Foodsupplychain Accenture Ai Manufacturing Procurement Efficiency

Digital Transformation Consulting

Accenture

Full Credential Description

A multinational food corporation faced significant challenges as its rapid growth and acquisitions outpaced its supply chain systems. The company struggled with outdated technology and data maturity, relying heavily on Excel sheets, which hindered its ability to manage over 10,000 supply items and thousands of distinct products across global operations. The independent systems in production facilities worldwide created inefficiencies, hampering agility and scalability. Recognizing the need for modernization, the company sought to simplify operations and enhance technology to leverage data more effectively.

To address these issues, the food giant partnered with Accenture, leveraging their expertise in supply chain management, data technology, and advanced manufacturing. Together, they undertook a comprehensive review of the supply chain, from raw materials to production and shipping, to assess maturity and productivity. They replaced legacy systems with a robust data foundation by establishing a new data office and migrating all data to Google Cloud. This transformation included the integration of AI for improved planning and forecasting, which is projected to generate over half a billion dollars in value to self-fund the reinvention. For instance, the implementation of generative AI has enabled the company to predict inventory risks, such as product damage, resulting in annual savings of millions.

Additionally, Accenture developed an AI-based communication platform to reduce errors caused by language barriers among supervisors and workers. A comprehensive manufacturing vision and practical playbook were created to standardize work processes across all factories, ensuring timely information for better decision-making. The change management team played a crucial role in supporting the workforce through the transition, providing extensive training to the sourcing and procurement team over 20 weeks, with each member averaging 21 hours of learning.

As a result of these initiatives, the food manufacturer optimized its business processes, enhancing customer satisfaction, profitability, and efficiency. Procurement efficiency improved by 25%, allowing the company to respond to market demands more swiftly. In the first quarter of fiscal 2025, the company reported volume-led growth from its flagship and rising brands and achieved its safest year on record in fiscal 2024. Furthermore, the modernization efforts have enabled the company to support communities more effectively, exemplified by the donation of thousands of food items for hunger relief in Q1 of fiscal 2025. Through this transformation, the company not only advanced its operational capabilities but also fostered a culture of learning and innovation among its workforce.