Ridgefield, CT, March 22, 2004, Terra Technology, the leading provider of Real-Time Forecasting solutions, today announced that the Campbell Soup Company (NYSE: CPB), a global manufacturer and marketer of high-quality soup, sauces, beverage, biscuits, confectionery and prepared food products, has selected Terra's Real-Time Forecasting (RTF) software to enable accurate, detailed customer demand visibility.
The North American Soup, Sauces, and Beverage division will use Terra's RTF solution to gain greater visibility into day-to-day demand changes and order flows. Results from a successful pilot showed that the company can decrease its short-term forecast error by 50%. This improvement in accuracy will enable Campbell Soup to realize significant reductions in inventory and increase customer service levels.
"By accurately predicting demand, Terra's solution will help stabilize our production schedules, reduce safety stock, and improve service levels," said Mike Mastroianni, the Vice President of North American Planning and Operations Support for the Campbell Soup Company. "One of our major objectives for 2004 is to optimize finished goods inventory while improving service levels and decreasing costs. Terra's Real-Time Forecasting capabilities will be a major enabler to help us achieve this objective."
Terra's Real-Time Forecasting solutions create accurate short-term forecasts every day. Customer order flow is monitored to detect demand changes, which are then used by the patent-pending statistical techniques to generate accurate daily forecasts for the next month.
"Like most leading consumer goods companies, the Campbell Soup Company has diligently explored other options to reduce forecast error," said Robert Byrne, President of Terra Technology. "Terra's new pattern recognition technology provides consumer products companies with a reliable and proven solution to decrease forecast error by 50%."