Successstory DMK Group: One step ahead with optimized sales planning
DMK Group is one of the leaders of the European dairy industry
Every day, people all around the world enjoy dairy products from the DMK Group (DMK Deutsches Milchkontor). Germany`s largest dairy cooperative makes milk into foods of the highest quality and thus processes more than 8 billion kilos of milk per year. The product portfolio ranges from cheese, fresh dairy products and ingredients to baby food, ice cream and health products. As one of the largest suppliers to Germany´s grocery retailers and with a turnover of 5.6 billion euros, the DMK Group is also one of the leaders of the European dairy industry.
Three steps to the optimized product margin
Finding the perfect mix to process this raw material however is a very complex task. Therefore, precise planning is crucial. To achieve this DMK implemented Platform Q! to ease the forecast process and to the optimize product margin. Three major aspects of Platform Q! made it possible to achieve these advantages:
1) Data connectivity (Connect)
2) Data modeling (Create)
3) Mathematical optimization (Use)
Data connectivity enables DMK to obtain insight quickly into in their system environment. DMK uses a set of SAP systems and file sheets to create the forecast. Due to an advanced approach, Platform Q! is able to read out meta data and to virtualize data of each available ERP, data warehouse, database and file system. Thus, data is homogenized and transformed, to make data modeling possible, without any restrictions and further interface programming. The combination of data and implementation of the data logic is fully automated and allows DMK to enrich their data models with mathematical optimizations.
Simulate your scenario to make better decisions
Over time, DMK has realized many advantages. Mathematical models build on Platform Q! allow DMK to identify bottlenecks in their processes and set up realistic production restrictions, based on assumptions that are elaborated for each individual run. One crucial input to the mathematical model is the current Forecast plan. The model adapts its figures and looks for possible margin enhancements to provide a reference benchmark that did not exist previously. Based on its results, DMK can modify its planning accordingly. DMK is able to get quantitative input and decision support to maximize profitability of the company. Another big benefit to work with Platform Q! is to conduct scenario analysis. DMK can simulate any type of scenarios fast. For example:
1) Business Unit managers predict significant growth for a specific product line and can determine in advance what influence this will have on resources and the entire product portfolio
2) Business Units can perform their own calculations individually, in addition to the prescribed profitability analysis
3) An increase or reduction of capacity can be considered at any time for simulation purposes
4) Alterations of cost structures in specific product lines can be simulated as well
DMK works with Q-nnect to simplify and support the decision making in the forecast process for any of its Business Units. Due to the use of Platform Q!, DMK can face challenges differently: with a quantitative, dynamic solution that allows fast responses to constantly changing market conditions.
Are you interested to get more details about Platform Q! and its capabilities? Contact us!