Kraft Deploys Demand Sensing Solution
Kraft Foods reports encouraging results of the implementation of Terra Technology's Demand Sensing solution in North America. Since going live with the software in January 2009, Kraft has decreased short-term forecast error 40 percent in the businesses where the software has been implemented.
"Kraft selected Terra Technology's Demand Sensing as part of our Advanced Demand Forecasting initiative in order to gain greater supply chain visibility and create an actionable response to daily demand information," says Agnes Feliciano, vice president of customer service and fulfillment for Kraft Foods. "As a manufacturer of perishable products, Kraft must respond quickly to shifts in consumer preferences or risk unused inventory that has expired. Improving forecast accuracy enables Kraft Foods to produce the right product mix, decrease costs and better serve our customers."
Terra's Demand Sensing solution uses pattern recognition mathematics to decipher daily streams of data to determine which information is predictive of actual demand and to more accurately predict retailer requirements. Kraft implemented the software after successfully piloting it in all U.S. warehouse businesses.
"Kraft selected Terra Technology's Demand Sensing as part of our Advanced Demand Forecasting initiative in order to gain greater supply chain visibility and create an actionable response to daily demand information," says Agnes Feliciano, vice president of customer service and fulfillment for Kraft Foods. "As a manufacturer of perishable products, Kraft must respond quickly to shifts in consumer preferences or risk unused inventory that has expired. Improving forecast accuracy enables Kraft Foods to produce the right product mix, decrease costs and better serve our customers."
Terra's Demand Sensing solution uses pattern recognition mathematics to decipher daily streams of data to determine which information is predictive of actual demand and to more accurately predict retailer requirements. Kraft implemented the software after successfully piloting it in all U.S. warehouse businesses.