Casbega

A Vendor Managed Inventory Planning Case Study

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Highlights
  • Coca-Cola bottler needed target inventories for 17 warehouses
  • Also required Vendor Managed Inventory (VMI) planning infrastructure
  • Accomplished both objectives in an aggressive timeframe

Project and Objectives

In 2001, Casbega chose ToolsGroup as its partner to optimize their forecasts and achieve service level excellence at lower cost. The company’s goals were:

  • To identify target inventories for each SKU-Location at its 27 warehouses
  • To create a Master Production Schedule (MPS) with rough cut capacity planning
  • To create a budgeting system that could identify growth targets for various orthogonal attributes, such as flavor, format, market and responsibility center

Casbega also wanted to provide the planning Infrastructure required to implement VMI (Vendor Managed Inventory) and a CRP (Continuous Replenishment Program).

Day-to-Day

The ToolsGroup SO99+ solution interfaces with Basis, Coca Cola’s ERP planning system, to manage Casbega’s 5,400 SKU-Locations in one factory, one central warehouse and 26 second-level warehouses. Based on a weekly planning cycle, product managers can make corrections to the SO99+ forecasts in response to events over the next 3 months: promotions, pricing policy, etc. In addition, six other SO99+ users calculate the daily transportation proposals for replenishment of the second-tier warehouses.

Results & Benefits

The ToolsGroup team completed the three Casbega projects simultaneously, allowing Casbega to accomplish its objectives in an aggressive time frame. SO99+ is now the reference system at Casbega, and is used for supporting and managing several planning levels (sales, marketing, logistics and production).

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Casbega is the leading bottler for Coca-Cola in Spain. It has 27 distributors, annual revenue of $850 million, and more than 60,000 clients.

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