Event Casting enables perfect deliveries and on-shelf availability
A unique partnership between food and confectionary manufacturer, Mars Netherlands, and Dutch supermarket chain, Jumbo, has resulted in a sustainable solution for reducing costs and unnecessary inventory in the supply chain. Both companies have broken with tradition by identifying and integrating their planning processes. In doing so, they have succeeded in streamlining their order flow to provide faster and more efficient deliveries. This has resulted in the complete availability of Mars products at Jumbo. The breakthrough came with the help of a new concept called Event Casting, which was developed in collaboration with EyeOn.
After an initial analysis, EyeOn quickly recognized the problems facing both companies. Both are experiencing increasing market volatility and complexity. In the case of Jumbo, communication in the value chain was found to be difficult and it was experiencing more and more peaks and dips in sales. The situation required a solution that reduced stocks and kept the shelves filled more optimally. Enter the Event Casting tool, which is used for forecasting consumer demand and calculating it for the entire As demand can be forecasted more accurately, delivery vehicles can be loaded more efficiently and used more effectively. “The supermarket chain does not need to hold large inventories of Mars products and can respond more quickly to the needs of consumers,” says Frans van den Boomen, Value Chain Manager at Mars Netherlands.
A problem that frequently arose in the information and supply chain prior to the new situation was lack of transparency due to inadequate communication between the sales and logistics departments. This had a negative impact on costs, inventory and product availability. “There was a great need for better communication among all disciplines involved,” says Karel de Jong, Supply Chain Director for Jumbo Supermarkets. “Information exchange is now more frequent and complete, and so the activities in the Mars-Jumbo chain run much more efficiently.”
EyeOn’s contribution to the turn-around for both companies was essentially twofold: 1) acting as a facilitator in bringing everything together, including all relevant information and supply-chain people, and 2) modeling the data to create a picture of how the respective activities would be affected by the changes made. EyeOn now weekly generates an overall demand forecast for the complete value chain. “We start by forecasting the end- consumer demand and calculate this with all sales and logistical inputs for all parts of the chain,” says André Vriens, partner at EyeOn. “The results and improvements are then tracked from the cash register to the factory using a joint scorecard for making quick adjustments when needed. In addition to better availability and optimizing stock levels, the solution has reduced supply-chain and other costs.”