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Carlsberg Supply Company

Carlsberg Supply Company uses Warehouse Simulation to Improve Global Operations

April 4, 2016

Carlsberg, one of the largest brewers in the world. Their supply chain network is managed in-house by Carlsberg Supply Company (CSC). “Global efficiency is vital to us at Carlsberg, we manage the all European warehouse operations through CSC, we are also responsible for the promotion of best practice across the globe” explains group warehouse senior manager, Svetlana Pavlova. The aim of the CSC is to ‘be the best customer and consumer driven supply organisation in the beverage industry’.

CSC chose CLASS to help them improve the efficiency of their warehouse by testing a variety of ideas across their warehousing operations.

The Carlsberg Challenge
CSC needed to assess new layouts for its warehouse operations, including Carlsberg specific layouts in their bottle yards ensuring optimum efficiency across all operations. They wanted to create best-practice across its global estate to lower its overheads, while retaining customer service levels for their global customer base.

The team needed to develop ways to increase capacity during peak periods and wanted to know if, making changes
to the routing within the warehouse could improve efficiency and offer other benefits, such as safety improvements or savings associated with staff and MHE making shorter journeys leading to a reduction in MHE requirements. The team needed to prove the business case before any change could happen.

Previously CSC used spreadsheets or drawing programmes to test ideas and show the best way to stack Carlsberg’s products on pallets and into containers. This method proved very cumbersome, time-consuming and resulted in unexciting 2D visuals.

Carlsberg in a CLASS of its own

CLASS layout of Carlberg Warehouse and BottleyardUsing CLASS the team were able to easily simulate different layouts for its warehouses and bottle yards; selecting the optimum designs to ensure it met its project goals and improved on KPIs such as productivity.

“Our CLASS model of a best-practice bottle yard particularly helped efficiency in our Asia operations where it greatly improved storage and organisation” commented Pavlova.

One of their most effective results and innovative ideas, was to make key aisles one-way during peak times. CLASS
modelled these changes and by adding in real-life activity patterns CSC were able to road-test ideas in a real world environment. This change allowed an increased speed limit for MHE on these aisles during particular periods. It also had the added effect that the aisle width could be reduced during peak so that the warehouse could hold more SKUs; helping to increase overall capacity, reduce the over-frequency of replenishment and scale down the size of the pick-snake and operative’s travel time, making the whole process more efficient.

Pavlova added “The aisle adjustment is a low-cost and flexible solution and isn’t one that would be naturally considered without having CLASS to model its effectiveness”.

Using CLASS to create graphics of perfect container fillBy creating to-scale visuals of best practice packing for pallets and containers, the team were able to show exactly how all pallets and containers should be packed, creating “cheat sheets”. CLASS’ easy customisation and personalisation meant that the team could even add details such as product branding and precise dimensions. Due to their visual nature multi-language versions were not required.

One of the most valuable benefits the team at CSC found by implementing CLASS is their ability to challenge reluctance to change. By assessing models of their warehouses, the team is better equipped to ask pertinent questions about the use of space and make suggestions for improvement. A picture paints a thousand
words and with CLASS they have the visually engaging evidence showing how the improvement would work in-action, including cost benefits and return on investment.

“The CLASS models are famous within the organisation and we are frequently asked to create models and movies
to show the real tangible benefits of adjustments to the way we currently work.”
Svetlana Pavlova
Group Warehouse Senior Manager

Download a PDF of the Carlsberg Supply Company Case Study