Professional Documents
Culture Documents
Caso de S&OP
Caso de S&OP
Table of contents
1. Executive summary 4
3. Depot network
4. Future requirements
i. Procedure 12
ii. Calendar 16
2
1. Executive Summary
Purpose
1. Create a consolidated information source regarding capacities throughout the distribution chain.
2. Generate an alignment planning tool for interrelated areas: Supply Chain and distribution.
3. Develop planning tools for future capacity requirements.
4. Develop planning and measuring tool for PEAK seasons.
Key findings
1. Confirmed strategic stock at 6 stock days, in line with RIC and modelled into warehousing capacity models.
2. Historical data dictates adequate seasons to conduct studies, improvements and layout changes as well as
expansions and construction in CD1 during first quarter of fiscal years – Low inventories are directly related
to production plan and demand estimates.
3. Further alignment is needed between production, SC and distribution. Alignment must be generated in order
to plan capacities and schedule infrastructure changes i.e: Not previous plan overhauls and maintenance due
to inventory build-up requiring storage space.
4. Confirmed priorities for F12 and specific locations require temporary solutions for next peak season. Guayas
deficits will be covered by CD1 Pascuales.
Recommendations
1. Application of the suggested procedure and policy for the warehousing services department.
4
2. Seasonality and effects on warehousing system
Demand seasonality and production limitations require anticipated production to meet peak in
demands as was evident in F10…
180,000
160,000
140,000
120,000
hectoliters
100,000
80,000
60,000
40,000
20,000
0
WK14
WK16
WK21
WK23
WK25
WK27
WK32
WK34
WK36
WK43
WK45
WK47
WK52
WK01
WK03
WK10
WK12
WK15
WK17
WK18
WK19
WK20
WK22
WK24
WK26
WK28
WK29
WK30
WK31
WK33
WK35
WK37
WK38
WK39
WK40
WK41
WK42
WK44
WK46
WK48
WK49
WK50
WK51
WK53
WK02
WK04
WK05
WK06
WK07
WK08
WK09
WK11
WK13
Normal PEAK Normal
As yearly demand fluctuates seasonality requires fixed production capacity to anticipate production for inventory buildup during peak seasons as
obeserved for December and February. Anticipated production and the resulting inventory buildup (operational + strategic stock) is required due to
the heavy capital investment that is needed for additional production capacity.
5
2. Seasonality and effects on warehousing system
Throughout the year production anticipates peaks in demands and production capacity reductions…
180,000
160,000
140,000
120,000
hectoliters
100,000
80,000
60,000
40,000
20,000
0
WK14
WK23
WK25
WK27
WK29
WK31
WK33
WK42
WK44
WK46
WK48
WK50
WK06
WK08
WK10
WK12
WK15
WK16
WK17
WK18
WK19
WK20
WK21
WK22
WK24
WK26
WK28
WK30
WK32
WK34
WK35
WK36
WK37
WK38
WK39
WK40
WK41
WK43
WK45
WK47
WK49
WK51
WK52
WK53
WK01
WK02
WK03
WK04
WK05
WK07
WK09
WK11
WK13
Normal PEAK Normal
Real production during F10 exceeded demand at various points during the period. The excess production was a result of the
necessity for inventory buildup due to plant maintenance, stops, overhauls, as well as the anticipated production of due to peaks in
demand.
6
2. Seasonality and effects on warehousing system
System inventory is highest preceding plant stops due to maintenance and overhauls as well as
peaks in demand…
180,000
160,000
hectoliters
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
WK14
WK22
WK23
WK24
WK32
WK33
WK34
WK41
WK42
WK43
WK44
WK51
WK52
WK53
WK08
WK09
WK10
WK15
WK16
WK17
WK18
WK19
WK20
WK21
WK25
WK26
WK27
WK28
WK29
WK30
WK31
WK35
WK36
WK37
WK38
WK39
WK40
WK45
WK46
WK47
WK48
WK49
WK50
WK01
WK02
WK03
WK04
WK05
WK06
WK07
WK11
WK12
WK13
HL PRODUCED EXCEEDING SELLOUT SELLOUT REAL SYSTEM INVENTORY REAL PRODUCTION
1. Demand seasonality and production plans should aid in warehousing capacity planning to determine adequate seasons to
implement layout changes, construction and conduct analysis and improvement studies, i.e: Shallow inventory weeks: WK 20-
25, 40-43.
2. Anticipated production and resulting inventory profiles aid in determining optimum maximum level of inventory required to
meet demand and thus plan warehousing capacities.
7
2. Seasonality and effects on warehousing system
Analysis of F10 Peak shows that strategic stock build amounted to 133,852 HL…
140,000
120,000
hectoliters
100,000 1
80,000
2
60,000
40,000
20,000
0
WK40 WK41 WK42 WK43 WK44 WK45 WK46 WK47 WK48 WK49 WK50 WK51 WK52 WK53 WK01
PEAK
HL PRODUCED EXCEEDING SELLOUT SELLOUT OPTIMUM SYSTEM INVENTORIES REAL SYSTEM INVENTORY REAL PRODUCTION
8
2. Seasonality and effects on warehousing system
6.50
6.00
5.50
Days
5.00
4.50
4.00
3.50
3.00
F11 F12 F13 F14 F15
RIC RECOMMENDED STRATEGIC STOCK DAYS SRATEGIC STOCK DAYS MODELLED IN DEPOTS
AVERAGE RIC STRATEGIC STOCK DAYS SRATEGIC STOCK DAYS PEAK F10
9
3. Depot Network
Implementation of RtM has lead the way to As NDP continues to advance in provinces sqm available for storage have
been reduced as a result of consolidation and closure of warehouses with
significant changes in the depot grid… standards below the minimum required. Larger territories and higher
Previous NDP volume demand clusters implied the continued and new operations of
Depot network In route towards world larger scale warehouses:
class distribution F09 350 2,500
marked the beginning of
300
NDP implementations in 2,000
Ecuador. Initial territory 250
1,500
sqm
consolidations and 200
hl
consequent closure of 150 1,000
thrid party warehouses in 100
GYE and UIO were made 500
50
effective. Loading for T3
0 0
delivery operations for
GYE and UIO were F09 F10 F11
centralized in depots. Sqm per site HL per site
Further changes by NDP executions are expected until the end of Q4 F11
The warehouse footprint was significantly
generating a final WH footprint begginging F12.. So far storage demands
consolidated as a result of NDP GYE and
have been met but future requirements require planned capacity expansions.
UIO reducing the foot print from 149 to 102
warehouses: F11 peak season
required additional 50,000
F07 F09 F10 F11 capacity to be rented out 40,000
101 94 91 52 by third parties. Projected
Distributors 30,000
demand capacities
Warehouses 149 102 81 58 require CAPEX and 20,000
Capacity HL - 120,233 127,881 114,578 capacity planning. 10,000
Capacity sqm - 19,980 20,040 17,861 F12 and future capacity 0
expansions have been Prev. NDP F10 F11 PEAK
RtM and NDP continued to advance throughout F09-F11, with prioritized and confirmed
further consolidation of territories and warehouses on a provincial by a depot network CD1 CD2C
level. Major territory consolidations and subsequent warehouse optimization study. CD2B CD2A
consolidations in provinces aroused in Costa during F10 and into Peak temporary solutions Total M2 required
F11.
10
3. Depot Network
Future depot network requires warehousing Depot optimization pin points # sites F12
sites in optimum locations and with possibility of strategic locations for current Type Inventory
and future warehouses. These COS SIE
site expansions in the upcoming years… results and locations have been
classified into three warehouse CD2A owner 5 5
categories which are aligned
with upcoming RtM wave
initiatives. These initiatives CD2B owner 15 4
include consolidating the control
of inventory and the
development of world class
CD2C 3P 7 10
infrastructure in CD2 sites in
provinces.
By owning the inventory in selected sites we: reduce working capital for the
system, liberate significant partner capital to invest in credit to PoS, and/or
CN Plants
infrastructure, simplify supply management,
Volume 0 – 39.9K improve sell-out visibility and Atacames
Sto. Domingo
Coca
A detailed study was carried out to determine 10 enterprise owned depots will
the optimal depot network. The study took initiate construction during F11
Quevedo
into account volume projections, T2 and T3 and extend into upcoming Montecristi
Ambato
> 40K & <99K Hls 13 current capacities and projected CD2B
< 39K Hls 16 F12 deficits. Loja CD2C
Total Sites 41 CD2A_DN Depots
PLANT
11
4. Future Requirements
Future storage requirements are planned two fold and with specific objectives. The master capacity
plan is to be conducted in order to determine requirements for upcoming fiscal year and long term
requirements…
TOOLS /
TIME HORIZON OBJECTIVE FOCUS KEY INPUTS
SOURCES
DETERMINING
CAPACITY 1. SITE SPECIFIC 1. BUDGET VOLUME
DEFICITS FOR 1. DISTRIBUTION
2. GLOBAL 2. CURRENT CAPACITIES AND PROJECTED
NEXT FISCAL UPCOMING PEAK PLANNER
CAPACITIES CHANGES OVER NEXT FISCAL YR
YEAR SEASON AND 2. CD CAPACITIES
RESULTING INCLUDING 3. STOCK DAYS AT CD1 AND CD2
PLANNER
INITIATIVES FOR CD1 4. PROJECTED HL/M2 AT LOCATIONS
PEAK PLAN
12
4. Future Requirements
Final wave of NDP will conclude Projected volumes for F12 and warehousing capacities into F12 suggest storage deficits in
Costa CD2s and Pascuales. F12 storage requirements were estimated as a product of 10 stock
during Q4F11. Final consolidation of days and the average F12 December sales. Guayas deficits will be covered by Pascuales
the warehouse grid lays out initial expansions due to proximity to the production plant. F12 capacities and requirements confirm
logical order for depot construction and pin points specific locations which will require
depot network prior to capacity temporary solutions during peak season:
expansions due to projected deficits
100,000
during F12… 18,882
hectoliters
80,000
60,000 3,404
Sqm hundreds HL thousands 40,000
16,000
20,000 4,643 4,419 3,090 4,235 3,900
350 24 0
181 1. Depot 2. Depot 3. Depot 4. Depot 5. Depot Otros Cluster Pascuales* Otros Cumbaya*
2,000
Quevedo Sto. Esmeraldas Montecristi Machala Clusters Guayas Clusters
51
300 298 Domingo Costa Sierra
200
During F11, storage capacity in
100000
73 1,000 Pascuales was reduced as area
150 406 88,172
50,000
was lost to manufacturing for
80000
palletization and depalletization 4,221
hectoliters
10040,000 operations. As a result efforts 60000
30,000 500
throughout Q4F11 will be targeted
128 735
5020,000 at improving effective HL/m2. 40000
10,000 Such efforts include layout
optimization and capex 20000
0 0 0
investments in order to create
Q4F11
Prev. NDP F10 F11 PEAK
Q4F11 73,511 69,290 69,290
better storage areas. Capex for 0
CD2C new roofed areas will be executed
CD2B CD1 CD2C F10 F11 Loss to F11 F12
CD2A to comply with F12 requirements. manufacturing
Peak CN CD2B CD2A
PEAK 3rd Party
Peak temporary solutions Total M2 required Additional Required Required HL
13
4. Future Requirements
Warehousing capacity for FULLS is saturated due to F11 distributor warehouse consolidation and loss of
space in Pascuales to Manufacturing, empties capacity not under pressure…
11,030 19,064
40,000 1,636 4,825 20,678 21,179
space.
2,447 2,447 3,617 2,249
5,096 1,442 1,442
30,000 5,096 8,309 8,309 8,309 8,309 F12-F14: Pascuales warehouse
19,980 18,404 10,318 8,514 expanded to ultimate capacity and
20,000 CD2A depot capacity created in
10,000 provinces according to 3YP
21,294 21,294 20,053 20,053 25,453 25,453 25,453 25,453 programme.
0 F15 ON: Capacity expansion will
Prev. NDP F10 F11 PEAK Q4F11 F12 F13 F14 F15 need to continue midterm based on
CD1 CD2C CD2B CD2A Peak temporary solutions Total M2 required volume growth.
25000
20000 14,265
sqm
15000 8,486
6,793 6,741
6,833 F11 – ON: Warehousing capacity
5,671 5,875 for empties is not under pressure
10000 4,277
despite significant area lost in
distributor consolidation, as space is
5000 available in Pascuales and further
7,928 7,928 7,928 7,928 7,928 7,928 7,928 7,928 provision wiil be added at new
0 depots
Prev. NDP Q4F10 F11 PEAK Q4F11 F12 F13 F14 F15
Empties area available CD1 Empties area available Prov Empties Need total
14
5. Warehousing Master Capacity Plan Policy
WAREHOUSING MASTER
Monthly
aims to generate a Distribution
Planner
CAPACITY PLAN
cyclical planning CD1 Capacities
process by which Capacity
Distribution
Bimonthly
Q1
Models and TL Capacities
information is readily planner Operations
available and alignment CD2 Capacities
[Cos, Sie, Gye, Uio]
between areas is Lay Out
Q4
Services
Optimization
assured… T3 Capacities [WH and delivery]
Peak
Peak Controller
Monthly
are affected mainly due little throughout the distribution chain. Optimum Demand planning
alignment between distribution 2. Alignment tool between areas. Applications inventories
- supply chain and lack of include planning in the distribution and
supply chain monthly committee. CD1
credible and consistent source Supply planning
3. Planning tool for future capacity inventories
of information in respect of
historical, current and planned requirements. Monthly
4. Planning and measuring tool for PEAK
capacities.
seasons. Adelantos Credit/sales
15
5. Warehousing Master Capacity Plan Policy
Warehousing master capacity plan policy requires specific tasks throughout the fiscal year, proposed work
plan for F12 includes and is aligned with events such as low inventory weeks and 3YP workout:
Quarter: Q1 Q2 Q3 Q4
Month: April May June July August September October November December January February March
16