Sunset Growers Cultivates Its Supply Chain

1278 Words May 2nd, 2011 6 Pages
Sunset Growers Cultivates its Supply Chain

Sunsweet Growers Inc. is the world’s largest agricultural corporate dealing in dried tree fruits. It has its headquarters in Yuba City (California) and it processes and markets 40,000 cases of dried fruits every day. It is the global market leader of prunes. Like any other company, Sunsweet has issues with its supply chain management. Some of the constraints faced by the company are as follows: * Single limited source of supply * Supply and demand beyond company’s control; supply determined by the weather whereas the market influences the demand side * Anticipated increase in demand during festive seasons was difficult to manage * Packaging of goods for international market was
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S&OP has five stages: 1) Demand Visibility – To understand the nature of demand and its variability with time was crucial for internal staff and management decision. At this stage all the users from different departments got access to the same set of data and department targets. 2) Demand Planning – This stage delivered Sunsweet the complete forecasting solution together with planning a routine demand plan, monitoring and enhancing the plan. This also included creating and updating statistical forecasts, adjusting for price variance and promotions, and monitoring orders and shipments. Demand Planner accumulated all this data and provided an objective method of balancing sales targets with operational directives. This resulted in better budgeting the operational costs. Demand Planning also included warning algorithms through e-mail alerts to the concerned staff. 3) Inventory Planning – This system simulated current inventory level with inventory history to identify trends and warn the stakeholders for contingency measures to be taken. 4) Supply Planner – Here Sunsweet maintained a uniform labor force over a period of 15 months to understand the nature of production and supply. Once they were able to determine the production limit, they set production requirements (no need to rely on seasonal ups and downs). 5) Finite Scheduling – This stage set the daily operational objective for the cooperative society, which included handling

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