sedApta Suite for Smart Manufacturing: Food & Beverage Case Study

In the context of the industry 4.0, rationalizing productive processes represents a key activity to reach and safeguard competitive advantages, especially for all those companies operating in the Food & Beverage industry.

One of the processes that needs to be carefully redesigned is the Sales & Operation Planning (S&OP) process. Differently from the most traditional productive contexts, companies in the F&B need to pay particular attention to factors such as the perishability of products and ingredients, and therefore to carefully plan inventory and stock levels.

Important information such as those regarding seasonal trends in demand, and/or the impact promotional and price levels could have on produced quantities, need to be strongly integrated in the planning process, both for medium/long term plans and for operational plans. At the same time, monitoring activities over production lines need to be accurate and capable of supplying timely feedback to ensure minimum response time to changes in stock objectives.

With its Food&Beverage solution, already adopted by several important name in the industry, sedApta is the ideal partner for companies that need to face this change management processes.

The proposed case shows how the sedApta Suite was adopted by a company in the Food&Beverage industry that specialize in the treatment of dry fruit, highlighting which are the benefits that stemmed from this strategic choice.

Guided by the consultants of sedApta’s partner companies, the customer started a project for the analysis of internal processes, which identified four main requirements for the new process to be:

  • Being able to accurately forecast demand;
  • Optimizing product flow, respecting all constraints (in terms of product and productive capacity);
  • Identify the stock mix (for finished products) that optimizes profits;
  • Plan materials replenishments as to minimize costs and all problems related to the perishability of the materials.

To implement a system capable to satisfy these requirements, the as-is system has been analyzed and the main technological shortcomings have been identified. In particular, the gaps found related to:

  • Finished products coverage and stock levels calculation;
  • Management of production peaks due to commercial promotions;
  • Weekly production plan scheduling;
  • Scheduling of materials and packaging purchasing;
  • Monitoring of production lines.

Following this analysis, different tools of the sedApta Suite have been identified to be integrated to the company ERP as to cover the functional gaps previously highlighted. In particular:

  • Demand Management
    Demand Management allows users to generate sales forecast at the sales area/item/week/… level.
  • Inventory Management
    Inventory allows users to define target stock levels based on the defined inventory policies, and to determine the main production plan with infinite capacity based on sales forecasts, stock level objectives, inventory and confirmed production plans.
  • Resource & Supply Planning
    Resource & Supply Planning allows users to create medium/long term plans with finite capacity, as to optimize the productive system and the purchasing schedule.
  • Factory Scheduling
    Factory Scheduling allows user to generate optimized work plan based on productive capacity, machines needed and contamination constraints for each line.

Implementing the sedApta solution has brought to the company several benefits, such as:

  • Inventory reduction of primary components (raw materials and packaging) and finished products by more than 11% over the previous year.
  • Reduction in raw material waste.
  • Increase in service levels from 95% to 98%.
  • 60% reduction of order backlogs and partial backlogs.
  • Reduced internal lead time for product transformation by 15%.
  • Increased ability of the structure to cope with production emergencies.
  • Reduction of hours spent in report drafting.
  • Data harmonization for corporate reporting.