Dairy Farmers of America (DFA) is a milk marketing cooperative and dairy foods processor owned by more than 13,000 dairy farmers across the country. Farmer-owned, they are focused on securing markets and increasing value to members throughout the entire dairy chain.
CHALLENGES
- Increased cost of operations due to productivity and information bottlenecks
- Inefficient and siloed supply chain balancing due to MRP not being utilized to plan materials, generate production orders, planned orders and purchasing requisitions
- Ineffective supply and production planning resulting from demand not being loaded into SAP
- Excessive manual processes and low schedule attainment due to heavy reliance on spreadsheets to manage key operations -including capacity and production planning
- Siloed supply chain planning due to lack of end-to-end supply chain integration across processes and key functions
- Low SAP utilization and knowledge of system best practices
SOLUTIONS
- Conduct a supply chain transformation, utilizing Reveal’s oVo® methodology, focused on improving planning and operational execution
- Perform a global, cross functional education program for the core supply chain team members to improve knowledge of existing SAP functionality, master data, best practices, reports and tools
- Establish ownership and accountability for master data management and optimization
- Empower end-to-end supply chain planning inside of SAP, integrating core processes across the organization
- Implement production scheduling, capacity planning, shop floor alignment and material availability checking within the production planning
- Establish Process Aligned Teams to facilitate cross functional communication and the ability to manage daily supply chain challenges by exception
- Set KPI’s available out of standard SAP to align with strategic business performance measures and goals
BENEFITS
- Reduced overdue demand elements by 54%
- Reduced overdue supply elements by 44%
- Implemented demand driven planning and execution via MRP
- Improved capacity planning, scheduling, leveling, and material availability accuracy
- Started managing by exception with cross functional teams focused on resolving root cause issues
- Increased data accuracy, process efficiencies and data visibility leading to better decision making
- Increased usage of real time reporting and analytic capabilities across the supply chain
- Reduced spreadsheet usage leading to improved data flows, greater use of SAP best practices and lower operational risk
- Implemented a governance structure to support business teams as well as report and request support from executive team
