Thanks to reliable software forecasts, Dutch food manufacturer Royal Smilde has succeeded in significantly optimizing its production and sales planning. The company can now better estimate which raw materials are needed at what time in the face of fluctuating demand, so that the production lines are optimally utilized. The workload and even the shift system can now be planned much more accurately. While customers benefit from high product availability, suppliers can avoid out-of-stock situations by placing orders in good time.
"It was a logical decision to introduce OUTPERFORM Planning in other areas of the company," explains Supply Chain Analyst Rienk de Vries, who supported the implementation of the software for Sales & Operations Planning at Royal Smilde Foods and Bakery. The Dutch food manufacturer has been using REMIRA's AI-based solution for three years to optimize production planning through automatic forecasts and keep product availability stable despite fluctuating demand. According to Rienk de Vries, the success speaks for itself: Royal Smilde can now plan the utilization of its production lines much more reliably than was previously possible with Access and Excel databases.
"We are able to produce just in time and make optimum use of our production capacities. We now have to switch from two-shift to three-shift systems much less frequently on certain lines, which leads to more stable planning throughout the year."
Thanks to forward-looking demand and production planning, Royal Smilde now has a more reliable raw material and material plan and can provide suppliers with better long-term demand forecasts. From the food manufacturer's point of view, there were therefore many reasons to introduce the software at other locations.
Office databases had reached their limits due to growth
Founded in 1863, Royal Smilde produces margarine, spreads, cooking oils, baked goods and salads, among other things. A total of 700 employees help to produce more than 1,800 different products. These are exported to 47 countries worldwide. Royal Smilde is the largest Dutch exporter of margarines, spreads and mayonnaise to Africa. In 2022, the food manufacturer's turnover amounted to more than 300 million euros.
The decision to introduce the OUTPERFORM Planning supply chain solution at the new headquarters in Heerenveen was made in 2019. Previously, traditional Microsoft Office databases such as Access and Excel were used to plan purchasing and production, but Rienk de Vries reports that this became increasingly difficult as the company grew. Dynamic and up-to-date production planning was almost impossible with these tools, he recalls. It became particularly confusing when several colleagues had to work in one spreadsheet. "The quality of the sales forecasts was not particularly good," says the supply chain expert. "The calculations often had to be revised and adjusted manually, which took a lot of time. Nevertheless, the results were often not accurate enough in the end." Royal Smilde was therefore looking for a software solution that would provide a simple overview of the demand situation and production capacities. Reliable calculations were needed to optimize the utilization of the production lines in order to improve efficiency.
Reliable forecasts with fluctuating demand
Around three years after its introduction, Royal Smilde is very satisfied with OUTPERFORM Planning: "The processes have become much simpler and the workload has been noticeably reduced," says Rienk de Vries. Demand and production planning is carried out on the basis of automatic forecasts that OUTPERFORM Planning obtains from the data of previous months and years. "These calculations are now much closer to reality and we save several working hours every week. The benefits are particularly evident when demand fluctuates, for example when a product is to be advertised as a special offer or promotion. The supply chain software calculates how a similar promotion has affected demand in the past. Demand can sometimes increase tenfold as a result of an offer," explains Rienk de Vries. With the help of the program from Sales & Operations Planning, the required raw materials can now be procured earlier and production capacities can be better utilized. The supply chain analyst praises the fact that higher stock levels are built up in good time without producing excess demand. At the end of the campaign, OUTPERFORM Planning also makes it easy to evaluate whether the product is now in greater demand in the medium and long term or whether the effects were only short-term. "This helps us to decide whether we should repeat such a campaign," explains Rienk de Vries.
Valuable support for strategic decisions
Following the positive experience in Heerenveen, OUTPERFORM Planning was also introduced at other production sites of the food manufacturer.
"With the help of the software, we can also better assess how many new customers we can serve with the existing production capacities and when an expansion of the production lines is necessary,"
the supply chain expert emphasizes another advantage. According to Royal Smilde, the program also has the potential to support strategic business decisions.
Are you interested in our IBP and S&OP software? Contact us now, we will advise you free of charge and without obligation!
