I & S INNOVATION & SUSTAINABILITY
7 November 2019

Employees of EFKO Group represented a forecast case at the Federal logistic forum 2019

7 November 2019, Russia, Voronezh – EFKO Group – a vertically integrated holding, one of the largest enterprises of Russian food industry, represented a solution to improve the accuracy of forecast at the Federal logistic forum 2019.

DSC_9087.jpgThe event organized by the Coordination Council on logistics took place at Marriott hotel Voronezh. Over 20 experts prepared their cases and represented to the guests the best practices and current trends in logistics. The key topic was optimization of processes.

An effective setting of supply chains is an organized continuous connection between supplier and customer. Forecast is the first link of this process. Taking into account growing volumes of business of the Group and its strategic plans on development, for many years it has used innovation technologies that let improve coordination between production and selling divisions.

Daria Vasilieva, manager of supply chain development of EFKO Group: «Together with our partners we are intent on understanding of needs of our customer. In spring 2019 we started negotiation campaign with retail whether it possible to organize a joint forecast for the demand. As a result we came to a common solution that we will be able to achieve better results thanks to the consolidation of our labor and technical resources.

Firstly, we estimated accuracy of the forecast for retail chains, receiving high indicators and necessary detailing of data and possibility to integrate the systems. We decided to automate forecast process via data transfer from a retailer to EFKO planning system with an opportunity to make expert adjustments on the part of supplier.

DSC_9079.jpgTechnical part of the business-process is following: firstly, we receive data from a retailer, than it is formed and sent to EFKO forecast system» S&OP. After that, information goes to the planning system ILOG and on the base of this information we form plans on production and estimate warehousing and transport resources».

Introduction of such business system permitted:

1. exclude manual entry of forecast data to the system;
2. detail forecast in terms of «SKU-TT»;
3. conduct expertise of data and make adjustments to the plans;
4. estimate correctly market behavior on product;

5. change the process of forecast for the collaboration model «human plus machine».

As a result of the work, indicator of service level has grown to 3 positions while indicator of timeliness to 5%. The best result after testing of systems appeared in the indicator «forecast accuracy» where increasing in milk category reached +15%, accuracy in oil and ketchup grew by 21%, in category of mayonnaise by 25%.

«Full launch of the project will be in November of this year. We believe that in the near future we will be able to adopt completely a dynamic strategy of logistics development that will let respond flexibly to the demand, trends and technologies», - Daria Vasilieva noted.

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