Land O’Lakes, a well-known Minnesota farmers’ cooperative representing almost 2,000 producer-members, is moving closer to full digital value chain planning by utilizing OMP’s operational planning solution. Significant and recurring savings in inventory and distribution costs are expected to result from the innovative initiative.
This new technology allows the organization to optimize and synchronize production and distribution plans while tightening focus on its industry-leading customer service at their WinField United crop insights business unit.
The OMP initiative is key to achieving the expected benefits from Land O’Lakes’ newly implemented hub and spoke distribution model, taking planning to a higher process level and organizational capability. The revamped system centralizes and streamlines critical planning functions, including full-truckload optimization, and introduces end-to-end planning powered by AI.
Until OMP came on board in 2019, Land O’Lakes were using an ERP and spreadsheet-based solution to plan production, distribution, and sourcing, but found that this approach led to disconnected supply plans and missed opportunities to optimize the use of capital via stock positions. The project is expected to drive significant reduction in inventory, warehousing cost and transportation cost.
OMP’s Value Tracking methodology, set alongside traditional project management, helps customers define and systematically monitor the project’s qualitative and quantitative value goals.
It provides a framework for clearly expressing what business leaders expect from the project, when these goals will be achieved, and how the daily activities of the project team contribute to the end goal of returning tangible value to the business.
Dustin Braun, Senior Director Logistics at Land O’Lakes, says: “We’ve partnered with OMP to use their best-in-class platform to drive significant process improvements. It’s a big step forward from how we were supply chain planning. We are maturing toward end-to-end value chain management.”
“With more efficiency and intelligent planning, we expect to reduce inventory and logistics costs while allowing our analysts more bandwidth to focus on our customers. The OMP team has been a knowledgeable and responsive partner for Land O’Lakes and we’re grateful for their support.”
Abhi Patel, Senior Vice President Customer Solutions at OMP USA, commends the co-innovation approach adopted by OMP and Land O’Lakes. “To achieve the kind of optimization the complex Land O’Lakes supply chain demands, with its seasonal volatility and transportation challenges, we needed a solid partnership.”
“The outcome, along with the way in which Land O’Lakes’ analysts fully embraced the new system, are satisfying evidence of the quality of our collaboration.”
OMP helps companies facing complex planning challenges to excel, grow and thrive by offering the best digitized supply chain planning solution on the market. Hundreds of customers in a wide range of industries - spanning consumer goods, life sciences, chemicals, metals, paper and packaging - benefit from using OMP’s unique Unison Planning™ concept.
Abhi Patel, SVP OMP USA
Phone: +1 770 956 27 28