September 24, 2009 Organic Valley Family of Farms is using business intelligence and information management solutions from SAP AG to integrate sales and financial data from non-SAP applications and sources, analyze the information and optimize its operations to better meet the ever-changing supply and demand requirements of a business built on premium, highly perishable products.
With software from the SAP BusinessObjects portfolio, the cooperative farming organization has been able to reduce supply overages on perishable goods by 25 percent, quickly identify and discontinue underperforming stock-keeping units (SKUs) and adjust its promotions for greater impact.
Unlike the rest of the dairy industry, which is projecting 34 percent loss of revenue in 2009, Organic Valley has seen 600+ percent growth in the last eight years. Organic Valley the largest farm cooperative in the world, with 1,400 farms across the U.S. attributes this growth and their ability to keep a small farm mentality in large part to their implementation of BI.
George Neill, director of IT, Organic Valley Family of Farms recognized the need to build a single, trustworthy repository for all business data and to standardize reporting on it. In the past few years, Organic Valley implemented SAP BusinessObjects XI, Data Integrator and Data Federator. Now we have one unified view of our financial and operational performance, and can make confident decisions based on accurate, consistent information, Neill said in a statement.
Through standardizing data sources, expanding data access to a broader audience, improving the value and validity of analytical reports and reducing their dependence on their IT department, Organic Valley has seen improved efficiency, understanding and data consistency. In a true expression of their family business model, they have extended the benefits of this intelligent information to their farmers. Through this information access and understanding, they report being able to: Reduce supply overages on perishable goods by 25 percent. Quickly identify and discontinue non-performing product lines. Adjust and measure marketing campaigns for greater impact. Reduce average time in inventory by two days. Identify farmer quality and herd health issues and mitigate them immediately. With reliable reporting, Organic Valley has improved the satisfaction of both its end customers and cooperative members. The organization has been able to better track perishable products such as milk to help ensure they move from farms to processing plants as quickly as possible. Better forecasting has helped reduce average time in inventory by two days. In addition to internal use of reporting solutions, farmers will soon have easy access to beneficial data through an online portal.
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