Predstavnik kompanije Jamnica, Marijan Vrandečić, održao je predavanje na temu integracije lanca nabavke u napredni Ortec sistem planiranja i optimizacije. Predstavljen je proces implementacije, rezultati i naredni planirani koraci u budućnosti. Pored toga bilo je reči i o studiji slučaja primene u kompaniji Roto. Predstavljene su prepreke na koje su naišli kao i način funkcionisanja nakon unapređenja sistema.

1. Supply Chain integration within ORTEC’s
Advanced planning & Optimization systems
Marijan Vrandečić, 12.11.2015
Optimize world

2. Jamnica is the largest Croatian producer and
distributor of waters and soft drinks
2

3. ...with revenues of >300 mil EUR and volume of
>500 mil l
3
Volume >500 mil l = 225 olympic swimming pools
42%
Carbonated
mineral water
31% Non-
carbonated
mineral water
11% Fruit
juices
16% Ice tea,
CSD, Other

4. Our tradition goes back 187 years
4
The wells of Jamnička Kiselica
known since the Celtic era...
Organized exploitation
started 18 October 1828
when the first bottles for
the market were filled

5. Today we are the leading water and beverage producer
in the Adriatic region
Geographic diversification: greenfiled
and acquisitions
Product diversification
Exporting to >15 countries worldwide
Strong growth driven by Agrokor – modern-day Jamnica owner, since 1992.
5
Production+distribution Distribution

6. Agrokor Group is the largest private company in
Croatia and one of the leading regional companies
6
• Agrokor Group is the largest
privately owned company in
Croatia
• One of the leading regional
companies
• Almost 60,000 employees
• Consolidated revenues of 6.4 bn
EUR, EBITDA of 0,5 bn EUR

7. Agrokor group comprises a diverse portfolio of
leading brands and banners
Ice Cream and
Frozen Food
Water and
Beverages
Edible Oils and
Margarines
Meat and
Agriculture
7
Croatia
(796 Stores)
Bosnia and
Herzegovina
(264 Stores)
Slovenia
(493 Stores)
Serbia
(337 Stores)
Montenegro
(89 Stores)
#1 in all primary markets
Food
manufacturing
and distribution
19% of Agrokor
sales
Retailing and
wholesale
77% of Agrokor
sales

8. Jamnica’s RTM strategy is based on predefined
sales routes and own distribution fleet
As we are market leader with highest price on the market, we developed RTM strategy
with very high service level (delivery, and in store operation).
8
Sales Distribution
Salesman
routes
Defined
service levels
Online
ordering
Rerouting
orders
Picking and
dispatching
In store
delivery

9. To secure operational excellence we developed
distribution network with high complexity
• Cross-docking
• Multi-load
• Backhauls
• Empties/returns
• Trailer decouple
9
Transportation modalities:
Commercial optimization s/w also
considers various synergies
20 Dispatch locations
145
Own trucks (slide
walls, hydraulic ramps)
Key figures – Distribution daily operation
100 Carrier trucks
6.000 Daily pallets delivered

10. DC
SC and RTM processes integration became NECESSITY
processes
Resource
management
execution
service
Level
control
planning
KPI
reporting
warehouse
service
Jamnica
DC
DC
DC
DC
DC DC
DC
10
Before... After...
• Large number of planners and growing
• Poor utilization of the fleet
• No interactions with other DCs
Each DC acting as a company within the
company
Need to introduce RTM system integrator
• Automatic planning supporting best practices
• Control over number of FTE’s and resources
• Interaction between DCs to optimize routes
• Execution
• Processes
• KPI reporting
• Resource
management
• Planning
• Warehouse
service
• Service level
control

11. 11
Impact level
Resources to
cover
Key planning
issues
Tractor Trailer Tractor Trailer
Tractor Trailer
Real TimeMultiyear
Strategic
Addressed in this session…
Execution
Operational
Tactical
Process integrator was founded

12. Project implementation is really demanding
12
January 2014
Tender – supplier definition
Kick off meeting
 Function
required
document
 Master data
preparation
 300.000
records
February and
March 2014
 Solution Design
Document
 Implementation
of GPS tracking
system
April and May
2014
ORTEC Routing &
Dispatch training
 User education
 Partial
automation
June 2014
ORTEC RD Kick
off
 Manual
planning in the
main DC
 Testing the
system
September to
end 2014
Implementation of
solution in all DCs
 Manual
planning
 Automatic
planning
 Editing master
data
Project timeline
January till August 2015
• ORD in secondary and primary logistics
• Testing system for primary distribution
• Work on automatic planning, and merging DC’s in regions
• A reconciliation of processes in primary distribution
• Fine tuning system to apply in the primary and secondary distribution
2013
2014
2015

13. Promising results in first seven months based on
quick wins
13
12%
increase in
delivered
volume
40%
decrease
in
overloads
7%
decrease
in overall
secondary
(DSD)cost
All DCs
using the
same
procedures
Decrease
in working
hours 8%
Shipping
without
delay
8%
more
loadings
10 planers
less
700.000€
savings in
first year

14. Still we have a lot to do…..
Tactical routing – additional savings in km and
vehicles
Manage drivers on the field – navigations and
information in real time
Dynamic sourcing - deciding from which
warehouse to deliver based on real cost
ORTEC shuttle central warehouse – optimization
and assigning min. cost to warehousing operations
14
Improvement in automatic planning – improving
algorithms - additional savings in km

15. Tactical Routing – way to optimize salesman route
and order schedule
15
• POS location
• Resource location & availability
• Equipment, skills & qualifications
• Balanced workload by geography
• Geographical clustering
• Insight in required fleet size
• POS location
• Visitation frequencies
• Equipment & skills
• Balanced workload
• Geographical clustering
• Balanced delivery calendar0
500
1000
1500
2000
2500
3000
3500
4000
4500
Maandag Dinsdag Woensdag Donderdag Vrijdag
Werklast
INPUT OUTPUT
• Additional savings in distribution cost based on optimizing salesman route
and service level with balanced workload in a week
• Estimation is that we can save additional 5% savings in distribution cost
Territory
Assignment
Period
Scheduler

16. 16
Key facts
High seasonal influence
• 30.000 pallets preproduction for
season; lack of capacity
• 5.000 pallets daily dispatched
• Lack of adequate warehousing
capacity
Benefits
Low warehousing cost
 3€/pallet with manipulation
High space utilization
 6 pallet/m2 / 30.000 pallets in 5.000 m2 plot
High outbound capacity
 400 pallets/hour (300 trucks daily in/out)
Managing exceptional seasonal impact on production

17. ORTEC Warehousing solution for Jamnica
17
1. Satellite retrieves pallet from channel
2. Shuttle brings pallet to the Sequencing Buffer
3. Shuttle puts pallet in channel with other pallets for that
order/shipment
4. Pallets are sequenced in reverse drop sequence (each
channel can contain 18 pallets)
5. When the truck has arrived, all pallets are retrieved from the
Sequencing Buffer
6. Pallets are brought down in the correct sequence by an
elevator
7. Pallets are loaded fast and flawless
3 1
2
4
56
7

18. 25-11-2015 18
Supply Chain Design
Tactical Routing
Stock Replenishment
Workforce Scheduling
Routing & Scheduling
Routing & Dispatch
Warehouse control &
optimization
Load Building
Pallet Building

19. ORTEC @ ROTO
PILOT: Analysis & Results
Optimize your world

20. Data provided
20
7 Days of orders
2 DCs
1,611 PdV
3,445 Transport orders
 Depot
 Deliveries
 Pickups

21. The ROTO routing problem
21
Planned Executed Arc been travelled at re-routing instance
Static
Orders
DC/Call Center
Served
Orders
Dynamic
Orders
 Static orders known from previous day (delivery, pickup)
 Dynamic orders (delivery, pickup) received in real-time from call-center
 Dynamic orders need to be assigned to the best routes in real-time
Pickup
Delivery

22. ROTO business dynamics (1/2)
22
Arrival profile or dynamic orders
 Most dynamic orders received from 09:00 til 12:00
 Similar pattern among the two depots

23. ROTO business dynamics (2/2)
23
Arrival profile or dynamic orders
 Dynamic orders are not very urgent – potential for optimization
 Karlovac – even less urgent (but, limited # of dynamic orders)

24. Routing scenario
24
Continuous optimization / re-optimization
Static Plan
Batch
Planning
Dispatching
Receive
New orders
Re-
optimization
Updated PlanImport
N – 1 N = Day of planning
Planning horizon
Dispatch/Execution

25. PILOT process followed
25
Focus on business process simulation
If new (dynamic) orders exist

26. PILOT Process: 1. Import
26
Import Batch Planning Re-optimization Reporting

27. PILOT Process: 2. Batch planning
27
Import Batch Planning Re-optimization Reporting

28. PILOT Process: 3. Replanning/Re-optimization
28
Import Batch Planning Re-optimization Reporting

29. Routing: Results & Analysis
29
Estimated cost/savings (sum of three days)
Orders Kilometers Costs Trips % Avg. Util.
ASIS 1,519 25,523 71,204 167 58%
OPT 1,519 14,425 51,602 141 75%
% Dif. (ASIS vs OPT) - 42,9% 27.5% 15,6% 29.3%

30. ORTEC Routing & Dispatch