Case Studies

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Beverages
FLO
Planning
Vehicle Scheduling

SAB Miller SA

Project Summary

FLO was originally selected to improve the planning and vehicle operations of SAB following extensive trials in the latter half of 2005. On-time depot departures, route schedule adherence, customer ETAs and on-time deliveries were some of the variables that FLO would need to address to improve efficiency, customer service, and driver management. Following the implementation of FLO and the introduction of an extensive training Academy, SAB has experienced significant improvements both in their Key Performance Indicators (KPIs), and customer & distribution load planner satisfaction.

Business Context

One of the world’s largest brewers, SABMiller has brewing interests and distribution agreements across six continents. SABMiller SA, with over 12 000 employees and 7 breweries, contributed 21% to the international group’s financials for March 31 2009. SAB SA secondary distribution operates from 62 depots across the country, including 40 SAB depots and 22 ABI depots.

Objectives

SAB Miller goals and strategic objectives for their secondary distribution operations:

  • Promise to Deliver: ensuring any requirements, contracts and promises made to their clients are adhered to unequivocally – in particular, the planned versus actual delivery times
  • Efficient Distribution: streamlining their operations and minimising wastage
  • Standardised & Repeatable Delivery Planning: pinpointing and proliferating repeatable delivery practices throughout the organisation
  • Sustainability – Harmonious relationship with the environment (fewer vehicles, shorter travelled distances and reduced carbon footprint).

The project aimed to provide a suitable replacement to SAB’s existing vehicle and routing scheduling software. In addition, FLO would need to improve SABs KPIs and other facets of their secondary distribution.

Project Detail

The project commenced with a pilot implementation at SABs Isando branch during which it was proven that OPSI FLO would:

  • Provide the necessary routing efficiency.
  • Interface smoothly with SAB’s SAP system, and provide communication in both directions.
  • Interface smoothly with C-Track.

Following the successful pilot, OPSI FLO was implemented over an 18-month period at another 40 SAB depots. Training was conducted via the SAB Training Institute with five depots being serviced every two weeks. A training Academy was also established in 2008 to further drive growth in the DLPs planning and routing capabilities.

24/7 support is provided to SAB due to the size and nature of the project.

Project Achievements

The following improvements in key KPIs have been tracked from 2008 onwards, following the introduction of the training Academy:

  • Customer satisfaction regarding on-time deliveries: This is considered one of the highest values SAB aim to maintain, relating directly to customer service. SAB offer a 24 hour lead time distribution service to customers and a 2 hour ETA delivery time window is communicated to all customers post the placing of an order. In 2008, only 50% of deliveries were reaching their destinations on time. 2010 has seen this number increase to 87%.
  • On-time depot departure: Vehicles have a 30-minute time window for scheduled departures. Depot on-time departure improved from 27% in 2009 to 75% in 2010.
  • Route Schedule Adherence: The percentage by which the driver followed the planned stop sequence - up from 84% in 2009 to 97% in 2010.
  • GPS plot accuracy: the accuracy of the GPS tracking data compared to actual is up from 80% in 2008 to 99% in 2010.
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