Swire Beverages Maintains Competitive Edge with Supply Chains Apps

Hong Kong company deploys Manugistics solutions to improve internal forecasting and planning accuracy

Hong Kong company deploys Manugistics solutions to improve internal forecasting and planning accuracy

Atlanta — May 5, 2005 — China's Swire Beverages has achieved internal forecasting and accuracy improvements following the deployment of supply chain solutions from Manugistics, helping the company to maintain its position in China's competitive consumer beverage market, the solution provider announced this week.

Headquartered in Hong Kong, Swire is a Coca-Cola bottler with franchises in the People's Republic of China, Hong Kong, Taiwan and the United States.

Three years ago, Swire Beverages faced the prospect of exponential growth in both sales and complexity against a background of more demanding customer service levels. The supply chain servicing their network of eight production facilities and over 100 sales centers was planned using a manual system that was rapidly reaching the breaking point, prompting reason management to implement a best-of-breed planning system.

A Specialized APS Systems

The company selected Manugistics to build a specialized advanced planning and scheduling (APS) system to improve planning and enhance efficiency and reinforce the Coca-Cola bottler's position. Swire's APS system now relies on Manugistics' Demand and Fulfillment solutions for forecast planning, as well as the provider's Collaborate, Sequencing and Strategy solutions to help plan inventory across its entire China network on a daily basis.

The specialized APS system developed for Swire addressed the need for greater efficiency in the face of rapidly growing competition from both carbonated and non-carbonated beverage producers. Other challenges faced in this market also include difficulty in accurate forecasting, which is reinforced by the seasonality of the beverage industry, consumer marketing initiatives and the complexity of Swire's nationwide network.

Timely Collaboration

The Web-based user interface of Manugistics' solutions allows planners to view and update key figures for developing planning forecasts. Swire produces automated weekly and daily production plans based around manufacturing constraints such as capacity and material availability. Demand planners are also able to evaluate hypothetical scenarios, allowing for the development of optimal production plans.

In addition, the APS system creates timely collaboration between demand planners and sales and marketing teams to allow for more accurate forecasts in a large market with dispersed production facilities, Manugistics said.

Finally, by enabling more accurate centralized production planning, raw materials purchasing, warehousing and transportation, the APS system has enabled Swire's supply chain to support almost 100 percent growth in volume and planning complexity in the last three years without incurring significant supply chain disruption, according to the solution provider.