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The challenge

As a result of strong market competition, declining cider growth, and a historically fragmented and cumbersome manufacturing and supply network, Distell lacked the agility to meet its long-term ambitions. 

While the group enjoyed ‘‘protected’’ growth in the alcohol beverage industry, current performance and practices revealed the following:

  • Reduced product quality
  • Erratic stock levels and availability
  • Poor planning systems and capabilities
  • Lagging supply chain performance despite significant investment in marketing, technology, research, and innovation
  • High transport costs and quality risks resulting from fragmented procurement spend management and double handling

To address these challenges and increase shareholder return, Distell needed a holistic and integrated approach that would enable a fundamental end-to-end supply chain transformation.

Industry

Food and Beverage

Business size:

5000+

The Distell Group is Africa’s leading product and marketer of wines, spirits, ciders and other ready-to-drink (RTD) beverages sold across the world. Distell has a diverse portfolio of brands, enjoyed across 80 countries and priced across the continuum to cater to a broad range of consumers. Distell has an annual turnover of R2.4 billion (~US$1.7 billion).

Over five years the Distell’s TRACC-powered Supply Chain Excellence program enabled the Distell team to achieve incredible results.

US$174 million in saving across the supply chain

10% increase in on time in full (OTIF)

32% improvement in weekly plan adherence

25% improvement in reliability

10% increase in OEE

30% increase in productivity

20% – 40% reduced Cost of Goods Sold (CoGS)

45% decrease in customer complaints

From our client

“We are confident that we are on the right track to achieve supply chain excellence.”

Cecil Everson, Head of Manufacturing, Supply Chain Excellence

From our client

“A major transformation like this is not easy. It needs financial resources as well as organizational commitment. The good news is that we can all lift productivity with initiatives such as this. I am convinced that these principles can be applied successfully to any organization. The results at Distell speak for themselves.”

Richard Rushton, CEO

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