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Britvic
Benchmarking a complex distribution scenario
Britvic, the UK’s leading soft drinks’ supplier, distributes around one hundred million cases of product per annum, throughout the country.
The company’s two distinct customer groups – major multiples and other retailers (including smaller high street outlets, pubs, clubs) – are characterised by very different logistical needs. The major multiples involve relatively fewer, high volume deliveries, whereas the ‘other retailers’ category involves some 300,000 deliveries per annum, often in small drops, to geographically dispersed outlets, on a Day one for Day three basis.
Britvic commissioned Davies & Robson to benchmark the retailer group. Davies & Robson specialists adopted a ‘zero-based budgeting’ approach.
The five constituent elements of the retail supply chain – primary transport, National Distribution Centre, secondary transport, Regional Distribution Centres, radial transport – were individually isolated in order to identify the levels of activity undertaken within each. The individual processes within each of the five elements – activities such as, receipts, putaways, and case and pallet picking – were discretely identified, in order to produce comprehensive process maps showing all tasks, the levels of associated activity, and current costs.
Next, a series of “best practice in sector” metrics (in terms of productivity and cost) were applied to the process map, in order to benchmark the activities and calculate the resultant optimum cost base. The sum of the costs of the individual activities, benchmarks and actuals, allowed Britvic to obtain an overall assessment of the competitiveness of its supply chain. Moreover, Davies & Robson’s approach allowed for the relative comparison of efficiency, performance and cost at individual activity level. Thus, where current activities were achieving best practice, the fact was highlighted, and, conversely, any opportunities or shortfalls identified.
The benchmark study has enabled Britvic to develop focused improvement and implementation plans to achieve best practice and optimum efficiency throughout its supply chain.
www.britvic.com
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