Cost-to-Serve Planner™ to help Kraft Canada gain a better understanding of the cost-to-serve and the net profitability of its retailer customers
Dallas, TX – January 12, 2012 – River Logic, Inc., a leading provider of constraint modeling and business analytics technology, announced Thursday that Kraft Canada has selected Cost-to-Serve (CtS) Planner™ to improve performance by gaining insight into the impact of costs and profitability on various distribution activities; align case fill rates with service policies and strategic objectives; identify win-win strategies to reduce retailer inventory and maintain margins; and quantify and reduce extended supply chain inefficiencies.
“It’s important for us to understand our extended supply chain and the implications of different service models on costs and customer profitability,” said Craig McLaughlin, VP Supply Chain for Kraft Canada. “Ultimately, our goal is to establish win-win strategies for our retailer customers. We want to be the best possible partner through increased collaboration and customer service.”
CtS Planner™ is an innovative planning solution, built on the analytics and constraint-based modeling platform Enterprise Optimizer® (EO). EO enables CTS Planner to deliver a level of insight that is not possible using conventional OLAP and modeling tools. Because of this expanded capability, Kraft can extract greater insights through better what-if analysis in less time to fully understand the financial impact of its programs.
A unified model will link customer costs and profitability to other critical areas of the business, giving Kraft Canada the ability to align profitability as a part of its key business objectives (e.g., revenue growth). An intuitive scenario wizard will make it possible to drive better decisions to protect prices, improve margins, reduce inventory and improve working capital.
With CtS Planner, the company hopes to improve strategic, operational, and tactical decisions around retailer relationships, while maintaining its profit neutrality. Kraft Canada expects to create improved and differentiated service offerings to its retailer customers which allow for mutual gains.
“We’re excited that Kraft Canada selected River Logic to help them optimize their supply chain operations while considering the impact on their customers,” said Carlos Centurion, COO for River Logic. “Manufacturers today face many complex challenges in meeting the needs of their retailer customers. By implementing Cost-to-Serve Planner, Kraft Canada demonstrates how a truly white space solution can overcome the complexities of customers’ needs while sustaining existing margins.”
About Kraft Foods
Kraft Foods Inc. (NYSE: KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love. Proudly marketing delicious biscuits, confectionery, beverages, cheese, grocery products and convenient meals in approximately 170 countries, Kraft Foods had 2010 revenue of $49.2 billion. Twelve of the company’s iconic brands – Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Tang and Trident - generate revenue of more than $1 billion annually. On Aug. 4, 2011, Kraft Foods announced plans to divide and create two independent public companies: a high-growth global snacks business and a high-margin North American grocery business. The transaction will take at least 12 months to complete, during which time plans regarding the structure, management, governance and other matters will be announced. A leader in innovation, marketing, health & wellness and sustainability, Kraft Foods is a member of the Dow Jones Industrial Average, Standard & Poor’s 500, Dow Jones Sustainability Index and Ethibel Sustainability Index. Visit www.kraftfoodscompany.com About River Logic, Inc.
Founded in 2000, River Logic provides strategy, operational planning, and analytics solutions, built on the Enterprise Optimizer® (EO) platform. EO drives our differentiation and yields significant commercial advantages to partners and clients.
Our solutions – Cost-to-Serve Planner™ – provides insight into which customers and products matter most and how they can be managed at the appropriate cost; Integrated Business Planner™ – enhances S&OP through seamless integration of financials, what-if analyses, and marginal profitability analyses; and Trade Promotion Optimization Planner™ – ensures maximum return on trade spending by analyzing brand and account-level promotion strategies on an ongoing basis – are available to Go to Market and Distributor partners to expand market opportunities. We also work with Solution Partners to develop white space solutions, built on the Enterprise Optimizer® platform, to address business issues not yet supported by technologies available today.
Please contact us today to learn more about our modeling and analytics technology and partner programs.