Hungry for Optimization

Wendy's to implement software to better anticipate store sales, inventory needs and impact of marketing promos

Wendy's to implement software to better anticipate store sales, inventory needs and impact of marketing promos

Waltham, MA — July 23, 2003 — Demantra, a provider of consumer demand-driven supply chain solutions, has been selected by Wendy's International Inc. to generate more accurate understanding of consumer consumption at the restaurant-level to reduce spoilage, inventory and promotion costs. Demantra Spectrum is being used by marketing, supply chain executives and store managers to allocate store and product resources and streamline inventory replenishment, lowering operating costs and increasing profit margins.

During the first phase of the implementation, Wendy's is using Spectrum's solution to forecast sales and product mix required at the store level. These forecasts, generated at half-hour intervals, are designed to give supply chain and store managers a better understanding of daily consumption levels, as well as the total number of menu items required at store locations. Wendy's is also using Spectrum to measure the true effect of marketing promotions and determine expected results of new product introductions.

"The half-hour forecasts that Demantra Spectrum provides ensure that stores are appropriately staffed and have the right products on hand to meet consumer needs," said John Deane, chief information officer at Wendy's International. "In addition, Spectrum's marketing planning and analytical capabilities better prepare us when we introduce a new product, as they provide expected sales data and information on how the product may impact existing menu items."

Demantra Spectrum links sales/marketing and manufacturing/operations to make better use of marketing, inventory and replenishment decisions by balancing consumer demand against appropriate shelf life, appropriately planning production resources/constraints initiated by trade promotions, and determining the demand quantities for new product introductions.

"Using downstream [point of sale] demand to drive marketing, labor and supply plans is one of the best practices in the quick service restaurant industry," said Jim Langabeer, executive vice president at Demantra. "Using this demand data can result in cost savings throughout the organization."