American Dairy Brands, a $300M division of Dairy Farmers of America (DFA) which is the largest U.S. dairy cooperative marketing over 45 billion pounds of milk per year, has achieved substantial supply chain savings through Infor's Supply Chain solutions. Infor has given Dairy Farmers of America the ability to successfully manage the supply chain to drive service levels to greater than 99% for their Borden-brand cheese products.
American Dairy Brands Reduces
Errors, Increases Forecast Accuracy,
And Increases Service Levels
A merican Dairy Brands, a $300M division of Dairy Farmers of America (DFA) which is the largest U.S. dairy cooperative marketing over 45 billion pounds of milk per year, has achieved substantial supply chain savings through Infor's Supply Chain solutions. Infor has given Dairy Farmers of America the ability to successfully manage the supply chain to drive service levels to greater than 99% for their Borden-brand cheese products.
Borden brand cheese, with the familiar face of Elsie the cow on the product label, has become a staple in many American households. With a diverse product line, including many variations of single slice cheese, shredded cheese and chunk cheese, American Dairy Brands (ADB) faced multiple supply chain challenges such as limited visibility of BUSINESS OBJECTIVES supply and demand, production inefficiencies, inventory variables and distribution con-Gain better visibility of supply and demand straints. American Dairy Brands needed a better way to manage their supply chain to en-sure both customer service levels and margins were at their highest. Improve production efficiencies Improve management of inventory American Dairy Brands selected the Infor solution, including the Infor Advanced Supply variables Chain products and Infor Adage ERP, to manage all facets of their supply chain. Improve abilities to take into ac-count shelf life constraints on raw "Infor has provided our American Dairy Brands division with capabilities for taking into materials and finished products account all of the constraints we face, allowing us to reduce errors, increase forecast ac-curacy, improve our safety stock calculations and substantially increase customer services levels", says Bill McCurry, Supply Chain Systems Manager at Dairy Farmers of America. "In fact, since our Infor implementation, the American Dairy Brands division has been able to achieve a greater than 99% service level on shipping to customers".
BENEFITS Driving Supply Chain Efficiencies Increased forecast accuracy One of the most significant and most complex challenges faced by American Dairy Brands Improved safety stock calculations is the management of the varying process industry supply chain constraints which include Increased customer services levels - achieved greater than 99% service material and product shelf life, inventory and safety stock quantities, production capacity level on shipping to customers limitations, and distribution constraints. By not taking these issues into account through-out the overall production plan, it is difficult to ensure that the right product is produced at the right time to satisfy consumer demand. It is also difficult to sustain competitive margins when you are losing your profits to supply chain inefficiencies.
For American Dairy Brands, when raw material enters the supply chain, where raw mate-INFOR SOLUTION rial consists of cheese that requires further processing, choices need to be made regard-Infor Advanced Scheduling ing the right product mix that will provide the most substantial profit margins, within the Infor Advanced Planning constraints of meeting customer service requirements. Infor Demand Planning Infor Adage ERP
case study " Infor has given us the necessary capabilities for growth and competitive advantage in our industry." Bill McCurry, Supply Chain Systems Manager, Dairy Farmers of America
W ith the Infor advanced supply chain planning solutions in able to make "fact-based" decisions regarding customer de-place, American Dairy Brands is now able to make product- mand. Through collaborative demand planning, American mix-profitability choices by taking into account all variables Dairy Brands ensures that all of the key stakeholders through-and constraints in the supply chain, as well as look down- out the organization agree on what products can and need to stream to map it against the demand. They are now able to be made in order to meet customer demand in the most profit-make optimized recommendations based on all of the con- able manner possible. They also have better visibility of the straints, enabling the best plan to ensure quality assurance, impact that certain events, such as bringing a new product to customer satisfaction and the best margins possible without market, has on supply and demand. American Dairy ... [download for more]
