Blue Yonder Case Studies ITC Limited Creates the Perfect Recipe for Supply Chain Success

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	ITC Limited Creates the Perfect Recipe for Supply Chain Success Blue Yonder

ITC Limited Creates the Perfect Recipe for Supply Chain Success

Blue Yonder

Technology Category	Analytics & Modeling - Process Analytics Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries	Food & Beverage
Applicable Functions	Logistics & Transportation Procurement
Use Cases	Demand Planning & Forecasting Supply Chain Visibility
Services	System Integration
Challenge	ITC Limited, a multi-billion-dollar conglomerate based in India, was facing challenges in managing its supply chain for its fast-growing packaged foods business, particularly biscuits. The biscuit segment was experiencing high demand volatility and materials cost fluctuations. ITC's existing spreadsheet-based tools were not accounting for its continuously changing cost structures, making it difficult for the company to see the macro effects of the supply chain decisions they were making. The frequent manufacturing changeovers required to produce its more than 120 distinct biscuit SKUs across its network of 17 factories and the dramatic price fluctuations in the agricultural sector that affect their materials costs added to the complexity of cost optimization. Furthermore, ITC’s spreadsheet-based planning did not allow them to make effective medium and long-range strategic plans. Read More
About Customer	ITC Limited is a multi-billion-dollar conglomerate based in India with a diversified presence in fast-moving consumer goods, hotels, paper and packaging, agriculture and information technology. The company’s packaged foods business is experiencing fast growth, with biscuits (cookies) representing its largest single category. The biscuit segment experiences high demand volatility and materials cost fluctuations. The company operates a supply network of more than 17 factories and 50 warehouses. ITC is committed to maintaining its leadership position in the biscuit category and capitalizing on future growth opportunities. Read More
Solution	To maintain its leadership position in the biscuit category and capitalize on future growth opportunities, ITC turned to Blue Yonder to ensure that the company’s supply network, which includes more than 17 factories and 50 warehouses, was delivering products to the market at the lowest possible cost. The company implemented Blue Yonder’s network design capabilities, which allowed them to take a total-cost optimization approach toward its strategic, as well as tactical, supply chain planning. The solution provided a transparent perspective on how any new investments would impact its overall cost structure. This enabled ITC to structure a five-year capacity roadmap, based on a total-cost approach, that simultaneously considers location, capacity, capability and timeline constraints. The quick response model enabled by Blue Yonder positions the company to continuously improve its cost position, no matter what trends emerge. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Process Analytics

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Food & Beverage

Applicable Functions

Logistics & Transportation

Procurement

Use Cases

Demand Planning & Forecasting

Supply Chain Visibility

Services

System Integration

Challenge

ITC Limited, a multi-billion-dollar conglomerate based in India, was facing challenges in managing its supply chain for its fast-growing packaged foods business, particularly biscuits. The biscuit segment was experiencing high demand volatility and materials cost fluctuations. ITC's existing spreadsheet-based tools were not accounting for its continuously changing cost structures, making it difficult for the company to see the macro effects of the supply chain decisions they were making. The frequent manufacturing changeovers required to produce its more than 120 distinct biscuit SKUs across its network of 17 factories and the dramatic price fluctuations in the agricultural sector that affect their materials costs added to the complexity of cost optimization. Furthermore, ITC’s spreadsheet-based planning did not allow them to make effective medium and long-range strategic plans.

About Customer

ITC Limited is a multi-billion-dollar conglomerate based in India with a diversified presence in fast-moving consumer goods, hotels, paper and packaging, agriculture and information technology. The company’s packaged foods business is experiencing fast growth, with biscuits (cookies) representing its largest single category. The biscuit segment experiences high demand volatility and materials cost fluctuations. The company operates a supply network of more than 17 factories and 50 warehouses. ITC is committed to maintaining its leadership position in the biscuit category and capitalizing on future growth opportunities.

Solution

To maintain its leadership position in the biscuit category and capitalize on future growth opportunities, ITC turned to Blue Yonder to ensure that the company’s supply network, which includes more than 17 factories and 50 warehouses, was delivering products to the market at the lowest possible cost. The company implemented Blue Yonder’s network design capabilities, which allowed them to take a total-cost optimization approach toward its strategic, as well as tactical, supply chain planning. The solution provided a transparent perspective on how any new investments would impact its overall cost structure. This enabled ITC to structure a five-year capacity roadmap, based on a total-cost approach, that simultaneously considers location, capacity, capability and timeline constraints. The quick response model enabled by Blue Yonder positions the company to continuously improve its cost position, no matter what trends emerge.

Impact #1	ITC was able to save nearly one percent of the cost of goods sold by optimizing its supply network against its business plan, which represents a substantial savings.
Impact #2	The financial benefits enabled ITC to realize a full return on its investment in less than two months.
Impact #3	ITC can now make cost-based decisions very quickly, taking corrective actions before there are any negative financial impacts.

Impact #1

ITC was able to save nearly one percent of the cost of goods sold by optimizing its supply network against its business plan, which represents a substantial savings.

Impact #2

The financial benefits enabled ITC to realize a full return on its investment in less than two months.

Impact #3

ITC can now make cost-based decisions very quickly, taking corrective actions before there are any negative financial impacts.

Benefit #1	Reduced cost of goods sold by nearly one percent
Benefit #2	Realized full return on investment in less than two months
Benefit #3	Enabled long-term cost-based planning decisions

Benefit #1

Reduced cost of goods sold by nearly one percent

Benefit #2

Realized full return on investment in less than two months

Benefit #3

Enabled long-term cost-based planning decisions

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Overview

ITC Limited Creates the Perfect Recipe for Supply Chain Success

Operational Impact

Quantitative Benefit