Data Analytics Reshaping the Tree Fruit Industry

Cristian Wulf, Chief Financial Officer (CFO) and Chief Information Officer (CIO), Stemilt Growers

What are some of the challenges impacting the tree fruit industry today?

One of the key threats we are facingis cyber security. We have increased our focus on security and risk management to handle this and preventit as effectively as we can as we interact with vendors, growers, carriers and customers – but also with an inward look towards our employees day-to-day activities.

In order to better serve the evolving market and work more closely with our customers, we are also undergoing an Enterprise Resource Planning (ERP) transformation transition from Oracle On Premise to SAP S4 Private Cloud.

"A key challenge that is also an opportunity is an increased emphasison Planning & Analytics.  In addition, one of the key threats is cyber security.We have increased our focus in both areas – through tools, processes & procedures as well as training."

We have created an Enterprise Planning & Analytics center of excellenceto further define/drive company-wide KPIs and provide better business insights through enhanced data accuracyand utilizing analytics software (like Microsoft PowerBI and SAP SAC).We aredeveloping plans to fully integrate our plans from crop planning through S&OP and financial planning. Our top leadership employs the KPI dashboard with vital indicators that span the entire company to make daily decisions. To guarantee alignment at all levels, the KPIs are decomposed into metrics and distributed throughout the organization.

Another critical component of our business is talent management, and we recognize the value of attracting the best skills andcontinue to build additional capabilities in our Stemilters.

What are some of the latest trends in the food and beverage industry?

The requirement for more integration and communication with our growers, vendors, carriers, customers (e.g.retailers), and consumers is one of the most recent trends. Companies in our sector are concentrating on enhancing the quality of their data and leveraging it to foster seamless integration to meet their needs. This entails planning for demand and collaborating closely with growers to ensurethe right tree fruit varieties, quality and quantitiesare planted, grown and harvestedat the appropriate time. We drive   those plans through our enterprise and our partners – from operations through sales.

To satisfy customer demand, the world of tree fruits, like apples, cherries and pears, is characterized by a steady expansion of varietiesand flavors. Consumer feedback is essential, but it's also critical to inform retailersabout the wants and preferences of the public. Effective consumer and retailer marketing is essential when launching a new variety. It's crucial to draw attention to the new fruit's distinctive qualities, flavor, and potential health advantages. Consumers and retailers can be convinced of the new fruit's benefits, which could result in higher sales and, ultimately, happier customers.

What are some of your recent project initiatives?

We have recently participated in two IT projects. With a focus on finding the "Top 10 Key Performance Indicators” that drive the Stemiltbusiness, the initial project comprised the definition and development of our KPI dashboard (Project Elevate). We are focused on internal as well as external KPIs –like fulfillment but also weather. The dashboard isdesigned with the top executive level in mind – while then cascading into secondary metrics by team.

Our second projectis to transformand reinvent most of our processes and technology solutions, including Finance, Procurement, Production & Warehousing, Transportation Management, Sales & Marketing as well as Planning & Analytics. To address this, we are transitioningfrom an OracleOn-Premise solution to SAP S/4 Rise Private Cloud.

The project's objective is to drive value through improved effectiveness to enhance service to our customers while improving the quality and flavors for our consumers.

Additionally, we are currently focused on an assessment to migrate and/or upgrade our physical and digital infrastructure and network, especially in order to support our operations in Washington, California andisolated rural orchards. 

How do you envision the future in your industry?

Outside investments and a concentration on research &development will have a significant impact on the future of the ag industry, in particular tree fruit. Businesses will need to educate customers about emerging trends and productswhile ensuring that all stakeholders are on the same page. Also, IT departments will need to change their emphasis from simply “keeping the lights on” to being partners and enablers of the business, putting an emphasis on ideas and creativity. It will be necessary to retrain IT resourcesto improve communication with the company and foresee market changes. The ultimate objective is to improve the company and go beyond being a firefighter to a true business partner.

What would be your piece of advice for budding professionals in the field?

Prioritizing both the urgent duties at hand and setting aside time to think proactively about how to improve your business is my piece of advice. Think of it as taking the typical 80/20 rule and in IT breaking it down to “keeping the lights on” capacity (40-50%) vs. planned projects (~30-40%) vs. reactive/unplanned tasks (~10-20%).  This can ultimately bring more IT value to the. It's crucial to continually work on bettering yourself and your business while keeping your eye on the present.