Tegel transforms your business with the RELEX supply chain solution

Tegel announced the successful implementation of its new RELEX supply chain planning solution, which is effectively transforming its business.

The move follows decades of planning managed through complex Excel spreadsheets that were considered unsustainable for a company of Tegel’s scale, processing more than 50 million birds a year at three separate production plants.

Arijit Saha, General Manager Supply Chain at Tegel, highlighted the challenges of implementing RELEX. “We had a lot of data, but its quality was questionable. Planning options were limited and we did not have the time or tools to properly analyze our plans. For a company our size, this was unsustainable. We needed something that would help us make better business decisions – both in the short and long term,” Saha said.

The launch of RELEX coincided with a major update to Tegel’s enterprise resource planning (ERP) system. The company has put a lot of effort into capturing the processes and managing the inherent variability in the poultry supply chain, recognizing that every bird is different.

Improving demand visibility was one of the main goals of adopting RELEX. Previously, Tegel needed more accurate forecasting tools to profitably manage the use of all chicken parts. Saha explained: “To make a profit in our industry, all parts of the chicken must be used in the best possible way. We needed a longer planning horizon and more accurate forecasts to better balance the bird.”

Tegel now generates a monthly statistical forecast through RELEX, aligning it with the company’s sales and operations planning (S&OP) cycle. After the one-month forecasting period, the system remains open, allowing the sales team to adjust the numbers as new information becomes available. This flexibility ensures that forecasts are up-to-date and reflect market conditions.

RELEX improved internal communication and enabled Tegel to phase out most of its planning spreadsheets. Now all stakeholders are working from the same set of numbers, benefiting from improved analysis and a smoother S&OP process.

“I have always said that demand planning is key. It sets the pace for our supply chain and sets the stage for everything else – strategically, tactically and operationally. Thanks to the statistical forecasting capabilities of the RELEX system, our demand planning process is now automated, not only does it save valuable time, but we also achieve much greater forecast accuracy. The entire organization now has confidence in the forecast.”

Greater visibility into demand and capacity enabled the planning team to better identify shortages and manage surplus situations. This change enabled Tegel to proactively engage with its sales teams, effectively leveraging promotions and substitutions. Production line sequencing was also optimized, increasing throughput and efficiency while minimizing inventory, waste and margin erosion.

In the medium and long term, RELEX has enabled Tegel’s supply planners to make more informed decisions about future investments and performance management. The system’s simulation capabilities allow planners to evaluate various scenarios, ensuring that company operations remain efficient and aligned with market needs.

Moreover, the implementation of RELEX had a positive impact on Tegel’s bird breeding business. The company now breeds birds based on reliable forecasts, ensuring that all parts of the bird are used.

“We didn’t build our business case around saving a certain amount of money. RELEX is a tool that allows us to run our business better. If we consistently make better business decisions, the financial side will take care of itself. In our case, certainly yes.”