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High Volume Food and Beverage Case Study - Cedar Bay … · They chose Intermec CK71 scanners and...

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High Volume Food and Beverage Case Study www.cedar-bay.com Engineering Project / Manufacturing & Distribution / Food & Beverage / Oil & Gas / Automotive / Medical The Company Founded in 1935, Bardstown, (Kentucky-based) Heaven Hill Brands (HHB) is the nation’s largest independent, family-owned and operated spirits producer and marketer and the world’s second-largest holder of Kentucky Bourbon. Over the last three decades, through internal product development and strategic brand acquisitions, Heaven Hill has built on its foundation of American Whiskeys to become a broadly diversified supplier of whiskeys, liqueurs, vodkas, rums and other spirits. Heaven Hill’s portfolio includes the world’s second-largest selling Bourbon, Evan Williams Bourbon and category leaders Christian Brothers Brandy, Burnett’s Vodka and Admiral Nelson’s Rum. The portfolio also includes a growing line of leading imported brands from around the world, such as Hpnotiq and Domaine de Canton liqueurs. Likewise, the company has a stable of innovative brands including PAMA liqueur, Blackheart Spiced Rum and Evan Williams Flavours. The Heaven Hill production facility Heaven Hill’s major production facility employs around 450 staff in various operational roles: production, warehousing, packaging, engineering, procurement, product development, quality control and assurance, technical support, supply chain, finance and administration. The drinks production facility has eight bottling lines, for a mix of glass and PET bottles ranging in size from 50 ml to 1750ml. HHB produces c.13 million cases of alcoholic beverages every year. The total storage capacity on-site for finished goods is over one million cases. The plant ships over 1 million cases per month. Heaven Hill has 51 warehouses of aging spirits which store approximately 1.2 million casks of Bourbon, Rye and Corn Whiskey plus Brandy at any time. The Kentucky Dept. of Environmental Protection awarded HHB the 2014 Environmental Pacesetter Award for its strides in recycling and conservation of water and electricity.
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Page 1: High Volume Food and Beverage Case Study - Cedar Bay … · They chose Intermec CK71 scanners and Zebra 105SL Plus label printers for the Receiving area, the Lab, the Label Room and

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.

Page 2: High Volume Food and Beverage Case Study - Cedar Bay … · They chose Intermec CK71 scanners and Zebra 105SL Plus label printers for the Receiving area, the Lab, the Label Room and

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

Page 3: High Volume Food and Beverage Case Study - Cedar Bay … · They chose Intermec CK71 scanners and Zebra 105SL Plus label printers for the Receiving area, the Lab, the Label Room and

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.

Page 4: High Volume Food and Beverage Case Study - Cedar Bay … · They chose Intermec CK71 scanners and Zebra 105SL Plus label printers for the Receiving area, the Lab, the Label Room and

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

Howcanwehelpyou?Contactus!


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