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Research Brief

 

Coca-Cola Amatil Automates Distribution Center Operations and Vehicle Load Planning

Logistics planners leverage SAP EWM and SAP TM to optimize order fulfillment

by Pierce Owen, VP, Research, SAPinsider

January 28, 2020

Coca Cola Amatil

This research brief examines how Coca-Cola Amatil Limited integrated SAP Extended Warehouse Management (EWM) with its automated guided vehicles (AGVs) in its distribution center to automate operations and improved truck load planning with SAP Transportation Management (TM). SAPinsider recently interviewed Keith Harrison, Solution Delivery Manager for Supply Chain Applications at Amatil.

Amatil has built a new distribution center (DC) complete with connected AGVs that drive products from the production line in the manufacturing plant next door to various parts of the new DC. With this new facility and automation capabilities, Amatil needed to assess its warehouse management strategy. "Our legacy tools didn't have the needed complexity, and they weren't dynamic enough," said Harrison.

On the transportation management side, Amatil had room for significant productivity improvement. Prior to implementing SAP TM, the company used spreadsheets to plan truck loads based on orders.

Amatil moves over 500 trucks each day and to comply with Australia's chain of responsibility (COR) policies, the company must plan every truck load properly, with weight distributed evenly across the truck axles. If they fail the test at a weighbridge, the driver must take the truck back to the warehouse and rearrange the pallets before going back to the weighbridge to try again.

“We have strict requirements for customer demands that we cannot meet if our trucks fail to pass the weighbridges," said Harrison.

As an SAP shop running SAP ECC, SAP EWM emerged as a key option for a new warehouse management system.

Amatil implemented SAP EWM with Icon Integration as a partner to automatically orchestrate the movement of pallets from productions lines to storage areas and then to loading docks through SSI SCHAEFER's Automatic Storage & Retrieval System (ASRS).

Amatil started implementing SAP TM in 2017 with Novigo as a partner. Since then, the business has gone from about 90% truck space utilization to almost 100%. Also, since completing phase one of the SAP TM implementation, Amatil has achieved 100% weight compliance in Australia on weighbridges. "Our data is 100% accurate, and after staying at zero failures over a long enough time, we can get exemptions at the weighbridges, which will save us even more time and money," said Harrison.

The full research brief explains how Amatil gets the most out of SAP EWM and SAP TM in a way that saves time and money in operations.

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