For over seven decades, MEVGAL has been a protagonist in the dairy industry scene of Greece, consistently delivering innovative and high-quality products across milk, yogurt, and cheese categories. With a portfolio boasting over 300 product codes, MEVGAL faces daily challenges in production scheduling due to the complexity of the processes and the short lifespan of many products. Recognizing the critical role of accurate demand forecasting, MEVGAL through TERMINET attempts to transform the landscape of supply chain forecasting in the dairy industry.
MEVGAL’s vast array of product codes, complicated production processes, and short product lifespans posed a significant hurdle in maintaining an efficient production schedule. Incorrect demand forecasting could lead to overstocking, resulting in product wastage or understocking, causing missed sales opportunities.
Daily, MEVGAL receives data from over 17,000 selling points detailing the sales of their products. Processing this extensive dataset daily or even weekly is a daunting task, typically relying on a combination of a cursory analysis of the data and industry experience to generate forecasts. However, TERMINET has revolutionized MEVGAL’s approach to this process.
MEVGAL adopted TERMINET, leveraging its advanced capabilities in predictive analytics and federated learning techniques. The tool aimed to streamline supply chain forecasting by utilizing various production and sales data to create the most efficient execution plan. This initiative, termed UC4, demonstrated TERMINET’s prowess in optimizing resources, production slots, and logistic processes.
Through the integration of the TERMINET forecasting tool, MEVGAL gained precise insights into the necessary product quantities to meet market demands, often surpassing the accuracy of forecasts made by production managers. Notably, TERMINET provided MEVGAL with a significant advantage in in efficiently managing the time of the production planning department.
Through TERMINET, MEVGAL now consolidates all incoming data seamlessly into a single dashboard, providing a comprehensive overview of various product-related information. This innovative tool empowers MEVGAL to not only collect daily data efficiently but also to gain valuable insights into product performance and generate accurate daily sales estimations. TERMINET has become an indispensable asset in MEVGAL’s arsenal, streamlining operations and elevating the accuracy of their production forecasts.
Some notable KPIs achieved through the implementation of the forecasting tool are the following:
- Accuracy of the forecasting tool: over 70%
- Reduction of product returns: 0.09% product returns
- Number of forecasts generated per week: 7
- Data sources used for the generation of forecast: 14 sources
MEVGAL’s use case in TERMINET highlights the seamless collaboration between human expertise and artificial intelligence technologies. TERMINET doesn’t replace human knowledge and experience but enhances it, keeping humans in the Agile Manufacturing loop.
As evident from the improved accuracy rate and time efficiency, TERMINET has surpassed traditional methods, enabling MEVGAL to make more informed decisions and respond swiftly to market demands with greater precision.
In conclusion, MEVGAL’s adoption of TERMINET not only marks a significant advancement in the daily operations but also sets the stage for continued innovation and efficiency in the dynamic landscape of dairy production. The successful integration of TERMINET showcases the potential for advanced technologies to revolutionize traditional processes and drive positive outcomes in the dairy industry.