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Refreshing Its Supply Chain Operations

Technology Category
  • Platform as a Service (PaaS) - Connectivity Platforms
  • Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
  • Food & Beverage
Applicable Functions
  • Logistics & Transportation
  • Procurement
Use Cases
  • Inventory Management
  • Supply Chain Visibility
The Challenge
Swire Beverages, the franchise bottler for all brands of The Coca-Cola Company in Hong Kong, was facing significant supply chain challenges due to the rapid growth of the Coca-Cola brand in China. The company's network of bottling production facilities was under pressure due to the use of a manual system that was reaching its breaking point. Swire needed a solution to manage the forecasted growth of its 10 bottling plants in Central, Eastern and Southern China, as well as the increasing complexity of its products and supply chain. The company was also faced with more demanding customer service levels, and its Advanced Planning and Scheduling (APS) center was tapped to provide planning support for a new supply chain joint venture to service all of China’s bottlers, of which Swire is a significant shareholder. The difficulty in accurate forecasting was compounded by the seasonality of the beverage industry, consumer marketing initiatives and the complexity of Swire Beverages’ nationwide network.
About The Customer
Swire Beverages is the holding company of Swire Coca-Cola HK Limited, the franchise bottler for all brands of The Coca-Cola Company in Hong Kong. Swire’s extensive brand portfolio offers both carbonated and non-carbonated ready-to-drink beverages. Currently selling approximately 790 million cases in mainland China annually, it’s no surprise that Swire had specific supply chain challenges and needed solutions that could be scaled significantly and provide a fast return. The company operates 10 bottling facilities, 47 beverage plants, 75 production lines, and has more than 280 SKUs. It also has 153 distribution centers (DCs), and 2,700 distributors and logistics partners located across China.
The Solution
Swire selected JDA Software’s Manufacturing Planning and Intelligent Fulfillment solutions to better manage its supply chain. The solutions included JDA® Collaborate, JDA® Demand, JDA® Fulfillment, JDA® Monitor, JDA® Sequencing, and JDA® Strategy. These solutions helped Swire to better manage its 10 bottling facilities, 47 beverage plants, 75 production lines, more than 280 SKUs, 153 distribution centers (DCs), and 2,700 distributors and logistics partners located across China. JDA Demand helped support Swire’s exponential growth across China with improved forecasting capabilities and also enabled Swire to pinpoint and predict customer demand to maximize sales. JDA Strategy helped to strategically plan optimal capacity and sourcing based on costs and constraints across Swire’s entire network. JDA Sequencing was implemented at the plant level to optimize materials and resource capacities across each stage of the bottling process, improve plant throughput by reducing change-overs, and perfect the product mix of the individual bottling lines.
Operational Impact
  • Swire achieved a 24 percent improvement in forecast accuracy.
  • The company saw a 10 percent increase in production line efficiency despite tripling its SKUs.
  • Swire experienced a 75 percent decrease in its out-of-stock rate.
Quantitative Benefit
  • Reduced out-of-stocks by 75 percent.
  • Decreased inventory days by 64 percent.
  • Improved forecast accuracy by 24 percent.

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