AkzoNobel has purchased Terra Technology's Multi-Enterprise Demand Sensing (MDS) to use point-of-sale data to reduce forecast error by an additional 25 percent. AkzoNobel is currently in the process of deploying Terra’s Demand Sensing and Multi-Enterprise Inventory Optimization in Europe, the Middle East and Africa. The addition of MDS closely connects AkzoNobel’s supply chain to the store shelf, allowing the company to make further gains in customer service and inventory reduction, according to the company.
“By implementing Terra’s MDS, we can now use point-of-sale data to create value for AkzoNobel and our customers,” said Alain Crottaz, EMEA llanning director, AkzoNobel. “Using daily retailer data with demand sensing enables us to predict their orders. The ability to sense shifts in demand and quickly respond helps us meet our key goals of lowering stock while improving customer service.”
MDS enhances Demand Sensing by making structured use of downstream data for every item in the supply chain to create accurate daily forecasts. The systematic use of this information is a new form of automated collaboration which lets manufacturers improve customer service and gain a competitive advantage without placing increased demands on retailers. The replenishment and inventory management efficiencies, which result from better demand visibility, free working capital and help capture new growth opportunities in volatile markets.
“AkzoNobel is the first chemical manufacturer to use Demand Sensing to improve supply chain planning and the first of our customers to go live with Multi-Enterprise Demand Sensing in Europe,” said Robert F. Byrne, CEO of Terra Technology. “This initiative demonstrates AkzoNobel’s leadership and strong commitment to serving its customers.”