Demand Driven Supply Network Super Session

Friday, June 27, 2008

Sub-Session - Integration

James Crump, Sr. Director of Strategic Business Solutions

SoftwareAG

Abstract

This case study will profile “DAIRYINC” - one of the top global dairy companies – approach to improving demand response through better supply chain integration and transparency. They are implementing a solution that will become a primary source of data and information used to improve service delivery and identify cost savings initiatives.

The company has an extended global supply chain that ranges from their shareholders’ farms through to customers and consumers in 140 countries. They are responsible for more than a third of the international dairy trade, with a large ingredients business and some of the world’s best-known brands in their consumer business.

The challenge the company faced was insufficient integration through their supply chain. They employ over 200 staff to manage logistics, and these staff were constantly in fire fighting mode, reactively trawling through their internal systems (primarily SAP) or calling 3rd party vendors (warehouses, shipping lines, customs brokers) to locate containers. They did not have sufficient visibility of orders once they left their home country. They could not accurately measure DIFOT (Delivered In Full and On Time), one of their key business performance measures, and they had no clear insights into the root cause of supply chain problems.  

The company undertook a phased project to provide an integrated solution across their entire supply chain for all orders delivered to the US (their largest market). Key elements of the solution included integration of both their internal systems and multiple 3rd party vendors who handle containers in the supply chain. In addition, the solution looked at order integration for customer service representatives (CSRs) to alert CSRs when key time-based KPIs are missed, and consolidating key business level KPIs in a dashboard for executives. The solution also has the potential to be rolled out to key customer accounts via a portal access. 

Learning Objectives:

·        Share the business challenge and approach taken by one of the top global dairy companies to improve their demand response

·        Understand the people, process and technology focused on integration and visibility) that underlie the solution

·        Review the KPIs that were important to this use case

Learning Outcomes:

·        Apply  lessons learned to your company’s supply chain integration activities for:

-        Visibility of international supply chains.

-        Orchestration of the order management process

-        Human workflow within supply chain processes

-        Predictive analytics

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