Improving Forecast Accuracy to Improve On-Time Deliveries

The Challenge:

Champion Petfoods has experienced unprecedented growth over the past few years putting pressure on the organization to maintain a pace where supply can keep up with demand. Growth and the planning challenges that come with it, compounded by a partial shutdown resulting from a fire last year put, Champion in a situation that impacted supply issues and began to lose trust with their customers.

The challenge was to regain trust through “on-time, worry-free” deliveries, while working with management on the following key items:

• Refine the overall Sales, Inventory and Operations Planning process (SIOP) –  including supply & demand forecasting processes.
• Review, modify and implement roles, responsibilities and organizational structure regarding  supply chain activities.
• Define the key operational measures of success and develop a common language to communicate measurable improvements throughout the organization to enhance service, delivery and reliability to customers.
• Make the SIOP process sustainable.
• Develop a program with which Carpedia and the sustainability manager can educate, train and indoctrinate management team members into the methodology and management system usage.

The Results:

Changes in the process, management operating system and management behaviours  achieved the following results during the 5-month project:

• A 58% improvement in on-time deliveries.
• A 12% improvement in order fulfillment.
• A 12% improvement in yield attainment.
• A 41% improvement to forecast accuracy.
• Developed the operational reporting tools and accompanying meeting structure to monitor and continually improve supply and demand planning.
• Defined roles and responsibilities for the executive leadership and departmental process owners.
• Transitioned sustainability requirements to a newly hired Director within Champion.

The Client Experience:

“I believe that we will achieve all agreed upon requirements for sustainable profit improvement.  We are well on our way to achieving the key indicators of planning success in both supply and demand.  Through the professional approach taken by the Carpedia Team over the 21-week engagement, our team has learned to focus on providing on-time, worry-free service to our distributors.”

CEO, Champion Petfoods