At the Smarter Commerce Global Summit in Nashville May 22, IBM said The Dannon Company Inc. is using IBM’s cloud-based technology to ensure it has the right products delivered at the right time in the $7 billion U.S. yogurt market.
Through what IBM terms “integrated analytics planning,” Dannon is able in real time to improve forecasting abilities, the two Westchester companies report.
White Plains-based Dannon makes some 200 types of cultured, refrigerated and frozen dairy products and is the leading yogurt maker worldwide under the Dannon and Danone brands. General Mills”™ Yoplait brand is No. 2.
Through IBM”™s cloudware, Dannon analyzes shopper behavior through the use of so-called “big data” and predictive analytics. The goal is to improve investment decisions on the trade level and make more precise and accurate predictions on product volume and profitability.
Dannon said that to meet continually changing consumer demand generated by promotions, it must anticipate how much yogurt is needed by its retailer customers, while also keeping in mind yogurt”™s limited shelf life.
“Our goal was to eliminate the time our sales team was spending on forecasting and instead focus their attention on executing their promotional plans, allowing them to work more closely with our retailer customers,” said Timothy Weaver, Dannon”™s chief information officer. He said that under the plan, Dannon”™s forecasting accuracy has shot up from 75 percent to 98 percent.
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