Building One Consensus Plan at Pernod Ricard China

Pernod Ricard China, the world’s second largest distributor of wine and spirits, was heavily reliant on Microsoft Excel for its data analysis, which was very time-consuming. Their forecasts did not match demand, resulting in out-of-stocks and excess inventory. They wanted to automate their S&OP process to improve operational efficiency and align all functions to operate from one consensus plan. Pernod Ricard China operates in a fast-changing business environment. Their mostly manual processes had limited cross-functional communication and a lack of clarity. Forecast accuracy was only 40%. For over 40 years, Pernod Ricard’s ongoing growth has been bolstered by its commitment to continuous innovation, which enables it to quickly adapt to changes in trends, new consumer expectations and new consumption moments. But Pernod Ricard China’s forecasting process, based on Microsoft spreadsheets and manual processes, was a limiting factor in improving their supply chain.

Pernod Ricard is the world’s second largest distributor of wine and spirits with well-known brands such as Absolut Vodka, Ballantine’s, Chivas Regal, The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Beefeater and Kahlúa. The company has a strong commitment to continuous innovation, which enables it to quickly adapt to changes in trends, new consumer expectations and new consumption moments. However, Pernod Ricard China’s forecasting process, based on Microsoft spreadsheets and manual processes, was a limiting factor in improving their supply chain. They operate in a fast-changing business environment and their mostly manual processes had limited cross-functional communication and a lack of clarity.