Customers Success story - Tnuva

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Fast facts

Industry: Food Manufacturer

Company Description: Tnuva Food Industries Ltd. started as a cooperative of agricultural producers in 1926 and has grown to be Israel’s largest food conglomerate. Tnuva’s largest business unit is its dairy division, which supplies fluid and cultured milk products, butter, soy-based drinks and cheeses throughout Israel. Other business units are the meat and the eggs divisions.

 

Business Challenge
Striving for high service levels while minimizing excess inventory, Tnuva Dairy needed best-of-breed supply chain planning capabilities to efficiently deliver its highly perishable products to the right place at the right time and in the correct quantities.


The challenge from implementation point of view is to succeed in modeling the logistic network, business environment & constraints of Tnuva into technological solution that will bring the expected business value.  

 

JDA Solutions
• JDA® Demand
• JDA® Fulfillment
• JDA® Master Planning


Business Benefits
• Improved service levels from 87 to 95 percent
• Decreased inventory investment and reduced surplus product
• Increased responsiveness to local market demands
• Enhanced demand forecast accuracy and synchronized visibility across departments

 

Business Solutions

“Using JDA Demand and JDA Fulfillment, we increased service levels from an average of 87-88 percent to more than 95 percent.”

 

Tnuva first initiated a search for new supply chain solutions ten years ago to support operations in five dairies and distribution centers throughout Israel, including two of the most advanced and sophisticated logistics centers in the world. “We wanted to invest in best of breed solutions that would enable us to balance the need for high service levels while minimizing excess inventory,” says Sharon Galatziano, senior manager, supply chain planning department at Tnuva Dairy. . “After looking at all of the different vendors, we chose JDA to drive our demand forecasting and fulfillment functions.”


Implementing JDA supply chain planning solution was done side by side with organizational structure change and creation of Supply Chain Planning department.

 
JDA Demand & Fulfillment


The SCP department's planners use JDA Demand to forecast future demand for its products, resulting in a consensus demand plan. “All departments, from sales and marketing to finance and logistics, work from the same forecast projections to ensure synchronized performance targets,” Galatziano said.

 

Tnuva Dairy relies on JDA Fulfillment to create optimal, time-phased inventory plans. With JDA Fulfillment, it can plan and control its entire supply picture – from determining optimal product quantities to replenishing and optimizing inventory throughout its distribution network. “JDA provides clarity into necessary actions across our entire supply chain. We have forward visibility into days of supply, safety-stock coverage and potential issues such as stock-outs that need immediate attention,” Galatziano said. By providing greater visibility, the solution has helped Tnuva Dairy improve its service levels.

 

“One of the most important key performance indicators in the dairy market is maintaining high service levels. The better your in-stock position, the greater your revenue will be,” Galatziano said.


“We have managed to achieve that difficult balance between high service levels and minimized surplus inventory, which has really driven overall performance,” said Galatziano. “I don’t think we could have accomplished that without the JDA
solutions.”

 

Sharon Galatziano, senior manager, supply chain planning and logistics department, Tnuva Dairy

 

 

JDA Master Planning

 

Building upon its many years of success with JDA Demand and JDA Fulfillment, Tnuva Dairy has leveraged its current JDA solution investment by adopting JDA Master Planning.

 

Providing a complete production scheduling solution, JDA Master Planning constructs a reliable, feasible master plan that drives even greater manufacturing efficiencies, improve inventory management and lower operating costs for Tnuva Dairy.

 

Galatziano said that they want to use JDA Master Planning to manage production plans for not just six weeks in advance but as much as 18 months in advance. JDA Master Planning features flexible analysis capabilities that enable Tnuva Dairy to review its production plan and run multiple what-if scenarios against that plan. The solution uses an advanced optimization algorithm that helps to generate the lowest cost supply and manufacturing plans to maximize planning productivity and customer service levels.

 

“We are able to plan better by being prepared for every scenario and handling any bottlenecks before they occur,” Galatziano said.


 “We achieved 95 percent service levels with JDA Demand and JDA Fulfillment. Now with JDA Master Planning, we expect to gain another boost so that we can attain the world’s best practice service levels in the dairy business.”


S&OP

Using JDA Advanced planning infrastructure, Tnuva decided to extend the solution to support full S&OP process. ISCS consultants assisted Tnuva to define and design cross organizational promotion management process which was then modeled within the solution. The promotion management cycle includes creation, planning, running and performance analysis of the promotion, that is done cross functionally by SCP, Sales, Marketing & Finance departments.
   

Implementation Process

To leverage planning processes and implement JDA solution for further business units, Tnuva Dairy is working with ISCS, a JDA partner and provider of JDA solutions in Israel, Eastern Europe, Russia and CIS countries.


ISCS is an international expert company specializing in Supply Chain Planning. ISCS design and implement business processes and Best in Class software solutions that improve profitability and achieve real results in the discrete and process manufacturing, wholesale distribution, transportation, retail and services industries.


 “Working with ISCS has been very successful,” said Galatziano. “We are a demanding company with specific requirements, and ISCS professional consultants are able to address our needs and provide us with a streamlined implementation experience.”