How Land O’Lakes uses Oracle’s Demand Management solution to anticipate market demand and increase margins.
By Maha Muzumdar-Oracle on May 01, 2014
Land O’Lakes’ dairy business is subject to extreme shifts in seasonal demand. When colder temperatures drive Americans indoors and the winter holidays give them reason to fire up their ovens, production of Land O’Lakes butter spikes by as much as 65 percent. During November and December, grocery stores around the country require 1 million pounds of butter per day to meet customer demand. Historically, this fluctuation in demand required planners to stock excess inventory to make sure they could meet customers’ needs and service levels. Land O’Lakes deployed Oracle’s Demantra Demand Management to give production and deployment planners the ability to optimize production planning, significantly reduce inventory on hand, and effectively route products to markets where demand is highest—all while maintaining high service levels. These improvements in operational efficiencies have led to better use of raw materials (in this case, perishable milk), increased working capital to fuel growth, and higher profit margins. Read the full story in Profit magazine here: http://www.oracle.com/us/corporate/profit/features/122811-landolakes-1917723.html