The project challenge 

Until now, no tool had the flexibility and speed that Nestlé required to plan the Demand and Production processes in an integral way and within the same environment. 

Production planning is essential for optimizing the overall process, considering the products, resources and processes involved, as well as the expected demand for each product line. 

Nestlé sought to find a tool that automates and optimizes the Demand and Production Planning processes, in a way that would allow users to have full visibility of both the hierarchy of its large product portfolio (by segment, family, brand, SKU, among others) and the logistics point, factories and production lines. 

 Solution Design 

The proposed solution system integrated the existing Distribution Module, with the Demand Planning and Production Optimization Modules. 

Demand Planning Module 

The aim was to develop a single planning model, based on existing models and best practices. This module included forecast adjustments to the Baseline, BIAS analysis, trend and evolution analysis, trade marketing alignment, risk analysis and volume division by SKU. 

Production Optimization Module 

With the implementation of this module, the major challenge was to develop the Master Production Schedule, which established the Mixing, Volume and Production Deadlines considering sales, operations and stock planning.