YOGESH PATADE

Hindustan Coca Cola Beverages Pvt. Ltd.

SCOPE & OBJECTIVES

SCOPE OF THE PROJECT: 1: Performance improvement and cost analysis of an outbound logistic operation of the company. 2: Scenario : MUMBAI unit of the company. OBJECTIVES OF THE PROJECT: 1: Overall analysis of performance improvement measures in outbound logistic operation. 2: Optimization of the cost transportation of primary dispatch of finish goods. 3: Reduced lead time and improved customer service in an effective and efficient way.

Infrastructure planning and development

Customer & Distribution Service

Demand and operation Planning

Coca Cola Value Chain

Warehouse & logistics

Manufacturing

Production Plant Packaging & QC Plant Warehouse

Outbound Logistic

Palletized Truck Loading Unloading at Warehouse Warehouse Storage Loading of Route vehicles

Route Vehicles in market

SWOT analysis of Outbound Logistic operation of HCCBPL , Mumbai. STRENGTHS

Long term existence in business. Committed logistic team. Long term contracts with transporters. High financial potential for investment. Good relation with vendors. High risk appetite for experiments. Privatization of route vehicles (asset).

WEAKNESSES
Real time vehicle tracking. Forklifts at warehouses. Warehouse Infrastructure. Labor Management FIFO of stock at warehouses. Loading-Unloading bay space. Higher inventory level. Computerization of gate entry at warehouses. Training system to drivers and labors. Dependency on C&F agents.

SWOT analysis of Outbound Logistic operation of HCCBPL , Mumbai. OPPORTUNITIES

Integration with ERP. Restructuring of distributor dispatch model. Route Planning For Secondary Dispatch Lean Six Sigma logistic implementation. Collaborative Planning ,Forecasting and replenishment.

THREATS
Increasing cost of transportation. Increasing Turnaround time. Maintenance cost of vehicles. Market competition. Road traffic in Mumbai. Rising fuel prices.

OUTBOUND LOGISTICS OPTIMIZATION SOLUTIONS / RECOMMENDATIONS

PRACTICAL APPROACH
Truck Tracking System Integration with ERP. Restructuring of distributor dispatch model. Route Planning for Secondary Dispatch.

STRATEGIC APPROACH
Lean Six Sigma logistic implementation. Total Logistics Cost Concept Collaborative Planning, Forecasting And Replenishment

VEHICLE TRACKING SYSTEM

Effective planning & scheduling of vehicles. Vehicle Performance monitoring. Speed violation, stoppage, deviation from the actual route etc. Fuel/ oil consumption, load carried etc. Communication in emergency management. Improve the Mileage of Vehicle. Route Allocation & Planning. Emergency Handling. Reduce idle time and detention. Effectively coordinate the vehicles in case of emergency.

INTEGRATION WITH ERP

A totally integrated system The ability to streamline different processes and workflows The ability to easily share data across various departments in an organization Improved efficiency and productivity levels Better tracking and forecasting Lower costs Improved customer service

RESTRUCTURING OF DISTRIBUTOR DISPATCH MODEL

Distributor Place an order offline SKU availability check up at warehouse Credits check up & finance approval Release order to fulfillment Order loading and dispatch

Schematic diagram of Distributor Dispatch Model at Coca Cola

Check Distributor Inventory online

Take the order of SKUs which are below the predefined level

Credits check up & finance approval

Release order to fulfillment

Order loading and dispatch

Schematic diagram of Recommended Distributor Dispatch Model

ROUTE PLANNING FOR SECONDARY DISPATCH

BENEFITS Reduction in miles driven. Reduction in vehicles. Reduction in overtime. Reduction in routing time. Increased vehicle capacity. Dramatic improvements in driver management. Dramatic improvements in customer service.

LEAN SIX SIGMA LOGISTICS MANAGEMENT

Logistics is about managing inventory Lean is about speed, flow and the elimination of waste ( inventory) Six Sigma is about understanding and reducing variation.

Lean Six Sigma Logistics can be defined as: The elimination of unnecessary inventories through disciplined efforts to understand and reduce variation, while increasing speed and flow in the supply chain.

COLLABORATIVE PLANNING, FORECASTING AND REPLENISHMENT

SOLUTION BENEFITS

Reduction in transportation cost per case in primary dispatch. Annual logistic cost saving. Reduction in lead time, transit time and turnaround time. Point-to point information regarding the status of the dispatches. Efficient Route vehicle routing and performance. Improved asset utilization. Improved customer service. Improved distribution channel.

Thank You