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Procter & Gamble Taps Multi-Enterprise Demand Sensing Solution to Improve Forecasting
Software from Terra Technology enables consumer products giant to use POS to facilitate end-to-end planning and further boost forecast accuracy
Norwalk, CT — March 16, 2009 — Consumer product giant Procter & Gamble has selected the Multi-Enterprise Demand Sensing (MDS) solution from Terra Technology to further improve forecast accuracy and demand visibility, the solution provider has announced.
MDS reconciles daily demand signals from multiple echelons in the supply chain, including point-of-sale data, retailer warehouse and outlet inventory, and retailer forecasts. The solution uses pattern recognition mathematics to decipher which information is predictive.
Procter & Gamble modeled the software in several businesses. In one recent model, the software reduced forecast error by more than 50 percent in certain categories for forecasts three weeks out or less, Terra said.
Dick Clark, associate director, demand planning for Procter & Gamble, said that P&G selected Multi-Enterprise Demand Sensing to analyze the tremendous amount of daily demand information available from key retailers and create a single, more accurate forecast.
"MDS analyzes POS, channel inventory and retailer forecasts to determine what information is relevant and creates a significantly more accurate forecast for P&G," Clark said.
"Procter & Gamble is the consumer products supply chain leader and continues to adopt new technologies to improve both efficiency and service to retailers and consumers," said Robert F. Byrne, president and CEO of Terra Technology. "By implementing Multi-Enterprise Demand Sensing, P&G will significantly improve short term forecast accuracy."
Other Terra customers in the consumer products sector include Campbell Soup and Ventura Foods.
MDS reconciles daily demand signals from multiple echelons in the supply chain, including point-of-sale data, retailer warehouse and outlet inventory, and retailer forecasts. The solution uses pattern recognition mathematics to decipher which information is predictive.
Procter & Gamble modeled the software in several businesses. In one recent model, the software reduced forecast error by more than 50 percent in certain categories for forecasts three weeks out or less, Terra said.
Dick Clark, associate director, demand planning for Procter & Gamble, said that P&G selected Multi-Enterprise Demand Sensing to analyze the tremendous amount of daily demand information available from key retailers and create a single, more accurate forecast.
"MDS analyzes POS, channel inventory and retailer forecasts to determine what information is relevant and creates a significantly more accurate forecast for P&G," Clark said.
"Procter & Gamble is the consumer products supply chain leader and continues to adopt new technologies to improve both efficiency and service to retailers and consumers," said Robert F. Byrne, president and CEO of Terra Technology. "By implementing Multi-Enterprise Demand Sensing, P&G will significantly improve short term forecast accuracy."
Other Terra customers in the consumer products sector include Campbell Soup and Ventura Foods.
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