sla2015 jamnica supply chain integration based on ortec soutions
TRANSCRIPT
Supply Chain integration within ORTEC’s
Advanced planning & Optimization systems
Marijan Vrandečić, 12.11.2015
Optimize world
Jamnica is the largest Croatian producer and
distributor of waters and soft drinks
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...with revenues of >300 mil EUR and volume of
>500 mil l
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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
Our tradition goes back 187 years
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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
Today we are the leading water and beverage producer
in the Adriatic region
Geographic diversification: greenfiled
and acquisitionsProduct diversification
Exporting to >15 countries worldwide
Strong growth driven by Agrokor – modern-day Jamnica owner, since 1992.
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Production+distribution Distribution
Agrokor Group is the largest private company in
Croatia and one of the leading regional companies
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• 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
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
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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
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).
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Sales Distribution
Salesman routes
Defined service levels
Online ordering
Rerouting orders
Picking and dispatching
In store delivery
To secure operational excellence we developed
distribution network with high complexity
• Cross-docking
• Multi-load
• Backhauls
• Empties/returns
• Trailer decouple
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Transportation modalities:Commercial optimization s/w also considers various synergies
20 Dispatch locations
145Own trucks (slide
walls, hydraulic ramps)
Key figures – Distribution daily operation
100 Carrier trucks
6.000 Daily pallets delivered
DC
SC and RTM processes integration became NECESSITY
processes
Resource
management
execution
service
Level
control
planningKPI
reporting
warehouse
service
Jamnica
DC
DC
DC
DC
DC DC
DC
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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
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Impact level
Resources to
cover
Key planning
issues
Tractor Trailer Tractor TrailerTractor Trailer
Real TimeMultiyear
Strategic
Addressed in this session…
Execution
Operational
Tactical
Process integrator was founded
Project implementation is really demanding
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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
Promising results in first seven months based on
quick wins
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12% increase indeliveredvolume
40% decrease
inoverloads
7% decreasein overall
secondary(DSD)cost
All DCs using the
same procedures
Decreasein workinghours 8%
Shipping without delay
8%
more
loadings
10 planersless
700.000€ savings in
first year
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
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Improvement in automatic planning – improving
algorithms - additional savings in km
Tactical Routing – way to optimize salesman route
and order schedule
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• 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
We
rk
last
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
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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
ORTEC Warehousing solution for Jamnica
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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
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4
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25-11-2015 18
Supply Chain Design
Tactical Routing
Stock Replenishment
Workforce Scheduling
Routing & Scheduling
Routing & Dispatch
Warehouse control &
optimization
Load Building
Pallet Building
ORTEC @ ROTO
PILOT: Analysis & Results
Optimize your world
Data provided
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7 Days of orders
2 DCs
1,611 PdV
3,445 Transport orders
Depot
Deliveries
Pickups
The ROTO routing problem
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Planned Executed Arc been travelled at re-routing instance
Static
Orders
DC/Call Center
Served
OrdersDynamic
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
ROTO business dynamics (1/2)
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Arrival profile or dynamic orders
Most dynamic orders received from 09:00 til 12:00
Similar pattern among the two depots
ROTO business dynamics (2/2)
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Arrival profile or dynamic orders
Dynamic orders are not very urgent – potential for optimization
Karlovac – even less urgent (but, limited # of dynamic orders)
Routing scenario
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Continuous optimization / re-optimization
Static Plan
Batch Planning
DispatchingReceive
New ordersRe-
optimization
Updated PlanImport
N – 1 N = Day of planning
Planning horizon
Dispatch/Execution
PILOT process followed
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Focus on business process simulation
If new (dynamic) orders exist
PILOT Process: 1. Import
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Import Batch Planning Re-optimization Reporting
PILOT Process: 2. Batch planning
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Import Batch Planning Re-optimization Reporting
PILOT Process: 3. Replanning/Re-optimization
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Import Batch Planning Re-optimization Reporting
Routing: Results & Analysis
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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%
ORTEC Routing & Dispatch