ITC Limited Creates the Perfect Recipe for Supply Chain Success
Customer Company Size
Large Corporate
Region
- Asia
Country
- India
Product
- Blue Yonder’s Luminate™ Planning suite
- Blue Yonder’s network design capabilities
Tech Stack
- Supply Chain Planning
- Network Design
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
Technology Category
- Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
- Food & Beverage
Applicable Functions
- Logistics & Transportation
- Procurement
Use Cases
- Supply Chain Visibility
- Demand Planning & Forecasting
Services
- System Integration
About The Customer
ITC Limited is a multi-billion-dollar conglomerate based in India with a diversified presence in fast-moving consumer goods, hotels, paper and packaging, agriculture and information technology. The company’s packaged foods business is experiencing fast growth, with biscuits (cookies) representing its largest single category. The biscuit segment experiences high demand volatility and materials cost fluctuations. The company operates a supply network of more than 17 factories and 50 warehouses. ITC is committed to maintaining its leadership position in the biscuit category and capitalizing on future growth opportunities.
The Challenge
ITC Limited, a multi-billion-dollar conglomerate based in India, was facing challenges in managing its supply chain for its fast-growing packaged foods business, particularly biscuits. The biscuit segment was experiencing high demand volatility and materials cost fluctuations. ITC's existing spreadsheet-based tools were not accounting for its continuously changing cost structures, making it difficult for the company to see the macro effects of the supply chain decisions they were making. The frequent manufacturing changeovers required to produce its more than 120 distinct biscuit SKUs across its network of 17 factories and the dramatic price fluctuations in the agricultural sector that affect their materials costs added to the complexity of cost optimization. Furthermore, ITC’s spreadsheet-based planning did not allow them to make effective medium and long-range strategic plans.
The Solution
To maintain its leadership position in the biscuit category and capitalize on future growth opportunities, ITC turned to Blue Yonder to ensure that the company’s supply network, which includes more than 17 factories and 50 warehouses, was delivering products to the market at the lowest possible cost. The company implemented Blue Yonder’s network design capabilities, which allowed them to take a total-cost optimization approach toward its strategic, as well as tactical, supply chain planning. The solution provided a transparent perspective on how any new investments would impact its overall cost structure. This enabled ITC to structure a five-year capacity roadmap, based on a total-cost approach, that simultaneously considers location, capacity, capability and timeline constraints. The quick response model enabled by Blue Yonder positions the company to continuously improve its cost position, no matter what trends emerge.
Operational Impact
Quantitative Benefit
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