Del Monte aligns supply chain with finance using the Anaplan platform

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It used to take us five days to react to demand changes. Now, with Anaplan, it takes us less than five minutes to come up with the necessary adjustments in production.

RK Del Rosario , Supply Chain Planning Manager

Challenge

Prior to Anaplan, Del Monte Pacific Ltd. was using a mix of hundreds of large spreadsheets and inflexible legacy tools to manage their supply chain process and financial planning. The process was slow—even simple scenarios required up to six hours to run. In order to avoid the inflexibility and delays of using the legacy tool, averages were used for many planning scenarios, leading to large discrepancies between forecasts and actual costs. Inventory management was disjointed, and when there was misalignment in the planning process, it led to lost sales opportunities and excess inventories.

Solution

With a single flexible and agile planning platform, Del Monte was able to integrate finance and supply chain planning processes, allowing its finance teams to accurately evaluate product costs and complete profitability analysis. The integration also empowered Del Monte to anticipate, predict, and accommodate market changes in real time. For example, because of El Nino, Del Monte struggled to prioritize product allocation. But now with Anaplan, they can run real-time scenarios and see what areas may not be profitable and report this back to their sales, channel sales, and logistic teams to adjust strategy.

Results

The supply chain finance planning process, which previously took two weeks, was narrowed down to two days using the Anaplan platform. Previously, when there were demand changes, it took Del Monte five days to react. With Anaplan, it now takes less than five minutes to come up with the necessary adjustments in its production. Del Monte can now look at what drives profitability of a channel, SKU, or customer on a monthly basis. Decision-makers now have visibility to this information, which arms them to make quick, informed decisions.

Why Anaplan

Working in the fast-moving consumer goods industry, Del Monte’s products are time sensitive with a specific shelf life. Misalignment in supply and demand planning can have a direct impact on revenue. With another annual budgeting process quickly approaching, the speed to implementation became a deciding factor. While other vendors quoted a 9- to 12-month timeline, the implementation of the core supply chain finance model in Anaplan required only seven days of dedicated work, and less than two months of training, data integration, and requirements gathering.