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Terra Technology Provides Kraft Foods with Demand Sensing Solution to Decrease Short-Term Forecast Error by 40 Percent
Tuesday 09. June 2009 - Software Enables the Food Company to Decrease Costs and Reduce Inventory
Terra Technology, the leading provider of demand sensing and inventory optimization solutions for consumer products companies, today announced that Kraft Foods (NYSE:KFT), the worlds second largest food company, has implemented Terras Demand Sensing (DS) solution in North America to decrease costs, improve service levels and reduce inventory. Since going live with the software in January 2009, Kraft has decreased short-term forecast error 40 percent in the businesses where the software has been implemented.
Agnes Feliciano, vice president of customer service and fulfillment for Kraft Foods, said, “Kraft selected Terra Technologys Demand Sensing as part of our Advanced Demand Forecasting initiative in order to gain greater supply chain visibility and create an actionable response to daily demand information. As a manufacturer of perishable products, Kraft must respond quickly to shifts in consumer preferences or risk unused inventory that has expired. Improving forecast accuracy enables Kraft Foods to produce the right product mix, decrease costs and better serve our customers.”
Terras Demand Sensing solution uses pattern recognition mathematics to decipher daily streams of data to determine which information is predictive of actual demand and to more accurately predict retailer requirements. Kraft implemented the software after successfully piloting DS in all U.S. warehouse businesses.
Robert F. Byrne, president and CEO of Terra Technology, said, “Kraft is the second largest food company in the world and has a longstanding reputation for exceeding consumer expectations for high-quality food products. Demand Sensing will enable Kraft to gain visibility into real-time shifts in consumer demand and respond quickly to changes in consumer preferences, ensuring that the right product mix reaches retailer shelves while decreasing inventory and costs.”