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Synchronisation
What’s happening in the UK drinks industry? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Typical supply chain- the ring of stock ,[object Object],[object Object],[object Object],[object Object],[object Object],Pub Pub Pub Pub Pub Pub Fully stocked depot Brewery
More advanced supply chain Brewery Pub Pub Pub Pub Pub Pub RDC Stockless depot ,[object Object],[object Object],[object Object],[object Object],[object Object],Stock
Advantages of stockholding hubs ,[object Object],[object Object],[object Object],[object Object],[object Object]
What is synchronisation? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Getting Production closer to Sales ,[object Object],Sales Sales Supply chain driven by manufacturing push Manufacturing synchronised to sales 0 10 20 30 40 50 60 70 80 90 100 1 2 3 4 5 6 Stocks 0 10 20 30 40 50 60 70 80 90 100 1 2 3 4 5 6 0 10 20 30 40 50 60 70 80 90 100 1 2 3 4 5 6
Moving the ‘De-Coupling’ Point De-coupling point Packaging Filtration Brewing and  Fermentation De-coupling point Forecast drives most supply chain activities Forecast drives brewing and fermentation  Filtration, packaging and replenishment  driven by real customer demand Customer demand Replenishment Stock in Depot Cold Condit -ioning Bright Beer
Internal Demand Distortion ,[object Object],[object Object],[object Object],[object Object],[object Object],2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 LBA Sales Depot. Order DRP Production Packaging Functions No of kegs Week 8 Week 7 Week 6 Week 5 Week 4
Required changes to planning cycle ,[object Object],Plan Stock Replenish stock Plan Stock Replenish stock ,[object Object],Reaction time to forecast changes drops 10 to 3 working days M T W T F M T W T F M T W T F M T W T F
The impact of Synchronisation - Triple play charts for Cans 1 5 9 13 17 21 25 29 33 37 41 45 49 0 50 100 150 200 250 300 350 Thousands Cases Production Stock Sales Group canning Total group cans - Actual picture 1 5 9 13 17 21 25 29 33 37 41 45 49 0 50 100 150 200 250 300 350 Thousands Cases Production Stock Sales Group canning Total group cans - Synchronisation
Impact on Supply Chain & Stock Deployed ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Setting up demand based production templates Flexibility to adjust ‘A’ product volumes on daily pack frequency gives large-scale finished goods stock reductions Minor products will be ‘ packed to liquid’ to reduce CCT storage requirement.  Product   Type   Make Planning   Class Frequency Flexibility A   Keg Daily Daily volumes varied in line  with sales. Higher WIP  stocks provide reactivity B + C   Keg Bi-weekly or  Volumes adjusted in line  weekly with sales, but within fixed  sequence A   Bottle Bi-weekly or Volumes varied in line with  weekly  sales. Higher WIP stocks  provide planning flexibility B + C   Bottle Fortnightly/monthly Volumes adjusted at SKU  fixed cycle. SKUs  level, but restricted to  grouped on plan by ‘liquid group’ batch size.  Common liquid Fixed cycle and liquid batch  restrictions apply What might this mean across the portfolio ?
Setting up the demand based production templates: example ,[object Object],[object Object],[object Object],[object Object]
The imperative to trial ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Stock reduction trial ,[object Object],[object Object],[object Object],[object Object],[object Object],Data from actual trial 10/02 11/02 14/02 15/02 16/02 17/02 18/02 21/02 22/02 23/02 24/02 25/02 28/02 29/02 01/03 02/03 03/03 06/03 07/03 08/03 09/03 10/03 13/03 14/03 15/03 16/03 17/03 20/03 21/03 22/03 23/03 24/03 0 500 1,000 1,500 Units Stock Orders in hand Free Stock Start of trial
Systems support for integrated planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Supply chain systems to support synchronisation ,[object Object],Customers   Brewery Scheduling System TMS Primary WMS Synchronisation Physical Supply Chain Transactional data fed to ERP systems Brewing Packaging Finished Goods Storage Network Replenishment Secondary Distribution Advanced Planning and Scheduling system  Suppliers MRP TMS Sec’y Cold Conditioning Demand capture fed from ERP systems
Summary of planning process One single supply chain plan in multiple time buckets… Plan to Forecast Respond to Orders ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],0 28d 13w 2xFY end 48h ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusion ,[object Object],[object Object],[object Object],[object Object]

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Supply Chain Synchronisation

  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Moving the ‘De-Coupling’ Point De-coupling point Packaging Filtration Brewing and Fermentation De-coupling point Forecast drives most supply chain activities Forecast drives brewing and fermentation Filtration, packaging and replenishment driven by real customer demand Customer demand Replenishment Stock in Depot Cold Condit -ioning Bright Beer
  • 9.
  • 10.
  • 11. The impact of Synchronisation - Triple play charts for Cans 1 5 9 13 17 21 25 29 33 37 41 45 49 0 50 100 150 200 250 300 350 Thousands Cases Production Stock Sales Group canning Total group cans - Actual picture 1 5 9 13 17 21 25 29 33 37 41 45 49 0 50 100 150 200 250 300 350 Thousands Cases Production Stock Sales Group canning Total group cans - Synchronisation
  • 12.
  • 13. Setting up demand based production templates Flexibility to adjust ‘A’ product volumes on daily pack frequency gives large-scale finished goods stock reductions Minor products will be ‘ packed to liquid’ to reduce CCT storage requirement. Product Type Make Planning Class Frequency Flexibility A Keg Daily Daily volumes varied in line with sales. Higher WIP stocks provide reactivity B + C Keg Bi-weekly or Volumes adjusted in line weekly with sales, but within fixed sequence A Bottle Bi-weekly or Volumes varied in line with weekly sales. Higher WIP stocks provide planning flexibility B + C Bottle Fortnightly/monthly Volumes adjusted at SKU fixed cycle. SKUs level, but restricted to grouped on plan by ‘liquid group’ batch size. Common liquid Fixed cycle and liquid batch restrictions apply What might this mean across the portfolio ?
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.