Kofola – The distribution strategy

The case study in pdf you can dowload here.

APPLICATION:

The distribution strategy optimization

BRANCH:

The non alcoholic beverage production

SECTOR:

The food industry

BENEFIT:

There were verified few variants of production and storage capacity layout with using of the simulation model in WITNESS to choose an optimal variant. At the same time there were simulated variants of distribution of the finished products.

About the company

The Kofola company is the part of the Group Kofola which is the most important producer of non alcoholic drinks and it has 7 production plants on 4 markets in the middle and east Europe. The company employs ca. 700 workers in the Czech republic.

Project targets

The study target was a verification of possible variants of distributing and production strategy of the Kofola Hoop with the great emphasis to logistic cost minimization company mainly with this help:

• the verification of the suitable arrangement and load of production and storage capacity in polish, slovak and czech plants,
• the proposal of the efective utilization of storage space for dispatching of finished products,
• the mapping of the company systems, planning and logistic processes in the whole company and in the individual production plants and also in the dictributing centres.

Solution

The basic project pillar was to map and analyze the current state of sources – the logistic management, storage capacity (current and future including a developement potential) in the production plants (for distribution needs) and the distributing centers, procustion capacity, variability and mutual fungibility of production lines in the individual production plants, product portfolios in different spheres and also in the planned sale volume of individual items of products in the particular area.

The next step was a creation of the dynamic simulation model in WITNESS to dynamic processes simulation. Using this model there were simulated and verified all the solution variants of the production and distributing strategy in the Kofola Hoop company. The elementary variant represented the current state of the production and distributing capacity arrangement and using this it was possible to asses the economical, quantitative and qualitative parametres of all the future solution variants.

Picture no. 1 – The demonstration of the dynamic simulation model in Witness

Results

There were overall proposed the 8 variants. From the simulation results was possible to count every variant the final costs for the storage and ditribution. These values enable the Kofola management to choose the right variant of the storage and distribution – whether this is the appropriate placement and the use of production and storage capacities.