DanoneWave

• VMI identified as a key enabler for “Customer First” program
• Cumbersome legacy platform would not support cost-effective VMI program expansion
• TrueCommerce Datalliance has provided the ability to transform VMI from a transactional focus to a strategic program, and to cost-effectively expand program

DanoneWave produces and sells six million cups of yogurt a day in almost 100 flavors, styles and sizes. The top-selling brand of yogurt worldwide, Dannon® is sold under the names Dannon and Danone. DanoneWave prides itself on consistently delivering high-quality, wholesome products, and on responding to consumer needs with nutritious, innovative new products and flavors.

“In order to deliver against our clients’ objectives, we’ve always recognized the need for IT platforms that are highly functional and productive,” says Phil Ben-Joseph, ASM Director of IT and BPO Services. “As our number of VMI clients grew, we researched additional VMI platforms to determine if we could benefit from a change in providers. Our current system had been highly customized over the years and vendor support was limited due to the customization.”

Like most consumer product companies, DanoneWave already had a VMI program in place – in fact it had been operating for over 10 years. The program was delivering good results in terms of supply chain metrics, including nearly 60 turns and 97% warehouse service levels. But DanoneWave recognized that the program as it currently stood was narrowly focused and was considered to be a supply chain process only. In addition, it was only implemented with a limited number of high-volume retail partners.

After a detailed evaluation, DanoneWave selected TrueCommerce Datalliance as their new generation VMI platform. Sawyer explains why: “We selected TrueCommerce Datalliance VMI for several important reasons – first and foremost because it automates the majority of the planning effort. Since analysts need only review and confirm replenishment orders calculated by TrueCommerce Datalliance, we can handle much more VMI volume per analyst. That is the key to us being able to expand our program. The cost of the TrueCommerce Datalliance service is actually absorbed by avoidance of the need to add the number of new analysts we would have otherwise needed to add. Beyond that, all of the system maintenance, on-going enhancements, training, and support are included as part of the service, allowing us to eliminate all such expenses associated with our legacy system,” concluded Connolly.

In less than a year, DanoneWave realized the kind of results the team was looking for. All existing VMI partners were transitioned to the TrueCommerce Datalliance platform within a few months. VMI analyst productivity has been dramatically increased as a result. That has enabled DanoneWave to begin expanding their VMI program as planned. The number of VMI partners has already been increased to over 20+ locations with more in process.

Just as importantly, excellent inventory management performance has been maintained at an average of approximately 60 turns and 97% service levels for locations under VMI control for 6 months or more. “By transitioning to the TrueCommerce Datalliance system, it has enabled me to engage my customers in a more strategic method versus trying to maintain a system,” says Rebecca Petza, DanoneWave’s Customer Solutions Specialist.

In addition to providing the higher productivity needed in order to expand the scope of the VMI program, TrueCommerce Datalliance VMI now provides DanoneWave with valuable insights into the impact VMI would have with potential new VMI partners, enabling management to make well-informed decisions about where to expand the program.

“Using TrueCommerce Datalliance, we have significantly increased our VMI program productivity. That change is enabling us to expand our program to more partners and more locations so we can realize the strategic benefits of VMI across a broader range of our business,” summarizes Jonathan Peltzer, DanoneWave Senior Customer Solutions Manager who runs DanoneWave’s VMI program today.