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