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Demand & Supply Chain Management Evolution

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Language: English

Better Planning Sweetens the Food Manufacturing Mix


Company: Logility
Tag: Planning
Demand Planning
Food Manufacturing

Food manufacturing software blend of Demand Planning, Manufacturing Planning and Inventory Optimization are disciplines that help food manufacturers achieve higher service levels at dramatically lower inventory cost with maximum equipment utilization. Leading food manufacturers have deployed powerful software planning solutions that add value to operational tools such as ERP and MRP systems. Supply chain optimization delivers the forward-looking demand planning and manufacturing planning efficiency required to succeed using leaner operations. In addition, by treating inventory as an input to the business plan, not as an output of the manufacturing process, the company can maintain sufficient inventories to meet customer service mandates without holding excess inventory.

Spreadsheets and manual systems are slow and inaccurate, tending to amplify emotional responses to real-world events. Decisions based on data, not emotion, help stakeholders concentrate on enhancing throughput and operational flexibility with confidence. Software planning technologies perform granular modeling, end-to-end optimization, and sophisticated what-if scenarios that ERP and MRP systems lack. Key elements include:
- Accurate demand forecasting with an 18 to 36 month horizon
- Manufacturing modeling of capacity and constraints, including detailed set-up and changeover profiles, across all production equipment and multiple plants
- Ingredients requirements informed by manufacturing constraints
- Pre-building correct amounts of off-season products
- Using ABC classifications to drive smart production priorities
- Profiling every type of changeover and its impact
- Planning with shelf life constraints in mind
- Optimizing cost and service levels

Data-driven demand planning aligned with analytics-driven production planning and scientific inventory optimization can mitigate the impact of wild commodity price swings, market variability, seasonality, promotional events, and the like. Supply chain optimization solutions let food manufacturers meet service level goals while remaining “lean and green.”



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