Haitai Confectionery & Foods Co., Ltd.

Data analysis enables demand fluctuation forecasting, eliminating production, inventory and sales gaps

Published on 18-Nov-2013

"Thanks to the new business intelligence solution, our company can accurately predict customer demand and precisely align our production with forecasted sales volumes—all for the first time. And as a result, we’re now able to reduce excess inventory and lower operational costs. " - Haitai Confectionery & Foods Co., Ltd.

Customer:
Haitai Confectionery & Foods Co., Ltd.

Industry:
Consumer Products

Deployment country:
Korea - Republic of

Solution:
BA - Business Analytics, BA - Business Intelligence, Smarter Planet

Overview

Based in Seoul, South Korea, Haitai Confectionery & Foods Co., Ltd. (Haitai) produces, sells and exports dry confectionery, ice cream and frozen-food products with a reported annual revenue of approximately USD600 million.

Business need:
The company’s existing system lacked data integration and most important, a business intelligence component, which prevented it from gaining the necessary insight to forecast customer demands.

Solution:
Haitai Confectionery & Foods now has the agility to continually realign its operations to meet changing customer demands without incurring additional costs or compromising product quality.

Benefits:
Improved sales forecast accuracy by 7 percent through near-real-time data analysis

Case Study

Based in Seoul, South Korea, Haitai Confectionery & Foods Co., Ltd. (Haitai) produces, sells and exports dry confectionery, ice cream and frozen-food products with a reported annual revenue of approximately USD600 million. Founded in 1945, Haitai has more than 2,400 employees in four manufacturing plants across the country.

The Opportunity
Specializing in snacks, Haitai Confectionery & Foods experienced increasing operating costs and a potential loss in reputation because it wasn’t able to forecast fluctuating consumer demands. The company’s existing system lacked data integration and most important, a business intelligence component, which prevented it from gaining the necessary insight to forecast customer demands.

What Makes It Smarter
Efficiently managing the supply and demand of products is a balancing act. An imbalance can be costly to manufacturers with out-of-stocks or excess inventory. Haitai Confectionery & Foods uses a powerful business intelligence solution to predict market demands and align its production with sales volume. The solution consolidates and analyzes market and product data, allowing the company to forecast scenarios and discover patterns in consumer purchasing behavior. Based on these insights, the company can anticipate which products will be in demand at specific timeframes and store locations. For example, South Korea’s unpredictable weather patterns can trigger abrupt bursts of abnormal heat waves, causing sudden spikes in demand for ice cream. The company can respond rapidly to the correlating changes in product demands by analyzing data in near-real time and predicting the types and quantities of ice cream products individual stores and regions need. Haitai Confectionery & Foods now has the agility to continually realign its operations to meet changing customer demands without incurring additional costs or compromising product quality.

Real Business Results
· Improved sales forecast accuracy by 7 percent through near-real-time data analysis
· Reduced inventory-retention rate by 3 days, thereby lowering related costs through accurate product demand forecasts
· Improved alignment between production and sales by 27 percent


For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/cognos.

To learn more about Haitai Confectionery & Foods Co., Ltd., visit http://eng.ht.co.kr.

Products and services used

IBM products and services that were used in this case study.

Software:
Cognos Business Intelligence

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America October 2013 IBM, the IBM logo, ibm.com and Cognos are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.