Forecasting helps Wendys move food faster

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Forecasting helps Wendy's move food faster

Fast food giant Wendy’s International Inc. (www.wendys.com) has adopted a supply chain software solution from Demantra (www.demantra.com) aimed at generating more accurate understanding of consumption at the restaurant-level to reduce spoilage, inventory and promotion costs. The software is being used by Wendy’s marketing personnel, supply chain executives and store managers to more efficiently allocate store and product resources and streamline inventory replenishment, lowering operating costs and increasing profit margins.

During the first phase of the implementation, Wendy’s is using Demantra’s solution to forecast sales and product mix required at the store level. These forecasts, generated at half-hour intervals, help supply chain and store managers better understand daily consumption levels, as well as the total number of menu items required at store locations. Wendy’s is also using the software to measure the true effect of marketing promotions and determine expected results of new product introductions.

“The half-hour forecasts ensure that stores are appropriately staffed and have the right products on hand to meet consumer needs,” says John Deane, chief information officer at Wendy’s. “The marketing planning and analytical capabilities [in the solution] better prepare us when we introduce a new product, as they provide expected sales data and information on how the product may impact existing menu items.” LT

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September, 2003

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