“Our customers can now operate with leaner inventories and shorter lead times.” —Larry Goldstein, Executive VP of business financial planning, Berry Plastics
Company launches VMI program to stay connected with customers
Berry Plastics Corp., a global manufacturer of plastic packaging products, was in a period of tremendous growth. In an effort to support this growth and facilitiate a tighter relationship with its key customers, the company embarked on an ambitious vendor managed inventory (VMI) program to oversee its inventory as well as the operations of customers.
After several acquisitions that led to multiple planning methods and systems across the company, Berry Plastics decided to consolidate into a single, consistent platform from which all facilities could operate. The company’s goal was to improve its planning procedures for more accurate forecasts, giving it the ability to perform better asset, capacity, and inventory planning.
When Berry Plastics was ready to launch the VMI program, it turned to advanced demand planning and inventory planning solutions from Logility. With a better demand signal via Logility Voyager Solutions, the company reduced its inventory days-on-hand by 33%, which cut signifi cant costs from Berry Plastics’ operations. Now, the
company receives a daily feed from customers with key planning data like on-hand inventory daily requirements. Logility Voyager Solutions then sends back the netted inventory needs and replenishment orders. Customer service representatives can also review orders and note when the inventory is projected to go to zero. From this, they plan the transportation, schedule the shipment, and receive a confirmation once the shipment is received by the customer.
Berry’s award-winning project focused on its ability to proactively engage with customers, improve forecasts, and remove cost from the supply chain through better acquisition and use of demand signals. Berry’s tight integration and collaboration have reduced costs; synchronized supply, distribution, and customer service teams; and improved communication between the partners.
“The 2011 PM100 Award is another validation of the value that Berry Plastics brings to its customers through its innovative e-commerce solutions,” says Larry Goldstein, executive VP of business financial planning. “These solutions enable Berry Plastics’ customers to operate with leaner inventories and shorter lead times to meet their customers’ requirements in the most coste-effective manner.”