Integra reported on annual results of implementation of a digital system of forecasting of Novo Forecast Enterprise

2020: Annual results of implementation of Novo Forecast Enterprise

On June 30, 2020 it became known that the Integra Group company (General Sausages brand) reported on annual results of implementation of a digital system of forecasting of Novo Forecast Enterprise.

As it was reported, Integra Group decided to automate planning of all chain of production and deliveries and most precisely to predict demand. Farther it was necessary to select a system which provides achievement of the set purpose and will correspond at the same time to several conditions: all chain will appear in one software; it will be possible to work with all divisions in one window; all participants of process will be able to make decisions in a common information space; a system is mobile, simple and gives the chance to work from any point.

To make selection, the company elaborated a number of criteria for software assessment:

• software cost,
• requirements to "iron",
• implementation speed,
• payback within one year,
• support of the developer,
• possibility of upgrade,
• personnel training.

As a result, from developers 7 offers arrived, and the company began to consider the presentations. During the discussions and amendments, the decision was made for benefit of Novo Forecast Enterprise: the software product completely corresponded to the put-forward criteria and allowed to solve necessary problems.

We began only with demand forecasting. Then there was a wish to move further on all chain: production planning, raw materials, materials and, respectively, capital. Besides, we estimated structure of Novo Forecast Enterprise with its opportunity to consider factors of structural change of demand, at forecast calculation. It is possible to represent accurately at what prediction phase there was an error and where we can be improved, improve in process. A system gives a scope to all process S&OP. For our company it is two directions: demand forecasting on distribution to the centers and forecasting of need for a product by our warehouse platforms. Data are united in the uniform forecast for the company which allows us to pass into implementation phase, production plannings. Further on a chain – in purchase planning of raw materials and materials. Vladimir Akimenko, the logistics director of Integra Group told

Process of integration of a system took place in two stages. The first – implementation of standard packaged solution within three months. Such term the "manual" methods of preparation connected with features of the specific company demanded. The second stage "Control Automation by a Factor "Excesses"" – Integra and Novo BI implemented the block which the customer initiated independently. At a stage of demand forecasting it is necessary to estimate positions which in a week or 10 days will not be implemented. The producer about this situation should foreknow to select marketing tools for implementation of a remaining balance at early stages.

The demand forecast forms on days, on nomenclature to positions, on clients. Having integrated these plans, having combined all delivery schedules, shoulders of deliveries, our distribution centers, all remaining balance of goods, goods in way, we connected all the goods flows in one chain. Management of over-stock and out-of-stock: a remaining balance in our warehouses is exposed to verification at the time of formation of the following order. So we see excesses and optimal necessary volume for production planning at once. Vladimir Akimenko, the logistics director of Integra Group told

Results and effects:

• The company paid back costs for the project within a year, as well as planned.
• Accomplishment of orders on regular sales improved for 5% in absolute value.
• Twice write-offs on expiry date decreased.
• The margin grew by 2% in absolute value.
• The indicator on freshness of a commodity remaining balance improved.

Changed interactions in the company, and it gave positive effect too. Between supply chains and sales department the unified plan appeared. Now the sales department takes part in approval and the approval of stocks, updates and listings.

2018

Novo Forecast Enterprise.