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Coca-Cola saves Over $2.5m using Lanner Group WITNESS Simulation Modeling SoftwareBeverage manufacturer increases volume of bulk products moving through UK depot by 18%; saves $2.66m (October 31, 2010)
Following implementation of the technology the beverage manufacturer has increased the volume of bulk products moving through its Northampton, UK, depot by 18% and has saved $2.66 million (£1.7m) in supply chain costs.
The simulation models created by the simulation-modeling software looked at variables such as traffic flows, shift patterns, time of day and different truck load configurations.
Having examined the simulations, Coca Cola was able to create the optimum mix of lanes, bays and parking spaces for the center to cope with extra volume.
The software has also saved the company $2.66 million (£1.7m) in costs.
Coca-Cola Enterprises (CCE) said in a release that it is looking to double revenue from $3bn to $6bn by 2014, and this meant that it needs to increase its throughput and turnaround time in the distribution center.
An internal project team was set up by Coca-Cola to work with Lanner Groups consultants, who use the simulation software to create models and video simulations that analyze areas where efficiency could be improved.
Danny Clark, a manager on the Lanner Group project, described how simulation was essential for the businesss strategy and said Coca-Cola will use the software again in the future.
?We did try to work out how to maximise throughput efficiency ourselves, but found using information from other sites we own was not relevant to the specifics of this location, he said.
"Lanner Group spent around five months with us from start to finish. The software took all the live data from the previous year and was able to look at how the site was running hour by hour every day. This allowed us to accurately assess where we could make things more efficient.
?We have started to make plans to extend the site next year and will definitely use the simulation again.
Lanner Group, Inc.
is the Americas subsidiary of Lanner Group Ltd, a UK company dedicated to delivering innovative solutions to model, analyze and optimize processes through simulation software enabling business managers to make comprehensive decisions in a risk-free environment. Its client roster includes over 3000 customers including end users HP, 3M, Boeing, Ford, GM, Nissan, and Rolls Royce. In 2010 Lanner Group, Inc. was certified a Top 20% Performer by Open Ratings Inc., a Dun & Bradstreet company based on Past Performance Evaluation responses of its reference customers. www.lanner.com
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