The Internet of Things: Driving Automated Replenishment
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Presentation given at the 2016 Supply Chain Insights Global Summit - 7-9 SEP 2016 at The Phoenician in Scottsdale, AZ The Internet of Things: Driving Automated Replenishment • Chris Clowes – Senior Supply Chain Development Manager, Walgreen's Boots Alliance (formerly at Costa Coffee) Costa Coffee had a choice. They could either make their current operation more efficient or redesign the process to drive an autonomous supply chain to leapfrog competition. They chose the latter. Through the use of machine signals, they were able to redesign distribution processes to drive automated replenishment and drive growth and improve supply chain results. To see the video go to http://supplychaininsightsglobalsummit.com/2016-summit-presentations/
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The Internet of Things: Driving Automated Replenishment
- 1. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Chris Clowes Walgreens Boots Alliance Senior Supply Chain Development Manager
- 2. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 The Internet of Things: Driving Automated Replenishment Chris Clowes Walgreens Boots Alliance Senior Supply Chain Development Manager
- 3. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 REVOLUTIONISING BUSINESS THROUGH INTELLIGENT DATA 2013 RE-ENGINEERING 2014 CONSOLIDATING 2016 & BEYOND STEP CHANGE
- 4. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission WHO AM I?
- 5. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 1971 1999 2006 2009 2011 2011 2012 2013 20132009 40 YEARS OF LOOKING FORWARD
- 6. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission 2012
- 7. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission 2,498 UK MACHINES INCUMBENT PROVIDER LEGACY I.T. OLD OPS STRUCTURES
- 8. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission THE VALUE OF REVOLUTION
- 9. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission APRIL 2012 SUPPLY CHAIN TEAM TOOK OWNERSHIP JUNE 2012 APPLIED PLASTER TO CURRENT SOLUTION JULY 2012 TENDERED LOGISTICS AND IT SOLUTIONS NOVEMBER 2012 CHOSE TOOLS GROUP’S SO99+ AND APPOINTED HOWARD TENENS AS LOGISTICS PROVIDER JANUARY 2013 GO LIVE WITH BOTH SIMULTANEOUSLY APRIL 2012 NPS SCORE UP TO RECORD LEVELS
- 10. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission 2013
- 11. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission INTRODUCED NEW PLANNING, OPTIMISATION AND PROCESS IMPLEMENTED TOOLSGROUP’S SO99+ SOFTWARE REDEFINED THE ROLE OF OUR FIELD TEAMS ALL WHILE MANAGING RAPID CHANGE & GROWTH
- 12. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission BIG DATA BETTER SERVICE
- 13. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission THE NETWORK
- 14. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 FORESIGHT
- 15. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 ACCURACY
- 16. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 AUTOMATION
- 17. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission 2013
- 18. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission OVERALL NET PROMOTER SCORES INCREASED BY 10% 20% REDUCTION IN STOCK HOLDING AT SITES 20% COST REDUCTION AND 70 TONNES OF CO2 SAVED INCREASE FROM 900 MACHINES TO OVER 4,300
- 19. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 APRIL 2012 JUNE 2015 UNPRECEDENTED GROWTH
- 20. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Rich user interface in full HD Evocative sound track with burring grinder and tinkling of spoons Memorable flavours and fragrances Cutting edge reliable / ultra efficient computer processing hardware Stunning curved design by Italian automotive designers Irresistible aromas of Costa’s coffee shops Innovative coffee-making system providers BOLD NEW PRODUCTS
- 21. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 INTERNATIONAL EXPANSION IRELAND POLAND UAE
- 22. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 SUPPLY CHAIN MACHINE NEW MARKETS
- 23. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 SO WHERE TO NEXT?
- 24. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission 2014
- 25. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission INTERNAL OPERATIONAL STRUCTURE REALIGNMENT OPTIMISING BACK OFFICE SYSTEMS DEFINING STRATEGIC GROWTH PLAN
- 26. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 2016: DOUBLE OUR SIZE - AGAIN 877 COFFEE NATION 4,292 2014/15 C. 8,000 2020*
- 27. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Proven operation & back office system Real time demand planning and supply chain Operational Support The perfectly prepared Mocha Italia coffee Proprietary equipment Unique telemetry & monitoring World-class helpline support WITH OUR WORLD-CLASS SUPPORT SYSTEM
- 28. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission 2016 & BEYOND
- 29. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 Submission
- 30. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 AUTOMATED COMMISSIONING LIVE OPERATIONAL DATA BY MACHINE IMPROVED MACHINE MONITORING AUTOMATED OPERATOR ALERTS DYNAMIC MACHINE LOCATION INFO RESILIENT MACHINE CONNECTIVITY RE-INVENTING BACK OFFICE SYSTEMS
- 31. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030
- 32. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030
- 33. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 THE INTERNET OF THINGS LEVEL 0 MACHINE ALERTS: MESSAGE ON SCREEN, WITH OPTIONAL ALARM LEVEL 1 SITE ALERTS – MESSAGE TO COSTA EXPRESS PROVIDED DEVICE LEVEL 2 PARTNER ALERTS – ESCALATION TO SITE / AREA MANAGEMENT LEVEL 3 SERVICE AGENT ALERTS – VIA EMAIL, SMS, OR SERVICE TICKETS LEVEL 4 COSTA EXPRESS CONTROL CENTRE OPERATIONAL ALERTS TECHNICAL ALERTS
- 34. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 2012 2,498 MACHINES 1 MODEL 1 COUNTRY AUTOSTOCK INCUMBENT LOGISTICS PROVIDER OLD OPS STRUCTURE
- 35. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 3,202 MACHINES 2 MODELS 3 TRIAL COUNTRIES SO99+ HOWARD TENENS OLD OPS STRUCTURE 2013
- 36. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 3,862 MACHINES 2 MODELS 7 TRIAL COUNTRIES SO99+ GRID DEVELOPED HOWARD TENENS OLD OPS STRUCTURE 2014
- 37. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 2 MODELS 7 TRIAL COUNTRY SO99+ GRID TRIALED HOWARD TENENS NEW OPS STRUCTURE 2015 4,692 MACHINES
- 38. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 4 MODELS 9 TRIAL COUNTRIES SO99+ - GLOBALLY GRID LAUNCHED HOWARD TENENS - GLOBALLY FURTHER NEW OPS STRUCTURE 5,600 MACHINES 2016
- 39. 9/24/2016 September 2016Supply Chain Insights Global Summit #Imagine2030 THE REVOLUTION CONTINUES
Notas do Editor
- Chris Clowes, International Operations Manager of Costa Coffee
- - 2013: Reengineering a supply chain - 2014: Consolidating changes to sustain growth - 2015 & beyond: A Business step change
- - Keele University - Moved into International Operations after a career in Supply Chain - Arsenal, Wasps, England
- - Background and context to Costa Express growth - Strong growth that’s accelerating
- - Limited control with increased costs in the supply chain
- - Unique business model pushes stock to sites free of charge - Over 2,000 linked spreadsheets barely coping with 50,000 replenishment combinations - Incumbent logistics provider in place for 12 years - No direct contact with suppliers - Business more than doubling in size in less than 12 months
- - Driving change to deliver value to stakeholders
- - Overview of changes identified and delivered in under 12 months
- - 2013, the year of revolutionising the supply chain and the business
- - Overview of changes in our supply chain implemented in early 2013
- - Spans key supply chain areas - Use actual daily sales data to sense demand - Calculates how much stock to send to a site - Enhanced stock visibility and reporting - All done using innovative demand modelling technology
- - Network solution: 30 suppliers; 6 warehouses; 4,500+ machines; multiple countries
- - A monthly drinks forecast example
- - Daily forecast – 10 or 70 cappuccinos today
- - Planned coffee deliveries
- - The year of change
- - 50% reduction in number of refusals - Management of new relationships with over 15 suppliers with no loss of service - Move to new 3PL with no loss of service, - Implementation of SO99+ with no loss of service - Significant driver of Whitbread growth and success
- - Changes put against a backdrop of huge and unprecedented growth
- Introduction of new model (machine type) – keeps us ahead of the curve and revolutionises once again the category
- - Growth and sustainable businesses in UAE, Poland and Ireland now
- - We have a supply chain ready, a machine, and new markets to grow in to – what else do we need?
- - Internal operations structure reviewed and realigned for sustained growth - Internal IT systems reviewed to support rapid growth
- - Preparing Costa Express for a new growth phase - Internal project launched – “How do we accelerate our growth?” - Fundamental review of all operational, IT and international growth strategy
- - Internal realignment phase two – operational structure - IT Project– making our back office systems work - International Strategy –defined growth plan
- - Grid enables smart machine alerts, leveraging the Internet of Things
- - 2013: Reengineering a supply chain – using sales data to replenish sites
- - 2014: Consolidating changes to sustain growth - in the UK international expansion
- - 2015 +?: Total business step change – delivering new operational structures and IT changes
- - 2016 +?: Total business step change – delivering new operational structures and IT changes