Dannon takes a fresh approach to VMI with TrueCommerce
Like most consumer product companies, Dannon 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 Dannon recognised 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, Dannon selected TrueCommerce as their new generation VMI platform. “We selected 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, 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 service is actually absorbed by avoidance of the need to add numerous new analysts. 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.” Stated Paula Sawyer, Dannon’s VMI Program Manager at that time.
In less than a year, Dannon realised the kind of results the team was looking for. All existing VMI partners were transitioned to the TrueCommerce platform within a few months. VMI analyst productivity has been dramatically increased as a result. That has enabled Dannon 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.