Food Manufacturer Van Geloven Implement TXT Demand, Supply Planning and Scheduling Solution as Part of the Journey to Best Practice S&OP

 Breaking News
  • Guinness Remains Ireland’s Most Valuable Brand at €2.1 Billion Guinness remains Ireland’s most valuable brand after growing by 5% over the last year to a brand value of €2.1 billion on the back of new product innovations and steady sales of the world-famous draught, according to the latest report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. Guinness’s brand value has [...]...
  • New Décor Salt Convinces With a Crunchy Bite and High Stability When it comes to pretzels or salt sticks, the visual contrast between a dark crust and a rich salt décor is a mark of quality for most consumers. New Slow Milling® Pretzel Salt Light SG from GoodMills Innovation enables salt reduction in pretzel décor without the consumer noticing any visible difference. At the same time, [...]...
  • DuPont’s Microbiome Venture Announces Second Strategic Partnership Three months after its formation, the DuPont Nutrition & Health Microbiome Venture has announced its second strategic research and development partnership. The newly forged relationship with the Center of Food and Fermentation Technologies (TFTAK) in Tallinn, Estonia, will focus on developing cultivation and bioprocess capabilities for ‘next-generation’ probiotics. Last November, DuPont Nutrition & Health (DuPont) announced [...]...
  • JBT Announces Comprehensive Relaunch of Online Presence JBT Corporation, one of the world’s leading solutions providers for the food and beverage processing industries, has announced the comprehensive relaunch of its online presence, with the introduction of a redesigned flagship website. To better accommodate a range of solutions that includes not just core JBT products, but also innovations from its global businesses and [...]...
  • Building the Unilever of the Future Unilever has announced the next steps in its transformation into a simpler, more agile and more focused business. The changes are designed to further drive long-term performance and shareholder value, and build upon the company’s Connected 4 Growth programme. Unilever will simplify its corporate structure. This entails moving from two legal entities – Unilever NV and [...]...

Food Manufacturer Van Geloven Implement TXT Demand, Supply Planning and Scheduling Solution as Part of the Journey to Best Practice S&OP

Food Manufacturer Van Geloven Implement TXT Demand, Supply Planning and Scheduling Solution as Part of the Journey to Best Practice S&OP
June 22
09:09 2015

Van Geloven develop and produce Abrand and private label frozen snacks and meal components for the retail and wholesale sector in Europe. There are 6 strong brands within the portfolio: Ad van Geloven, Van Lieshout Snacks, Welten Snacks, The Bourgondier, Mora and Hebro. The company has about 800 employees. Van Geloven are based in the Netherlands. Sales to the Dutch market are done through a Marketing Sales Unit (MSU) in Tilburg and to the Belgium market by a MSU in Mol. Production is executed at four locations: Tilburg, Helmond, Maastricht (all in NL) and Mol (BE).

On request of Van Geloven, EyeOn (Business planning and forecasting Consultants) evaluated the current demand and supply planning process including the planning tools within Van Geloven. EyeOn concluded that the current Van Geloven processes and systems left a lot of room for improvement. The main conclusions:

  • Lack of focus in sales forecasting on certain products and customers.
  • No focus on demand planning; only a forecast on the lowest level (article-week). Many fluctuations in the demand plan on the short term. Insufficient communication about the demand plan with sales and production.
  • Very limited functionality of the current demand planning tool (Excel based).
  • Lack of focus in supply planning on certain products. Many fluctuations in the short term plan.
  • Supply planning and detailed scheduling is done entirely manually and therefore only 5-8 weeks ahead. Limited long-term capacity planning (including the inventory planning).
  • S&OP is only used as an operational planning meeting instead of a tactical one (insufficient focus on future).
  • There is a necessity to deploy professional tools for forecasting, demand planning, and supply plan­ning. In some factories there is also a need for a real scheduling tool.

Points of Improvement

From this evaluation, Van Geloven defined five points of improvement to lead to the following deliverables:

  • New forecast and demand planning process to:
    • provide the right information at the right time
    • facilitate the correct alignment between demand (sales) and supply (production).
  • Selection of the best fit for purpose forecasting tool, including the imple­mentation and training of user(s).
  • New supply planning process for supply planning and scheduling, including:
    • correct setting of planning param­eters and usage.
    • supply planning KPI dashboard.
  • Tactical S&OP process that de­scribes roles and responsibilities, standard agenda and standard set of reports.
  • Selection of the best fit for purpose supply planning tool, based on the functional requirements regarding sup­ply planning and supply scheduling.

In order to deliver against the five points of improvement Van Geloven embarked on a journey which is still in progress today. A critical part of that journey was the selection and deployment of a Demand and Supply Planning tool. Van Geloven chose TXT.

TXT2July2015With the help of EyeOn, Van Geloven carried a detailed vendor selection process. This started with a long list of potential vendors who responded to an RFI. Following this a slightly shorter list of vendors were asked to present their offerings for the purpose of final shortlisting. Next, Van Geloven issued some ‘Use Cases’ to the remaining vendors.

The ‘Use Cases’ detailed specific situations and challenges that Van Geloven dealt with on a day to day basis, vendors had to demonstrate how they would deal with these scenarios. Following the presentation of the ‘Use Cases’ Van Geloven then had site reference visits before final proposals and contract.

Three Critical Areas

So why were TXT selected? TXT were the strongest in three critical areas, functionality, people and budget.

“Specific food industry functionality has to be a given, as do budgetary constraints, but people can make or break a project. What impressed us most about the TXT people was they understood our business, listened and would bring a lot of experience to the project,” says Barbara Van den Berg, the Van Geloven Project Manager.

“In the ‘Use Cases’ they brought solid solutions to the issues we presented them with. It was clear from the outset that we were going to be able to work well together as a team and deliver this project. That is exactly what has happened” continues Van den Berg.

Specific Challenges

To help overcome specific challenges, Van Geloven are implementing TXT’s Demand Planning, Supply Planning and Scheduling solution.

The TXT solution supports Van Geloven in the demand planning process and the generation of high quality forecasts in an environment where up to 40% of demand is promo­tionally driven. This is further compli­cated by identical products being sold in different markets with different iden­tifying codes per country, and when on or off promotion. TXT brings all of this together as part of a collaborative process in the short term forecast, and produces a statistical promotional forecast in the longer term where market intelligence is lacking.  “Producing a high quality forecast against our volatile promotional demand was a key factor in the success of this project and TXT delivered a solid solution” comments Van den Berg.

The Demand Plan

The Demand plan is an input to the Supply Planning and Scheduling, which is also managed within TXT. The solution generates an optimal plan to meet demand and balance in­ventory within the real capacity, shelf life and other constraints within a multi-site and multi-level food manu­facturing organisation. This includes managing a considerable amount of inter site demand and short term man power in a volatile environment. Plans cover a 26 week operational horizon, a 24 month long term horizon and are produced in a timely manner.

TXT3July2015The software also provides detailed scheduling by day, hour and minute, up to a 12 week horizon (dependent on site). Orders within the multi stage production processes are placed in feasible sequence by the TXT algorithm, accounting for due dates, changeovers, capacity and preceding/ succeeding orders/operations.

Key Objective

The key objective of the schedule is to meet all planned due dates while minimising down time, costs and respecting all defined constraints. Operators are also defined for each production line giving Van Geloven visibility of labour requirements on a line by line, day by day, hour by hour basis. The TXT solution therefore covers and joins up the whole Supply Chain from long term grouped level forecasts down all the way to produc­tion schedules by SKU, by line, by hour and minute.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 18, 2018ProWein
  • March 21, 2018World Olive Oil Exhibition
  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
AEC v1.0.4

Jobs: Logistics

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here