VAASAN Group

Analyzing sales data to improve forecasting and order fulfillment rates while reducing overstocks

Published on 15 Apr 2013

"When the market situation changes, the solution gives our sales and production teams an excellent understanding of changing demand patterns. We could not have predicted the sudden growth in our Swedish sales without the new demand-forecasting solution." - Nina Tuomikangas, development director

Customer:
VAASAN Group

Industry:
Retail

Deployment country:
Finland

Solution:
BA - Business Analytics, BA - Business Intelligence, BA - Performance Management, Big Data & Analytics, Big Data & Analytics: Operations/Fraud/Threats, Smarter Planet

IBM Business Partner:
Invenco Oy

Overview

The VAASAN Group is one of the leading bakery operators in Northern Europe, producing fresh bakery goods, bake-off products and crisp breads for sale in retail chains, restaurants and hotels. It is the largest thin-crisp and the second-largest crisp bread producer in the world, exporting to more than 40 countries. With more than 2,730 employees, the company reported net sales of USD534 million in 2011.

Business need:
Experiencing exponential growth in business, the VAASAN Group couldn’t accurately forecast fluctuating sales orders across the Nordic region.

Solution:
The VAASAN Group uses a powerful business intelligence solution that identifies trends in customer demand and generates a rolling sales forecast, helping the company predict its production requirements and prepare for fluctuating customer orders.

Benefits:
The IBM solution helped the company gain the ability to rapidly respond to and fulfill a 30 percent increase in sales orders, achieve an on-time delivery target of 98.5 percent and reduce business risk by aligning raw materials, human resources and production schedules with customer demand.

Case Study

The VAASAN Group is one of the leading bakery operators in Northern Europe, producing fresh bakery goods, bake-off products and crisp breads for sale in retail chains, restaurants and hotels. It is the largest thin-crisp and the second-largest crisp bread producer in the world, exporting to more than 40 countries. With more than 2,730 employees, the company reported net sales of USD534 million in 2011.

The Opportunity
Experiencing exponential growth in business, the VAASAN Group couldn’t accurately forecast fluctuating sales orders across the Nordic region. As a result, the business couldn’t accurately plan its resources and production schedules. The company’s existing system lacked data integration, and most important, business analytics capabilities, which prevented it from gaining the necessary insight to forecast customer demand.

What Makes It Smarter
Always at risk of out-of-stock or excess inventory that can be costly, food manufacturers constantly strive to prepare for fluctuations in order volume. The VAASAN Group uses a powerful business intelligence solution that identifies trends in customer demand and generates a rolling sales forecast, helping the company predict its production requirements and prepare for fluctuating customer orders. The solution gathers near-real-time and historical customer data from the company’s ERP systems into a central data warehouse and combines the data with order forecasts from its sales teams. This helps it discover patterns in consumer purchasing behavior at each customer retail location across
the Nordic region. For example, when the company won a large-volume account, near-real-time analysis helped enable its sales team to know in minutes whether it was possible to fill the new order on time. Predictions generated by the solution provided enough time for VAASAN to adjust the production schedules at its bakeries to deliver on its promise. The company now produces the right amount of products to ship or keep in inventory, improving order fulfillment rates while
reducing overstocks.

Real Business Results
• Gained the ability to rapidly respond to and fulfill a 30 percent increase in a sales order
• Achieved an on-time delivery target of 98.5 percent
• Reduced business risk by aligning raw materials, human resources and production schedules with customer demand

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

To learn more about VAASAN Group, visit www.vaasan.com/portal/en.

Components

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

Software:
Cognos Controller, Cognos Business Intelligence, Cognos 8 Planning

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America March 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.

Showcase your unique capabilities