Following a major pilot in three regional distribution centers, KN Drinks Logistics has started a roll-out of Paragon’s enhanced routing and scheduling optimization solution, as the company seeks to improve its radial distribution planning operations in the brewing and drinks sector.
Transportation planning for KN Drinks Logistics’ national client base is both a large and highly complex process, processing up to 6,000 orders per day through their 20 DC network. They operate five different truck types and one, two and three-man crews in meeting the tight delivery windows and restricted access constraints of much of their 30,000+ strong delivery account base.
KN Drinks Logistics and Paragon jointly worked together to establish a series of performance improvements in what is a complex and demanding operation, and this is now coming to fruition. Among the areas identified to improve were, ease and speed of planning, reductions in truck movements and reduction in distances traveled, with no consequent adverse impact on already very high levels of delivery service level performance.
Consequently, the Paragon software now incorporates several refinements of its underlying scheduling algorithms and optimizing techniques. It also gives the DC planning teams more influence over how the optimization should be best carried out – so they can take account of operational experience which, for example, shows that in certain DCs it is better to plan small trucks before larger ones and then undertake final optimization using an enhanced ‘Trip Improver’ option.
Following the successful pilot, the enhanced Paragon software is now being rolled out across the entire KN Drinks Logistics network.
Early operational results have been impressive, with significant improvements across a range of key performance indicators (KPIs), including a kilometers per tonne, and average distance traveled decrease. In addition, KN Drinks Logistics has seen a real reduction in truck movements which is also having a positive impact on its carbon footprint.
As a result of Paragon’s software developments, KN Drinks Logistics are now able to plan more quickly than before and with better results in what continues to be a challenging environment. Daily planning, which previously took up to five hours as a manual process in some DCs, can now be completed in no more than 2 hours – a dramatic 60% time saving. This in turn allows the planners to undertake more what-if type analysis and look for other opportunities to drive operational efficiency.
“Paragon’s willingness and determination to work closely with our team has had a major impact on the success of the project. We are already achieving the outstanding results anticipated at the outset and now have an excellent planning tool that enables us to produce more efficient plans much more quickly.” Allan Jagger, KN Drinks Logistics Business Systems Manager.
