Selects Terra Technology for real-time forecasting solution to gain greater visibility into customer demand
Ridgefield, CT — March 23, 2004 — The Campbell Soup Co. is set to use a forecasting solution from Terra Technology in a bid to enable accurate, detailed customer demand visibility.
Nearly 135 years old, Campbell has 25,000 full-time employees worldwide and ladles out soup, sauces and other products to the tune of almost $7 billion annually. The company is based in Camden, N.J.
Campbell's North American soup, sauces and beverage division will use Terra's Real-Time Forecasting (RTF) solution to gain greater visibility into day-to-day demand changes and order flows.
Results from a pilot showed that the company can decrease its short-term forecast error by 50 percent. The soup company is looking to this improvement in accuracy to help enable reductions in inventory and increases in customer service levels.
"By accurately predicting demand, Terra's solution will help stabilize our production schedules, reduce safety stock and improve service levels," said Mike Mastroianni, vice president of North American planning and operations support for Campbell.
Mastroianni explained that one of the company's major objectives for 2004 is to optimize its finished goods inventory while improving service levels and decreasing costs. "Terra's real-time forecasting capabilities will be a major enabler to help us achieve this objective," he said.
Terra said its real-time forecasting solutions create accurate short-term forecasts every day. Customer order flow is monitored to detect demand changes, which are then used by the statistical techniques to generate accurate daily forecasts for the next month.