Binggrae Improves Accuracy and Visibility of Sales and Operations Planning, Supports Overseas Market Expansion
 
 

Binggrae Improves Accuracy and Visibility of Sales and Operations Planning, Supports Overseas Market Expansion

  • Oracle Customer:  Binggrae Co., Ltd.
    Location:  Seoul, Republic of Korea
    Industry:  Consumer Goods
    Employees:  1,549
    Annual Revenue:  $500 Million to $1 Billion

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Founded in 1967, Binggrae Co., Ltd. is a food processing company based in Korea that manufactures, distributes, and exports chilled and frozen dairy products and snacks. The company’s products are marketed nationally and internationally under brand names that include Yoplait, Together, A Café La, Melona, Summer Crush, and Kotgerang. Binggrae has four production facilities in Korea, and its main export markets are Brazil, Canada, Hong Kong, Russia, Singapore, Taiwan, the US, and Vietnam.

Binggrae needed to establish an efficient and fast communication system to improve its sales and operations planning process, better manage and respond to changes in demand for its growing range of dairy products, and realize opportunities to enter new regional markets.

By implementing Oracle’s Demantra Demand Management, Binggrae has improved the accuracy of demand forecasting and can better manage product strategies by monitoring market trends and regional and consumer profiles. Having more accurate demand forecasts and the ability to discount products close to their expiration dates also increased profitability. Binggrae’s sales and operations system is now highly responsive to changes in the market, laying the foundation for accelerated growth.

 
 

 
 

Challenges

A word from Binggrae Co., Ltd.

  • “We chose Oracle’s Demantra Demand Management rather than a competitor, such as JDA because the Demantra solution is flexible and can integrate with our existing Oracle products. We have improved the accuracy and visibility of demand forecasting across all global business units, which has increased profitability and supported the continual growth in our product range and overseas expansion.” – Jeong Yeon-Hyeong, SCM Team Leader, Binggrae

  • Enhance the visibility of the sales and operations planning, to more efficiently distribute almost 300 frozen and chilled products, globally
  • Provide accurate global demand forecasts to support expansion in North and South America, and Southeast Asia
  • Integrate sales planning, production, and supply chain processes to improve efficiency and achieve annual revenue targets of more than US$900 million
  • Identify and respond to external factors that affect product production and sales, such as weather conditions and milk supplies
  • Improve cross-divisional collaboration by using a single demand schedule across the business that is based on actual demand figures, rather than sales targets
  • Establish a set of standards for managing promotions to maximize sales and opportunities for promotions
  • Refine the sales and operations planning and combine processes with the enterprise planning to support long-term business development

Solutions

Oracle Product and Services

  • Improved the accuracy of demand forecasting by automatically integrating data—such as weather conditions, seasons, consumer trends, prices of raw materials, and economic indices—to identify factors influencing product consumption and sales
  • Developed analytical criteria to better manage product strategies by monitoring and assessing market trends, regional and consumer characteristics, price changes, promotional offers, and product shipments
  • Accelerated management decision-making to more quickly respond to dynamic market conditions, by generating baseline forecasts based on factors known to influence demand
  • Refined weekly, monthly, and yearly sales and operations planning processes to generate sales targets based on accurate, statistical, demand prediction data and fluctuation factors
  • Enabled individual sales strategies to be reviewed, and conducted profit analyses based on different product sizes and sales amounts, by using a component-ratio calculation method to determine the ratio of profitability for small- to medium-sized products
  • Improved monitoring and management of sales and operations-planning key performance indicators by redefining categories, based on process, performance, and results to better evaluate performance levels, operational improvements, and financial outcomes
  • Provided greater insight into performance by using weekly sales and operations planning compliance rate as a process indicator, sales planning and promotional planning results as performance indicators, and the monthly inventory and promotion-effect index for result indicators
  • Boosted profitability by using more accurate demand forecasts and minimizing inventory loss or waste by discounting products close to their expiration dates
  • Increased customer satisfaction by delivering fresh products to market and decreasing the amount of long-term inventory in stores
  • Enhanced the accuracy of promotional information by ensuring it reflected actual demand forecasts to maximize sales and promotional opportunities
  • Achieved comprehensive management of performance indicators by linking the interfaces of the existing enterprise resource planning and enterprise performance management systems

Why Oracle

Binggrae was an existing Oracle customer, running an Oracle E-Business Suite–based ERP system and using Oracle’s Hyperion Planning as its EPM solution. It reviewed products from a number of vendors, including JDA, but decided on Demantra Demand Management because it was sure of the quality and performance of Oracle products.

“We chose an Oracle solution because we know its products support flexible integration with all our existing solutions,” said Jeong Yeon-Hyeong, SCM team leader, Binggrae Co. Ltd. “By using Demantra Demand Management in conjunction with Oracle’s Hyperion products we are able to achieve comprehensive management and utilization of various business, sales, and operations planning process indicators.

“In addition, the abilities to collect a wide range of data from the market and use it as a base to support forecasting our demand and promotion predictions, as well as for follow-up evaluation and analysis, were important factors behind our decision to stay with Oracle,” he said.

Implementation Process

Binggrae engaged Oracle Partner DS-eTrade to implement Demantra Demand Management. The implementation began in January 2012, and the system went live in May 2012.

Partner

DS-eTrade provided Binggrae with implementation, testing, and stabilization support.

“We have partnered with DS-eTrade for more than 10 years and chose to continue because we know it delivers best-fit, supply chain management systems,” said Jeong. “Because of DS-eTrade’s support, Binggrae can reap the maximum benefit from Demantra Demand Management.”

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