BACKGROUND: SAPUTO INC.

Source: Operations Management, Creating Value Along the Supply Chain $($page $529)$

In September $1954,$ using $$500$ to buy some basic equipment and a bicycle for deliveries, the Saputo family founded the company in Montreal bearing their name. Today, Saputo produces, markets, and distributes a range of food products, including cheese, milk, yogurt, and dairy ingredients. Saputo is the largest dairy processor in Canada, and is among the $10$ largest in the world, including the largest in Australia, the second$-$largest in Argentina, and among the top three cheese producers in the United States. With $67$ manufacturing facilities, $70$ distribution centres, and approximately $18,600$ employees around the world, Saputo's products are sold in more than $60$ countries. The company processes approximately $11$ billion litres of raw milk per year, and remains focused on being better and stronger through optimization of its activities, product innovation, and acquisitions.

One of the ways that Saputo plans on increasing its efficiencies is by investing in sales and operational planning processes, and one of the keys to doing this is forecasting. By improving its forecasting, the company will use plant, distribution, and transportation resources more effectively, resulting in cost reductions and enhanced customer service.

In the coming years, Saputo and other dairy processors will need to focus$-$on creating innovative dairy products that match the changing nutritional needs of consumers, who are becoming increasingly sophisticated. With the strong and growing dairy products market, Saputo sees opportunities to penetrate new markets and improve sales in existing core markets. Understanding customers, as well as the operational requirements of doing so efficiently, are at the heart of a demand$-$forecasting review process. With demand growth in mind, the goal is to be a distribution and logistics provider with superior levels of service and performance that is as cost efficient as possible.