Leading oil and gas company chooses Terra after a multi-national pilot demonstrates a significant improvement in short-term demand planning accuracy
Norwalk, Conn., November 27, 2012 – Shell (RDSA:London), one of the world’s leading companies, has purchased a global license for Terra Technology’s Demand Sensing and Multi-Enterprise Inventory Optimization to use in its Lubricants business for short-term forecasting and inventory tracking. Shell purchased the software after a successful pilot in Western Europe and South East Asia delivered significantly positive results. The company plans to use the software to optimize their supply planning capability in order to better predict demand and to further reduce supply costs.
Demand Sensing dynamically adapts to changes in consumer behavior and market influences to produce the most likely prediction of future demand. Multi-Enterprise Inventory Optimization uses better math and daily granularity to generate superior inventory targets which reflect real-world market conditions, even in volatile markets.
This combination will provide Shell the ability to improve supply chain planning to increase product availability with lower costs and capture growth by ensuring product availability, without the risk of excess inventory which otherwise erodes profits and needlessly consumes natural resources.
“We are honored to be working with the largest company in the world (based on Fortune’s 2012 Global 500 list),” said Robert F. Byrne, president and CEO of Terra Technology. “We believe that Shell has taken an innovative approach to help meet the challenges of a new energy future as demonstrated in its drive to improve supply chain efficiency and save resources through better planning.”
For further information, please contact:
Paul van de Braak
About Terra Technology
Terra Technology uses better mathematics to sense demand, optimize inventory and predict transportation and warehousing requirements for some of the world’s best-known companies including Shell, Procter & Gamble, Unilever, Kraft Foods, Kimberly-Clark, General Mills, Kellogg’s, ConAgra Foods and Campbell Soup. Terra invented demand sensing in 2002 and was the first company to use retailer data systematically to improve supply chain efficiency, enhance service, cut inventory and reduce waste. Information on how Terra enables a truly integrated supply chain can be found at www.terratechnology.com.
SOURCE: Submitted by Effective Communications