Due to the Dairy industry’s unique and complex nature, next-generation planning capabilities are required to stay on top of competition
Key challenges in the Dairy industry
Extremely short shelf life
of raw materials, semi-finished, and finished products
Variability and seasonality of the raw milk supply
because of the organic nature and very fragmented sourcing
Allocation complexity
due to multiple types of finished products that share the same raw materials but have different transformation processes
Highly competitive market
with rapid brand substitution from consumers in case of shortages
5 planning capabilities required to future-proof dairy businesses
5 planning capabilities required to future-proof dairy businesses
Mid-term network and contribution optimization
to configure the capacities and allocation, maximizing profitability
Milk utilization optimization
to ensure the best utilization of available milk given the latest demand signals
Demand sensing and rapid replanning
to reprioritize line scheduling and distribution; no inventory buffer
End-to-end shelf-life constrained planning
to ensure zero waste and anticipate expiration at all steps
Supply-backed RGM
fully synced with the demand/supply status, to shape customer demand fitting available milk and capacities

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