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Customer Snapshot

Quenching a Thirst for Optimal Warehouse Efficiency

Dr Pepper was created in

1880

at drug-store soda
fountain in Waco,Texas

Dr Pepper Snapple Group is considered by some to be the #1 flavored carbonated soft drink company in the Americas. With a combination of warehouses and store delivery centers, Dr Pepper Snapple Group employs about 19,000 people in North America and has expanded to Latin America and the Caribbean.

 

Company

Dr Pepper Snapple Group

Headquarters

Plano, Texas, USA

Revenue

~US$6 billion

Number of Employees

~19,000

Implementation Partners

Westernacher, HCL

Line of Business

Supply Chain

Industry

Consumer Products

Featured Products

SAP Extended Warehouse Management (SAP EWM)

History

From the corner store to every corner of the globe

 

  • 1885The US Patent Office recognized December 1st as the first time Dr Pepper was served. It was formulated by Brooklyn-born pharmacist Charles Alderton, in Morrison's Old Corner Drug Store in Waco, Texas.
  • 1950 Dr Pepper's logo was redesigned and the text in this new logo was slanted.
  • 1951Dr Pepper sued the Coca-Cola Company for US$750,000, asserting that nickel Coca-Colas were sold below cost and were a restraint of trade.
  • 1962Dietetic Dr Pepper was introduced.
  • 1980Dr Pepper became insolvent, prompting an investment group to take the company private.
  • 1983Caffeine Free Dr Pepper (not diet) was first released due to the success of Pepper Free.
  • 2000 Dr Pepper introduced new flavors: Dr Pepper Red Fusion, Cherry Vanilla Dr Pepper, Dr Pepper Berries and Cream, Diet Cherry Chocolate Dr Pepper, and Dr Pepper Cherry.
  • 2006Cadbury Schweppes purchased the Dr Pepper/Seven Up Bottling Group.
  • 2008 Cadbury Schweppes demerged and separated from its USA beverage unit and it is now called "Dr Pepper Snapple Group.”

Business Model

More than one distribution strategy

Dr Pepper Snapple Group has a combination of direct store delivery and warehouse delivery capabilities supported by their 21 manufacturing centers with more than 115 distribution centers. Nearly half of DPSG's annual volume is distributed through their company-owned bottling and distribution networks. The remainder is driven through third-party/licensed bottlers and distributors. DPS Group has also expanded into Mexico and the Caribbean where they operate primarily in the carbonated mineral water, flavored carbonated drinks, bottled water, and vegetable juice markets.

The Challenge

Move everything more efficiently

The company's top business challenges were to:

  • Improve operating efficiency using replenishment pull systems
  • Improve customer service and product availability
  • Streamline data consolidation and reduce IT complexity

 

Enter SAP

SAP on board

Dr Pepper Snapple Group has been running SAP for the past 10 years. The company is constantly looking at new and innovative ways for SAP to further support and grow their business.

The SAP Experience

Streamline the warehouse, streamline the data

Thanks to SAP, Dr Pepper Snapple Group implemented the SAP® Extended Warehouse Management (SAP EWM) application, creating an integrated, repetitive manufacturing process, including the back flushing of components, with the SAP ERP application.

 

SAP’s solutions optimized loading and unloading with vehicle check-in and check-out. They enabled batch management for finished products, and designed a “shuttle” between facilities within warehouse complexes. SAP also introduced travel-distance optimization and cross-docking.



Running Better

The numbers tell the story

25%

Reduction in load times per warehouse

10%

Reduction in IT spending and dependence on IT support

30%

More self-service capabilities

 

Benefits

Safer, more productive, cost effective

The key benefits accomplished thanks to SAP:

 

Harmonized

processes and improved control
of warehousing activities

 

Reduced

number of empty forklift hours

 

 

 

Automated

cycle counting, "put-away" and

loading processes

 

 

Enhanced

task management and workforce planning

 

 

Dashboards

provided to monitor tools for task and labor assignments

 

 

“We deployed SAP EWM at five large sites. It has helped us raise productivity, reduce costs, improve the customer experience, and become a safer place to work. We are seeing less travel time, fewer unnecessary exits from the forklifts, shorter loading and unloading times, and a more accurate order picking process.”

— Venkat Paruchuri, Director of Supply Chain IT, Dr Pepper Snapple Group

 

Lessons Learned

Taking advantage of new technology

Advanced reporting capabilities have allowed DPSG to move functions from the office to the warehouse floor. Advanced optimization techniques bring operators more information to execute their tasks even more efficiently.

Today

Seeing the whole picture

“SAP Extended Warehouse Management give us complete visibility across the warehouse, which helps our users tremendously.”

— Venkat Paruchuri, Director of Supply Chain IT, Dr Pepper Snapple Group

 

Journey Ahead

All warehouses up to speed

DPSG plans to take advantage of pre-cartonization functions for pallet building for layer picks, and to roll-out the new SAP enhancements to all their warehouses.

 

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