Benefits of Integrated Supply Chain Management

In the manufacturing sector, one of the key issues is the fragmentation of planning processes. Different teams often operate in isolation, complicating the ability to respond effectively to changes in demand or production constraints. However, RELEX Solutions has introduced a unified platform that integrates demand planning, production scheduling, inventory management, and more. This comprehensive approach ensures that any changes, such as an unexpected increase in demand for a specific product, are automatically addressed across the supply chain.

A case study involving Vita Coco, a coconut water producer with operations in 31 countries, illustrates the benefits of integration. RELEX developed a digital twin for Vita Coco that incorporated various cost constraints and variables, resulting in an optimised 18-month supply plan that unlocked significant cost savings through improved sourcing and distribution. Similarly, Snack Brands, an Australian snack food manufacturer, experienced advantages from an optimised weekly production plan that halved planning time and better aligned supply with demand. By reducing Stock Keeping Unit (SKU) runs from 40 to 15, they minimised changeover times and increased production efficiency.

Adapting to Change with RELEX's Solutions

The adaptive nature of RELEX's solutions makes them easy to integrate into existing systems and adapt to individual manufacturing processes. The company's platform features no-code configuration, allowing it to learn from new data and adjust to changing business needs. Coupled with autonomous capabilities powered by AI, it provides data-driven recommendations for optimisation.

"Achieving these aims results in greater accuracy and efficiency in the planning process," said Mike Taylor, director of Solution Strategy, RELEX Solutions. This alignment across the supply chain ensures coordinated decision-making where changes in one area are reflected throughout the planning cycle, allowing for quick responses to disruptions or opportunities.

"Identify the biggest source of waste or additional costs and focus on improving that area first," said Taylor. By prioritising high-impact areas and leveraging data, manufacturers can establish a solid foundation for an integrated supply chain. Understanding the quality and sources of data is paramount for successful implementation.

Sustainability in Food and Beverage Manufacturing

In addition to efficiency, sustainability has become a pressing concern for manufacturers. "Companies are increasingly focused on maintaining a positive image and engaging in sustainability efforts," said Christer Liden, vice president of APAC Consumer Goods & Production at RELEX Solutions.

Effective inventory management can play an important role in these efforts. "The more inventory you hold, the more storage space you need, which increases heating and cooling requirements," said Liden. By minimising inventory waste and optimising logistics, companies can enhance asset utilisation and reduce environmental footprints, while remaining agile to market dynamics.

Utilising AI and ML enables manufacturers to process data rapidly and accurately, providing insights that enhance responsiveness to market changes, whether it's a surge in demand for gluten-free products or the latest organic trend.

Overcoming Challenges in Supply Chain Planning

Many companies operate on separate systems, leading to siloed operations and disjointed processes. For example, sales teams might overestimate demand to increase inventory levels, while procurement teams may prioritise lower unit prices by purchasing in large quantities, resulting in excess stock and potential obsolete inventory. A unified end-to-end supply chain planning approach is needed to counter these challenges.

"If orders are placed for items without actual demand or with extended lead times, warning signals should alert the team," said Liden. This fosters a collaborative environment where decisions are based on shared insights rather than individual KPIs. "The goal is to minimise debates over numbers and focus on actionable insights," said Liden.

Even if a company is not fully mature in its supply chain practices, establishing a robust data-driven approach is critical. "Relying solely on processes and spreadsheets can lead to disjointed operations," said Liden.

Harnessing AI for Supply Chain Success

RELEX's solutions are designed to tackle these complexities. For example, a customer faced challenges with avocado production that took a year to resolve. By using RELEX's solution, the customer managed to solve the issue in under a week, demonstrating the speed and efficiency of modern solutions.

Madhav Durbha, group vice president of Industry Strategy at RELEX, emphasised that the need for seamless end-to-end visibility in the supply chain is more critical than ever. Durbha said AI-driven methods help maintain optimal inventory levels and minimise waste, while data accuracy provides proactive recommendations for corrections.

RELEX integrates these AI capabilities into its core algorithms, which have proven successful across more than 500 clients since 2005. "With the explosion of AI technologies, I advise CPG manufacturers to invest in practical AI solutions sooner rather than later," said Durbha.

Improving demand signal accuracy and forecasting represents a "low hanging fruit" that can enhance service levels and reduce waste. While generative AI is advancing, he encourages companies to explore a range of algorithmic techniques to drive supply chain benefits and scale practical solutions.