Sector News

Heineken Pilot looks to boost digital supply chain flexibility

May 26, 2024
Consumer Packaged Goods

Heineken is investing in its ability to “mix and match” demand planning models as it builds out a connected supply chain.

The flexibility to select models for both shorter and longer horizons remains a current challenge in demand planning, Corneel Hindriks, Heineken manager of digital and technology, global planning, tells CGT.

In order to improve both resiliency and forecast accuracy, the beverage company is expanding its relationship with solution provider Blue Yonder to pilot its cloud-based cognitive demand planning (CDP) platform, which provides explanations for the machine learning-generated forecasts.

See also: Heineken Marrying Digital Twins With Operational Data to Reduce Energy
This will add flexibility and help planners trust the system’s predictions, said Hindriks, as it reduces bias by considering dynamic external and internal variables.

The platform, which sits atop Microsoft Azure, will integrate with Heineken’s ERP and pricing and promo systems, and the forecasts will be used in their supply planning and overall S&OP processes.

The improved forecast accuracy will have an immediate impact on the business, noted Hindriks, with the other benefits expected to become visible in the coming years, including the potential to advance Heineken’s sustainability goals.

“The effort planners need to spend on creating the forecast should be reduced significantly and ideally result in touchless planning,” he said.

by Lisa Johnston

Source: consumergoods.com

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