supply chains, with 53% of companies noting that increasing complexities and risks is the top driver of supply chain transformation projects. In the recent research report, Building Resilient and Agile Supply Chains via Data, Analytics and Automation, companies also recognized the significance of AI/ML in supply chain operations, with 43% of respondents highlighting its increasing prominence on the corporate agenda. External pressures also influence the need to enhance data, analytics, and automation capabilities in the supply chain. Evolving customer expectations and demand (37%) and the pressure to run more sustainable supply chains (36%) indicate a growing societal and environmental consciousness among supply chain leaders.

“We plan to combine Advantage Solutions’ expertise in client management and retail connectivity with Genpact’s data, technology, and AI solutions to enable retailers and CPG companies to streamline processes and drive efficiencies,” said Tarun Chopra, Unit Leader, Consumer Goods, Genpact. “In the deductions space, our strong track record in recovering revenue leakage, using advanced analytics and AI, aims to both recover and prevent losses, delivering significant financial gains for our clients.”

Leakage can account for 7% to 10% in lost revenue due to inefficiencies in the deductions process, and Genpact addresses this using advanced data analytics, generative AI, and automation technologies like Genpact Cora to enhance productivity in contract automation, order management, cash applications, and deductions.

Genpact’s and Advantage’s planned solution for supply chain management is expected to include a SaaS-based platform that will digitize order management and trade promotions deductions, enhancing speed, accuracy and customer satisfaction. SMBs (small to midsize businesses) and brands often face challenges with cost-effective, reliable and expedited order-to-cash management.

“Under our new expected collaboration, clients would be able to enjoy enhanced, digitized and automated operations,” said Brandon Thornell, Executive Vice President for Branded Services, Advantage Solutions. “They will be able to harness the power of data, analytics and digital offerings on a global scale, providing both cost efficiencies and growth opportunities. In the supply chain domain, we are committed to optimizing operations through data-driven insights that enhance inventory management, reduce transportation costs and improve demand forecasting.”

What this means for SAPinsiders

Participate in SAPinsider research. SAPinsider will be publishing a research report in December on AI in the Supply Chain that will explore the key drivers causing companies to adopt AI in supply chain, the primary strategies companies are deploying to operationalize AI in supply chain, the critical underlying capabilities that must be in place in order for AI to deliver durable outcomes, and the leading technology tools and providers companies are using to embed AI into supply chain processes and systems. Take the survey today and let your voice be heard!

Account for demand volatility and forecasting challenges. Consumer demand can fluctuate rapidly, especially during peak seasons or economic changes. Traditional forecasting models often struggle to keep up, leading to overstock or stockouts. With the rise of e-commerce and new purchasing patterns, accurately forecasting demand has become more difficult. Companies need to factor in trends like online orders, buy-online-pick-up-in-store (BOPIS), and last-minute purchase decisions.

Omni-channel fulfillment is here to stay. Managing inventory, fulfillment, and returns across different channels (e.g., in-store, online, mobile) is complex. Integrating systems to provide a seamless experience while optimizing stock and minimizing costs is challenging. Returns are especially high in online retail, requiring systems to manage and process returns efficiently. This adds additional costs and logistics strain, which can reduce profitability if not managed well.