Tillamook Achieves Growth with Strategic Supply Chain Planning
Challenge
Nearly two-thirds of cheese products must be aged between nine months and eight years before going to market. For dairy product manufacturer Tillamook, this means its largest and highest-margin product category is also the most difficult to plan. It needs to know today what products it’s going to sell in eight years’ time.
Combine this with a rapidly expanding product portfolio and a goal of hitting a 99% company-wide fill rate, Tillamook needed to overhaul its existing ERP and Excel-based efforts for supply chain planning. It needed a digital S&OP system with the capacity to support the organisation’s aggressive strategic growth ambitions.
Solution
Tillamook partnered with Logility to provide much-needed visibility across its supply chain. The Logility digital supply chain solution has transformed Tillamook’s forecasting techniques. The company is no longer relying on outdated Excel spreadsheets and manual, labour-intensive processes. Now, Tillamook has access to more accurate forecasts that enable both digital and operational supply chain success.
With the platform’s visibility and automation, the planning team can focus on exceptions and value-adding activities. Meanwhile, the Logility solution automatically releases orders into its ERP system. This new automated and streamlined procurement method reduces errors and accelerates processing time.
The seasonality capabilities in Logility Inventory Planning and its seasonality intelligence help the company pre-build inventory to meet summer ice cream demand spikes. The organisation is also using Logility to optimize conversion locations, expiration dates and co-manufacturers.
Impact
Since implementing Logility, Tillamook has been able to improve forecast accuracy by 25%. With a more accurate demand plan, the company has decreased its finished goods inventory by up to 75%, as well as increasing its fill rates to between 98% and 99% – hitting its company-wide fill rate goal.
Tillamook has also saved an incredible $4.2 million in spoilage and obsolescence.
The company has set an ambitious goal of becoming the leading dairy brand in the United States. It believes with Logility, it is setting the tone to accomplish that goal.
