FOCUS ON: The Beverage Supply Chain » INSIDE Supply Chain Considerations . . . 2 ERP Overview. . . . . . . . . . . . . . . . . 6 Supply Chain Partners . . . . . . . . . 8 Mobile Solutions . . . . . . . . . . . . . 15 What Retailers Want . . . . . . . . . . 18 Warehouse 101: Racking . . . . . . 20 Supply Chain Resources . . . . . . 22 SC CONSIDERATIONS Taking Initiative It seems every beverage operation is looking for supply chain efficiency, but what are the factors you should consider before investing in new supply chain initiatives? By William Atkinson U p until 10 or 15 years ago, the term “supply Nate Rosier, director, supply chain practice, for chain” did not even exist. Back then, pur- supply chain consulting firm CIBER Inc. chasing was purchasing, warehousing was (Greenwood Village, CO, USA) specializes in supply warehousing, transportation was transporta- chain initiatives for the beverage industry. “A lot of tion and each function operated in relative isolation beverage distributors have inventory management from one other. challenges,” he points out. “For example, a lot of our Today, most companies are looking for ways to clients import products from around the world or integrate these and additional functions into a buy from smaller suppliers that still don’t even holistic supply chain strategy. “Supply chain execu- place bar codes on their products or send advance tion involves how well things move through the shipment notifications.” In addition, Rosier says supply chain—the operations that occur from the that a lot of beverage distributors are still behind raw materials delivered to a manufacturer, then to the curve when it comes to the implementation and the distributor, and finally to the customer,” usage of supply chain technology. explains Chad Collins, director of product strategy for HighJump Software (a 3M Company), in Eden Getting Started Prairie, MN, USA. HighJump provides supply chain The first step in creating and/or improving your software that has a num- supply chain is to identify your goals. Overall goals ber of applications of supply chain management processes for distribu- specifically for the bev- tors generally focus on efficient and accurate erage industry. receiving, inventory accuracy, effective slotting, While more and more flexible replenishment, multiple picking options, companies are seeking increased warehouse productivity, reduced returns ways to coordinate and and flexible exception handling. streamline their supply “When looking at supply chain investment, it is chains, the overall task important to determine what your goals are, then can be daunting. develop an effective roadmap for investing in your Companies face myriad supply chain,” states Cal Petty, director of supply challenges, including chain practice for CIBER, who specializes in appli- increasing transporta- cations and implementation. tion costs, growing Advanced planning cannot be overemphasized. retailer influence, tight- There is a story of a supermarket chain that imple- ening requirements for mented an expensive routing and scheduling soft- fast order fulfillment, ware package in its eight distribution centers. Then, SKU proliferation, physi- a year later, it began to question just how many dis- cal labor constraints and tribution centers it needed in the first place. the demand for consis- Next, decide whether your supply chain improve- tently “perfect orders.” ment project is one you can handle on your own, or Indeed, these very chal- whether you need a consultant. It’s a trade-off lenges are what make between cost and internal resources. While consult- supply chain manage- ants can be expensive, your organization may not ment so important to have the internal expertise necessary to handle the embrace. project on its own. And even if you do, you may 2_BEVERAGE WORLD_SEPTEMBER 2006 BEVERAGEWORLD.COM not be able to pull these people away Calm After the Storm from their regular jobs. If you do opt CIBER, Inc. offers specific warehousing solutions for distributors in to hire a consultant, find one who the wine and beer space. “We have teamed up with HighJump for has specific experience in the bever- this because they have a broad base of warehouse and transporta- age industry. tion capabilities,” explains Cal Petty, director, supply chain practice Whether or not you hire a consult- for the Greenwood Village, CO, USA-based company. One satisfied customer is Major Brands Premium Beverage ant, it is important to create an inter- Distributors, one of Missouri’s highest volume distributors of wine nal steering committee to oversee and spirits. With 4,500 SKUs, Major Brands is managing more than the project, plus a design team to 260,000 cases of inventory, with its shipping department handling actually implement the project. up to 15,000 cases and 20,000 individual bottles per day. CIBER conducted a Logistics Improvement Analysis (LIA), then looked at ways to improve the operations. The results showed that The Initial Assessment the distributor’s significant Once you know your goals, it is growth outpaced the capabil- important to determine what your ity of its manual inventory current situation is and what steps management system. can be taken to make the necessary CIBER recommended a warehouse management sys- improvements. One tool that can tem (WMS) that would track help is CIBER’s Logistics inventory from receipt to Improvement Analysis (LIA). LIA shipment, while offering flex- analyzes your complete distribution ible architecture to accom- operations, including warehouse sys- » modate future growth. A A NEW WMS helped Major Brands reduce number of layout changes, tems and transportation systems labor costs, increase picking accuracy and material handling conveyor (both inbound and outbound). It boost customer satisfaction. and sortation changes, and a determines how your supply chain voice-picking solution also were recommended. processes are performing, including The changes resulted in labor savings and other operational effi- shipping and receiving, slotting and ciencies for the distributor. Returns volume was cut by more than 80 percent, put-away labor by 22 percent and receiving accuracy storage, order picking and replenish- increased by 90 percent. “We now have the infrastructure neces- ment, work measurement and inven- sary to keep pace with the high-volume replenishments driven by tory management. our continued growth,” reports Patrick Quinn, vice president of “The Logistic Improvement administration for Major Brands. “We are losing our ‘fire drill’ Analysis helps the company identify mentality and seeing more sound and calm production.”—W.A. where it can make improvements in its supply chain to achieve best practice perform- planning (ERP) and others. ance,” explains Rosier. “We compare the company’s One popular technology is HighJump’s Supply operations to best practice metrics that we have Chain Advantage, a suite of products that deals gathered for this and other industries. We then with supply chain execution, all the way from raw show the company the best path to take to achieve materials to the end customer. The technology best practice performance.” This could involve helps to improve fulfillment efficiencies, meet cus- things such as changing the way products are slot- tomer-specific requirements, optimize ted in the warehouse, changing the layout of the loading/unloading processes and achieve supply warehouse, making material handling changes or chain visibility by showing users where various introducing equipment and/or technology tools. shipments are in the supply chain. “We then explain what type of investment might be Two of the most popular features within the required for the recommended options,” he adds. Supply Chain Advantage suite are Transportation While technology is often part of the solution, Advantage and Warehouse Advantage. this isn’t always the case. “We don’t always start out Transportation Advantage helps handle the build- with technology,” explains Rosier. “We have a num- ing of loads for delivery to get products to cus- ber of technology partners, and we recommend one tomers. “Transportation Advantage looks at the or more of them when it makes sense.” These can number of stops a truck might have to make when include material handling, voice picking, warehouse delivering a particular route and optimizes these by management systems (WMS), enterprise resource creating a least-cost model for creating the route,” BEVERAGEWORLD.COM SEPTEMBER 2006_BEVERAGE WORLD_3 explains HighJump’s Collins. “It also facilitates the addition to longer-term paybacks. communication of the transportation requirement “Supply chain execution systems can range from to your transportation providers, helps you procure $50,000 to over $1 million, based on the number of the transportation, tracks the shipments once you modules purchased and the scale of deployment,” ship the product, captures proof of delivery infor- points out HighJump’s Collins. “Most companies mation and manages finances when the transporta- treat enterprise software purchases as a capital tion provider bills you.” investment and finance that investment in a man- Warehouse Advantage is useful to everyone in ner that is appropriate for their business.” the industry, especially those that deliver directly to According to CIBER’s Rosier, clients tend to deal stores. “Here, the challenge is how to prepare the with supply chain project finances in one of three goods to be placed on the trucks at the warehouse ways. “Most companies we work with are making in a ‘direct store delivery model,’” notes Collins. improvements to their supply chains because they “That is, you need to stage them for the drivers who are growing,” he explains. “Since they are growing, will be going through the front door of a grocery they usually have cash, so they often use this, espe- store and maybe even doing some merchandising.” cially if it is a smaller investment.” Warehouse Advantage is a WMS that controls all of The second most common method is to capitalize the operations related to receiving inbound inven- the project and work with their regular bank. tory and managing inventory at a very detailed “This is the most common arrangement when a location level, including lot tracking, stock rotation large investment is involved,” he continues. A third based on expiration dates, etc. and preparing goods option may be to arrange a lease deal with the for shipment to end customer. vendor so that you can allocate the costs over a period of years. Financing Supply Chain Projects HighJump’s Collins offers an additional recom- Before investing in a supply chain project, it is mendation related to financing: “When purchasing important to conduct an analysis to determine costs software, look at total cost of ownership over a peri- and anticipated cost savings. One way to keep od of time, such as five years, rather than just the everyone in management satisfied is to look for a initial price,” he suggests. system that can provide some quick paybacks in For example, if distribution requirements change, how much will it cost to change the soft- ware? Requirements may change as a result of the product mix changing, business expanding or taking on new channels of business. As such, you need software that is flexible enough to meet future requirements. Another issue to take into account when considering financing options is to decide how big a bite you want to take at one time on your supply chain improvement initiative. That is, while it is conceivably possible to design or redesign your supply chain from “soup to nuts” at one time, doing so is rarely recommended, except as part of a greenfield endeavor. According to Rosier, supply chain improvements are often best tackled in stages where the efficien- cies created by the first steps are incorporated into later steps, ensuring that the sum will be greater than its parts. “There is only a certain amount of change that you can successfully manage at one time,” advises Petty. You want to make sure that one phase is working and achieving the results it should, before moving to the next level. BW 4_BEVERAGE WORLD_SEPTEMBER 2006 BEVERAGEWORLD.COM Sponsor Profile ORBIS Corporation ORBIS has added supply chain efficiency and reduced costs by providing reusable packaging expertise to the world’s top bottlers and their suppliers for over 20 years. ORBIS understands the supply chain from raw material to retail and all points in between: preforms, blowmolding, WIP, filling, distribution and merchandising applications. “We’ve been in this business long enough that we know the ebbs and flows of the beverage industry so we can plan production accordingly,” says Kevin Geason, Vice President Domestic Beverage Sales for ORBIS. As part of Menasha Corporation, ORBIS is celebrating over 150 years of providing high-quality, innovative packaging products. “We work collaboratively with leading companies to move their product faster, safer and more cost effectively, driving supply chain optimization.” The right pallet, top frame and divider sheet solution can reduce packaging costs and waste, reduce product damage and risk of contamination, optimize automated systems and reduce labor. ORBIS maintains long-term relationships with their cus- tomer base in the Americas, Europe and Asia, with proven results with companies such as Coca-Cola, Ball, Silgan, Gallo, Rexam, PlastiPak, Crown, O-I and St. Gobain. Since ready-to-drink and health-driven products in today’s rapidly changing market are often packaged in "We can provide cost unique PET bottles, they justifications for converting need unique solutions. Along with standardized to plastic reusable packaging. pallets, top frames, divider sheets/layer pads and bulk Our Engineering Services containers, ORBIS offers custom product develop- Group visits a potential ment. customer and assesses their One of the latest stan- dard products launched by material handling and ORBIS is the GP4048 BulkPak for preform PET logistics. Typically the goal bottles and blowmolding is a return on investment in applications. This durable, collapsible bin is available in 8 heights, including 50” for improved shipping efficien- 6-18 months." cy, and stacks securely for storage of preforms (up to 4 high). Its superior cube effi- ciency accommodates a wider variety of product sizes, shapes and weights, and - KEVIN GEASON, VICE PRESIDENT DOMESTIC BEVERAGE allows more parts to be handled, stored and shipped...with fewer containers and in SALES FOR ORBIS fewer trips. The base is contoured with a plastic runner that is designed for use with automated equipment. In collaboration with Precision Thermoplastic Components (PTC), ORBIS now offers a fully enclosed top frame that provides the strength, hygiene and durability needed in today’s beverage systems. The all-plastic, automation friendly top frame is avail- able in four different styles, custom or standard sizes and accommodates a wide vari- ety of identification options. “We can provide cost justifications for converting to plastic reusable packaging,” says Geason. “Our Engineering Services Group visits a potential customer and assess- es their material handling and logistics. Typically the goal is a return on investment in 6-18 months.” Companies can avoid an upfront investment in plastic reusable packaging by using the services of CORBI Plastics, which provides cleaning, pooling and logistics, pallet man- agement and repair services. ORBIS created CORBI in early 2005 in a joint venture with CartonPlast, which has over 20 years experience in the beverage industry in Europe. “Some companies simply send us their products to be cleaned,” says Geason. “For Contact: others, CORBI manages their fleet of packaging so they don’t have to worry about get- Kevin Geason, Vice President ting it to 50 different shipping points. We’re in a collaborative effort with our cus- Domestic Beverage Sales tomers, so they can concentrate on their core business.” (262) 560-5026 ORBIS is the only plastic packaging company that can offer one-stop shopping, (262) 560-7509 fax including recycling. Product Manager Marc Brandt agrees. “We’re not just going to sell email@example.com you a product, we’re going to make sure you get the right product for your application.” www.orbiscorporation.com ADVERTISEMENT ERP OVERVIEW Investing in Integration An enterprise resource planning system can transform your business, but watch out for the pitfalls. By Hank Behar I n April 1972, SAP, currently the world’s tribution, transportation, logis- largest supplier of enterprise resource ERP (ENTERPRISE tics, compliance and the man- planning (ERP) systems, was launched RESOURCE PLANNING): agement of finances, property, Business software that in Mannheim, Germany by five ex-IBM quality, projects, products, integrates, manages systems analysts, which made up its total assets, maintenance, produc- and tracks operational work force. activities across a com- tion, orders, inventory and Today, SAP has almost 38,000 employ- pany, including finances, warehousing. ees, with more than 100,000 installations customer relations, in 120 of the world’s 193 countries. ERP, in human resources, How ERP does it other words, is here to stay. The question is supply chain planning In the not-so-good old days— not whether or not an enterprise should and manufacturing. ERP pre-ERP—a customer order invest in an ERP system, but how far to go systems are designed to traveled through a company on with it. manage and standard- a paper highway, stopping off “ERP takes in a lot more these days than ize operations to reduce at each department to enter business costs and it used to,” says Ray Wang, principal ana- data into the department’s com- increase efficiencies. lyst at Forrester Research (Cambridge, MA, puter system—a process that USA), an inde- lent itself to keying errors, lost pendent technology papers and inbox-to-inbox delays, as pointed out in research company that CIO Magazine’s report, “The ABCs of ERP” (January helps companies choose 10, 2006). ERP vendors and under- With ERP, however, all those stand-alone comput- stand the ERP universe. er systems are marshaled together into a single, “At one time, a compa- unified software program that takes over each ny’s ERP system would department’s functions. focus on just a few func- Each function still retains its own discreet tions such as Supply software system, but ERP links them together so Chain Management or that when a customer order is entered into the Financial Management system, its path toward fulfillment is directed and or Human Resources, tracked so that its status can be determined at any but today ERP encom- given point. passes every aspect of For enterprises that already have an ERP system an enterprise. It’s diffi- in place, the question is whether to upgrade it to cult to imagine how a cover more functions. Vicki Griffith, marketing company can stay com- director of Lawson Software (Minneapolis, MN, petitive without an ERP USA), which serves many food and beverage enter- system in place.” prises, notes that one objective in expanding an Some of the core func- existing ERP system would be to integrate a ware- tions that are now house system to a company’s logistics system in included in ERP systems order to improve the visibility of inventory, are human resources, whether it’s on a truck, in a warehouse or at the sales force automation, supplier. The result would be a reduction in inven- field service/market sup- tory requirements, maximizing the company’s port, procurement, dis- working capital, which an open system like Lawson 6_BEVERAGE WORLD_SEPTEMBER 2006 BEVERAGEWORLD.COM M3 is designed to do. In the case of enterprises that have no ERP system, Glenn Irwin, solutions manager in con- sumer products at SAP (Atlanta, GA, USA), advises them to identify their core needs and seek out the vendors that specialize in those functions. A soft drink bottler, for example, might focus on its DSD operation as an area to explore for greater efficiency, or a beer distributor might pinpoint inventory control and truck maintenance as two functions that need updating. The next step would then be to put together an RFP or RFI, asking what support is offered to meet the company’s needs, and whom the vendor recommends as implementation partners. For small or medium-size businesses seeking cost-effective programs, Oracle Corporation (Redwood Shores, CA, USA), the world’s leading supplier of software for information management, Caveat Emptor offers JD Edwards EnterpriseOne Rapid Start, a As even the staunchest proponents of ERP would package of pre-configured software, hardware and testify, ERP’s many benefits are not easily achieved. services featuring “accelerated implementation” that Data Blueprint, a research and development center delivers a deployed, live solution in as little as 14 affiliated with Virginia Commonwealth University weeks, trimming consulting and configuration costs (Richmond, VA, USA), offers these cautionary sta- by as much as two-thirds. Lenley Hensarling, vice tistics gleaned from its research paper, “ERP president and general manager of JD Edwards Considerations.” Published in the fall of 2002, the EnterpriseOne, notes that JD Edwards stats, if anything, have become more negative in EnterpriseOne is the first enterprise ERP solution the interim, says Peter Aiken, its author and found- with “specific functionality” for the food and bever- ing director of the center. age industry integrated across core ERP business • Only 10 percent of ERP implementations succeed activities using a common database. Its newest with full functionality within the forecast period. release, version 8.12, debuted in April. • Cost overruns average 178 percent. “We’ve been working in the beverage industry for • Schedule overruns average 230 percent. 15 years,” says Hensarling, “and have developed a • Implementation functionality averages 41 level of expertise that enables us to offer modules percent of what was desired. that meet business needs for blend management, • 40 percent of the projects in a Conference Board grower pricing, payments and contract manage- Survey failed to achieve their business case within ment, order management, order fulfillment, distri- one year of going live. bution, customer management and production Most “failures” associated with ERP are due to across the entire supply chain.” unrealistic expectations and procedural errors. It’s Randy Johnston, vice president of K2 Enterprises more productive, for example, to change the busi- (Hammond, LA, USA), which conducts seminars ness to fit the system, rather than tinker with the and conferences on technology, advises prospective system to fit the way a company does business. ERP users to look at both product fit and quality of But when all the roadblocks have been cleared support from the local vendor. And, he cautions, and an ERP system has been installed, then, as pro- “don’t skimp on training,” since a new system fessed in “The ABCs of ERP” (CIO Magazine, might work quite differently from the old and you January 10, 2006): “With luck, the order process won’t get projected results without proper training. moves like a bolt of lightning through the organiza- One tip is to videotape sessions teaching about the tion, and customers get their orders faster and with systems and use software tools like Camtasia to fewer errors than before…That, at least, is the record step-by-step instructions on the software. dream of ERP.” BW BEVERAGEWORLD.COM SEPTEMBER 2006_BEVERAGE WORLD_7 ASSET MANAGEMENT Supply Chain Partners Finding the right partner to help manage assets can reduce operating costs and headaches. By William Atkinson W ith raw materials shortages and cart- storage needs, the keg collection time lag ties up ing and disposal costs rising, manag- the funds the distributor has laid out in keg ing assets such as kegs, pallets and deposits and requires brewers to float more kegs shipping containers can be as expen- than necessary. sive as it is space- and time-consuming. These rela- While some of these smaller suppliers run their tively small links in the beverage supply chain are own keg return program in an effort to alleviate costing beverage manufacturers and distributors the problem, others utilize “common keg” programs, plenty in terms of labor, space and financial costs. like Kegspediter, a keg return program created by But teaming up with the right third-party logistics Satellite Logistics Group (Houston, TX, USA) in provider can help take them out of the red. 1990 to address logistics issues in the beverage supply chain. Calling All Kegs The typical customer of the Kegspediter program With steel prices continuing skyward, empty is a brewery or a beer importer. “We collect kegs kegs are disappearing from restaurants, bars and from the distributors and return them to the brew- distributor lots and being sold for as much as $50 eries so they can be filled again,” explains Kevin each. While large brewers may be able to sustain Brady, president of Satellite Logistics Group. But such losses, smaller brewers with small keg inven- the program benefits all parties: it reduces the need tories occasionally may be required to halt produc- to find additional space for keg storage; reduces the tion or purchase new kegs in order to meet season- risk of keg theft; allows brewers to use existing keg al demand due to losses of existing kegs and dis- inventory more efficiently and helps distributors tributors risk losing their get their deposits back a lot more quickly. keg deposits. “The overall benefits to everyone are that, with There are other costs the strong inventory management system we have associated with inefficient and the fact that distributors end up being able to keg management systems, return their kegs more quickly, it cuts down on keg as Scott Trotter, warehouse thefts, damage and other losses,” adds Brady. manager for Crescent Crown The Kegspediter program recently was enhanced Distributing (Phoenix, AZ, to include features related to forecasting, on-line USA), points out. The com- services, e-mail count requests, wholesaler count pany distributes Miller, confirmation, new deposit notification methods Coors, Pabst and other and a new invoicing format. For example, distribu- beers. “With our large sup- tors can update keg quantities instantly on a secure pliers, we return kegs to website. As a result, they can set customized sea- them once we get truck- sonal peaks, such as Spring Break in Fort load quantities; there’s no Lauderdale, ski season in Colorado or St. Patrick’s problem because it doesn’t Day in Boston. Brewers also can set regional, sea- take long,” he states. “But it sonal and marketing initiatives by specific brands, can take a year to end up based on their own needs and the needs of their with a truckload on some distributor networks. “We improved the system last brands, so we end up hav- year in order to provide better on-line visibility to ing to store these kegs for customers, so they can see where the kegs are and a long time.” In addition to so they can issue credits to the distributors,” adding to the distributor’s explains Brady. 8_BEVERAGE WORLD_SEPTEMBER 2006 BEVERAGEWORLD.COM THERE IS A REASON WHY 6 OF THE TOP 7 GLASS BOTTLE MANUFACTURERS WORK WITH ORBIS. * ORBIS helps manufacturers move their product quickly, safely and ® hygienically with plastic pallets/top frames and CORBI divider sheets. TM And now, pooling and cleaning is available, through CORBI Plastics, to TM maximize your investment. Why ORBIS ? Finding opportunities for you to ® reduce costs with reusable packaging is our mission. Want to know more? Contact us to schedule your FREE Packaging Optimization Study. 1.800.230.8136 www.orbiscorporation.com We’ll handle it. *Source: D&B 2006 Pallets Progress lion reusable pallets and containers to serve the When it comes to managing pallets, there are a needs of more than 300,000 customers in 42 coun- number of options to consider beyond the tries. In the US, the program involves about 75 mil- expensive option of paying to maintain and, ulti- lion standard pallets. mately, have wood pallets hauled off. Consider the CHEP issues ready-to-use pallets and containers three options employed by Crescent Crown from its service centers to manufacturers (including Distributing, which uses a combination of methods bottlers and brewers), which load their goods and in order to manage its needs and those of its many ship their products through the supply chain. At suppliers. the end of the supply chain, the retailer or distribu- First, the distributor is involved in a pallet tor off-loads the goods and returns the pallets to the deposit program, where it pays deposits on the pal- nearest CHEP service center. “When we get them lets from the suppliers, then returns them to get the back, we inspect them and repair any damage, then deposits back. But, since the distributor’s supply of issue them to another manufacturer,” explains Per Coors doesn’t arrive on pallets, Crescent Crown has Ohstrom, director of marketing for the company. to supply its own. “We were purchasing standard “Most customers return pallets to us in full truck- grocery pallets for years, but these became inefficient,” loads, because it is more expensive to return them says Trotter. “Now, we purchase recyclable plastic in less than truckload quantities.” One benefit is pallets, which we own, and it has worked out well.” that companies no longer need to purchase pallets In other cases, the distributor ends up with one- and repair damaged ones. way wood pallets that are used in the shipment of One satisfied user is Aurora Organic Dairy import beers. “The problem is that we are getting (Boulder, CO, USA), the nation’s leading producer more of these one-way pallets, and they are difficult of private label organic milk and butter. Aurora is to dispose of,” says Trotter. “This is especially true shipping its products to retailers via CHEP pallets, as we sell more imported beer.” The pallets are which then are entered into the pooling program. expensive to take to the dump, and they end up tak- While Aurora found the cost factor to be attractive, ing up a lot of space around the facility. it also liked the environmental benefits—having Issues like these can be alleviated by participa- customers be able to recycle pallets instead of dis- tion in a pallet pooling program like those managed carding them. “We are already seeing improve- by CHEP and ORBIS. ments in ordering and reporting with the CHEP CHEP (Orlando, FL, USA) manufactures wood pooling program, and expect to see decreased pallets for use around the world. The company also costs,” reports Clay Powell, plant superintendent. offers a pallet and container pooling system that ORBIS Corporation (Oconomowoc, WI, USA) allows the use of the company’s standard (48- x 40- manufactures plastic pallets and shipping contain- inch) pallets and containers by multiple customers or ers that can be returned and reused via a pooling, users. CHEP currently provides more than 265 mil- cleaning and logistics program, which ORBIS arranges to have handled by CORBI Plastics (DeForest, WI, USA). The program is focused on shipments between container suppliers and manu- facturers. “The program starts with the can and glass manufacturers, which ship their products to customers who fill the cans and bottles with soft drinks or beer,” explains Jack Graham, president of CORBI. Customers include Anheuser-Busch and Coca-Cola. “We collect the pallets from the brew- eries and bottlers, clean and inspect them, then redistribute them to the can and glass manufactur- ers,” explains Roy Hasenfratz, director of pooling. The end result is a streamlined material handling system that allows both manufacturers and contain- er suppliers to focus their financial, physical and labor resources elsewhere, which is what effective supply chain management is all about. BW 10_BEVERAGE WORLD_SEPTEMBER 2006 BEVERAGEWORLD.COM presents OPER ATIONS November 13-15, 2006 THE PHOENICIAN Phoenix, Arizona What is BevOps/Beverage Fleet Summit? • Education on pressing beverage supply WAREHOUSING chain issues • Hands-on discovery of the latest in beverage facility and fleet operations • Networking among beverage professionals and suppliers www.beverageworld.com/conference FLEET The premier event for beverage operations, warehousing and fleet management EDUCATION Agenda at a Glance Monday Nov. 13th 11:00am-11:30am Concurrent Educational Sessions #4: 9:00am-5:00pm Registration open WAREHOUSING: The Art & Science of Warehouse Design, Part 1 12:30pm Golf Tournament FLEET: Driver Recruitment and Training 12:30pm Bondurant School of High Performance Driving – OPERATIONS: Leverage Your Assets: From Delivery limited availability Vehicles to Excess Capacity, Discover Untapped Value in Your Operation 7:00pm Welcome Reception and Dinner at Jokake Inn 11:30am-Noon Concurrent Educational Sessions #5: Tuesday Nov. 14th WAREHOUSING: The Art & Science of Warehouse Design, Part 2 7:00am-5:00pm Registration open FLEET: Beverage Fleet Specifications 101: How to 7:30am-8:30am Continental Breakfast/Exhibits open Evaluate Your Fleet Needs and Spec Your Vehicles 8:30am-9:15am Concurrent Educational Sessions #1: OPERATIONS: Optimizing Beverage Production to Meet Changing Demand WAREHOUSING: Racking, Picking & Loading Innovations FLEET: Fuel Economy: Minimize Your Exposure to Fuel Pricing 12:15pm-1:15pm Lunch at the West Fountain OPERATIONS: Integrating Packaging & Product 1:15pm-5:15pm Ride & Drive on The Phoenician’s grounds Innovation across the Supply Chain 1:15pm-5:15pm ‘Take a Break’ Beverage Tent – 9:15am-10:00am Concurrent Educational Sessions #2: An oasis at the Ride & Drive WAREHOUSING: Warehouse Management Systems for 1:15pm-5:15pm Beverage Warehouse Tour at Crescent Today’s Beverage Distributor Crown Arizona FLEET: Engines: 2007 and 2010 Considerations 6:30pm-7:30pm Cocktail Reception – Exhibits Open OPERATIONS: Beverage Production Innovations 7:30pm-9:30pm Beverage World Banquet and Awards 10:00am-10:30am Beverage Break/Exhibits open Ceremony – Featuring Wholesaler, Fleet, Plant and Bottler 10:30am-11:00am Concurrent Educational Sessions #3: of the Year Awards and Lifetime Achievement Awards WAREHOUSING: Measuring and Improving Warehouse Efficiency Wednesday Nov. 15th FLEET: Staying Connected: Using Telematics and On- 8:30am-11:00am Keynoter Breakfast- End BevOps/ Board Communication Systems to Optimize Deliveries Beverage Fleet Summit on a high note with breakfast OPERATIONS: DSD Evolution: New Approaches to Beverage while listening to well-known industry speakers Fleet Configuration, Route Planning and Sales Methods 11:00am Conference Close Sponsored by www.beverageworld.com/conference HANDS-ON DISCOVERY: Ride & Drive Facility Tour: Crescent Crown Arizona As beverage distribution methods Keeping up with booming evolve, so do your beverage fleet volume growth has required requirements. The Beverage Fleet Crescent Crown Arizona, a Summit Ride & Drive is designed division of one of the largest to give you a chance to see and beer wholesalers in the US, to experience the latest in beve- employ the latest in warehouse rage fleet technology from the management systems and best truck industry’s leading OEMs. Get a true sense of how practices. The wholesaler moves more than 14 million well these trucks handle on the road and how well cases of Coors, Corona, Miller and dozens of other engine, component, lift gate and body innovations meet brands each year. Join us as we take an exclusive your unique needs by getting behind the wheel and tour of this state-of-the-art facility and see its “kicking the tires” of vehicles speced for the beverage innovative receiving, racking, picking and loading delivery marketplace. procedures at work. NETWORKING OPPORTUNITIES: Welcome Reception & Dinner Beverage World Banquet & Awards Ceremony Kick off the conference with Wild West themed Featuring Wholesaler, Fleet, Plant and Bottler of the Year reception and dinner at the Jokake Inn. Awards and Lifetime Achievement Awards. Golf Tournament Bondurant Racing Event Grab your clubs as we kick off Bob Bondurant’s School of High Monday afternoon with a golf Performance Driving is the largest tournament on the lush. purpose-built facility of its kind in North America. Attendees will Try to win a truck have the unique pleasure of with a hole in one as you racing cars at top speeds on network with your peers. Monday afternoon. REGISTRATION 3 EASY WAYS TO REGISTER! The Phoenician 1 Online: www.beverageworld.com/conference The Phoenician is nestled at the base of CamelBack 2 Call: Kate Grantham 312.456.8816 Mountain in the heart of the Sonaran Desert. Offering 3 Fax: 312.240.0808 Attn. Kate Grantham accommodations of uncommon beauty and style, the Attendee Package includes: Facility tour at Crescent Crown Phoenician has an enticing array of amenities, recreation Arizona, Ride & Drive, all educational sessions, Welcome and pleasures. Indulge in a game of golf on the manicured Reception, Awards Reception and Dinner and all meals. greens and lush fairways of the 27-hole championship REGISTRATION FEES course or unwind at the Tennis Garden or spa. The Phoenician is located just 9 miles from the Phoenix Sky J Beverage bottlers, distributors & franchise companies - Harbor International Airport. $595 J 3 for 2 Special - $1,190 (This special package allows you to bring 3 people from your company for the price of 2!) J Non Sponsoring Suppliers - $1,195 J Golf Tournament - $100 J Bondurant Racing School (limited space) - $100 J Guest Registration - $129 (Bring a guest to Monday’s Opening Reception and Tuesday’s Awards Banquet) Total: Indicate method of payment: Amex J MasterCard J Visa J Card #: Expires: Signature: Name on card (print): BevOps/Beverage Fleet Summit attendees receive a special Zip code associated with $179 per night rate, an extremely gracious room rate for this credit card billing address: five-star resort. If paying by check, please make it out to Beverage World. To reserve your room & $179 rate, call 800.888.8234, Send with completed registration form to: ask for Reservations and mention Beverage World Beverage World or reserve your room online at Attn: Kate Grantham www.starwoodmeeting.com/Book/bek13a 303 E. Wacker Drive, Suite 350 Chicago, IL 60601 Group rate available until Oct. 13, 2006 but guestrooms are limited so make your reservations early! Attendee Information: Please print clearly or attach your business card. For more information on the Phoenician, All information must be completed to process registration. go to www.thephoenician.com Name Title Company Sponsorship Opportunities Address Sponsorships are still available. City If interested in sponsoring State/Province Zip BevOps/Beverage Fleet Summit, Country please contact Kevin Francella Phone Fax at 646.708.7327 or Email firstname.lastname@example.org. How many trucks do you operate? (if applicable) MOBILE SOLUTIONS Keeping in Touch Durability and functionality are the keys to effective mobile transportation solutions. By Amy Zuckerman and Andrea Foote W hen it comes to optimizing your sup- the task more difficult than ever before. While it ply chain, perhaps the most important might be tempting to opt for using inexpensive factor is communication. Investing in consumer technologies—like standard-issue cell mobile technologies that allow the home phones or PDAs—to keep your home office con- office, drivers and sales representatives to engage nected to workers in the field, you have to consider in a seamless exchange of information is the first your needs and the total cost of ownership of the step. Mobile communication solutions allow distrib- hardware, network and software you spec. With utors to achieve real-time reporting, maximize cus- that in mind, the rugged handhelds that have tomer service and capture market data in a way become standard issue in the beverage distribution that informal information exchange cannot match. business seem to be the best option going forward. But without the right tools, mobile solutions can be Symbol Technologies (Holtsville, NY, USA) cites as ineffective as a string between two tin cans. the example of a Cataula, GA man who wrote to tell them he witnessed one of their SPT1800 handhelds The Device get run over twice after falling out of a beverage When your average 13-year-old carries a single, route truck. After retrieving it he wrote: “…despite compact device that enables him to send and the abuse I saw the unit receive, it worked perfectly receive text messages, access the internet, download and I was able to retrieve the owner information audio files, take and transmit photos and, oh yeah, and return the unit.” Try that with your flip phone. make phone calls, can it really be so difficult to find Jeff Sibio, director of transportation and logistics an affordable, effective mobile communications for Mechanicsburg, PA, USA-based Intermec, says solution for your salesmen and drivers? they test their handhelds to exceed military stan- Oddly enough, the proliferation of mobile com- dards, which requires drop testing the device 26 munication options available today may be making times to various surfaces at specified heights. To meet Intermec’s standards, the device can not break, which he says surpasses military test requirements. Sibio also points out that consumer devices don’t have sufficient seal against moisture or dust and just can’t stand up in an industrial setting. Plus, the average turn cycle on consumer electronics is about three months, so you can’t replace them exactly if they break, whereas Intermec guarantees from five to eight years with tech support if needed. Gerald McNerney, senior director for transporta- tion, distribution and logistics solutions for Symbol Technologies, agrees that customers want hardware “that will last for the life of the purchase, which is five to seven years. We’ve had customers who have used our devices for 16 years.” As for consumer electronics, “those products move so quickly they become out of date. We work with the component manufacturer to give you the latest capabilities while building the device on a platform that allows changes to be downloaded so you can carry on five BEVERAGEWORLD.COM SEPTEMBER 2006_BEVERAGE WORLD_15 years down the line.” They also guarantee service The System for “fives years after the purchase.” Beyond finding the right hardware for your The good news is that, like cells and PDAs, distribution needs, finding a software system that ruggedized handhelds are packing more functional- supports the information needs of your sales force ity in an ever-shrinking package. Today’s handhelds and your retail customers is key to maximizing scan documents, capture customers’ signatures, take your supply chain efforts. photographs and synchronize with onboard com- Atlanta, GA, USA-based O4 Corporation puters to relay engine information wirelessly to specializes in mobile solutions aimed at putting your terminal. They also can contain personal man- information and decision-making tools into the agement capabilities like scheduling, an address hands of field teams and capturing actionable book and calendar. Some devices also offer local market data. The following are two examples of and remote security features so the device can be O4’s solutions. turned off remotely. Plus, newer devices now have When Bacardi Lion was formed by the merger of embedded global positioning systems for tracking Bacardi-Martini’s Quality Brands International and the driver and assets, to name just some of the Lion Nathan’s ready-to-drink business, Indio, the functions being loaded on devices that are shrink- distributor was looking to gain a competitive edge ing to pocket size in some cases. by improving the depth and quality of the informa- But a major question that remains for some tion captured by its sales force in the field. experts and operations managers is whether the The distributor turned to O4 Corporation, which price of the device—which roughly ranges from deployed a fully automated mobile sales solution $1,000 to $3,000 per unit depending on the func- on HP iPAQ handhelds. At the beginning of each tions added—is worth it when smart phones and call cycle, reps sync with the O4 Management Suite PDAs can be bought for hundreds of dollars each. and download their appointments. During sales Just about a year ago, Brian McLaughlin, vice calls the devices can be used to access customer president for marketing at PeopleNet, a major net- information, including historical sales data, promo- work provider for mobile devices based in Chaska, tions and call objectives and reps can update cus- MN, USA, says the lowest price point for handhelds tomer information and record notes. Throughout was about $1,500 “and there weren’t enough appli- the day, reps synchronize their devices by connect- cations to justify the cost. But the price has come ing to the office via a Cisco virtual private network down considerably. I see the magic number for a (VPN) using any internet connection and they also handheld as less than $1,000, which is emerging. can access their e-mail and calendar in real-time. Now this field is becoming interesting.” The system not only gives field reps more informa- tion when and where they need it, it also provides a real-time window on their business. Suntory, one of Japan’s leading beverage manu- facturers, turned to O4 for a different mobile solu- tion. The company sells a wide range of products in Australia through a sales network that takes orders which are passed on to relevant distributors for delivery. This model made it difficult for Suntory to maintain a detailed profile of the competitive envi- ronment in the marketplace. The company opted to implement O4’s Manage- ment Suite for internal office-based functions including call planning, promotion management and reporting and O4 Corporation Mobile Solution for its field reps. Using wireless notebook comput- ers, sales reps can now capture market data and relay it to the home office for automated analysis. Integration of the two systems enables both man- agers and field reps to have a more comprehensive, real-time picture of the market dynamics. BW 16_BEVERAGE WORLD_SEPTEMBER 2006 BEVERAGEWORLD.COM RETAIL INSIGHTS Local Motion Retailers discuss the ultimate measure of supply chain efficiency—store-level service and execution. By Deborah Garbato A C-store manager in northern Indiana Dasani. The downside is very demanding in that points to some innovative ways she has the CMA also includes promotions.” used bottles of a certain flavored cola— Poitras would like to stock only Nestlé’s Poland door stop and newspaper weight among Spring and private label water. These warehoused them. Even though her clientele dislikes this soda, waters generate 50-point margins. Dasani and her beverage supplier continues to bring it. Aquafina, both DSD waters, are in the 20s. “Coke This manager’s complaints—along with those of and Pepsi treat water like a carbonated soft drink in other retailers, particularly C-store operators—- that it comes off the same truck. The CMAs force seem to fall on deaf ears. While retailers praise dis- you to work on less than acceptable margins.” tributors for more timely deliveries and some better Nice N’ Easy Grocery Shoppes, which operates 79 technologies, they are most critical of distributors C-stores out of Canosta, NY, USA, has solved the that do not tailor product mixes to individual stores dilemma by not contracting with Pepsi. Buyer Jared or force them to carry certain products. Sturtevant says Pepsi wanted to dictate how much “We all have the same problems with the supply space beverages would occupy. chains and CMAs [contract maintenance agree- “We wouldn’t give them 60 or 80 percent of ments],” says Mike Poitras, category manager at our space. We gave space to other beverage compa- Wilson Farms Neighborhood Markets, a 200-loca- nies,” he says. “CSD people are out to obtain more tion C-store chain based in Williamsville, NY, USA. space, not maximize our profits. They are not “They are not unique to Wilson Farms. Pepsi’s and really category managers. Their idea is to have Coke’s CMAs force you to carry Aquafina and controlled coolers.” Retailers are not sure whether the problem of “pushing” products originates with the manufactur- er or distributor or if it stems from poor communi- cation. When retailers ask questions, they are often run in circles by both sides. “Is it an issue of people not doing their jobs or are they not receiving the right message?” says Henry Bays, general manager of Tonawanda, NY, USA-based Noco Energy Corp., which runs 31 C-stores in western New York. “Often, they say they didn’t get the message. Others say they gave them the message.” Bays blames the introduction of too many soft drinks and a decline in carbonated beverage sales. Manufacturers, he believes, need to unload bever- ages. “They add line extensions every day. If it’s not cherry lemon, it’s lime or raspberry. There’s many different energy drinks, teas, waters, stuff like that. It’s hard to keep up and it’s becoming blurred. They get a lot of growth from new products, but they don’t have an exit strategy. And they do know what sells and what doesn’t.” If this is so, the distributor may be an innocent bystander. “The salesman is stuck in the middle,” 18_BEVERAGE WORLD_SEPTEMBER 2006 BEVERAGEWORLD.COM says Judy Weber, manager of K&D The Supermarket Sector Marathon in Hammond, IN, USA. Distributors in the US and Canada have begun paying special “His boss says, `You must get new attention to small and medium supermarkets. But it took the products in.’ The Pepsi salesman monopolizing force of Wal-Mart’s food empire to budge them. comes two, three times a week and Over the past decade, Wal-Mart’s Supercenters have put many knows my clientele. But his hands regional supermarkets out of business. Recently, Wal-Mart threat- ened to put distributors out of business when it said it was consid- are bound.” ering not using them. The nature of the C-store industry “The surviving independent supermarkets have become more also could be an issue. Unlike mass, important to distributors,” says Barry Loy, retail operations manag- drug and some supermarket chains, er for Natchez Markets, which operates seven supermarkets in the channel is made up largely of Mississippi and Louisiana. “We’ve actually been able to get some programs. It’s been very good.” small and medium players running Changes began three years ago. With help from Nestlé, Coke, Pepsi small stores. Other channels operate and others, he says his beer, water and soft dink businesses have 1,000-plus stores and benefit from been flourishing. “Nestlé came with advertising and merchandising size and economies of scale. programs and has been instrumental in helping us grow the category.” “Bud, Pepsi and Coke reps service Coke also has played a role. Six months before introducing energy drinks, Coke made a presentation to management involving videos, the mass market first,” says Randy tastings and other information. “Not all companies did this,” says Roush, category manager at Loy. “It helped a lot and made store managers push the product.” Maverick Country Store, a 175-loca- Changes have not only affected independents. At Food Basics, tion C-store chain based in Salt Lake which operates 110 stores in Canada’s Ontario province, Tom City, UT, USA. “This leaves us with White, director of category sales management, also has seen improvements. what trickles down. Customers see “There’s better turnaround time on orders, communication is stuff on TV and we get hammered very good with reps and we now have discussions around which fla- over why we don’t have it and when vors to carry in ethnically diverse Ontario. They now recognize the we’re going to get it.” market is still very competitive. If they don’t do everything it takes to satisfy us, we will find other options.” — D.G. A Mixed Bag in Service Not all retailers say manufacturers or distributors field rep follows up. Weekend deliveries have had a are pushing products. In fact, quality of service tremendous effect on our promotional business.” varies tremendously. Some distributors work hard to Sometimes, a distributor’s efficiency efforts gen- meet stores’ individual needs. Others do push prod- erate headaches. Big Values used to deal with a uct and/or drop off goods and call it a day. Minneapolis-based Coke salesperson. Today, Weaver “Some let you know every time something changes,” calls somebody in Chicago. “Communication, in says Gary Weaver, buyer for Fridley, MN, USA- some cases, is getting further away from me.” based Big Values, a 20-store dollar chain. “Others While more and more distributors have moved to deliver what they have to and that’s all they are pre-sell, Scott Porter, category manager at Raleigh, responsible for.” NC, USA-based Kerr Drug, a 100-plus store chain, Service levels can vary from the store to the cor- believes this can complicate matters. “The pre-sales- porate level, particularly when it comes to informa- person writes the order and leaves. Sometime there- tion about promotions. “At store level, there is a lot after, the driver brings the order. Stores feel they more communication,” says Weaver. “From corpo- had better communication with one contact.” The rate, I call and ask to see promotions, but people solution is old-fashioned communication. don’t follow through well. They want to increase Looking ahead, some retailers believe the sales and I’d like to do more corporate promotions.” entire beverage distribution system may change. Food Basics, part of Metro Group’s A&P Canada, The impetus may involve more than retailer pres- had been serviced by one or two distribution loca- sure as rising fuel costs prompt distributors to re- tions; now, it is supplied by multiple facilities. Tom examine DSD efficiencies. “There are a lot of White, director of category sales management for issues,” concedes Wilson Farms’ Poitras. “Eventually, the 110-store supermarket chain, says turnaround with the cost of fuel, DSD may go away. We have to has improved dramatically. Companies also began figure out, as retailers, how to drive supply chain delivering on weekends. “An order arrives and a costs out.” BW BEVERAGEWORLD.COM SEPTEMBER 2006_BEVERAGE WORLD_19 WAREHOUSE 101 Racking Systems Choosing the right racking system is the first step in warehouse efficiency. S electing warehouse storage rack systems According to Keck, it is also advisable for ware- involves specific expertise, appropriate house operators to purchase from suppliers that system choices and ensuring the facility comply with essential safety and structural standards is ready—all of which affect capital expen- set forth by the Rack Manufacturers Institute (RMI). ditures, overhead and the efficient response to Choosing the right storage rack system involves a distribution needs. solution process, and that begins with considering Whether setting up or replacing storage rack sys- the flow of merchandise. That will dictate your den- tems, warehouse operators are often confronted sity requirements—how ‘tightly’ that merchandise with a dazzling number of choices. That can be should be stored. From that determination cascades troublesome, since the selections they make will a series of specifications: the material and style of dramatically affect the “throughput” and, hence, the racks, pick systems, ancillary material handling, etc. profitability of the operation. At the same time, Warehouses with high-density storage solutions when specing a new or usually have large or even complete turnover of replacement system, inventories during specific intervals or seasons. many distributors are Merchandise can be stored in large bays with few offered limited choices access aisles to maximize floor space. because a rack manu- Conversely, lower-density warehousing is appro- facturer or dealer spe- priate for parts or retail distribution centers where cializes only in certain custom orders are picked continuously to fulfill Just types of racks, a sce- In Time (JIT) requirements. “We have bulk ship- nario that is often even ments coming in one set of dock doors and cus- more problematic. The tomized packages going out another set of dock key is being aware of doors,” says Keck. “Rack-supported pick modules for all options and how re-packaging are located in the center of the DC.” they will work with The most popular type of rack is selective rack, so » THE RIGHT RACKS can offer the benefit of reduced your warehouse needs. called because it allows easy selection, normally by capital expenditures, lowered overhead and increased “Because warehouse service (truck) aisles. Selective rack does not make order accuracy. storage and material the most complete use of floor space due to the handling have a pivotal impact on a business, man- aisles required, but may be the ideal solution for ufacturers and distributors often turn to storage many companies. rack specialists,” says Arlin Keck, corporate engi- A drive-in rack, on the other hand, increases den- neer at Steel King, a leading manufacturer of pallet sity and is often utilized where group pallet selec- rack systems based in Stevens Point, WI, USA. tion is more likely than individual pallet selection. “They rely on material handling consultants, deal- With drive-in racks, loading and unloading within a ers or rack manufacturers like us to ensure that bay must be done from the same aisle. A similar their warehouse systems fit their needs.” system called the drive-through rack permits load- Matching business needs with the appropriate ing and unloading from both ends of a bay. rack system is critical and entails asking the right “Because no two warehouses are identical in questions as well as providing flexibility in solu- every respect, it is important to consider and solve tions that can accommodate variables such as capi- structural requirements,” Keck says. “That may tal resources, anticipated growth and variable prod- include issues to do with building obstructions, uct lines. That flexibility requires doing business office and door locations, seismic (earthquake) con- with a supplier who can offer a variety of rack sys- ditions, the floor slab and so on. It could be that a tem designs, structural materials, accesories and, in variety of the pallet rack systems of varying densi- some cases, customized equipment. ties provide the best solution.” BW 20_BEVERAGE WORLD_SEPTEMBER 2006 BEVERAGEWORLD.COM Sponsor Profile Technology: A Tool, Not a Strategy Today’s ultra competitive beverage marketplace, coupled with a severe carrier capacity shortage and costly fuel charges, has many producers searching for ways to increase efficiencies anywhere they can to gain a competitive edge. At a recent supply chain management conference, Kevin Brady, president of Satellite Logistics Group of companies, a world leader in integrated logistics solu- tions, identified ways that companies can separate themselves from competitors by leveraging supply chains through technology. “Success is achieved when you combine trusted logistics resources, market knowl- edge, accurate production forecast, and an effective supply chain design with technol- ogy, and orchestrate these elements seamlessly,” Brady explained. Tangible results are realized when the integrated logistics provider (ILP) and the customer collaborate and allow technology to automate standard information. Important production, forecasting, marketing and distribution data is incorporated into a working supply chain model. “Collaborative planning allows sup- "Collaborative planning allows ply chains to operate supply chains to operate effi- efficiently and pro- actively, which results ciently and pro-actively, which in better transporta- tion rates. We use this results in better transportation model at Satellite rates. We use this model at Logistics Group, where we consolidate volume Satellite Logistics Group, to leverage our rela- where we consolidate volume tionships with a vari- ety of trusted vendors to leverage our relationships because even the slightest improvement in efficiency is significant to the bottom line,” said Brady. with a variety of trusted ven- Knowing that having product in place at the right time is vital to clients’ profitabili- dors because even the slightest ty, Satellite Logistics Group provides integrated solutions to manage all facets of transportation, distribution, warehousing, reverse logistics systems or timely material improvement in efficiency is recovery processes. Consistently providing cutting-edge solutions, Satellite Logistics Group recently significant to the bottom line." introduced the Online Visibility Tool, which is the first tool to provide real-time - KEVIN BRADY, PRESIDENT OF visibility of a warehouse management system (WMS), a transportation management SATELLITE LOGISTICS GROUP system (TMS), and an import/export documentation system (IDS) in a single cohesive application. This enhanced supply chain communication system enables a concentration of management processes, simplifies distribution monitoring, and improves overall efficiency. Satellite Logistics Group is known for its innovative use of technology. It developed a unique reverse logistics management system to improve international and domestic brewers’ empty keg return cycle. Trademarked the Kegspediter® System, it revolution- ized the industry by reducing capital expenditures and increasing operating efficiency. The Kegspediter® System was recently updated to accommodate increased collab- oration between clients and Satellite Logistics Group. “Direct customer input enables the technology to forecast demand based on current corporate objectives and market- ing initiatives rather than referencing previous years’ performance, giving clients a Contact: significant advantage over their competitors,” said Brady. Ray Loyal Technology continues to evolve business best practices and has changed the logis- Director of Sales tics industry. Gone are the days when the only assets a logistics specialist needed (281) 902-5500 were a reliable truck fleet and warehouse space. To become ultra competitive, Brady (800) 485-4470 advised supply chain specialists to shift their perception of technology from a busi- email@example.com ness strategy to a business tool. www.slg.com Supply Chain Resource Center Looking to improve your supply chain efficiencies? ATTEND: Tel: 303/220-0100 www.ciber.com/ces/ O4 Corporation Atlanta, GA, USA supplychain Tel: 404/995-7042 BevOps and the Beverage Fleet www.O4corporation.com CIO Magazine Summit 2006 at the Phoenician Framingham, MA, USA Hotel & Resort in Phoenix, AZ, Tel: 508/872-0080 Oracle Corporation USA, November 13 to 15, 2006. www.cio.com Redwood Shores, CA, USA www.beverageworld.com/ Tel: 650/506-7000 conference Data Blueprint www.oracle.com/applications/ Richmond, VA, USA supply-chain-management Tel: 804/521-4056 RESEARCH: www.datablueprint.com The Association for Operations ORBIS Management (APICS), www.apics.org Forrester Research Oconomowoc, WI, USA Cambridge, MA, USA Tel: 262/560-5449 Institute for Supply Chain Tel: 617/613-5905 www.orbiscorporation.com Management (ISM), www.ism.ws www.forrester.com MIT Center for Transportation & HighJump (A 3M Company) PeopleNet Logistics, www.ctl.mit.edu Eden Prairie, MN, USA Chaska, MN, USA Tel: 800/328-3271 Tel: 888/346-3486 Procurement and Supply Chain www.highjump www.peoplenetonline.com Benchmarking Association (PASBA), software.com www.pasba.com SAP America Intermec Newtown Square, PA, USA The Council of Supply Chain Everett, WA, USA Tel: 888/727-1993 Management Professionals (formerly Tel: 425/348-2600 www.sap.com Council of Logistics Management), www.intermec.com www.cscmp.org JD Edwards Enterprise One Satellite Logistics The Supply-Chain Operations Redwood Shores, CA, USA Houston, TX, USA Reference (SCOR) model is Tel: 650/506-7000 Tel: 281/902-5500 available for free download from www.oracle.com/applications/ www.slg.com the Supply-Chain Council Inc., jdedwards-enterprise-one www.supply-chain.org. K2 Enterprises Steel King Supply Chain Management Research Hammond, LA, USA Steel King Industries, Inc. Center (SCMRC) at the University of Tel: 985/542-9390 Tel: 800/826-0203 Arkansas, www.scmr.uark.edu www.k2e.com www.steelking.com Lawson Software Symbol Technologies CONSULT: St. Paul, MN, USA Holtsville, NY, USA CIBER, Inc. Tel: 651/767-7000 Tel: 631/738-2400 Greenwood Village, CO, USA www.lawson.com www.symbol.com 22_BEVERAGE WORLD_SEPTEMBER 2006 BEVERAGEWORLD.COM Sponsor Profile O4 Corporation O4 Corporation is a leading provider of mobile/wireless field sales and merchandising solutions for the beverage industry around the world. More than simply transferring data from one unit to another, O4 gives you intelligent business solutions to grow revenue, reduce costs, and deliver exceptional customer service. One company benefiting from O4 Solutions is Bacardi Lion, a Sydney, Australia-based joint venture. They not only cut the cost of gathering information, they boosted productivity by eliminating 40 hours per month that each of their reps spent on paperwork. “It’s an effective two-way communications tool,” says Suzie MacDermott, Sales and Marketing Planning Manager for Bacardi Lion. “When management can understand what’s going on out in the field, they can use that information to make effective deci- sions in terms of resource allocation.” O4 Corporation has customers on virtually every continent and offers global solutions for multina- tional corporations. A recent project was rolled out to more than 1,000 “The last 100 feet are the users in six countries and in three languages including Chinese. most important in the supply “Our key differentiators are our solution’s flexibility and ability to chain. O4 Solutions help connect the head office to the field companies achieve their in real time,” said Harris Fogel, President of North America for O4 in-store goals and targets by Corporation. “Management can understand what’s happening at the ensuring compliance with customer level so they can react planned objectives and very quickly.” O4’s applications improve programs.” business processes in the field and - HARRIS FOGEL, PRESIDENT the way that field operations are OF NORTH AMERICA FOR managed from the office, strength- O4 CORPORATION ening the bottom-line and increas- ing competitive market advantage. “The last 100 feet are the most important in the supply chain,” says Fogel. “O4 Solutions help companies achieve their in-store goals and targets by ensuring compliance with planned objectives and programs.” Companies can get the right mix of brands on shelves, the right percentage of space dedicated to their brands, the right compliance with promotions standards and agreements, and the right physical placement of the product. Management gets up- to-date reports on distribution, pricing, discounts, and out-of-stocks. Field managers can drill down into accurate history in order to improve field force productivity. You get a competitive market advantage through O4’s reporting and analysis capabilities, including surveys, in-store execution and business intelligence. O4 recently joined the TDLinx Enabled Program, integrating TDLinx’s Location Information Management™ (LIM) content into the O4 Solution. TDLinx is the premier source of retail and on-premise channel information, with profiles of over 600,000 outlets Contact: across America. Harris Fogel, President of “The integration significantly increases the effectiveness of retail call planning and North America execution, and will drive increases in sales due to more targeted promotions and sales campaigns, (404) 995-7042 (404) 995-7001 fax firstname.lastname@example.org www.o4corporation.com ADVERTISEMENT
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