Nestle Demand Planning

Nestle DSD: Enhancing Demand Planning and Forecast Accuracy

Overview of Nestle DSD's Challenges

• Nestle DSD is the largest company-owned direct store delivery system in the U.S., supplying various products, including ice cream and pizza.

• Demand planners faced challenges with inaccurate forecasts due to rapid growth and an expanding product portfolio, leading to conflicting service and cost expectations.

• The lack of detailed visibility into customer versus distributor demand hindered effective planning, necessitating a more precise forecasting approach.

Need for Improved Forecasting Solutions

• Accurate forecasting requires knowledge of specific products, locations, and timing rather than general sales data.

• Nestle recognized that enhancing forecast accuracy could improve customer service while reducing inventory costs.

• The search for a technology partner led them to SAS, which provided a robust demand-driven forecasting solution.

Implementation of Demand Planner Workbench

• The Demand Planner Workbench from SAS offers flexibility in viewing forecasts by product category and customer level.

• This tool allows demand planners to adjust forecasts based on recent market intelligence, improving collaboration across the organization.

Impact on Promotional Activities and Sales Operations

• Promotions significantly influence volume; thus, accurate forecasting is critical for managing supply chain operations effectively.

• The ability to forecast at granular levels enables targeted promotional strategies that can be adjusted as needed.

Results Achieved Through Enhanced Forecasting

• Sales and operation planning processes have improved with better information about customer behavior and promotional impacts.

• Remarkable improvements in forecast accuracy were noted, with gains between three to five points translating into significant financial benefits.