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 * Arla: How Does Demand Sensing Accelerate the Digital Journey to a Better
   Supply Chain?


ARLA: HOW DOES DEMAND SENSING ACCELERATE THE DIGITAL JOURNEY TO A BETTER SUPPLY
CHAIN?

Learn how full transparency into demand across the supply chain planning
spectrum enabled Arla to tackle business goals for rapid growth. Download the
Document

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PUBLIC
Providing more than 4,000 dairy products from more
than 70 production sites
Arla Foods Amba is an international cooperative headquartered in Denmark owned
by
almost 13,000 farmers in seven countries. Recently, the dairy company set its
sights on
sustainability and reducing waste. So, Arla sought a solution that could support
these
goals by better sensing and reacting faster to changes in demand to optimize its
supply chain planning. Arla also wanted to improve customer service and decrease
inventory while reducing effort and manual time spent forecasting.
How Does Demand Sensing
Accelerate the Digital Journey to
a Sustainable Supply Chain?

Arla implemented the SAP® Integrated Business Planning for Supply Chain solution
and its demand
sensing component with support from Implement Consulting Group, and was able to:
• Improve short-term planning based on daily sensed demand forecasts that are
aligned with real demand
patterns to optimize replenishment, deployment planning, and production
planning, as well as sales forecasts
• Replace manual, repetitive planning tasks with an automated demand sensing
solution for around 70% of all
forecasted products, freeing up planners’ time to focus on higher value tasks
• Improve forecast accuracy for more than half of the forecasted products
without any manual effort in one
common solution, thereby improving customer service and delivery
• Increase overall forecast accuracy for its UK market from 82.43% to 84.85% (a
2.42% increase) for all relevant
SKUs and for other markets in whole categories by more than 5%, achieved while
reducing time spent on
manual, repetitive forecasting tasks by well over 10%
• Support immediate decision-making by increasing short-term forecast accuracy
and reliability on a daily level for
replenishment, production, and distribution planning
• Implement the solution on time and as planned with best-practice concepts from
Implement Consulting Group,
who has more than a 15-year history of working successfully with Arla
Full transparency into demand across supply chain planning
enables Arla to tackle business goals faster and smarter.
“SAP IBP is the future for us. The demand sensing component is the first step on
our
journey to true end-to-end supply chain planning, and we are already
implementing
multiple processes supported by SAP IBP.”
Alfred Benny Christensen, Senior Solution Architect, Arla Foods Amba
Arla Foods Amba
Viby, Denmark
www.arla.com
Industry
Agribusiness
Employees
19,000 (2016)
Revenue
>€10 billion
Featured Solutions and Services
SAP Integrated Business Planning
(SAP IBP) for Supply Chain
PUBLIC | Studio SAP | 69732enUS (20/10) © 2021 SAP SE or an SAP affiliate
company.
sap.com/terms-of-use


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