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

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