Empowering Smallholders To Access the Supply Chain

By Jeandré van der WaltAugust 16, 2020 8:21 am

Black smallholder farmers are often excluded from the supply chain due to high barriers of entry. A fund established by Tiger Brands is now trying to address this problem. Mary-Jane Morifi, chief corporate affairs and sustainability officer at Tiger Brands, spoke to Jeandré van der Walt about the company’s plans to empower these farmers, as well as black suppliers and distributors.

Smallholder farmers frequently lack advanced farming skills as well as machinery and equipment. Tiger Brands intends providing their member farmers with rigorous training as well as access to finance in order to buy equipment.
Photo: FW Archive


What is Tiger Brands’ enterprise supplier development fund, and why was it started?

We established it to drive our enterprise and supplier development agenda. The fund, which is called the Dipuno Fund, will support black smallholder farmers, with particular focus on women, black suppliers providing goods and services within the supply chain, and black distributors supplying the market with Tiger products through its value chain.

Tiger Brands wants to help these farmers develop a solid asset base and liquidity to enable their operational and technical capability to deliver on market opportunities.

The Dipuno Fund was established against the backdrop of a serious lack of access to finance for many black suppliers of Tiger Brands (including smallholder farmers) and Tiger Brands distributors.

This has had a negative impact on their ability to supply goods and services to Tiger Brands, and distribute Tiger Brands products.

With the Dipuno Fund, R100 million was set aside to provide corporate and micro-financing support, while a portion of this was invested in providing non-financial support, such as connectivity, office space, mentorship, training, and business and management systems.


How will the farmers be chosen? Are there specific criteria to meet?

They will be selected based on their skills and experience. It’s imperative that they all have basic farming skills and experience. They must also have access to farmland, as well as water and electricity.

Farmers operating in areas closer to Tiger Brands’ supply chain network will also be selected. In some instances, we’ll also look at farms that have access to a warehouse and/or vehicles, which the farmers either own or lease.


What are some of the biggest challenges faced by small-scale farmers trying to enter the value chain, and how do you plan to address them?

Security of land tenure and lack of finance are probably the main challenges. In addition, they lack adequately sized land that would enable them to move towards commercialisation.

These farmers also don’t always have access to farming mechanisation, farming equipment, infrastructure and tooling, which can hinder production. They also have a need for farming skills.

With this fund, Tiger Brands will address some of these challenges by facilitating procurement from smallholder farmers directly and also through agricultural aggregators. We’ll also provide access to finance in order to fund input costs, mechanisation and infrastructure.

Each member farmer will go through a rigorous training schedule. This will include agricultural training and mentorship, and business management and back office training and support. They will also receive business management tools such as a financial accounting system, and human resources and payroll systems.

We’ll support farmers with access to farming properties to link them to leasing opportunities.


What controls and mechanisms will be put in place to ensure that limited funds will be distributed and applied optimally?

Proper due diligence will be conducted for all fund applications. To ensure that the funds are applied for their intended use, and that the beneficiaries derive benefit, all funded beneficiaries will be audited annually. We’ll also monitor the commercial performance of each beneficiary on a quarterly basis.


Has Tiger Brands been involved with similar projects in the past, and if so, what results did they deliver?

Yes, we’ve already supported 58 wheat and oats farmers in North West and the Western Cape with technical support and input finance. The guaranteed offtake agreement for their produce had assisted many people, directly and indirectly.


What needs to be done to lower the barriers of entry for smallholder farmers to formal markets and value chains?

Formalising integration of smallholder farmers is probably the most important task. This includes company registration, compliance and certification. However, it’s also important that these farmers receive the necessary support, such as business skills and help in understanding commercial agriculture.

Exposure to procurement divisions is also critical, as this is the backdrop of commercialisation capacity-building.

To achieve this, big corporations such as Tiger Brands need to play a linkage role between smallholder farmers and the commercial sector.

We need to target the agricultural mega aggregator’s suppliers – the new, expert, black-owned farming companies who work directly with farmers to provide technical and management skills – in order to incorporate smallholder farmers in their procurement volumes and growing plans.

We want smallholder farmers to operate in collectives in their areas and clusters in order for them to be able to produce the quantities that we require as Tiger Brands.

As smallholder farmers, they’re not able to deliver to the scale we need, as they produce too little on their own and are thus unable to penetrate our supply chain.

When aggregated, however, they can fulfill the tonnage we require because of scale of land and productivity, as well as the quality we require, because they will receive technical and agrarian support, and thus can enter the supply chain.

Email enterprise&supplierdevelopment@tigerbrands.com.


Sumber :
https://www.farmersweekly.co.za/agri-business/empowerment/empowering-smallholders-to-access-the-supply-chain/

The Unsung Heroes of The Pandemic

The unsung heroes of the pandemic – supply chain managers 

Curtis Lancaster’s job is to make sure Dartmouth Hitchcock Health system, including all its buildings, five hospitals, and 1,800 employees have att the supplies and personal protective equipment they need.

By TEDDY ROSENBLUTH
Concord Monitor
8/14/2020

To do Curtis Lancaster’s job, you need to be a little paranoid, he said.

Lancaster works for Dartmouth-Hitchcock Health, a system that has more than 1,800 providers across the state and touts being the largest private employer in New Hampshire.

He is responsible for making sure all of the buildings, including five hospitals, are stocked with anything and everything they might need — every piece of linen that touches a stretcher, every glove or mask donned by a doctor, every contractor that shovels snow or washes laundry.

The supply chain team is constantly bringing new supplies to the warehouse, shuttling items to hospitals, and picking up soiled sheets (in a year, they clean about 4 million pounds of laundry).

As vice president of the supply chain, Lancaster’s job is to anticipate any event that could jeopardize the stockpile of supplies. Or, as he puts it, “scan for the boogeyman.”


Each product is manufactured and shipped from various parts of the world, creating a seemingly infinite number of global events that could deplete essential materials.

In the early months of Lancaster’s debut in the health care industry at United Parcel Service, SARS made national headlines. UPS desperately scrambled to find N95 masks for their employees. At that point, Lancaster didn’t even know what an N95 mask was.

“That sort of left an indelible mark on my psyche,” he said. “Everywhere I’ve been, I’ve tried to prepare for whatever the next thing was.”


Lancaster had been anticipating some disaster that would put a strain on his stockpile.

He didn’t know exactly what form the disaster would take. It could be a chemical attack, a natural disaster, or — his worst fear — a disease. To prepare, he made his team do extra emergency drills to ensure they knew what supplies they had stocked inside and out.

He also partnered with a resiliency mapping service that constantly sends notifications to his phone about world events that could have an impact on his supplies — a new CEO at a manufacturing company, a volcanic explosion, a worker strike. He then matches these events to an expansive database of where his supplies are manufactured to see if it will impact his hospitals.

Lancaster sees the world in terms of medical supplies. Every news story can be traced back to an item in his warehouse. For example, any current event involving Thailand, one of the few countries that have rubber trees readily available, makes Lancaster immediately think about surgical gloves.

“When I see something in Thailand, I think, ‘Holy smokes, are my gloves OK?’ ” he said.


Yet, for even someone as vigilant as Lancaster, COVID-19 was a shock.

“I knew something was going to happen and I wanted to be prepared and was not,” he said. “Nobody could have anticipated what happened.”

On Jan. 3, months before ‘COVID-19’ was in the public’s vernacular, Lancaster’s phone buzzed with a notification — there was an emerging pneumonia-like virus spreading through Wuhan, China.

He and some of his supply-chain colleagues were worried, as many of their supplies, like hospital gowns, were manufactured in the city. Furthermore, this was happening right around the same time as Cardinal Health, a large health care supplier in the United States, recalled several products. Lancaster began strategizing and planning how he would find new suppliers. Slowly, an even more grim possibility dawned on them.

“We noticed, holy smokes, the Chinese New Year is happening,” he said. “Wouldn’t it be horrible if this virus spread?”

Lancaster almost immediately knew what the shortages were going to be — N95 masks, isolation gowns and gloves. He started stocking up.


Quickly, his usual providers started becoming overwhelmed with orders and Lancaster was forced to scour the market to find new providers he could trust. Even if he successfully ordered materials, there were often delays at airports and ports that extended delivery times.

“What would be a normal one week delivery time started to be one month or two months,” he said.

Supply chain management also starting receiving emails from suppliers they had never worked with before, asking for upfront payments for PPE. Lancaster said he received several hundred of these emails, sometimes with counterfeit FDA certificates. In one case, a supplier offered N95 masks with the wrong type of ear strap, a telltale sign of a fake product.

“You start dealing with less than honest people,” he said.

It was sometimes difficult to distinguish from legitimate, as some companies were new to the health supply industry and needed money upfront to order the supplies themselves.

The product prices were also thrown into flux. Products Lancaster might ordinarily pay 60 cents for, were costing upwards of $10 apiece.

Faced with shortages and delays, some hospitals in New Hampshire, like Concord Hospital, started bartering for supplies.

Jodi Panzino, the director of Supply Chain Management at Concord Hospital, said every week, the medical supply distributor who supplies to Concord Hospital and several other hospitals in the area, sent an email to all of their clients, asking what they had shortages of, and what they had to offer. Supply chain managers responded, offering to trade disposable stethoscopes for goggles or surgical masks for isolation gowns.

“Everybody is trying to get supply to make sure their hospital is well-established but no one is out for themselves,” Panzino said.

The pandemic has changed her hospital’s supply chain philosophy, she said. Unlike Dartmouth-Hitchcock Health, Concord Hospital does not have a warehouse to hold a stockpile of supplies. The hospital orders supplies as it needs them and they are shipped to the facility every weekday morning. But the pandemic has exposed real problems with that system, the most glaring of which is the supply chain isn’t always stable.


“If you place an order, you might be placing an order for October or November delivery,” she said. “Not for tomorrow, like we’re used to.”

Concord Hospital is now changing its system to keep a stockpile of PPE. She knows several hospitals that bought warehouses for this purpose, as well.

Lancaster said he is grateful New Hampshire was not an early hot spot for COVID-19. It bought hospitals time to construct a new supply chain and stock up on essential items — Dartmouth-Hitchcock Health didn’t face any shortages that significantly impacted their services.

For the most part, the scramble for supplies has eased as the market for N95 masks and other PPE has become less competitive. Some raw materials are still high demand.

“From our known world, yes, things are easier,” he said.

The known world is not Lancaster’s concern, though. He is already onto the potential problems of the future, as is only appropriate for a boogeyman scanner.


Sumber :
https://www.vnews.com/COVID-19-Supply-Hospitals-PPE-35746523

3PLs Coming to the Rescue

July 24, 2020 | By Karen Kroll

When supply chain and logistics trouble brews, companies summon third-party logistics providers for their expertise, technology, and dedication to customer service.

Communication, honesty and transparency, and a willingness to compromise are keys to most strong partnerships, including those between supply chain teams and their third-party logistics (3PL) providers. Communication and honesty, for instance, help establish trust, says Robert Voltmann, president and CEO of the Transportation Intermediaries Association (TIA), an industry group. In turn, trust fosters collaboration and the ability to work as a team.

An openness to change is similarly critical, say Geoff Milsom, vice president of transportation consulting with enVista, a software solutions firm based in Indianapolis, Indiana. At times, both sides want to hold onto existing processes, even when they're less than optimal. "Both need to make concessions to get to better answers," he says.

Most 3PL-shipper partnerships encompass several features not relevant in personal relationships. One is an appropriate incentive structure, Milsom says. Often, a pricing structure that works well in the first year of an engagement becomes less effective over time.


That's because many new contracts are calculated based on the savings the 3PL will generate. This tends to work well early on, as it requires little upfront investment by the shipper, while the 3PL typically can find substantial savings. Over time, however, a 3PL's efficiency increases, leaving less waste to cut. Shippers question whether they're still benefiting from continuous improvement. The 3PL points to the risk they took early on, as well as the improvements they've made. "It leads to a breakdown in the relationship," Milsom says.

Instead, Milsom advocates structuring the contract to keep the cost savings incentive in the first year or so, and then moving to a model that factors in the cost to do business, along with some level of profit. At the same time, both parties need to continue to focus on improvement.

To make this happen, many 3PLs invest in technology, people, and processes that enable them to efficiently and securely move shippers' goods. As important, shippers can access these investments on a variable, rather than a fixed cost basis.


YOU CAN BANK ON IT

Many 3PLs also provide a banking function, Voltmann says. TIA data shows most members pay carriers within one month, and some within one or two days. That's quicker than some shippers, particularly since the pandemic. More than 25% of respondents to a recent Gartner survey indicate they will delay payments by at least 30 days as they struggle to navigate the tightened economy (see chart).

Along with technology and banking services, the lengths to which many 3PLs will go to keep their clients' shipments on track are also key. That's the case with the decade-long partnership between Gebrüder Weiss (GW), a 3PL with expertise in the automotive sector, and Tianhai Electric North America (TENA), a manufacturer and supplier of automotive wiring harnesses.

GW manages TENA's air and ocean transportation, as well as warehousing, fulfillment, and distribution in Europe.

When one of Tianhai's ocean shipments was delayed due to weather, all but ensuring it would miss the weekly rail connection from Seattle to Detroit, "nothing short of a miracle would avoid a production plant shutdown of Tianhai's customer," recalls Merlin Dow, sales manager with GW.

GW set to work on that miracle. Dow, based in Chicago at the time, flew to Seattle and oversaw the unloading of the ocean container carrying the parts. He separated enough pallets and cartons to keep the production lines running for several days. These were loaded onto a small plane GW had chartered.

Once the plane was airborne toward Detroit, two drivers began a 2,300-mile road trip to the Motor City, transporting the pallets that remained in the truck. Because they could spell each other, the drivers made the trip in one straight shot. Both plane and truck—and the parts they were carrying—made it to Michigan in time to avoid a shutdown.

"Gebrüder Weiss went above and beyond and personally flew to Seattle to get the parts across the U.S. border and on a charter plane in to avoid shutting the lines down," says Tim Howick, executive director of supply chain management with Tianhai.

"This business will always throw you a curveball," Dow says. "The more chaotic it gets, the bigger the opportunity for 3PLs to be a lifelineand partnerfor their clients." He credits planning, constant communication, mission alignment, and trust to helping GW meet this challenge.

The two companies also work together in Europe. Tianhai faced increased transportation costs, in part because its distribution center was located in Italy, at a distance from customers and without easy access to ocean and air freight.

GW helped move the distribution center to Germany, closer to Tianhai's customer base and ocean shipments. Airfreight lead times and costs also dropped due to the greater availability of commercial airports in Germany.


BUILDING ON TRUST

Do it Best, a U.S.-based, member-owned comprehensive hardware, lumber, and building materials cooperative, and Miami, Florida-based Ryder System have worked together since the early 1980s. "Our long relationship has proven to be reliable, trustworthy, and a great collaboration," says Tim Miller, vice president of logistics with Do it Best.

From eight distribution centers in the United States, Do it Best serves about 4,000 domestic brick-and-mortar retailers, as well as retailers in 50 other countries, and e-commerce sellers. Each store receives inventory shipments at least once weekly.

Ryder employees, typically including a dispatcher and site manager, are on-site at Do it Best's warehouses and distribution centers.

Do it Best also receives support from Ryder's strategic planning efforts. At quarterly business review meetings, the two companies go over strategic initiatives and key performance indicators (KPIs).

"Our on-time performance leads the industry at about 93%," Miller says, adding that Do it Best doesn't cut itself any slack for mechanical failures or inclement weather.


SHARING IS CARING

Do it Best was one of the first companies to agree to test RyderShare, a new, collaborative logistics platform. Miller notes that he sometimes prefers to be a fast follower, rather than a first adopter, when it comes to technology innovations. He went ahead based on his trust in the relationship with Ryder, as well as Ryder's vision for this tool.

RyderShare facilitates collaboration between all parties involved in moving goods through supply chains, including shippers, receivers, carriers, and service providers. Historically, addressing a problem meant starting a chain of emails and phone calls that take hours or days, says Steve Sensing, Ryder's president of global supply chain solutions. By helping to identify and resolve challenges in minutes, RyderShare can boost productivity and enhance decision-making.

In the run-up to the test of the system, the Ryder team, including management and developers, spent considerable time at Do it Best's offices. "We sat side by side so they could learn our jobs and pain points," Miller says.

Do it Best launched RyderShare about one year ago. Its benefits became particularly clear during the pandemic. Sales at Do it Best rose by about one-third and have remained higher than normal.

The number of drivers, tractors, and trailers needed to move products also rose. Maintaining Do it Best's on-time delivery levels would have been impossible without the instant visibility to hundreds of routes provided by RyderShare, Miller says.

Ryder's help accessing additional trailers, tractors, and drivers—in some cases, in the wee hours of the morning—also was critical. Ryder was able to shift some drivers from retailers that had closed because of the pandemic. "They were able to find hundreds of surge drivers for several months," Miller says.

The ability to maintain consistent deliveries, aided by RyderShare, has helped Do it Best sustain its market share gains.

FOCUSING ON STRATEGIC PARTNERSHIPS

As the contracts to manage two finished-goods Panasonic North America warehouses were coming up for renewal, management was also discussing a shift to a more strategic approach with its 3PL partners, says Joe Haury, vice president of global logistics with the Newark, New Jersey division of Panasonic Corporation.

"This would let us align the relationship with our priorities and goals, such as Lean deployment, using data to drive decisions and leveraging KPIs to track improvement," he says.

In spring 2019, Sunland Logistics Solutions, based in Simpsonville, South Carolina, was awarded the RFP to manage the warehouses. A key reason was Sunland's "open-mindedness and willingness to understand and respond to the voice of the customer," Haury says.

From the start, the two companies have employed a collaborative approach to addressing challenges. One was the tight time frame in which Sunland would have to assume operation of the warehouses—just five months, and that included moving the warehouse operations from Aurora, Illinois, to a new location.

Robust engagement with key stakeholders from both parties was critical. This included employees not just from logistics, but also from customer service, order fulfillment, and procurement. "All were available to talk through potential challenges," says Elijah Ray, chief customer officer with Sunland.

Detailed planning was similarly key. "Along with tools like block diagrams and process flows, we planned down to the detailed SKU and inventory quantities to be transferred to the new location," Ray says.

The hard work paid off. The handoffs occurred with minimal impact to Panasonic's supply chain or customers.

Once the new team was in place, the real successes in warehouse operation have come from deploying Lean tools to address challenges and continually improve operations. To start, Panasonic and Sunland jointly hosted several Kaizen events (Kaizen is a philosophy of continuous improvement).

For several days, employees from both Panasonic and Sunland focus on an area, starting by crafting a problem statement that all parties agree captures the challenge. From this, they work to identify the root cause.

A next step is "Go to the Gemba," or observe the process under review to understand it in action. Operational problems are best solved when the team goes to the floor to see what the real issues are, Ray says.

These ongoing efforts are helping to drive sustained improvement in warehouse operations. "You can't allow operations to become stagnant," Haury says. "Incremental small changes are a fundamental principle of Lean."

As Sunland continues to focus on continuous improvement, they challenge both themselves and Panasonic. "They've been highly engaged, from top leaders to analysts," Haury says. "With a key strategic relationship, we can rely on them to make us better."

Between 2014 and 2019, the number of Iowa retail outlets that receive and sell hard liquor has grown from about 1,200 locations to 1,700. In 2018, the Iowa Alcoholic Beverages Division (IABD) decided to establish a partnership with a 3PL. "The growth in the number of outlets we had to service was so big, we couldn't do it with our existing framework," says Stephen Larson, IABD administrator.

Ruan Transportation Management Systems earned the business in April 2019. The Des Moines, Iowa-based firm handles all functions from receiving to delivery, including inventory management, picking, and staging.

The partnership is "like a well-oiled machine," Larson says. He credits preparation, including carefully outlining goals and expectations during the RFP process, as well as Ruan's fulfillment experience. "They were able to integrate operations and hit the ground running," Larson says. In fact, turnaround time improved, with most orders delivered within 36 hours.


THE MORE THE MERRIER

The relationships where Ruan provides more than one service tend to be the strongest, says Marty Wadle, the 3PL's senior vice president of commercial solutions. The reason? Ruan becomes better ingrained in the shipper's supply chain, gaining an in-depth understanding of it, and enhancing its ability to make improvements.

Between Ruan and IABD, a joint "system of accountability and communication" ensures service and safety remain high, Larson says. That includes regularly monitoring and measuring on-time deliveries, breakage, and mispicks. In all areas, IABD is trending above industry standards.

As important, the partnership has allowed IABD to maintain service levels, even as the number of locations has jumped. Had IABD continued on its own, it likely would have had to take steps that would have cut into service, such as raising minimum order quantities or delivering less frequently.

The efficiencies and value 3PLs can offer their clients are helping to drive growth in the industry at a rate that tops GPD growth by several times, the TIA says. "3PLs are incented to move shippers' goods in the most efficient way possible," Voltmann says.


Sumber :
https://www.inboundlogistics.com/cms/article/coming-to-the-rescue/

Jaringan Supply Chain Coca Cola

Apa yang membuat Jaringan Supply Chain Coca Cola begitu bagus?

Published on August 12, 2020

Strategic Supply Chain, Logistics, Customs Export Import, Procurement and Trade Compliance Consultant

Bicara tentang Coca-Cola tidak diragukan lagi sangat terkenal. Hampir ada di mana-mana. Data dari Market.us, lebih dari 10.000 botol /detik  minuman ringan Coca-Cola dikonsumsi secara global . Jaringan Supply Chain dan Logistic Coca Cola beroperasi luas dan dan lancar di seluruh dunia.

Apa yang ada di balik Supply Chain Coca-Cola? Teknologi apa yang mereka gunakan? Apa strategi Supply chain Coca Cola?


Beberapa catatan dan data untuk menjawab pertanyaaan di atas adalah ;

1.   Fokus pada Sumber Lokal

Coca-Cola beroperasi di tingkat lokal. Dari situs web resmi Coca Cola ada sekitar 225 mitra lokal pembotolan di seluruh dunia. Secara proses produksi Coca Cola hanya membuat Konsentrate, dan proses pembotolan dilakukan di mitra lokal dengan menambahkan air air, karbon dioksida, dan gula, yang semuanya bersumber dari supplier lokal. Beberapa catatan bahwa gula yang dipakai berbeda beda di tingkat lokal. Di Amerika, gula dari sirup jagung. Di Eropa, terutama gula bit. Di Asia, tebu. Dari Distribution Center lokal tersebut Coca Cola dikemas dan siap kirim ke outlet customer. Coca-Cola telah melelakukan strategi optimalisasi Local Supply Chain.

Dari sisi Lean Manufacturing dalam Toyota Production System ada 7 waste/pemborosan. jenis-jenis pemborosan itu adalah 1) transportasi, 2) Inventory, 3)Gerakan, 4)Menunggu, 5)Proses yang berlebihan, 6) Produksi yang berlebihan, dan 7) kerusakan barang.

Di dalam bahasa inggris, dikenal dengan istilah TIMWOOD (Transportation, Inventory, Motion, Waiting, Over-processing, Over-production, Defect). Tujuh pemborosan ini diperkenalkan oleh Taiichi Ono dari Jepang yang bekerja untuk Toyota dan diperkenalkan dalam sistem produksi yang dikenal dengan  Toyota Prodcution System (TPS), Coca Cola mampu menghilangkan Pemborosan dari sisi fase Gerakan dan fase Transportration dalam Supply Chain, Coco Cola melakukan strategi mendirikan pabrik di dekat tempat gula ditanam. Semakin sedikit waktu yang dibutuhkan gula untuk dikirim ke pabrik pengolahan, semakin sedikit risiko yang bertahan di seluruh proses Supply Chain.


2.   Visibilitas Monitoring Real time

Proses distribusi minuman Coca Cola secara global pastinya sangat komplek dan rumit . Tapi Coco Cola mampu melakukan monitoring proses distribusi menjadi sangat baik. Coca Cola telah berhasil melakukan perpaduan dan sinkronisasi proses bisnis agar dari titik lokasi pabrik bisa terkirim dalam waktu 24 jam sampai di rak toko pengecer.  Coca Coal mampu merencanakan, dan mengimplementasikan   proses kapan pihka Gudang dan kru bongkar muat di pusat distribusi mengetahui ketika truk yang masuk ke gudang dalam waktu satu jam.  Disini Coca Cola telah menggunakan logging yang dilengkapi GPS ke truk pengiriman. Dengan solusi ini, Coca-Cola dapat memberdayakan gudang, departemen perencanaan, dan fungsi produksinya untuk beroperasi dengan informasi yang lebih baik. Dan dapat meningkatkan pelaksanaan dengan koordinasi yang lebih baik. Dengan  mengadopsi pelacak GPS komersial, misalnya, dapat memastikan keselamatan pengemudi, mengelola pengemudi secara efisien, mengurangi biaya transportasi yang tidak perlu.


3.   Penggunaan Teknologi dalam rangka Optimasi Rute

Coca-Cola Enterprises (CCE) adalah produsen dan distributor produk Coca-Cola terbesar di dunia. Tugas CCE ini mendistribusikan konsentrat Coca-Cola ke beberapa pabrik pembotolan sekaligus mendistribusikan minuman dalam kemasan dan kaleng dari pabrik pembotolan ke Distribution Center sampai ke gerai ritel akhir customer.

Di  lapangan, CCE menghadapi banyak tantangan yang sifatnya customized. Pesanan dan outlet tertentu membutuhkan jenis dan peralatan kendaraan tertentu. Misalnya pangkalan militer membutuhkan kendaraan tertentu, sedangkan pusat-pusat di kota besar membutuhkan penggunaan jenis truk kecil. Banyak outlet juga meminta CCE untuk mengirimkan produk baik sebelum dibuka atau setelah tutup. Jadi, CCE harus memastikan  operasi logistiknya sinkron dan lancar. Dan secara internal Coca Cola perlu menetapkan semua pesanan pengiriman dalam urutan perjalanan yang benar sehingga dilakukan oleh kendaraan yang tersedia dan dengan biaya minimum dengan tetap memperhatikan semua kendala.

Solusi Coca Cola adalah menerapkan model pengoptimalan rute yang menetapkan semua gerai ritel ke perjalanan (termasuk urutan kunjungan mereka) dan menetapkan semua perjalanan ke armada truk yang ada dan pengemudi yang tersedia dengan cara yang memungkinkan CCE meminimalkan biaya keseluruhan sekaligus memenuhi semua kendala. Dengan cara perencanaan yang fleksibel yang responsif terhadap perubahan permintaan pelanggan. Rute yang efisien juga berarti bahwa jarak tempuh lebih sedikit, lebih sedikit konsumsi bahan bakar, dan lebih sedikit emisi karbon dioksida. Coca Cola mempunyai Perangkat lunak untuk penjadwalan pengiriman, memberi rute yang terbaik sambil mempertimbangkan cuaca; lalu lintas; waktu matahari terbit dan terbenam; kapasitas berat, beban, dan tinggi; zona penghindaran; belok kiri; dan lainnya. Dan, itu melakukan semua ini hanya dalam 30 detik. Perangkat dengan fitur geocoding ini secara otomatis memperbaiki alamat pelanggan yang salah yang dimasukkan ke dalam sistem untuk memastikan tidak ada pengiriman yang gagal.


4.   Direct to Store Delivery (DSD)

Coca Colam juga melakukan strategi Pengiriman Langsung ke Toko (DSD) memungkinkan Coca-Cola mengirim langsung ke toko ritel swalayan dari fasilitas produksi Coca Cola. Coca Coal telah mengurangi jalur rantai distribusi dengan memotong pusat distribusi sekunder atau tersier, sehingga stok tidak lama di Gudang tapi lama di rak took. Tentu saja ini akan  yang meminimalkan kemungkinan kerusakan, karena barang tersentuh oleh lebih sedikit perantara.

(Dari beberapa Sumber )


Sumber :
https://www.linkedin.com/pulse/apa-yang-membuat-jaringan-supply-chain-coca-cola-asngadi-ss-mm/

The Coca Cola Supply Chain

EXPLORING THE COCA COLA SUPPLY CHAIN NETWORK

Talking about Coca-Cola is undoubtedly very famous, almost everywhere. Data from Market.us shows that more than 10,000 bottles/second of Coca-Cola soft drinks are consumed by consumers globally. Coca Cola's Supply Chain and Logistics network operates widely and smoothly throughout the world.

What's behind the Coca-Cola Supply Chain? What technology do they use? What is Coca Cola's Supply chain strategy?

Some notes and data to answer the questions above are;


1. Focus on Local Suppliers

Coca-Cola operates at the local level. From the official Coca Cola website stated that there are about 225 local bottlers partners around the world. In the production process, Coca Cola only makes concentrates, and the bottling process is carried out at local partners by adding water, carbon dioxide and sugar, all of which are sourced from local suppliers. Some note that the sugar used is different at the local level. In America, sugar is from corn syrup, in Europe, especially is sugar beet, in Asia, is sugar cane.

From the local Distribution Center, Coca Cola product is packaged and ready to send to the customer's outlet. Coca-Cola has implemented a Local Supply Chain optimization strategy. >>In terms of Lean Manufacturing, there are 7 wastes. the types of waste are 1) Transportation, 2) Inventory, 3) Movement, 4) Waiting, 5) Excessive processing,6) Overproduction, and 7) damage to goods. In English, it is known as TIMWOOD (Transportation, Inventory, Motion, Waiting, Over-processing, Over-production, Defect). These seven wastes were introduced by Taiichi Ono from Japan who worked for Toyota and introduced in a production system known as the Toyota Production System (TPS)<<, Coca Cola has been able to eliminate Waste from the Movement and the Transport phases in the Supply Chain from Lean manufacturing point of view. Coco Cola made a strategy of establishing a factory near where the sugar is grown. It takes less time for sugar to be delivered to the processing plant, the less risk it will endure throughout the entire supply chain process.


2. Real Time Monitoring Visibility

The process of distributing Coca Cola drinks globally is certainly very complex and complicated. But Coca Cola was able to monitor the distribution process very well. Coca Cola has successfully integrated and synchronized business processes so that from the point of location of the factory it can be delivered within 24 hours to retail store shelves. Coca Cola is capable to plan and implement a process by which the warehouse staff and the loading and unloading crews at the distribution center know when a truck arrives at the warehouse within one hour. Here Coca Cola has used GPS-equipped logging to delivery trucks. With this solution, Coca-Cola is able to empower its warehouse, planning department, and production functions to operate with better information. And It can improve implementation with better coordination. Adopting a commercial GPS tracker, for example, can ensure driver safety, manage drivers efficiently, reduce unnecessary transportation costs.


3. Use of Technology for Route Optimization

Coca-Cola Enterprises (CCE) is the largest producer and distributor of Coca-Cola products in the world. CCE's task is to distribute Coca-Cola concentrate to several bottling factories as well as distribute packaged and canned drinks from the bottling plant to the Distribution Center to the customer's final retail outlet.

In the field, CCE faces many customized challenges. Certain orders and outlets require specific vehicle types and equipment. For example, military bases require certain vehicles, whereas centers in large cities require the use of small trucks. Many outlets also require CCE to ship products either before opening or after closing. So, CCE must ensure its logistical operations are synchronized and smooth. And internally Coca Cola needs to establish all delivery orders in the correct order of travel so that they are carried out by the available vehicles and at minimum cost while keeping all constraints in mind.

Coca Cola's solution is to implement a route optimization model that assigns all retail outlets to journeys (including the order of their visits) and assigns all trips to the existing truck fleets and available drivers in a way that allows CCE to minimize overall costs while meeting all constraints. With a flexible planning way that is responsive to changing customer demands. The efficient route also means that less mileage, less fuel consumption, and less carbon dioxide emissions. Coca Cola has Software for scheduling deliveries, giving the best route while considering the weather; traffic; sunrise and sunset times; weight, load and height capacity; avoidance zone; turn left; and others. And, it does all of this in just 30 seconds. This geo-coding device automatically corrects the wrong customer addresses that are entered into the system to ensure that no delivery fails.


4. Direct to Store Delivery (DSD)

Coca Cola is also pursuing a Direct to Store Delivery (DSD) strategy allowing Coca-Cola to ship directly to self-service retail stores from Coca Cola's production facilities. Coca Cola has reduced the distribution chain by cutting secondary or tertiary distribution centers, so that the stock is not long in the warehouse but long on the shop shelf. Of course, this will minimize the possibility of damage, because the goods are touched by fewer middlemen.

(From various sources)


https://www.linkedin.com/pulse/exploring-coca-cola-supply-chain-network-sutomo-asngadi-ss-mm/?trackingId=1c2GZkTYSOOeTTMEfVnN2w%3D%3D

How Logistics Became an Essential Service during COVID-19

Jon Stockton looks at the unique role logistics companies have played throughout the COVID-19 pandemic and will be a key part of the economic recovery.

Jon Stockton
Jun 20

Whether delivering essential Personal Protective Equipment (PPE) around the world or supporting small- and medium-sized enterprises (SMEs) as they adapt their business operations, the logistics sector has helped ensure the global flow of goods and has provided an essential service for our society during this unique time in our history.

As lockdown restrictions begin to ease across major European cities, it is time to ask ourselves what the ‘new normal’ will look like and what changes we want to see from a pre-pandemic world. Many will see it as an opportunity to reset and re-evaluate their operating model. Too often, logistics is overlooked as a crucial cog in this model, allowing businesses, individuals, and societies to connect and grow together.

The pandemic has highlighted this need for connection more than ever before, underlining our reliance and dependence on technology to keep the economy moving. It has also demanded agility and, with over 47 years of experience in implementing contingency plans, FedEx has been able to respond quickly, making the necessary adjustments to minimise impact to our customers.

FedEx has played a critical role in transportation of COVID-19-related supplies, including but not limited to PPE, clinical trials, and medical equipment into and across Europe, and around the world. We’ve delivered over two million face masks across Norway, over five million masks from China to Belgium and have also shipped over 2,000 protective screens to shops and pharmacies across the UK, to name a few.

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During the pandemic, we’ve seen the need for a connected supply chain become ever more apparent. One small breakdown in a complex network can have a major impact for businesses during uncertain times. A connected supply chain will help ensure visibility for every link in the network, allowing all parties to respond to any possible changes to the shipment. For example, the pandemic has driven a rise in demand for business-to-consumer trade, with some domestic suppliers struggling to keep up, while urgent shipment of medical supplies internationally has added to this pressure. Thanks to a connected supply chain network, FedEx has been able to prioritise handling of medical and humanitarian supplies for our partners and non-profits, while continuing to support existing customers.

As a direct result of the information-intensive nature of our operations, FedEx has been able to quickly respond to this shift in demand. We are one of the few companies globally with the capability to keep commerce moving while responding to the added demand for emergency aid. We are protecting our customers’ base volumes to the greatest extent possible and working together to find solutions, something which is especially important for the millions of small businesses that depend on us.

If recovery from this pandemic offers an opportunity to reset our ways of working, it is time to bring the essential role of logistics to the forefront of everyone’s minds. Without the agility, flexibility and efficiency of essential service providers, we would be facing a radically different situation in terms of supporting those who need it most. Robust logistical networks will continue to connect countries around the world, ensuring the flow of goods and commerce as we face an uncertain economic future.

By Jon Stockton, VP Ground Operations UK, FedEx Express


Sumber :
https://www.supplychaindigital.com/data-and-data-analytics/how-logistics-became-essential-service-during-covid-19

Coca-Cola’s Supply Chain and Logistics

What Makes Coca-Cola’s Supply Chain and Logistics So Great?

Coca-Cola is almost everywhere. Name a country and you will find them there. According to Market.us, over 10,000 Coca-Cola soft drinks are consumed globally per second. That’s incredible!

Also, the company tops the chart of the world’s most chosen consumer brand, according to a report by Kantar, a leading data, insights, and consulting company.

The credit for their success goes to the mammoth supply chain network of Coca-Cola and their logistics process. In fact, Coca-Cola’s supply chain management system is one of the widest and most seamless operations in the world.

But, how did they build such a powerful system?
What lies behind the supply chain of Coca-Cola?
What technologies do they use?
What’s their supply chain strategy?
Below, we answer all these questions. Read on.


Focus on Local Sourcing

Coca-Cola operates at a local level. According to the company’s website, they have 225 bottling partners worldwide.

So, the Coca-Cola drink arrives at these partner plants in the form of a concentrate. The soft drink is then prepared at the partner bottling plant by turning the concentrate into syrup and then turning that into the product by mixing it with water, carbon dioxide, and sugar, all of which are sourced locally.

The local partners can only choose the type of sugar to be used. In America, sugar from corn syrup is used. In Europe, mainly beet sugar is used. In Asia, cane sugar is used.

After all the local processes are finished, the finished product is packaged and delivered to customer outlets.

Coca-Cola mainly sources locally because it optimizes the supply chain, with the company needing to set up manufacturing plants close to where the sugar is grown. The less time it takes for sugar to be delivered to the processing plants, the fewer risks persist throughout the supply chain.

Another reason is that Coca-Cola wants to contribute to the socio-economic development in the countries where they conduct business.

Since the company places great importance in forming partnerships with the suppliers, the Coca-Cola supplier network is very strong. This allows Coca-Cola to deliver products faster to local stores.


Real-Time Visibility
The management at Coca-Cola Consolidated, headquartered at Charlotte and the largest Coca-Cola bottler in the US, realized that real-time visibility could make the distribution process better.

The challenge was that products needed to be moved from the many manufacturing units and they needed to be on store shelves within 48 hours. Often, it happened that the unloading crew at the distribution center would be sent home when inbound trucks to the warehouse were within an hour of arriving because the warehouses had no idea where the delivery trucks were.

So, the company partnered with a leading real-time visibility solution provider to integrate GPS enabled logging devices to the delivery trucks. With this solution, Coca-Cola Consolidated can empower its warehouses, planning department, and production functions to operate with better information. They can also improve execution with better coordination.

This is because Coca-Cola Consolidated now has better visibility into its own operations. They can use reliable data to communicate better with key partners, which include transportation companies in charge of the deliveries. This would not have been possible without GPS tracking.

There are also many other benefits of adopting a commercial GPS tracker. For example, you can ensure driver safety, manage drivers efficiently, cut down unnecessary transportation expenses, and save on insurance premiums. Find out how GPS tracking benefits your competitors and why you should use one.


Route Optimization Technology

Coca-Cola Enterprises (CCE) is the world’s largest producer and distributor of Coca-Cola products. It distributes Coca-Cola concentrate to some of the bottling plants. It also distributes the bottled and canned beverages from the bottling plants to the distribution centers and from the distribution centers to the final retail outlets.

It’s such a big distributor that its fleet in the US is the second-largest, after the US Postal Service’s fleet.

CCE faced numerous challenges. Certain orders and outlets required specific vehicle types and equipment. For example, military bases required certain vehicles, while the centers in large cities required the use of small truck types.

Many outlets also required CCE to deliver products either before they open or after they close. So, the time windows for delivery are really compressed. At the same time, a driver’s working hours and start time must conform to the Department of Transportation (DOT) rules about service hours. Moreover, traffic patterns in certain areas needed to be avoided, such as city centers during rush hours.

They thus needed to assign all the delivery orders in the correct trip sequence so that they are carried out by available vehicles and at a minimum cost while respecting all the constraints. CCE sought a solution that would fulfill this objective.

The answer was route optimization technology. So, CCE implemented a route optimization model that assigned all retail outlets to trips (including their sequence of visiting) and assigned all trips to existing truck fleets and available drivers in a way that allowed CCE to minimize the overall cost while satisfying all the constraints.


The results were outstanding.

CCE had a flexible planning process that was responsive to changes in customer demand. The efficient routes also meant that there were fewer miles driven, less fuel consumed, and less carbon dioxide emissions.

Also, deliveries were made on time. Because of all this, they managed annual cost savings of $45 million and improved customer service.

And it’s not just Coca-Cola. Route optimization software is a must-have for every field service business to plan accurate and fuel-efficient routes.

The best route planners only require you to input customer addresses to the system and set some parameters. That’s it.

The delivery scheduling software will then provide you with well-optimized routes while factoring in weather; traffic; sunrise and sunset times; weight, load, and height capacity; avoidance zones; left turns; and more. And, it does all this in just 30 seconds.


Also, an advanced route planner comes with a geocoding feature which automatically rectifies any wrong customer addresses entered into the system to ensure zero failed deliveries.

But, that’s not all a delivery route planner has to offer. Read the nine benefits of investing in dynamic routing technology.


Direct to Store Delivery (DSD)

Direct to Store Delivery (DSD) allows Coca-Cola Refreshments and other Coca-Cola bottlers to deliver directly to convenience retail stores from their production facilities, without going through a regional distributor.

Generally, an account manager visits the store to discuss business-building opportunities, checks the in-outlet presentation of products, and writes an order for product replenishment. The order is then delivered to the store typically within 48 hours. The driver stocks the shelves with new stock rotates the product items and fills the coolers. This process usually happens once a week, but can be more or less frequent, depending on demand.

DSD ensures that Coca-Cola products are in stock and properly displayed to drive sales. Convenience retail store owners also get the support of professionals who are dedicated to serving small format outlet owners.

Also, by cutting out secondary or tertiary distribution centers, the items spend more time on the store shelves which minimizes the possibility of damage, since the items are touched by fewer intermediaries.

You too can do DSD with the help of an advanced delivery route planner app like Route4Me.

Route4Me receives the orders directly from your order management or point-of-sale system and optimizes the routes to your direct retail locations.

Our route optimization engine takes over 20 other constraints into account, including road restrictions, weight, and the receiving store’s loading dock time windows.

It also considers volume, so you won’t cube out your vehicles. Plus, our tracking capabilities permit staff at each receiving retail locations to see where the inbound vehicles are located in real-time. This reduces dwell time at the retail locations.


Warehouse Automation

CCE uses an Automated Storage and Retrieval System (ASRS) in many of its factories.

In this way, the facilities are designed to hold and automatically move nearly 30,000 pallets through the warehouse. This doubles the site’s storage capacity and allows all manufactured products to be delivered to the customers directly.

ASRS also addresses the inadequacies of traditional warehouse systems and equips facilities to seamlessly handle finished products and track them with detailed precision everywhere from the moment they are created to delivery at the designated outlet.

In addition to automating their warehouses, Coca-Cola is using robotics and automation to overhaul its supply chain and logistics. They had integrated standardized automation into their production lines long ago.

The goal of automation is to deliver an expanded and automated operational structure with larger capacities, lower operation costs, and reduced materials handling.

You can also automate your warehouse operations by switching from barcodes to RFID tags and optimizing pick-and-pack routes. Learn how a multi-stop route planner can help automate your warehouse operations.


Performance Monitoring

A wholly-owned subsidiary of Coca-Cola Consolidated, Red Classic, which is also its transportation provider, developed a system whereby weekly Sales and Operations Execution (S&OE) calls engaged teams in reviewing past performance and addressing weekly demand and supply fluctuations.

With greater awareness of critical performance data, the teams could make a timely inventory and transport adjustments based on real-time data. This made the Coca-Cola supply chain management lean and more efficient.

Fortunately, a route optimizer comes with a reporting and analytics feature that gives you all the critical data you need to monitor your team’s performance and improve your operations. The collected data include:

Distance (Planned vs. Actual)
Stops (Planned vs. Visited)
Time (Planned vs. Actual)
Routes per Day
Average Time on Site vs. Allocated Service Time
Stops per Day (Planned vs. Visited)
Total Gas Cost
Average Trip Gas Cost
Average Gas Price


Other Reasons

There are other things that contribute to making the Coca-Cola supply chain management system great.

Focus on Innovation
The Coca-Cola Company is always ready to adopt emerging technologies. CCE  seamlessly integrates modern innovative technologies into its supply chain. For example, it uses 3D printing to manufacture bottles and cans for its drinks.

Long-Term Relationships with Retail Partners
Coca-Cola has proven itself to be one of the most valuable and reliable suppliers for its retail partners. For example, the company has been growing together with McDonald’s since 1955.

Close Collaboration with Bottlers
The Coca-Cola Company provides a standard set of guidelines for all of its bottling partners. As a result, most of the strategic decisions are centralized.

Global Supply Chain Council
One reason why the supply chain of Coca-Cola is so efficient is that there is a Global Supply Chain Council that focuses on adhering to Coca-Cola supply chain strategies.

Quality Control
Coca-Cola has strict quality requirements when it comes to manufacturing practices. For example, Coca-Cola HBC, a bottling franchise partner of CCE, requires quality, environment, and health safety certifications from its suppliers.


Conclusion

Following Coca-Cola’s example, many companies are constantly looking to improve their supply chains. So, they are keeping themselves abreast of the supply chain management trends.

There is a unique amalgamation of advanced technology and the right strategies that make the Coca-Cola supply chain management system one of a kind. This contributes to making the Coca-Cola company the leading soft drink company in the world.


Sumber :
https://blog.route4me.com/2020/08/makes-coca-colas-supply-chain-logistics-great/