Forecasting soup demand

- Last updated on GMT

Related tags: Forecasting

Food manufacturer Campbell has installed real time forecasting
(RTF) technology in its North American soup, sauces, and beverage
production facilities. Results from a pilot test showed that the
company can decrease its short-term forecast error by 50 per cent.

The software, installed by Terra Technology, is designed to improve efficiency and establish greater customer visibility in its operations. Cambell's North American division will use Terra's RTF solution to observe day-to-day demand changes and order flows, helping the company to realise significant reductions in inventory and increase customer service levels.

"By accurately predicting demand, Terra's solution will help stabilise our production schedules, reduce safety stock, and improve service levels,"​ said Mike Mastroianni, vice president of North American planning and operations support for the Campbell Soup Company.

"One of our major objectives for 2004 is to optimise finished goods inventory while improving service levels and decreasing costs. Terra's Real-Time Forecasting capabilities will be a major enabler to help us achieve this objective."

Terra's Real-Time Forecasting solutions create accurate short-term forecasts every day. Customer order flow is monitored to detect demand changes, which are then used by the patent-pending statistical techniques to generate accurate daily forecasts for the next month.

"Like most leading consumer goods companies, the Campbell Soup Company has diligently explored other options to reduce forecast error,"​ said Robert Byrne, Terra Technology president. "Terra's new pattern recognition technology provides consumer products companies with a reliable and proven solution to decrease forecast error by 50 per cent."

Campbell Soup Company​ is a global manufacturer and marketer of high quality soup, sauces, beverage, biscuits, confectionery and prepared food products. The company is 135 years old, with nearly $7 billion in annual sales and a portfolio of more than 20 market-leading brands.

Terra Technology​ is a provider of Real-Time Forecasting (RTF) solutions for consumer goods companies. Terra's patent-pending, pattern recognition technology monitors order flow to provide daily forecasts.

Related topics: Processing & Packaging

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