Boston, MA 10/29/2013 (wallstreetpr) – Mondelez International Inc (NASDAQ:MDLZ) has acquired Demand Sensing and Transportation Forecasting solutions from Terra Technology to improve its supply chain efficiency through increased forecast accuracy. According to the company’s senior director for product supply center of excellence Pete Alle, Mondelez will be able to be more responsive and efficient in both its direct store and warehouse supply chain, thanks to the new technology.
Mondelez has strong product portfolio and a wide global market presence. It serves over 165 countries in snacks line such as biscuits, candy, chocolate and powdered beverages. The company now hopes to decrease its supply forecast error by roughly 40% using the Terra Technology’s forecasting solutions. So far, Demand Sensing is used in more than 160 countries and its forecasting accuracy is helping companies to free cash flow, grow revenue, improve earnings and increase return on capital. These are achieved through cutting of unnecessary inventory, increasing on-shelf availability and reducing costs due to inefficient shipping.
By adopting Transpiration Forecasting, Mondelez has been able to accurately forecast its daily shipping and synchronize it with sales and operations planning. In effect, this has allowed the snacks company to achieve smooth execution of demand plans. Basically, Mondelez is now well positioned to proactively obtain capacity issues in advance so as to secure more cost effective transportation for its products. With this technology, Mondelez has now become more responsive to customers needs and even efficient in its operations. Being one of the world’s leading snacks manufacturer, Mondelez requires world-class solutions to ensure that its customers get what they need at the right time and at the right cost as well. This is the perfect way to improve profitability.
However, with increasing complexity in the supply chain today, more and more manufacturers are finding it difficult to achieve the balance in transforming real-time data into actionable response in a manner that ensures products are on the shelves at the right time and at the right prices. This is why the Demand Sensing and Transportation Forecasting solution thrills Mondelez.
