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HighVolumeFoodandBeverageCaseStudy

www.cedar-bay.com EngineeringProject/Manufacturing&Distribution/Food&Beverage/Oil&Gas/Automotive/Medical

TheCompany

Foundedin1935,Bardstown,(Kentucky-based)HeavenHillBrands(HHB)isthenation’slargestindependent,family-ownedandoperatedspiritsproducerandmarketerandtheworld’ssecond-largestholderofKentuckyBourbon.Overthelastthreedecades,throughinternalproductdevelopmentandstrategicbrandacquisitions,HeavenHillhasbuiltonitsfoundationofAmericanWhiskeystobecomeabroadlydiversifiedsupplierofwhiskeys,liqueurs,vodkas,rumsandotherspirits.HeavenHill’sportfolioincludestheworld’ssecond-largestsellingBourbon,EvanWilliamsBourbonandcategoryleadersChristianBrothersBrandy,Burnett’sVodkaandAdmiralNelson’sRum.Theportfolioalsoincludesagrowinglineofleadingimportedbrandsfromaroundtheworld,suchasHpnotiqandDomainedeCantonliqueurs.Likewise,thecompanyhasastableofinnovativebrandsincludingPAMAliqueur,BlackheartSpicedRumandEvanWilliamsFlavours.

TheHeavenHillproductionfacility

HeavenHill’smajorproductionfacilityemploysaround450staffinvariousoperationalroles:production,warehousing,packaging,engineering,procurement,productdevelopment,qualitycontrolandassurance,technicalsupport,supplychain,financeandadministration.

• Thedrinksproductionfacilityhaseightbottlinglines,foramixofglassandPETbottlesranginginsizefrom50mlto1750ml.

• HHBproducesc.13millioncasesofalcoholicbeverageseveryyear.

• Thetotalstoragecapacityon-siteforfinishedgoodsisoveronemillioncases.

• Theplantshipsover1millioncasespermonth.• HeavenHillhas51warehousesofagingspirits

whichstoreapproximately1.2millioncasksofBourbon,RyeandCornWhiskeyplusBrandyatanytime.

• TheKentuckyDept.ofEnvironmentalProtectionawardedHHBthe2014EnvironmentalPacesetterAwardforitsstridesinrecyclingandconservationofwaterandelectricity.



HHBselectedIFSastheirERPvendorin2002,andupgradedtoIFSApps7.5in2011.Althoughthesoftwarehasbeenagoodfit,thecompanywantedtoenhanceitsuseofIFS.BobbyLeeandAlanHoskinsofHHBweregivenanassignmenttofindabarcodesolutionthatwastightlyintegratedwithIFS.Thekeyattributeswereaffordability,easeofuse,flexibilityandconfigurablilitybyin-housestaff.Theyconsideredthreevendorscarefully,thenchosetheCedarBaysolutionin2013toenhanceHHBoperations,improvetimelinessofinventory,receiptsandimproveshipmentaccuracy.

Someofthechallenges

HeavenHilloperatestwobottlinglineshiftsandunloadstrucksofemptyglassonboth.Someoftheglassgoesdirectlytobottlinglinesonajustintimebasis.PriortoinstallingCedarBay,theglassreceivedonsecondshiftwasrecordedonpaperforthenextday’sfirstshifttoenterinIFS.ThiscausedinaccurateinventorylevelsinIFS,andrequiredthatglassinventorybeallowedtodrivenegative.Also,theannualphysicalinventoryonpapertagsrequiredaweekofcountingfollowedbyadditionaltimetoreconcilequantityonhandatyearend.HeavenHill’sbottlinglinesrequireconstantre-supplyofbottles,capsandlabels.Eachbottlereceivesafrontandbacklabelandsometimesaneckwraporcapsule.Thesesuppliesarepulledfromthelabelroom,loadedoncartsforeachShopOrder,androlledtotheappropriateproductionline.Labelroompersonnelissueaquantityoflabelsequaltothenumberofbottlesplusthescrapfactor,alongsideextras,tobesurethelinedoesn’trunout.Leftoverlabelsarereturnedtostockinthelabelroom.Thequantityisestimatedbysight.HeavenHillwasinterestedinknowingwhetherthescrapfactoriscorrectandwantedtoincreasetheaccuracyofthestocklevels.HeavenHillperformsrigoroustestingofitsproductsthroughoutthebottlingprocess,fromtanktobottle.Rawmaterials,aswellasfinishedgoodsareinspected.HeavenHillwantedabettermethodofmovingmaterialstoQualityControllocationsforfurtherevaluation.HandheldscannerandPCclienttransactionswouldreducepapershufflinganddataentry.

TheHardware



TheIFSstory

HeavenHillalreadyhadpreviousexperienceofbarcodescanningintheirbarrelwarehouses.Theyhadseenrealbenefitsinaccuracyandreducedkeypunchactivityandwereconvincedsimilarorgreatergainscouldbemadeinthebottlingplant.TheywereusingIntermecCN70escannersinthebarrelwarehousesduetoneedtoforintrinsicallysafedevices.Therewerenoscannersinuseinthecasedgoodsproductionfacilitysoitwasnecessarytoinstallwirelessaccesspointsthroughoutthefacility.TheychoseIntermecCK71scannersandZebra105SLPluslabelprintersfortheReceivingarea,theLab,theLabelRoomandtheFinishedGoodswarehouse.

WorkingwithCedarBay

Onhisinitialvisit,RogerTeagle,DirectorofCedarBay,walkedthroughtheplanfromrawmaterialsthroughtofinishedgoodswiththeHHBteamtounderstandthephysicalenvironmentandunderstand,atahighlevel,howtheCedarBaysolutionwouldmakeadifference.Roger’sextensiveknowledgeofIFSaswellasCedarBaywasaplusinthisevaluation.HisrecommendationswereusedtoinformtheHHBteamandcreateanimplementationplan.AfterchoosingwhichtransactionstodeployHHBcreatedaprojectteamtoimplementCedarBay.TheteamwasledbyKevinAndrewofSupplyChainandDannyJacksonofITwhoworkedwithSteveBarkerofCedarBaytoinstallandconfigurethesolutionreadyfortesting.Steveprovidedguidanceforconfiguringmodulesandmakingcustomizations,whichwerekepttoaminimum.

WorkingwithCedarBay

CedarBayrecommendedseveraltransactionstoimprovedatacaptureandsolvetheissuesdescribedabove.ForkliftdriversbeganscanningpalletsofemptyglassinNovember2014.Thismeantthatglassstockswerealwaysuptodate.TheeveningshiftnoticedthemostsignificantbenefitswhereCedarBay’sInventoryMovetransactioneliminatedtheneedtodriveon-handvaluesnegativeonglassparts.TheflexibilityandeaseofconfigurationofCedarBaytransactionshasallowedHHBtoconfigurethistransactionspecificallyforthisactivity,soworkerscanperforminventorystockmovementswithminimalactions.Thisactivitywaswellreceivedbytheforkliftoperators.



TheImplementation

HHBstartedtheprojectwithapilotphasewhichincludedthereceivingofpalletsofglassfromtrailers.Theglassstockontrailerscomesfromanoff-siteconsignmentlocation,movementwasperformedusingthestandardCedarBayInventoryMovetransactionfromahandhelddevice.Thisgavereal-timevisibilityofallglassrelatedstocklevelsandstocklocationsandhaspreventedusfromdrivingglassinventorylevelnegative.ThisphaseoftheCedarBayprojectalsohasallowedustolookatthewaywemanageemptyglassandhasgivenusanopportunitytointroduceotherprocessimprovementsinthisareaofthebusiness.CedarBayprovidedexcellentsupporttoHHBduringthepilotingphase.Somesmallfunctional/cosmeticchangesweremadetotheCedarBaysoftwaretoincorporatesomespecificHHBrequirements.TheoverallsolutiondesignwithspecificmoduleconfigurationswerefullydocumentedbytheCedarBayConsultant.TheCedarBayimplementationhasproceededasplannedinphasesalignedtoinfrastructureimprovements(Wi-Fi,Constructionprojectsetc.),Unionrelatednegotiationsandusertraining.Asasecondphase,HHBdesignedanewoperationforFinishedGoodsusingCedarBayintegratedwithPLCcontrolledpalletizers.ThepalletizerbuildsapalletoffinishedgoodsandtellsCedarBaywhenthepalletiscomplete.CedarBaywillthen“silently”executeaShopOrderReceiptforthepalletquantityandreceivethepalletintoan“endofline”locationandautomaticallygeneratealabel.Theforklifttruckdrivers(FLT)thenmovesthecompletedpalletsfromthe“endofline”locationstoFinishedGoodslocations.Asaresultofthisinventorystocklevelsarealwaysaccurateandthetransactionsareexecutedinrealtime.

NextPhase

Heaven Hill is also planning a change to itscustomer order fulfilment process to takeadvantageof standardCedarBay functionality.FLT drivers will begin picking orders using theCedarBayCustomerOrderPicktransactiononamobile device to improve shipment accuracy.This processwill be further advancedwith theintroduction of additional finished goodslocationsforstorageofslowermovingstock.

CedarBayprojectscopeatHeavenHillbrands(HHB):

• InventoryMove• InventoryInquiries• CountperCountreport• Inspection• ShopOrderPicking• ShopOrderUn-Issue• PurchaseOrderReceipt• POMovetoStock• ShopOrderreceiptandlabelprint

integratedwithpalletizers• CustomerOrderPick• ShipmentHandling

Tel:+44(0)1242304244e-mail:[email protected]

Address:CedarBayLtd,HermesHouse,AndoversfordLink,AndoversfordIndustrialEstate,Andoversford,Glos,GL544LB,UK

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