Del Monte uses LogicTools in its planning
Apr 13, 2005 9:54 AM, from staff and wire reports
Del Monte, the food producer, distributor, and marketer, has deployed the entire LogicTools supply chain planning system suite.
LogicTools' suite considers the entire network, taking into account production, warehousing, transportation, and inventory costs, as well as service level requirements. The suite includes LogicNet Plus for network design, Inventory Analyst for strategic inventory positioning and optimization, and LogicChain for multi-site production sourcing.
When Del Monte acquired three business units from H J Heinz Co in a deal totaling $1.8 billion, it needed to analyze the cost of transition to a new network. Del Monte used LogicTools' network design system and services for modeling the baseline and completed due diligence by modeling a number of business scenarios. The food producer modeled transportation volume and reviewed rate levels versus industry standards. For the final recommended scenario, it leveraged LogicChain for sizing the Del Monte warehouses and overflow facilities to account for significant production and demand seasonality.
Del Monte is now creating a decision support group around LogicTools. The plan is to use the network design system for merger integration, distribution analysis and budgeting; the multi-site production sourcing system for warehouse sizing and production sourcing; and the inventory optimization system for safety stock positioning and calculation.
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