Danone Milks New Optimization Technology

Last Updated Aug 20, 2007 6:23 PM EDT

Danone's Yogurt is big businessGroupe Danone, the French packaged foods giant suffering from its agonizing China venture, is still moving ahead in other areas of its $18.5 billion business. The company recently implemented one of the most advanced supply chain planning solutions in a large dairy products plant located in México. The software is Plant PowerOps from Paris-based Ilog, which Danone was able to integrate with their long-standing investment in SAP's Advanced Production Optimizer. An interesting article from the Food Business Review comments on Danone's milky production problem and the success of their solution
The planning and scheduling functions for Danone's fresh dairy production were historically addressed using a combination of home-grown and packaged applications, but these systems could not properly manage the true complexity of the fresh dairy business.
"Our plant in Irapuato is now equipped with an excellent planning and scheduling tool providing the best possible plans, while improving our operational flexibility and our ability to react quickly to unexpected events," said Jean-Michel Egu, director of business solutions at Danone. "Within Danone, the news is spreading quickly. We already have more requests for implementation in the next two years than we can satisfy. We are currently implementing the solution in Russia, with Argentina next in line."
Now Danone operates truly the most advanced dairy production facility in the world. If only Danone could implement some optimization software for their out-of-control business partner in China.

(Image of Danone Yogurt by Austety, CC 2.0)