Anchor Foods
Installed S&OP with Rate-Based Planning

Situation

  • Anchor developed the jalapeño popper primarily for Food Service
  • Their supply chain management system was a traditional ERP and DRP system with standard "one size fits all" inventory management and deployment logic.
  • Growth had stagnated due to the entry of low cost competition which was cherry picking their product offerings

Insight

  • Value in the Food Service business was defined through customer interviews.
  • Sysco, US Food and others wanted to carry little inventory, a full product line, and 100% line item completeness. Seemingly impossible demands . . .
  • Interviews found a 10 day shipping window was just fine and that fact provided Anchor an opportunity

Recommendations

  • Design and install Demand-Based supply chain management which allowed Anchor to produce Food Service orders nearly to order rather than to stock.
  • A 3 day master scheduling process was designed and successfully implemented

Results

  • Anchor went from unknown to the #1 service provider for Sysco, nationwide.
  • $50 million in cash was generated through greatly improved inventory management