INSTINCT PET FOOD

The Challenge:

SUPPLY CHAIN PLANNING HURDLES AND DISRUPTIVE FORCES IMPEDE INSTINCT PET FOOD’S GROWTH OUTLOOK

As a family-owned business backed by a passion for science and a desire to empower people to transform the lives of pets, Instinct is always looking for opportunities to grow and improve. Although Instinct was experiencing strong demand for its products, it found itself grappling with a myriad of challenges ranging from operational inefficiencies and inflationary pressure to market perception hurdles. 

“Instinct has a lot of resources and a lot of systems scattered between different departments right now, and to me, our biggest challenge is bringing all of that information together in one single pane so that we can make better decisions,” explains Chad Poole, Director of IT at Instinct Pet Food.

The intricate nature of Instinct’s manufacturing processes presented one of several significant challenges. As a market leader in the raw pet food category, the company uses a complex process known as high-pressure processing to destroy microorganisms while preserving the nutritional benefits of its products. The process is paramount for consistently delivering a high-quality, safe product, but raw food materials tend to have a shorter shelf life and Instinct needed to make sure its inventory was carefully balanced at all times. 

“We knew that we had an issue because we weren't able to fill all of our customer's orders to a hundred percent while having too much money tied up in our inventory,” Eric Newguard, Director of Planning and Forecasting at Instinct Pet Food.

One reason for this is that Instinct was facing significant obstacles in its demand and production planning processes. Demand forecasting was managed manually through a third-party system that proved labor-intensive and disjointed, lacking seamless integration with QAD ERP. Similarly, production planning relied heavily on cumbersome Excel spreadsheets, hindering effective resource allocation and scheduling.

The company also needed accurate, real-time visibility into its activities to maintain a competitive edge in the constantly evolving pet food industry, where innovation moves at lightning speed and rising raw material costs make it increasingly difficult to deliver an affordable product. Instinct’s challenges were exacerbated by a shortage of qualified talent, procurement difficulties in an inflationary environment, and a constant need to communicate the value proposition of raw nutrition to consumers amidst lingering safety concerns. 

“I think where we really stand out and, quite frankly, it's our challenge as well, is how do we continue to stay on the forefront of pet parents' minds that want to feed distinctively different and distinctively better,” states Bobby Harris, Chief Operating Officer at Instinct Pet Food.

Leadership found success using QAD Redzone Connected Workforce integrated with QAD ERP to ensure employees met strict parameters for sanitation and quality. They also recognized that Instinct still needed to eliminate manual processes, automate its supply chain functions and integrate the business area with other aspects of its operations.

The Solution:

INSTINCT PET FOOD ADDS QAD DSCP TO QAD ERP + QAD REDZONE CONNECTED WORKFORCE FOR SEAMLESS INTEGRATION AND REAL-TIME VISIBILITY

Instinct found everything it was looking for and more in QAD DSCP with Demand Planning and Production Planning. 

“The need that Instinct had in looking for a new digital supply chain solution was to remove manual processes and tie all of our information together. We were very spreadsheet heavy and needed a tool to be able to bring that into one single platform that we could then leverage that information against other systems,” explains Poole.

“Instinct has been a QAD customer for more than 15 years. It was a no-brainer looking within their current ecosystem so we have the ability to tie key pieces of information between the two systems together seamlessly.”

The company ultimately selected QAD DSCP because it integrates seamlessly with QAD ERP and has modules tailored to its unique needs, enabling real-time data exchange on a constant basis rather than the daily model offered by Instinct’s previous supply chain planning solution.

“You're prone to errors while doing extractions and uploads between two software programs. Using non-QAD software is a lot of extra work and would have required us to hire another headcount just to make sure that the data was clean and the data didn't have errors,” explains Newguard.

Another influential factor was Instinct’s strong relationship with QAD Redzone Connected Workforce, which empowers QAD customers to combine the benefits of a top-tier ERP built for manufacturers with the leading connected frontline worker (CFW) solution, enhancing both the administrative and operational aspects of their business.

“When we first implemented QAD Redzone Connected Workforce, the frontline worker was finally able to see how productive they were in real time and be able to react. That brought quite a bit of engagement from them because the conversations that were happening between supervisors, leads and frontline workers vastly improved,” continues Newguard. 

“The most beneficial aspect of the QAD Redzone Connected Workforce is that it has vastly improved our product quality and our product food safety. With QAD Redzone Connected Workforce compliance checks, we were able to build an entire system that allows us to ensure the quality all through the process.”

In adopting a combined solution that leverages QAD ERP, QAD DSCP and QAD Redzone Connected Workforce, Instinct is not only eliminating manual processes and gaining end-to-end visibility into its operations, but also accelerating its transformation into an Adaptive Enterprise that can respond to change with speed and agility. 

Backed by the understanding that software alone cannot guarantee customer success, QAD introduced the QAD Industrial Transformation Platform (ITP) to help companies bring people, processes and systems into harmony. QAD ITP isn’t a line item on a price list or a piece of software or service, but a holistic approach for helping customers like Instinct overcome challenges and grow into an Adaptive Enterprise. 

“QAD has been a great partner for us over 15 plus years and the consultants they have in-house and externally have always been able to solve every need that we've ever had,” comments Poole, referencing Instinct’s longtime relationship with trusted QAD partner Strategic Information Group (SIG).

The Benefits:

QAD HELPS INSTINCT PET FOOD UNLOCK EFFICIENCIES, ALLEVIATE LABOR ISSUES AND PREPARE FOR THE NEXT STAGE OF GROWTH

Instinct is still in the process of implementing QAD DSCP but expects to realize a significant return on investment quickly. Leadership anticipates a reduction in inventory costs, as well as improved forecasting capabilities under Demand Planning and Production Planning.

“Being able to keep better track of our inventory and load more information on a per-customer level will allow us to shave our inventory down to levels that meet the current needs instead of the guesswork that's being done today,” states Poole.

The system will also automate Instinct’s demand forecasting, eliminating a process that previously involved four steps and required two additional workers. Instinct’s new, integrated approach will allow the company to reduce human-prone errors and do more with less people in a constrained labor environment while ensuring it’s always taking advantage of the latest technologies.

“Having your ERP system on the most up-to-date platform from a security and stability standpoint and to unlock features that were lacking in prior versions, you have to stay cutting edge with some of the software, the technology and the capabilities that upgrades of your ERP platform offer. You also want to be on the latest platform for stability and security reasons,” continues Poole.

“It's a great win for the organization. It takes the legwork off some of our IT team members that have to load that information today, freeing them up to do other tasks that will give the operational team a more hands-on experience.”

With QAD’s integrated solutions at its back, coaching support, a robust integration framework and other QAD ITP resources at its fingertips, Instinct is prepared for future growth and doing more of what it does best: enriching the lives of pets with a nutritious raw diet backed by science. 

“I’m excited about how Instinct is growing. I think the word is getting out there that raw is the best to feed your pets and we are growing by leaps and bounds. We're building a new manufacturing facility. We're going to be in a hundred percent control of our process. There's a lot of good stuff to come,” states Jennifer Brickley, Director of Quality at Instinct Pet Food.

“What's next for us is getting everything under one campus and, in terms of QAD and the tools that we're using, under one structure so that we can be mindfully efficient,” adds Harris.

“We’re always asking, ‘How do we efficiently give the best-priced product that we possibly can and how do we do it in a way that allows for future growth?’ That’s why the partnership we have with QAD and the tools that we’re now deploying are so important to us,” concludes Harris.