LVMH Harmonizes Process and IT for Cognac and Champagne Houses

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Capgemini helps LVMH foster collaboration between several competitive business units within the same group by designing and implementing processes to allow them to work in unison

“Chorus project has succeeded in passing through each House’s “resistance areas”. It has been difficult but we have definitively installed a cross-fertilization attitude between key players. For me, it’s the best illustration of a successful transformation project.”

Florent Courau, Programme Director, LVMH Group

The Situation

The Wine & Spirits unit of LVMH, a world leader in luxury, includes five Houses of Champagne and Cognac, all of them world famous brands: Dom Pérignon, Moà«t & Chandon, Veuve Clicquot Ponsardin, Hennessy, Ruinart and Krug. Historically, the houses had been fiercely competitive. Now that they were all under the LVMH Group umbrella, the parent company needed to find a way to make them work in a harmonized way with their clients.

The Solution

In 2004 the Moà«t Hennessy (MH) division launched a large project named Chorus, whose objectives—underpinned by harmonization, simplification and innovation—were to improve the processes and IT solutions of the five houses. Chorus’ scope was immense and included: Supply Chain (planning linked to forecast and distribution replenishment for subsidiaries and wholesalers), Production and Quality Management, Maintenance, Purchasing, Finance and Reporting, Traceability and Product Lifecycle Management. MH called on Capgemini’s proven expertise to help:

  • define and develop the business core model using SAP and Cognos software
  • define the business process
  • implement the SAP and Cognos solutions
  • facilitate change management.

The Result

Thanks to a timely launch of the Chorus project, the core model processes now cover 90% of the company’s functionalities. Due to the high level of knowledge transfer involved, Capgemini instituted a graduated phase so that in less than a month after the go live date, MH’s Business Process Owners and IS Department were running the processes nearly on their own. The project has become an example within MH of how all the houses can work together and be aligned internally without any of them losing their specific culture and identity.