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Recipe for Success

Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Functional Applications - Inventory Management Systems
Applicable Industries
  • Food & Beverage
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
  • Predictive Replenishment
Services
  • System Integration
  • Testing & Certification
The Challenge
Butterball, a leading producer of turkey products, faced significant supply chain challenges due to the seasonal and promotion-driven nature of many of its products, as well as the fact that every product is date-sensitive. The company needed to forecast at a very high level of accuracy, as well as improve its date-sensitive inventory management. Meeting retailers’ different service-level expectations and product freshness requirements added a layer of planning complexity to Butterball’s supply chain that if not managed well could lead to a risk of obsolescent inventory and unhappy customers.
About The Customer
Butterball is the most recognized name in turkey, producing a billion pounds of products every year at five facilities in North Carolina, Arkansas and Missouri. The company ships these products to the 98 percent of American grocers that carry part of the Butterball line, as well as retailers in more than 30 other countries. The business has established a 50-year reputation for excellence based on three key strengths: meeting consumer needs through consumer insights, product innovation and outstanding quality; building the right relationships with the right customers and becoming the category driver; and optimizing product delivery to customers.
The Solution
Butterball turned to JDA Software for help in managing its complex forecasting and replenishment challenges. The company implemented JDA Demand and JDA Fulfillment solutions, which are part of JDA’s Intelligent Fulfillment™ suite. These solutions have helped Butterball address product perishability, an important factor in the company’s planning processes. From a date-sensitive inventory management perspective, planners can now modify Butterball’s forward-looking plans to minimize any excess product and ensure customer satisfaction. The JDA tools also address both product seasonality and promotional effects, allowing planners to be more proactive in addressing seasonal capacity requirements, which has improved its customer service levels.
Operational Impact
  • Butterball has achieved a dramatic transformation in its foundational approach to forecasting and inventory management.
  • The company is now able to work much more efficiently.
  • The JDA solutions have helped Butterball address product perishability, an important factor in the company’s planning processes.
Quantitative Benefit
  • Exceeded year-one cost savings estimate by 75 percent
  • Reduced distressed obsolescent inventory by 28 percent
  • Improved short-term forecast accuracy by 2 percent

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