Page 49 - Case Study Annual 2015
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deliveries, access to PODs and service levels. Imperial’s   to out of stocks or vehicle availability. Load smoothing,
in-house IT department developed a fully customised         based on warehouse and transport capacities, assisted
portal, capable of providing full visibility to brandhouse  in alleviating some pressure from the year-end peak.
management and staff, Imperial’s warehouse operations       Forward planning, information sharing and visibility,
and own management with accurate operational                which were previously non-existent, resulted in
information for improved decision making. The essence       one of the best executed December peaks in recent
of a good supply chain network is ensuring the correct      years.
stock is sent to the right location, at the required time
and anticipated price, by upholding an industry leading         Utilising the network and flexibility of co-packers
service level. For the first time the partners were able    and strategic business partners such as Namibia
to correctly measure and impact the total network           Breweries, further relieved the throughput pressure on
performance, enabling improved decision making and          local warehouses, resulting in better stock availability,
timeous intervention to effect overall service levels.      focus on more direct shipments from alternative
                                                            sources and financial opportunities. brandhouse and
    Further changes included a dedicated fleet for local    Imperial Managed Logistics executed more direct loads
and certain mid and long distance routes. This was          to customers from Namibia in the last six months,
implemented to ensure minimal service disruption            compared to the preceding twelve months.
due to seasonal demand. Change management was
one of the largest contributors to the success of the           The team has achieved a 44% improvement in
new ways of working. Driving network performance            brandhouse’s OTIF (On Time, In Full) performance
through identified key performance indicators allowed       measurement with depot replenishment planning and
management of both teams to drive processes and             a consistent delivery performance to direct customers
procedures to effect the necessary changes. It changed      at service levels in excess of 90%, coming off a base of
the way both partners operate, communicate and              below 60%.
collaborate and created a new base for trust within the
partnership.                                                    Sustainability – brandhouse and Imperial have built
                                                            a mutually beneficial relationship that is founded on
Results                                                     commitment to employees, the environment and all
                                                            stakeholders. We incorporated rail transport as a means
What is the outcome?                                        to reduce our carbon footprint and reduce congestion
The partnership gained improved network visibility,         on our already congested road transportation network.
successful operational execution at all levels and          The first phase included returns from Cape Town to
trust. Visibility has been enhanced and all parties are     Johannesburg, with the finished goods project currently
now able to view the progress of picking, loading and       in its final testing phase.
dispatch, with real-time visibility of vehicle positions
and progress of each delivery. The improvements             Going forward?
allowed for 48 hours’ forward planning, visibility and
information sharing by both parties, improved decision      With the new base created through the stabilisation of
making and load execution.                                  operations and achieving the required service levels,
                                                            the partnership is now able to focus on continuous
    This also allowed for an increase in operational        improvement and cost saving initiatives that will
control by reviewing and establishing planning              benefit all stakeholders. We have moved away from
parameters, not only reducing lead times, but also          the silo mentality and are looking at innovative ways of
increasing warehouse throughput capacity. Shared            improving our supply chain. We are no longer forcing
load information allows for the identification of risk      our functional achievement of goals onto the various
periods/areas and mitigating possible loss of sales due     channel partners, but rather collaborating to achieve our
                                                            companies’ goals. •

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