Coca-Cola opts for vendor-managed spares inventory

By Rick Pendrous

- Last updated on GMT

CCEP 20% of its annual spend last year by sourcing spares directly
CCEP 20% of its annual spend last year by sourcing spares directly

Related tags: Manufacturing

Coca-Cola European Partners’ (CCEP’s) Wakefield factory, which is said to be the largest soft drinks plant by volume in Europe, is ensuring it has the highest levels of productivity through a close partnership with its strategic supplier of industrial maintenance, repair and overhaul (MRO) products.

CCEP has partnered with Brammer since 2009 to manage the supply of its MRO spare parts to its various manufacturing operations, including its Wakefield site.

But since then, the partnership has evolved and is now based on a core concept of best practice in MRO procurement – vendor managed inventory.

Vendor managed inventory

To achieve this, Brammer implemented its Insite service. This is effectively a dedicated branch housed within the Wakefield plant that has achieved cost savings of more than 11% to date.

As well as savings generated through vendor consolidation and inventory rationalisation, the Insite team has achieved big savings through original equipment manufacture (OEM) conversion.

Even worn or damaged components can be identified by the team, and by sourcing replacement parts directly from the manufacturer rather than through the machinery OEM, Brammer has been able to cut costs as well as reduce lead times. In 2015, it delivered a significant cost saving of 20% of usual annual spend.

‘Reducing procurement costs’

“The Insite team has undoubtedly been successful in reducing procurement costs and ensuring we at CCEP benefit from excellent inventory availability,”​ said Trevor Newman, operations director at CCEP Wakefield.

“But where Insite has added the greatest value for us is through the closely collaborative relationship we share, which enables the team to get out and about around the plant, proactively identifying potential projects to improve production efficiency and reduce costs.”

Meanwhile, Newman won the inaugural Me & my factory – editor’s choice award​ in the food and drink manufacturing industry’s Oscars – the Food Manufacture Excellence Awards (FMEAs) – last month. Read the full list of winners and finalists here​.

Related topics: Drinks, Processing equipment

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