Supply Chain Planning Blog

Demand Planning Search in CPG-- A Success Story!

Posted by kameron hadavi on Wed, Nov 04, 2009

Food & Beverege PlanningPaulaner is the largest brewery in Bavaria, Germany, and one of the most well-known brands of beer in the world.  Their biggest challenge in their supply chain had to do with the complexity they faced when it came to demand planning, in particular developing accurate forecasts.   So the Company went through a very intense selection process to pick the right solution, and we thought it would make for a good article to discuss the details of what Paulaner was looking for and how they found it.  It's important to mention that the selection process was managed by Dr. Michael Bell, a former academician, who was the Deputy Head of Logistics for Paulaner at that time, and now working with Coca Cola Corporation.  His deep expertise in the art and science of Demand Planning played a critical role in how this comprehensive selection process was lead a successful project.  

The goal of the project at Paulaner was to be able to accurately forecast the sale of the 250+ different beer types and sizes. Forecast accuracy is critical since Paulaner manufactures their beer in the heart of Munich and there is very little warehouse space to store finished goods inventory prior to sale to their customers. There are many factors that affect the sale of beer in Europe including the weather and special events such as holidays (like Oktoberfest), making the forecast of beer sales a very interesting task.

Demand Planning

Paulaner's selection process of a Demand Planning system started with research on the internet of 56 companies that sold such a systems. Of the 56 companies, 36 companies were sent questionnaires on forecasting and demand management capabilities to narrow the field of contenders to only 8 companies to take part in a forecast accuracy trial. When the selection process was completed it was Adexa's CDP system that was chosen for the task. The main reasons were the accuracy of the forecasting engine and the ease of use for the sales people that would need to manage the demand plan in the system. The implementation time was about 4 months with great results, especially in short and long term forecast accuracy.  For the official news release about the selection, please click: "Paulaner Brewery chooses Adexa's Collaborative Demand Planner to optimize forecasts, inventories, and capacity utilization".

To learn more about this project, you can download a post-implementation snapshot by visiting: http://web.adexa.com/demand-planning-for-paulaner-brewery-snapshot/ 

Or visit our Demand Planning page for more information about the products mentioned.

Kameron HadaviBy Kameron Hadavi, Vice President of Global Marketing and Alliances.  For more information about the author please click here.

 

Topics: Demand Planning, Beer, Food & Beverege, CPG, Adexa