DMK Group: Enhancing sustainable production with improved data forecasting capabilities
Explore DMK Group’s journey with SAP
DMK Group, a German dairy cooperative, struggled to monitor its raw materials, and this hindered its demand planning and sustainability initiatives. Its siloed data interfaces prevented accurate data forecasting. Through the SAP Integrated Business Planning application for sales and operations, it unified data processes onto a single platform so units could track inventory data.
decrease in waste.
in surplus production.
increase in forecast accuracy.
We operate through different key players, such as farmers, salespeople, financial team members, and operations team members. It is important for us to have a unified planning platform with fewer data interfaces so we can communicate in the most efficient way possible.
Senior Process Expert F2S, DMK Deutsches Milchkontor GmbH
Forecasting product data to improve sustainable production
With a network of more than 7,500 employees and 5,200 farmers, German dairy cooperative DMK Deutsches Milchkontor GmbH (DMK Group) manages large amounts of data and raw materials across six business units. The cooperative, formed in 2011 after two high-profile German dairy companies merged, produces a wide variety of dairy products such as milk, ice cream, vegan products, and baby food. With such an expansive operation that prides itself on responsible sourcing and fair animal farming, it was difficult to accurately forecast, manage, and even share data – this added a level of complexity to the company’s overarching sustainability goals as well as its supply and demand planning.
The company knew it needed a way to more effectively track raw material production so it could boost its sustainable product management and demand planning. The efficient management of volatile milk products is crucial to DMK Group, as the company needs to make sure it is using its raw materials in a way that allows it to pay its farmers a fair price. It needed to merge each of its siloed data processes onto a single, standardized platform that all relevant owners, salespeople, and other team members could access. It wanted to update its processes in a timely, low-risk manner so it could eliminate data redundancies, optimize sustainability initiatives, boost sustainable management of raw materials, increase delivery times, and standardize communications between its diverse range of units and departments.
SAP IBP for sales and operations gives us complete transparency in the supply chain. Its add-in for Microsoft Excel is advantageous for many users because it is a simple interface that they are used to. It’s easy to work with.
Demand Planner, DMK Deutsches Milchkontor GmbH
Implementing a single source of truth for data
The company, noted for its long-standing history with SAP, decided that the SAP Integrated Business Planning (SAP IBP) application for sales and operations would sufficiently meet its needs. It decided to implement the application with the support of its longtime partner Implement Consulting Group. The application offers more data transparency that allows relevant personnel to accurately track whether each unit is meeting company-wide sustainability standards, such as by minimizing waste or committing to accurate inventory recording. It also fosters better communication between departments, farmers, and units, which was a primary business objective DMK Group wished to address. The application offered the company balance between supply, demand, and product planning that helps ensure it can sustainably produce products at a rate that would satisfy consumers while also providing farmers with an optimal living.
SAP IBP was especially relevant to the company’s transition goals, as its Microsoft Excel add-in made it much easier for workers to use since they were already accustomed to working in Excel. The cooperative also wanted to give stakeholders, owners, and employees a sense of security through future-proof supply chain transparency and articulated data management. DMK Group needed greater control of its demand planning abilities while also reducing surplus products, which it believed SAP IBP for sales and operations could provide.
Due to a uniformity of data and a high level of transparency, we can now achieve the best possible management of raw material milk, so we were able to reduce our surplus production.
Senior Process Expert F2S, DMK Deutsches Milchkontor GmbH
Improving data forecasting and sustainable product distribution
After successfully implementing SAP IBP with the support of Implement Consulting Group, DMK Group has noted an overall improvement in sustainable materials management, demand planning, and data processes. The cooperative was able to efficiently integrate the new application with its familiar Excel add-in and consistent trainings made available for relevant personnel. The application eliminated siloed data processes and has provided workers with transparent communication between units. This was crucial to reducing product waste and efficiently managing the diverse variables attributed to working with sustainable dairy products, such as ingredient availability and nutrient composition.
Each unit and department can quickly access operation-wide data on a single interface, which is essential for tracking progress in terms of sustainability ordinances, product delegation, data forecasting, and demand planning. This has increased data and supply chain visibility, reduced data redundancies, decreased incidents of duplicated work, and increased the company’s sustainability reputation.
SAP helps DMK Group run better
Key business outcomes and benefits
- Increased interdepartmental and cross-unit communication, improving data management
- Enhanced data forecasting, optimizing sustainability processes
- Increased data transparency across the operation, reducing duplicated work
- Created fewer transition issues, with trainings and familiar Excel processes
Featured solutions and services
- SAP IBP for sales and operations helps you power more productive and responsive planning by unifying financial and operational planning, fostering collaboration, and aligning inventory, service levels, and profitability.
About DMK Group
Employing around 7,500 workers at more than 20 locations in Germany, the Netherlands, and other international hubs, Germany’s largest dairy cooperative processes milk into foodstuffs of the highest quality. Its product portfolio ranges from cheese, dairy products, and ingredients to baby food, ice cream, whey products, and vegan products. Brands such as MILRAM, Oldenburger, Uniekaas, Alete, and Humana have earned the trust of consumers at home and abroad, making the company an established player in its home markets and selected target markets around the globe. As one of the largest suppliers to the German food retail industry, with a total revenue of €5.5 billion, DMK Group is one of Europe’s leading dairy companies.
Implement Consulting Group is a Scandinavian-born consultancy operating globally out of offices in Denmark, Sweden, Norway, Germany, Switzerland, and the U.S. With more than 1,300 employees, multinational clients, and worldwide projects, Implement offers expertise in the areas of strategy and transformation, operations and efficiency, digitalization and IT, leadership and change, and growth and innovation.