One Network Implements Demand-Driven Inventory Planning at Del Monte Foods

Computes optimal safety stock levels across thousands of SKUs in real time

Dallas—Aug. 29, 2012—One Network Enterprises (ONE), provider of demand-driven supply chain solutions in the cloud, announced today that leading CPG company Del Monte Foods has successfully implemented ONE’s demand-driven Inventory Planning service, further enhancing a lean and responsive supply chain that significantly outperforms industry averages.

One’s “Real Time Value Network’s Inventory [RTVN] Planning service has allowed Del Monte to obtain additional inventory savings over and above the already significant results driven by the earlier announced demand driven project with One Network,” said Rob Ferguson, Vice President, Value Engineering and Customer Service at Del Monte.

Traditional inventory management systems aggregate historical data over long periods of time, set safety stock and order polices on a weekly or monthly basis, and are disconnected from replenishment systems. Because of this, carrying excess inventory becomes necessary to prevent stock outs.

By contrast, Del Monte’s inventory planning with ONE’s RTVN computes optimal safety stock levels at all of Del Monte’s finished goods inventory locations across thousands of SKUs in real time, optimizing multi-tier inventory by computing the inventory targets for given specific service levels. It captures multi- party variables such as lead times, manufacturing frequency, batch size, and ordering policies from across the value chain, and using a proprietary mix of micro-simulations, complex algorithms, exception-based forecasts, and real-time downstream demand signals, suggests and even automatically adjusts inventories for specific SKUs to their optimal levels.

More than 30,000 companies already are connected to the RTVN for demand-driven services that have repeatedly proven to lower inventories and operational costs, improve service, and increase profitability— Kroger, Lockheed Martin, Safeway, Menlo Logistics, the U.S. Department of Defense, the U.S. Marine Corps, and many others—are becoming demand driven with One Network’s RTVN.

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