DULUXGROUP PNG ENGAGES CAPGEMINI TO FACILITATE ENHANCED VISIBILITY INTO OPERATIONS

DuluxGroup PNG engages Capgemini to facilitate enhanced visibility into operations for the Australian office and local PNG management team.

Client challenge: DuluxGroup PNG needed to centralise its online tools to improve visibility into its operations and to more easily create proposals, process orders, and remotely check inventory.

Solution: Capgemini* helped DuluxGroup PNG to achieve greater visibility and oversight from its head office in Australia to more efficiently support and manage the growth of the PNG division.

Benefits:

• Delivered sales uplift of 5-10%
• Increased “delivery in full” rates from 84% to over 95%
• Reduced stock adjustments by 80% from PGK500 to less than PGK100 per year

Centralising online tools for increased visibility over operations

DuluxGroup PNG is one of the leading suppliers and manufacturers of paint and industrial chemicals in Papua New Guinea (PNG). Its operations are based out of Lae in Morobe Province and Port Moresby in the National Capital District, and the company is supported by salespeople operating throughout PNG with oversight from its head office in Australia.

With limited oversight and visibility from its Australian-based head office, DuluxGroup PNG was operating largely independently, with insufficient reporting and system integration between the operations. Without sufficient oversight of DuluxGroup PNG’s overall financial and operational performance, the wider business group struggled to efficiently support and manage the growth of the PNG division, which was experiencing sales, supply, and inventory issues as a result of inefficient technology solutions.

With DuluxGroup Australia and New Zealand already using SAP, the business decided to upgrade the PNG system. Centralising its online tools was considered a critical step for DuluxGroup PNG to create proposals more easily, process orders, and remotely check inventory. DuluxGroup PNG engaged the services of Capgemini* to oversee the deployment of SAP ERP, giving more visibility into DuluxGroup PNG operations for both the Australian office and local management team.

Integrating business streams for more accurate forecasting and forward planning

As a global SAP partner with a proven reputation in the industry, Capgemini was strongly recommended to DuluxGroup PNG as the ideal implementation option for the SAP rollout. Capgemini took the time to get to know the business, working closely with the PNG team to ensure a smooth deployment process.

Implementing the SAP ERP system has provided significant advantages to the DuluxGroup PNG team. While the incumbent system only provided top-line results for review and analysis, SAP lets DuluxGroup PNG extract more detailed data on products and stock and helps decision-makers to better understand the data available. This increases accuracy when forecasting and forward planning. The sales team is now also being trained to set more accurate delivery dates by using the SAP ERP system.

Increasing sales and maintaining market share in a shrinking PNG market

By deploying SAP ERP across DuluxGroup PNG’s operations, Capgemini provided more visibility and control across the business for both the Australian head office and the local PNG team. The solution gave DuluxGroup Australia access to real-time reporting that let it easily track results and collaborate more effectively with the local division. In PNG, managers gained more visibility over sales, inventory, cashflow, historical data, and forecasts.

By integrating inventory, orders, sales, manufacturing, and shipping, DuluxGroup PNG accelerated deliveries and increased “delivery in full” rates from 84% to more than 95%, as well as reduced out-of-stock issues. With access to new tools and information, local salespeople working across PNG were also empowered to more efficiently turn around accurate quotes, delivering a sales uplift of between five and 10%. Access to inventory analysis also let the team identify and reduce stock adjustments by more than 80%, decreasing the cost from PGK500 (AU$194) to less than PGK100 (AU$38) per year.[1]

Implementing SAP ERP let DuluxGroup PNG its maintain market share in a competitive market by providing data and insights that could be used for more informed decision-making on forecasting, stock, and production.

* This project was executed by Acclimation in October 2020 and Capgemini continues to be engaged as a partner through to the present.
Acclimation was acquired by Capgemini in July 2021. For more details on the acquisition, please find the link to the release here.
[1] Based on PGK-AUD exchange rate at 31 August 2020: https://www.xe.com/currencyconverter/convert/?Amount=1&From=PGK&To=AUD