slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Brown-Forman Corporation The Impact of SAP on Global Operations PowerPoint Presentation
Download Presentation
Brown-Forman Corporation The Impact of SAP on Global Operations

Loading in 2 Seconds...

play fullscreen
1 / 25

Brown-Forman Corporation The Impact of SAP on Global Operations - PowerPoint PPT Presentation


  • 934 Views
  • Uploaded on

Brown-Forman Corporation The Impact of SAP on Global Operations Amanda Landrum Brian Danos Matt Wollner Celyn Maggioni Molly Jaworski. Outline Brown-Forman Overview

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Brown-Forman Corporation The Impact of SAP on Global Operations' - lotus


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Brown-Forman Corporation

The Impact of SAP on Global Operations

Amanda Landrum Brian Danos Matt Wollner Celyn Maggioni Molly Jaworski

slide2
Outline
  • Brown-Forman Overview
  • Whiskey Making Process Overview
  • Supply Chain Overview
  • Impact of SAP
    • Company
    • Forecasting
    • Purchasing
slide4

In our project we, will be focusing specifically on the division - Brown-Forman Beverages World Wide & the impact SAP has had on it.

    • Through Brown-Forman Beverages Worldwide, Brown-Forman produces and markets many of the most well-known and best-loved wines and spirits in the world. They include Jack Daniel’s, Canadian Mist, Southern Comfort, Early Times, Korbel champagnes, Fetzer wines, and Bolla wines.
    • BFBW is Brown-Forman’s largest division.
brown forman worldwide production facilities
Brown-Forman Worldwide Production Facilities

Collingwood, Ont, Canada

Dublin, IRL

Greenfield, CA

Guerneville, CAHopland, CAWindsor, CA

Louisville,KY

Versailles,KY

Lynchburg,TN

Frederiksted, St.Croix, U.S. Virgin Islands

Chagny, France

Livorno, Italy

Verona, Italy

     St. Leonards, Australia

slide6

Whiskey is

  • Made from Grain
  • Distilled less than 190 proof (95% by
  • volume)
  • Usually aged in oak barrels
  • Usually aged for at least 3 years
slide7

The Process of Whiskey Making

  • Milling
  • Mashing
  • Cooking
  • Fermentation
  • Distillations
  • Aging
  • Bottling
supply chain physical profile spirits

Stave

Mills

Consumers

Supply Chain Physical Profile: Spirits

Supply Chain Physical Profile Spirits

Model Dist

Inventory

Cooperage

Distilleries

Barrel Warehouses

Bottling Plants

BF Warehouses

Distributors

Retailers

Other Vendors

(e.g. caps, labels,

flavorings, glass, boxes)

Other Vendors

(e.g. utilities, grain

corn)

Agency Partners

  • 3 mills two owned in Kentucky, one in Ohio)
  • 4 Distilleries -(Jack Daniel’s, Early Times, Canadian Mist, L&G)
  • 2 Processing facilities (Clintock, Mt. Eagle)
  • 83 storage facilities (JD-68, CM-8, ET-7)
  • 1.964M sq/ft of storage space
  • Cost of warehousing
  • JD-$3.91, CM-$8.68, ET-$5.92 (bl/yr)
  • 4 Bottling Plants and one bottling line owned at Clintock
  • LPO volume was 6.1 9L cs in F’ 99 (not including Pinnacle)
  • JD volume was 6.1 9L cs in F’99
  • 7 facilities (JD, LPO, Pinnacle, 3 export, 2 import, 19 Bailment)
  • Inventory days in F’99 9L cs: JD - 18, LPO - 25
  • Approx. 800 ship-to points worldwide
  • In the U.S. - 32 open states, 18 control states
  • On & off premise retailers
  • BGC is located in Louisville, KY with a daily capacity of 2000 bl
  • approximately 95% of production @ BGC is used internally
slide14

So, how does Brown-Forman forecast demand plan production?

  • Two Separate systems used
    • Demand planning for liquid
    • Supply chain planning for bottling and distribution
slide15

Demand planning for liquids

  • Proprietary systems develop by Brown-Forman
  • Used to plan barrel and whiskey production
  • Used to manage long-term grape contracts and vineyard plantings
  • Production schedules updated semi-annual
slide16

Supply chain planning

  • Implemented SAP ERP system - May 1999
    • Y2K solutions for 17 legacy systems
    • Update to 4.6 release - July 2001
  • Strategic decision standardize on SAP software solutions - December 2000
  • Currently implementing APO module of SAP for supply chain planning
slide17

SAP’s Impact on Brown-Forman

  • Knowledge to make decisions
  • Quick Access to information
    • Inventory levels
    • Financial impact
  • Facilitate communication throughout Brown-Forman
slide18

SAP’s Impact - Purchasing

  • EXAMPLE – Glass Procurement Process
  • Complex Supplier Network
  • Lack of Consistency
  • Purchased in small amounts from
  • multiple vendors
slide19

Owens

Rexam

Allied Glass

Irish Glass

ST Gobain

AVIR

VOA

BSN

Tuaca

Bolla

Primalco

M. Picard

6 bottling

location

Glenmorangie

Clintok

Glass Supply Relationships

Millions

(000,000)

40.0 Bottles

16.6 Bottles

1.0 Bottles

43.8 Bottles

16.0 Bottles

7.8 Bottles

Total 125 Million Bottles

slide20

ST Gobain

France

Vetrerie

Italiane

Tuaca

Bolla

M.Picard

Wines

M. Picard

6 bottling

location

M.Picard

Spirits

ST Gobain

Negotiation of Contract

26 Million Bottles

Brown-Forman

Beverages

Saint-Gobain

Group

slide21

ST Gobain

Negotiation of Contract

26 Million Bottles

  • Three year agreement
  • Just in time delivery
  • Quality & Delivery SLA established
  • Cost reduction of 5% to 8%

Brown-Forman

Beverages

Saint-Gobain

Group

slide22

Karhulan

lasi

United

Glass

Primalco

Glenmorangie

Owens Brockway Supply Relationships

Owens Brockway

Group

34 Million Bottles

slide23

SAP’s Impact of Forecasting

Advanced Planner and Optimizer (APO) currently being

Implemented

After SAP

-Allows BFBW to forecast

at a much product-territory

lower level.

Jack Daniels Black Level,

750ML in Georgia

Before SAP

-High Level Forecasting

Jack Daniels 750ML in

North America

IMPORTANT BECAUSE OF REGUALTIONS

cost savings from sap systems
Cost Savings from SAP Systems
  • Distribution & Transportation $4.5 million
  • Supply Chain & Demand Planning $5.5 million
  • Purchasing - Direct Material $17.0 million
  • Purchasing - Indirect Material $14.0 million
  • Customer Relation & Promotions $11.0 million
  • Manufacturing $8.0 million