Dairy Farmers of America DFA

Spreadsheets to MRP; Transforming Supply Chain Effectiveness Utilizing SAP Capabilities and Best Practices

Dairy Farmers of America DFA

Dairy Farmers of America (DFA) is a milk marketing cooperative and dairy foods processor owned by more than 13,000 dairy farmers across the country. Farmer-owned, they are focused on securing markets and increasing value to members throughout the entire dairy chain.

CHALLENGES

  • Increased cost of operations due to productivity and information bottlenecks
  • Inefficient and siloed supply chain balancing due to MRP not being utilized to plan materials, generate production orders, planned orders and purchasing requisitions 
  • Ineffective supply and production planning resulting from demand not being loaded into SAP 
  • Excessive manual processes and low schedule attainment due to heavy reliance on spreadsheets to manage key operations -including capacity and production planning 
  • Siloed supply chain planning due to lack of end-to-end supply chain integration across processes and key functions 
  • Low SAP utilization and knowledge of system best practices

SOLUTIONS

  • Conduct a supply chain transformation, utilizing Reveal’s oVo® methodology, focused on improving planning and operational execution
  • Perform a global, cross functional education program for the core supply chain team members to improve knowledge of existing SAP functionality, master data, best practices, reports and tools
  • Establish ownership and accountability for master data management and optimization
  • Empower end-to-end supply chain planning inside of SAP, integrating core processes across the organization 
  • Implement production scheduling, capacity planning, shop floor alignment and material availability checking within the production planning
  • Establish Process Aligned Teams to facilitate cross functional communication and the ability to manage daily supply chain challenges by exception
  • Set KPI’s available out of standard SAP to align with strategic business performance measures and goals

BENEFITS

  • Reduced overdue demand elements by 54%
  • Reduced overdue supply elements by 44% 
  • Implemented demand driven planning and execution via MRP 
  • Improved capacity planning, scheduling, leveling, and material availability accuracy
  • Started managing by exception with cross functional teams focused on resolving root cause issues
  • Increased data accuracy, process efficiencies and data visibility leading to better decision making 
  • Increased usage of real time reporting and analytic capabilities across the supply chain 
  • Reduced spreadsheet usage leading to improved data flows, greater use of SAP best practices and lower operational risk
  • Implemented a governance structure to support business teams as well as report and request support from executive team

Connect

Discover where and when to connect with Reveal at upcoming webinars and industry events.

SAPinsider Supply Chain Management Summit 2024

May 1, 2024
May 2, 2024
Marriott Chicago O’Hare, IL
Find out more
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