Simplot gets an ‘A’ with IBP

Oliver Wight Asia Pacific
Wednesday, 24 October, 2012


Simplot Australia manufactures some of Australia’s most iconic food brands, including Chiko, Birds Eye and John West. A wholly owned subsidiary of US company JR Simplot, the company has a turnover of more than $1.5 billion and employs over 3000 people in Australia and New Zealand.

Simplot recently rolled out Oliver Wight  Integrated Business Planning (IBP) across the business to help it stay ahead of the pack.

Simplot manufactures iconic Australian food brands including Birds Eye.

Simplot manufactures iconic Australian food brands including Birds Eye.

The company has been recertified as Oliver Wight Class A standard for Capable Planning & Control using the Sixth Edition Checklist and has also received Class A accreditation for Capable Integrated Business Planning.

Having rolled out Integrated Business Planning across its organisation, Simplot’s service levels are now up at 98% and inventory has been significantly cut.

“Our service levels are so good because IBP allows us to forecast the business two years out and we now have a much better process of identifying risks and opportunities,” said Deahnne Spencer, Simplot’s Strategic IBP Manager.

Simplot has reduced its inventory level with IBP.

Simplot has reduced its inventory level with IBP.

“With weather conditions affecting the levels of raw material, controlling inventory levels has been a constant challenge, but we are now much better equipped to manage these volatile market conditions.”

The company has also improved its product portfolio management. “We have a really good forum for prioritising projects; readdressing every month if we’re on track and if not, why not, and where we can put our efforts to drive innovation and profitability,” Spencer said.

Simplot is ranked as one of the top food companies in Australia, Spencer says, and plans to keep it that way. “The Class A journey is part of a continual commitment to become a world-class company, provide excellent customer service, drive innovation and retain competitive advantage,” she concludes.

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