The meat and poultry industries, which form the heart of the food sector of the world's economy, face a unique set of challenges when it comes to margin optimization. The disassembly nature of the business, variable weight products and market volatility combine to make pricing a very important but challenging undertaking. From animal growers to meat and poultry processors to retailers, the companies in this traditionally low-margin industry need to find ways to maintain and grow profitability even as market conditions change around them. SignalDemand's software solutions capture the complex interdependencies between supply and demand into accurate models for market price movements and margin optimization. The solution enables sellers and buyers of meat and poultry products to understand the true profitability of each pricing decision, confident that pricing reflects all relevant inputs, and is a fair price aligned with your trading partners' expectations.
Meat & Poultry Processors
Processors operating complex supply chains and selling into a mix of channels such as retailers, foodservice companies and restaurant chains can significantly increase their margins with the help of SignalDemand's solutions.
Optimize Pricing and Promotion Decisions
- Set optimal spot, medium-, and long-term prices for commodity markets
- Set prices that sell the whole animal most profitably
- Set optimized list prices for branded products
- Optimize the promotion prices for ads and features that maximize the overall return while clearing supply
- Understand true profitability and demand by customer and by product
Optimize Product Mix Decisions
- Understand the most efficient product mix to maximize sales and margins
- Eliminate unprofitable SKUs by shifting demand to more profitable substitute products
- Quickly adjust product mix when supply and demand change
- Maximize profitability of the business by optimally allocating animal to retail, foodservice and commodity sectors
Optimize Supply Decisions
- Reduce deep discounting due to inventory imbalances
- Optimally use production capacity
- Ensure current raw material costs are used in production and mix decisions
- Identify the best opportunities for excess inventory
Meat & Poultry Buyers
Grocery retailers, value-add meat product manufacturers and food distributors who buy large quantities of fresh meat and poultry products can greatly increase insight into their costs with SignalDemand's solutions.- Determine the forward-looking market costs for meat and poultry products
- Enter price negotiations with greater confidence
- Collaborate with suppliers to identify promotional opportunities
- Reduce cost-side risk in procurement of meat and poultry materials
