Mondelez Implements Demand Sensing and Transportation Forecasting

Demand Sensing decreases forecast errors, while Transportation Forecasting proactively identifies capacity issues weeks in advance

Norwalk, Conn.Oct. 25, 2013Mondelez International, Inc., a global maker of chocolate, biscuits, gum and candy, announced that the company implemented Terra Technology’s Demand Sensing (DS) and Transportation Forecasting (TF) solutions to improve forecast accuracy and supply chain efficiency in North America.

“Mondelez International is focused on growth through our strong product portfolio, rapid innovation and operational efficiency,” said Pete Alle, the senior director of the Product Supply Center of Excellence at Mondelez International. “Terra’s solutions enable a more responsive and efficient supply chain for both warehouse and direct store delivery brands.”

Mondelez International is one of the world’s largest snacks companies, serving customers in 165 countries with number one global brands in biscuits, chocolate, candy and powdered beverages. Demand Sensing helped Mondelez decrease its forecast error by almost 40 percent.

Demand Sensing is currently used in more than 160 countries. Better forecast accuracy helps free cash flow and improve returns on capital by cutting unnecessary inventory, grow revenue by increasing on-shelf availability, and improve earnings by reducing costs from unplanned changeovers and inefficient shipping.

Transportation Forecasting provides Mondelez with an accurate daily forecast of shipping needs by lane, mode and temperature class, which is synchronized with sales and operations planning to allow the entire company to execute against the same demand plan. Forward-looking visibility to transportation and logistics needs lets Mondelez proactively identify capacity issues weeks in advance and secure cost-effective transportation.  

Robert Byrne, CEO of Terra Technology, said, “Mondelez understands that profitable growth and satisfied customers come from having the right products on store shelves, not only at the right time, but also at the right cost. With today’s complex supply chains and increasingly volatile markets, finding this balance requires new mathematics to quickly transform real-time information into an actionable response.” 

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