Tnuva, a major Israeli food company best known for its dairy products, has entered into a $40 million deal with the U.S. firm DXC Technology for a new IT implementation contract. The deal is said to be one of the largest of its kind to Israel’s brief history in this specific field.
Under the terms of the five-year agreement, DXC will modernize Tnuva’s IT estate by implementing a new digital supply chain system, which will help the food producer to accelerate operations and provide high quality food to millions of consumers across Israel.
So, what exactly is a supply chain? Well, the products that you buy in the store need to get to the retailer somehow. And even if you shop online, the internet seller must get their items from somewhere else and then ship them out from a warehouse to fill the orders. And then there are all of the raw materials that are used by a factory to produce its goods. They have to get to that factory somehow.
So the supply chain is basically everything and anything that has to do with getting a final product to wherever it needs to go, including getting all the materials together to produce it in the first place.
So, let’s say that you grow tomatoes in a home garden or apples on an apple tree in your backyard. Then you sell these things to your neighbors. For you the supply chain is simply you picking the fruits and vegetables and walking them over to your neighbors.
Only it’s not! For you the supply chain is also getting all of the things that you need to tend to your home garden. And it is also everything that it took to make those things and to get them to wherever you bought the items.
— DXC Technology (@DXCTechnology) October 20, 2021
So much work needs to be done just to ensure that the milk finds its way to your local grocer and you probably never even think about it.
And what will DXC do for Tnuva? Incorporating a variety of digital tools powered by Artificial Intelligence, the company stated, the new system will capture” valuable data and generate insights that will increase manufacturing accuracy and improve decision making and planning.” DXC boasts that with this increased flexibility, the food producer will be able to respond faster to shifts in the market and changing consumer preferences.
“The solution delivered by DXC will enable us to implement advanced technologies to support key processes, increasing production line output and improving our value proposition to customers,” said Shay Michel, CIO at Tnuva.
“We are delighted to support Tnuva’s transformation and their goal to grow and become a smart manufacturing leader,” said Sassi Meir, General Manager for Israel, DXC Technology. “DXC is proud to be helping one of Israel’s most essential companies to supply their products to consumers more rapidly and efficiently.”