Kellogg installs SmartOps

- Last updated on GMT

Related tags: Supply chain, Supply chain management, Sap ag, Pepsico

Food giant Kellogg has implemented the latest version of the
SmartOps Multistage Inventory Planning & Optimisation (MIPO)
software solution, which is claimed to offer improved inventory
planning decision support.

"With SmartOps, we can update important operating targets such as safety stocks more frequently and at a more granular level,"​ said Rich Dregne, senior director of product availability for Kellogg. "Now, we're able to more closely align our inventory deployment with what is actually expected by our customers in a dynamic environment."

At Kellogg company, SmartOps MIPO 3.2 interfaces with a number of other systems to calculate optimal inventory targets for every item at every location across the forecast horizon. With SmartOps, Kellogg can automatically and dynamically update its inventory targets across the entire supply chain resulting in higher product availability with a lower total investment in inventory.

"We are particularly proud of being able to demonstrate value at Kellogg, given that this company was already considered to be a leader in supply chain planning and execution,"​ said Dr Sridhar Tayur, SmartOps chief executive.

The company claims that MIPO enables customers to achieve both a rapid return on investment and a long-term competitive advantage by determining the best possible inventory and product availability plans given inherent uncertainties, time-varying data, multi-location and inventory stage complexities, and aggressive customer service goals. It achieves this by dynamically generating optimal inventory targets for each stage of the supply chain, while providing visibility into each reason inventory is needed - including safety, cycle, pre-build, pipeline and merchandising stock requirements, by item or stock-keeping unit (SKU) - to meet desired service levels.

MIPO 3.2's optimised inventory targets serve as critical inputs into Enterprise Resource Planning and Advanced Planning & Scheduling systems so they function efficiently, delivering better intelligence for inventory planning and execution.

SmartOps​ is one of a number of supply chain optimisation solution providers that are increasingly helping the food industry to achieve greater supply chain efficiency. Another US-based food and beverage giant, PepsiCo, recently installed a primary business platform from SAP to unify its operations, standardise its processes and increase efficiency across all its divisions.

As with Kellogg's selection of SmartOps, PepsiCo chose the mySAP Business Suite in order to provide the company with a common information systems platform to effectively integrate business processes within the group.

As one of the world's largest convenient food and beverage companies, PepsiCo wanted to achieve maximum operating advantage from its combined businesses. The company sought a business solutions provider that would provide common enterprise visibility and operations while meeting the industry-specific needs of its diverse divisions.

With mySAP Business Suite, PepsiCo believes that it will be able to streamline distribution and delivery, improve planning and forecasting, increase information transparency and link supply chain and inventory with customer-facing activities in a single, integrated process. PepsiCo will implement a full range of solutions from mySAP Business Suite, powered by the SAP NetWeaver integration and application platform.

The implementation of the new system is over a multiyear timeframe for PepsiCo. Specific plans for prioritisation and sequencing are under way.

PepsiCo manufactures, distributes and markets global brands such as Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods.

Related topics: Processing & Packaging

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