WALTHAM, Mass. - July 21, 2003 - Demantra, the leader in consumer demand-driven supply chain solutions, has been selected by Wendy's International, Inc. (NYSE: WEN) to generate more accurate understanding of consumer consumption at the restaurant-level to reduce spoilage, inventory and promotion costs. Demantra Spectrum is being used by marketing, 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 Spectrum'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 Spectrum to measure the true effect of marketing promotions and determine expected results of new product introductions.
"The half-hour forecasts that Demantra Spectrum provides ensure that stores are appropriately staffed and have the right products on hand to meet consumer needs," said John Deane, chief information officer at Wendy's International. "In addition, Spectrum's marketing planning and analytical capabilities 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."
"Using downstream POS demand to drive more effective marketing, labor, and supply plans is one of the best practices in the quick service restaurant industry," said Jim Langabeer, executive vice president at Demantra. "Using this demand data can result in tremendous cost savings throughout the organization. Wendy's is clearly on the leading edge."
Demantra Spectrum links sales/marketing and manufacturing/operations to optimize marketing, inventory and replenishment decisions by balancing consumer demand against appropriate shelf life, appropriately planning production resources/constraints initiated by trade promotions, and determining the demand quantities for new product introductions. Demantra Spectrum's collaborative environment is instrumental in helping companies with their primary business concerns: improving customer satisfaction and retention, freeing-up working capital by reducing inventories, increasing returns on trade promotions, bringing new products to the market faster than competitors, and achieving top-line growth by reducing stock out situations. This 360-degree visibility results in better plans, better service, increased inventory turns and higher profit margins.