Charoen Pokphand Foods PCL (CPF) has announced a digital transformation path that it says will revolutionize supply chain in broiler business. Cloud technology and big data will play important roles in synergizing all CPF’s business units together and improving the efficiency of operation from farms to fork.

CPF signed a memorandum of understanding with U.S.-based JDA Software Co Ltd, a world-class supply chain and logistic developer, to revamp its supply chain for broiler business. This partnership aims at digitalizing the business from upstream to downstream, including stores, distribution centers, logistics, and manufacturing in a digital network, matching demand and supply continuously, at every point of the supply chain.

The big data analytic will play a big part in providing better trend forecasting, cross-functional planning and plant execution. Ultimately, the company said it will result in cost saving, less environmental impacts and improved customer experiences.

Sooksunt Jiumjaiswanglerg, chief executive officer - agro industrial business and co-president at CPF, said implementing the best-in-class technology has always been one of the company’s main strategy to increase the efficiency in management, manufacturing and stakeholder services. The company’s products and services are well recognized in more than 30 countries that CPF exports.

“CPF has accepted to change to strengthen competitiveness in the world market. It is my honor to say that we are the first company in food sector of Thailand to make a digital supply chain transformation. The digitalization helps us to attain the finest and safest food quality as well as ensuring consumers that our products will be delivered in a timely manner,” he said.

Prasit Boondoungprasert, chief operating officer – chicken business and international trade at CPF, explained that with the revamped supply chain, the company can integrated all units involved in broiler operation harmoniously.
The company will also reform its database structure at the plant level to be compatible with corporate strategic planning. The new structure will lead to better sales and operation planning decision as well as more accurate and agile supply change management, the company said.

The digital transformation will start from the broiler business in Thailand and expand to the overseas business later on.

“As a leading integrated agro-industrial and food business, it is the upmost important for CPF to attain the best supply chain visibility to ensure our strength in our production and ensuring demand and supply planning accuracy. The digitalization is allowing us to improve our consumer experience, reducing risk, rightsizing inventory and reducing wastes,” Prasit said.

Prasit added that consumers’ nowadays are becoming more and more concerned with food safety, contamination and other foodborne illnesses. The right-sizing inventory can reduce the risk of tainted supplies in a complex production line and enable the company to track every process accurately. Consumers can be confident that CPF’s products are fresh and safe, the company said.

Amit Bagga, president of JDA in Asia Pacific Region, suggested that it is necessary for organizations to digitalize supply change to bring the best capacity.

“As consumers become more demanding and regulations get stringent, supply chains are becoming more complex with processing more intricate. To stay competitive and agile, organizations need to leverage supply chain technologies and accelerate their digital transformation,” said Bagga.

“With the JDA solutions, CP Foods will now be able to direct and track every touch point along the way, move with agility, efficiency and control, while being a trusted, low-risk partner to its customers,” he added.