Blue Yonder expands supply chain relationship with HEINEKEN
With rapid and fluctuating demands occurring across industries as a result of COVID-19, more accurate forecasting capabilities are needed to stay ahead, this is true for the food and beverage industry.
As a result has expanded its demand planning capabilities with the help of . In expanding their partnership HEINEKEN will implement Blue Yonder’s machine learning, to keep up with rapidly changing consumer demand patterns.
Committed to innovation and long-term brand investment
In its commitment to innovation and long-term investment, HEINEKEN aims to expand its digital capabilities to allow for more accurate, integrated and automated forecasting.
To achieve this Blue Yonder will provide its solutions to improve forecasting accuracy, always on planning capabilities and new user experience. The new demand signal will feed into Blue Yonder’s Luminate Platform, which is powered by a fast optimisation engine for greater supply chain performance.
“At HEINEKEN, we have embarked on an ambitious journey to become the best connected brewer, going from fragmented to seamless digital interaction across the whole value chain. The introduction of Machine Learning as part of building an integrated cross-functional planning capability across our business is a critical component of this journey. The solution will assist us in continued growth and meet the changing demands of our customers and consumers,” said Marc Bekkers, director of Global Supply Chain Planning, HEINEKEN.
In the next few years, HEINEKEN will deploy the new demand planning solutions in five of its largest operating companies around the world.
How HEINEKEN is already partnering with Blue Yonder
Being a long term customer of Blue Yonder, HEINEKEN is harnessing its end-to-end supply chain planning solutions to optimise and orchestrate decisions across its sales, supply chain, operations and finance.
“HEINEKEN has been a longtime Blue Yonder customer, so we are looking forward to expanding their supply chain footprint by helping them develop highly accurate forecasts with our AI- and ML-driven demand planning solution. This capability paired with Microsoft Azure will help HEINEKEN continue to meet consumer demand while solidifying its position as a leading global beverage producer,” added Johan Reventberg, president, EMEA, at Blue Yonder.
5 Minutes With: Jim Bureau, CEO Jaggaer
What is data analytics, and why is it important for organisations to utilise?
Data analytics is the process of collecting, cleansing, transforming and analysing an organisation’s information to identify trends and extract meaningful insights to solve problems.
The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions. Spend analysis and other advanced statistical analyses eliminate the guesswork and reactivity common with spreadsheets and other manual approaches and drive greater efficiency and value.
As procurement continues to play a central role in organisational success, adopting analytics is critical for improving operations, meeting and achieving key performance indicators, reducing staff burnout, gaining valuable market intelligence and protecting the bottom line.
How can organisations use procurement analytics to benefit their operations?
Teams can leverage data analytics to tangibly improve performance across all procurement activities - identifying new savings opportunities, getting a consolidated view of spend, understanding the right time for contract re-negotiations, and which suppliers to tap when prioritising and segmenting suppliers, assessing and addressing supply chain risk and more.
Procurement can ultimately create a more comprehensive sourcing process that invites more suppliers to the table and gets even more granular about cost drivers and other criteria.
"The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions"
Procurement analytics can provide critical insight for spend management, category management, supplier contracts and negotiations, strategic sourcing, spend forecasting and more. Unilever, for example, used actionable insight from spend analysis to optimise spending, sourcing, and contract negotiations for an especially unpredictable industry such as transport and logistics.
Whether a team needs to figure out ways to retain cash, further diversify its supply base, or deliver value on sustainability, innovation or diversity initiatives, analytics can help procurement deliver on organisational needs.
How is data analytics used in supply chain and procurement?
Data analytics encompasses descriptive, diagnostic, predictive and prescriptive data.
Descriptive shows what’s happened in the past, while diagnostic analytics surface answers to ‘why’ those previous events happened.
This clear view into procurement operations and trends lays the groundwork for predictive analytics, which forecasts future events, and prescriptive analytics, which recommends the best actions for teams to take based on those predictions.
Teams can leverage all four types of analytics to gain visibility across the supply chain and identify optimisation and value generating opportunities.
Take on-time delivery (OTD) as an example. Predictive analytics are identifying the probability of whether an order will be delivered on time even before its placed, based on previous events. Combined with recommendation engines that suggest improvement actions, the analytics enable teams to proactively mitigate risk of late deliveries, such as through spreading an order over a second or third source of supply.
Advanced analytics is a research and development focus for JAGGAER, and we expect procurement’s ability to leverage AI to become even stronger and more impactful.