Global supply chains face mounting challenges: outdated manual processes, missed opportunities due to poor demand planning, and lost revenue caused by inefficiencies. For one global fresh foods company, these issues added up to millions in losses each year.
This podcast based on a GEP case study explores how it tackled these challenges head-on. Discover how the enterprise transitioned to a demand-driven supply chain, implemented advanced planning software and achieved €10 million in yearly savings.
What You'll Hear:
- How to reduce waste and boost cost savings
- The impact of advanced planning software on decision-making
- Why demand-driven supply chains are the future of operational excellence
PODCAST SUMMARY
The podcast opens with an engaging discussion between two speakers about the challenges and opportunities of transforming supply chains in the fresh foods industry. They focus on how one global fresh foods company achieved significant savings and operational improvements by overhauling its outdated supply-driven model with the help of GEP.
From Supply-Driven Chaos to Demand-Driven Precision
The conversation starts with a description of the company’s initial supply chain challenges. The speakers highlight the inefficiencies caused by operating on a supply-driven model, where decisions were made based on assumptions rather than customer demand. This approach led to overproduction, waste, and significant financial losses—such as €10.5 million in missed sales from underestimating demand and €1.7 million in losses from oversupply.
Manual planning and reliance on spreadsheets were identified as major obstacles, making it difficult to adapt to changing market conditions. The company’s poor demand forecasting resulted in customer dissatisfaction and damaged supplier relationships. Recognizing the urgency for change, the company partnered with GEP to implement a demand-driven approach.
Building the Blueprint for Transformation
The speakers then dive into the steps the company took to transform its supply chain. GEP began by conducting comprehensive audits and stakeholder interviews to fully understand the company’s processes. Using SIPOC analysis, they mapped out every stage of the supply chain, from suppliers to customers.
The result was the development of a new target operating model, emphasizing demand forecasting and advanced planning. This included implementing pilot programs to test changes on a smaller scale and introducing advanced planning software to provide real-time visibility into inventory, demand, and supply chain operations. The speakers describe this software as a mission control for the company’s supply chain, empowering teams with actionable insights.
Training and upskilling employees played a key role in ensuring the success of the transformation. The company conducted a data boot camp to help workers — from warehouse staff to executives — use the new tools effectively. Additionally, they introduced three integrated business planning (IBP) frameworks to manage short-, medium- and long-term supply chain planning.
The Results: Savings, Agility, and a Culture of Data
The podcast concludes with a breakdown of the company’s achievements. Thanks to the demand-driven model, the company saved €10 million annually, including €910,000 from workforce efficiency, €320,000 from reduced write-offs, €1.25 million from minimizing push sales, and €7.5 million from reducing lost sales.
The speakers highlight how advanced planning software enabled better decision-making by analyzing historical data, market trends, and even weather patterns to forecast demand. The adoption of scenario planning further prepared the company to handle disruptions, such as supplier issues or shifts in consumer demand.
Ultimately, the company’s transformation was not just about technology — it was about creating a data-driven culture. The speakers emphasize the importance of combining smart tools with skilled teams to maximize the benefits of supply chain improvements.
This case study demonstrates the power of aligning processes, people, and technology to unlock savings, reduce waste, and improve customer satisfaction. It offers actionable insights for supply chain leaders looking to innovate and stay ahead in a competitive market.
