Citation
(2004), "Drink up", International Journal of Productivity and Performance Management, Vol. 53 No. 2. https://doi.org/10.1108/ijppm.2004.07953bab.014
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited
Drink up
The European supply division of Diageo has completed the second phase of its rollout of the GNX Collaboration Suite, powered by Manugistics, to extend the reach of its successful automated and collaborative replenishment process with packaging material suppliers.
Diageo is the world’s leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wine and beer categories. These brands include Smirnoff, Smirnoff Ice, Johnnie Walker, Guinness, Baileys, J&B, Captain Morgan, Cuervo, Tanqueray, and Beaulieu Vineyard, Sterling Vineyards and Piat wines.
In August 2003, Diageo went live with a collaborative replenishment planning process, supported by GNX, at their plants in Scotland with three dry goods suppliers covering glass, packaging and label categories. Results from the first few months of collaboration were impressive, with up to 40 per cent time savings in administration, and reduced raw materials inventory levels. Based on these results and positive feedback from both Diageo and supplier users, Diageo made the decision to extend the collaborative process to another major plant in Santa Vittoria, Italy.
Replacing a manual system for raw materials ordering, the new, automated process supported by GNX is now integrated with Diageo and supplier systems and being used to more efficiently manage day-to-day manufacturing operations with two key suppliers in the Santa Vittoria division. Incorporating elements of a Co-Managed Inventory (CMI) approach, the new process transitions responsibility for raw materials ordering to suppliers, with support from an online planning system. This system calculates ideal delivery quantities for raw materials based on the forward manufacturing plans. Using a system of alerts, it ensures that stock levels are minimized, availability is maintained at high levels – and significantly reduces the administration needed to operate the call-offs. By expanding the program, Diageo expects to measure further improvements in areas of administrative and logistics costs, lower raw goods inventory levels, and better materials availability in a larger portion of its business.
More information is available at www.gnx.com