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Sony Canada Launches New High Velocity Supply Chain

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Executive Summary

When Sony Canada wanted to improve its supply chain management capabilities in the consumer electronics marketing, sales and distribution division, they had a clear vision in mind. The enhancement of supply chain management was to be done while reducing inventory and increasing product velocity. All of this was to be done in a cost-effective manner. To attain these supply chain management capabilities, Sony Canada wanted to deploy its existing SAP software system, data and processes to be able to bring about a new and more sophisticated supply chain management approach. But the electronics provide needed assistance to make the change come about quickly and successfully. Therefore, Deloitte was brought in by Sony to make use of the former's consulting practice and technical knowhow in supply chain management and SAP software. They were also adept at managing complex projects. Because excess inventory was a major concern for Sony, the idea was to replace inventory with information. Excess inventory was taking up a lot of the company's working capital. Traditionally, inventory is loaded into the retail channel to ensure that there is no loss of sales. But with the new model Sony used information and statistics to ensure that the right inventory was provided. For this solution, Deloitte was able to provide technical, business and practical support. They had technical know-how on configuring the SAP APO system, along with integrating it, testing it, and rolling it out.

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