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Food and Beverage

Businesses complexity is growing, driven by multi-channel marketing, the growing influence of demand shaping (media, promotions, NPI), and the impact of the internet on buying behavior. Unfortunately most companies are still forecasting based on cumbersome algorithms and time series of aggregated sales history. This inability to integrate, analyze and take advantage of increasingly available data is causing forecast accuracy to get worse when it could be getting better. Lora Cecere of Supply Chain Insights shows that food manufacturing companies have “…lost 1% in operating margin and have increased average inventories by 22% over the last decade”.

The good news is that most companies already have the data they need to achieve big improvements. Armed with powerful demand analytics and supply chain optimization tools, ToolsGroup’s customers move towards a market-driven forecast. We help model the marketing-related data that “shapes” demand heavily influenced by marketing initiatives. We capture and model the market attributes that impact the demand signal, generating more signal and less noise, and improving the forecast, inventory and service levels.

We help food and beverage companies achieve sustainable service levels as high as 99+%, yet with about 20% less global inventory. They reduce product shelf life obsolescence, maintain freshness, and minimize spoilage and out-of-date returns.

Our powerful demand modeling incorporates internal and external elements such as seasonal demand profiles and promotion forecasting. Demand sensing acquires fresh daily demand data for sensing short-term changes in the demand signal. Inventory optimization and replenishment delivers high customer service levels, even across multi-echelon networks. It also addresses product expiration constraints, rough cut capacity planning, transportation constraints such as minimum order quantities, and SI&OP.

Read Case Study Beverage Industry
Read Case Study Food and Beverage
Read Case Study Food and Beverage