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Unilever: On-shelf-availability data key to profit growth

by Anh Nguyen

Computerworld UK

September 16, 2011

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Unilever’s Chief Supply Chain Officer, Pier Luigi Sigismondi explains how Terra’s Demand Sensing solution enables growth while decreasing inventory, waste and costs.   Speaking at the Gartner Supply Chain Executive Conference 2011 in London (September 15, 2011), Sigismondi shared that after 10 years of focusing on cutting costs, the company is now investing in developing a business and demand-driven value chain.

Nguyen writes, “To access the point-of-sale (POS) data, and to have better insight into its inventory and demand, the company is currently rolling out demand-sensing software from supply chain solutions provider Terra Technology across the business. By basing forecasts on the POS data, Sigismondi said that the forecasts are noticeably more accurate than if Unilever were to base forecasts on how much is being pushed out to the retailers.”

“The consequence of basing on what you want to sell is waste and stocks you don’t need. By working closely with customers, we can have an end-to-end perspective,” Sigismondi explained. “[By using POS data] we reduce loss, take waste out, lower distribution costs and create value for both of us.”