In October 2021, the SAP S/4HANA platform was implemented at Hollandia. During subsequent operations, it became clear that the standard SAP tools did not provide sufficiently advanced sales forecasting algorithms, which are crucial for dairy production with short shelf life. Therefore, it was decided to look for an additional forecasting tool that would be fully compatible with both SAP and the internal HIS information system.
Project Objectives
- Find a forecasting tool compatible with SAP and HIS.
- Replace Excel-based planning with planning directly within the information system.
- Improve production planning accuracy and streamline purchasing and supply processes.
- Reduce raw material and finished goods inventory without risking deterioration in customer service levels.
Implementation Process
Phase | Description |
|---|---|
Audit | Assessment of logistics processes and warehousing |
HIS Adjustment | Ensuring compatibility with PREWIT and SAP |
Training | Preparing users for the new tool |
Go-Live | PREWIT launched at the beginning of 2023 |
Main Benefits of the Implementation
Warehouse Position Savings
Warehouse Type | Position Reduction |
|---|---|
Finished Goods | 30% |
Raw Materials (MTZ) | 30% |
Inventory reduction of raw materials (MTZ) was confirmed by the Chief Financial Officer at a level of 30%.
Reduction in Order Shortages
Year | Average Order Shortage |
|---|---|
2023 | X% |
2024 | X – 0.65% |
Additional Benefits
- Better capacity optimization — both machine and human resources.
- Immediate response to changes in demand.
- Elimination of Excel spreadsheets from the planning process.
- Tighter integration between production planning and raw material purchasing.
Areas for Further Improvement
- A solution for forecasting overlapping promotional campaigns at key customers (e.g., Albert).
- More advanced forecasting for seasonal products, especially ice cream.
- Incorporating seasonal demand trends (e.g., higher demand for plain yogurts in summer, lower for fruit yogurts).
- Faster response to product cannibalization.
Conclusion
The implementation of PREWIT represents a significant step forward for Hollandia in the area of planning and inventory management. More accurate forecasting, reduced inventory levels, and improved product availability confirm the value of this investment.
The combination of PREWIT + SAP + HIS has created a comprehensive planning ecosystem tailored to the specific needs of dairy production with fresh products.