the university of southern mississippi
DESCRIPTION
Ce. Center for Logistics, Trade and Transportation and College of Business. THE UNIVERSITY OF SOUTHERN MISSISSIPPI. Study Abroad in Panama Coordinated by Dr. Tulio Sulbaran Tel: 601-266-6419 - Email: [email protected]. - PowerPoint PPT PresentationTRANSCRIPT
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Study Abroad in PanamaCoordinated by
Dr. Tulio SulbaranTel: 601-266-6419 - Email: [email protected]
1Ce THE UNIVERSITY OF
SOUTHERN MISSISSIPPI
Jul 2013
A Case Study: A Comparison of Logistics Practices & Facility Layout of Baton Rouge Coca-Cola Production/Distribution Center and Nestle
Manufacturer/Distributor in Panama City, Panama. Presented by:Sergio Chavez
Tel: 601-271-6247 Email: [email protected]
Center for Logistics, Trade and TransportationandCollege of Business
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Video Preamble
Click image to play video. The interview was with Gloria Reyes, Director of Demand, Supply, and Trade from
Click on the image above to go to a website with a video of the Baton Rouge Coca-Cola plant.
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Outline
1- Introduction
2- Information/Data Collection Approach
3- Case Study
4- Results and Results ImpactSimilaritiesDifferences
5- Summary
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Introduction
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Introduction• Definitions:
Milk-run truck distribution involves when trucks pick up products at one or more location(s) and delivers them to one or more destination(s).
• Cross-dock truck delivery moves products from suppliers to a cross-dock and from the cross-dock to the destinations (Berman & Wang, 2006, p. 287).
• Value-added service warehouse is a facility “where key product customization activities are executed, including packaging, labeling, marking, pricing, and returns processing” (Frazelle, 2002, p. 3).
• FocusThe focus of this report is A Case Study: A Comparison of Logistics Practices & Facility
Layout of Baton Rouge Coca-Cola Production/Distribution Center and Nestle Manufacturer/Distributor in Panama City, Panama. More specifically, this report compares the logistics and warehouses of Baton Rouge Coca-Cola and Nestle Panama, by looking at the business functions previously mentioned.
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Introduction: Business Environment in Panama
• Panama uses dollar-based economy and relies heavily on established services sector for over 75% of its GDP. “Services include operating the Panama Canal, logistics, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism” (CIA, 2013).
• Approximately 30% of the population lives in poverty but it has been decreasing in recent years along with unemployment.
• There is a shortage of skilled labor and an abundance of unskilled labor (CIA, 2013).• Panama exports $17.97 billion • Main export partners are US (13.1%), South Korea (12.5%), Honduras (10.2%), Japan (9.3%),
India (7%), Canada (4.4%), and Mexico (4.2%). • It imports $24.04 billion • Panama’s major import partners are Japan (23.5%), China (23%), Singapore (18.1%), US
(13%), and South Korea (6%).
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Introduction
This report compares the logistics and warehouses of Baton Rouge Coca-Cola and Nestle Panama, by looking at the business functions of planning, design, scheduling, and material management. These business functions are critical to the comparison of Baton Rouge Coca-Cola and Nestle Panama.
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Information/ Data Collection Approach:Internet
• Used Google • Terms = “Coca-Cola” and “Baton Rouge” and “Panama” and
“Nestle.” • There was an abundance of information about Coca-Cola
Bottling Company United and specifically about Baton Rouge Coca-Cola available.
• There was very little information on the Internet regarding Nestle Panama.
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Information/ Data Collection Approach:Internet Results
• Multiple Articles• Best from Packaging
World Magazine included video of warehouse
• Company webpage
• Very little available on web
• Some parent organization business reports on profit
• Some articles on recent union issues.
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Keywords
Coca-Cola + Baton Rouge
Nestle + Panama
United States
Panama
Information/ Data Collection Approach:Databases
Database Library Results
Academic Search Premiere USM No for Panama
Academic Search Complete
LSU No for Panama
Business Source Complete USM No for Panama
Business Searching Interface
LSU No for Panama
CIA World Factbook Open/Govhttps://www.cia.gov/library/publications/the-
world-factbook/index.html
Country Information Present on Both
EBSCO Electronic Journals Service
USM No for Panama
Economia Y Negocios LSU No for Panama
Fuenta Academica LSU Yes
JSTOR USM No for Panama
MarketLine Company Profiles
LSU No for Panama
SAGE Journals Online LSU No for Panama
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Information/ Data Collection Approach:Database Results
• Multiple Articles in multiple databases
• Nothing on Panama Nestle
• Results were on other South & Central American Nestle locations
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Information/ Data Collection Approach:Interviews
Planned: •Joe Vergeron, Distribution Manager/Special Problems of Baton Rouge Coca-Cola•Ascanio Salas, Director of Operations for Nestle PanamaActual: •Gloria Reyes, Director for Demand, Supply Chain and Exporting Planning (Jefe Planificacion Demanda, Abastecimiento y Comercio Exterior).•Joe Vergeron, Distribution Manager/Special Problems of Baton Rouge Coca-Cola
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Information/ Data Collection ApproachInterviews
Question Business FunctionWhat is the size of the facility? DesignWhat is the size of the property? DesignDoes the facility hold any special certifications? Design
What is the product production? Material management How many SKUs can be handled on site? Materials managementHow many production lines are there? DesignHow many loading docks are there? DesignHow many vehicles distribute the product? Materials managementWhat pallet system do you use? Materials management/DesignWhat software systems are used? PlanningHow many employees are there? SchedulingWhat are the annual sales for last year? PlanningWhat type of warehouse design is used? DesignWhere is product shipped? Scheduling/Materials managementHow many unique products are manufactured/distributed from the facility?
Materials management
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Information/ Data Collection Approach:Interview Results
Question Baton Rouge Coca-Cola Nestle PanamaWhat is the size of the facility? 781,000 square feet Info Not AvailableWhat is the size of the property? 112 acres Info Not AvailableDoes the facility hold any special certifications?
LEED Info Not Available
What is the product production? 45 million 8-ounce serving products per day
33,000 TONS of product annually
How many SKUs can be handled on site? 141 SKUs created on site; 400 SKUs total
300+
How many production lines are there? 4 production lines NATA has 3 (one evaporated, one dry and one condensed milk line) and Los Santos has 6
How many loading docks are there? 98 loading docks NATA = 8 (4 for local and 4 for Exporting) and Los Santos= 2
# vehicles distribute the product? 340 plus vehicles They employ 15 + 3rd party logistic companies
What pallet system do you use? Easy Pallet Distribution System Push-Pull they also employ slip-sheet pallets that requires a special fork lift
What software systems are used? BASIS, MEI SAPHow many employees are there? 520 490What are the annual sales for last year? $9,096,916 $17,500,000What type of warehouse design is used? Warehouse Slotting (slot-
picking) Single and Double deep and/with drive in
Where is product shipped? Vending machines, stores, other distributor
Local, Chile, US and Caribbean - to the US they export “sofrito” and to the Caribbean they export condensed soups and to Chile caldo cazero
# unique products are manufactured/distributed from the facility?
Over 400 NATA = 95 and Los Santos = 45
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Case Study: Nestle Panama SA • Categorized under Dry
Condensed/Evaporated Dairy Prod Manufacturers
• Established in 1937• First Nestle company in Central
America• Produces and distributes local,
nationally, and internationally
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Case Study: Baton Rouge Coca-Cola
• Division of Coca-Cola Bottling Company United
• Produces & distributes to the greater Baton Rouge area and region (Mississippi & Louisiana).
• Founded in 1906
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Results and Results Impact: What was compared
• Warehouse design• Production• Distribution
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Results and Results Impact: Similarities
Question Baton Rouge Coca-Cola Nestle PanamaHow many SKUs can be handled on site?
141 SKUs created on site; 400 SKUs total
300+
How many production lines are there?
4 production lines NATA has 3 (one evaporated, one dry and one condensed milk lines) and Los Santos has 6
How many employees are there?
520 490
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Results and Results Impact: Differences Question Baton Rouge Coca-Cola Nestle Panama
What is the product production?
45 million 8-ounce serving products per day
33,000 TONS of product annually
How many loading docks are there?
98 loading docks NATA = 8 (4 for local and 4 for Exporting) and Los Santos= 2
How many vehicles distribute the product?
340 plus vehicles They employ 15+ 3rd Party logistic companies to distribute
What pallet system do you use?
Easy Pallet Distribution System Push-Pull they also employ slip-sheet pallets that requires a special fork lift
What software systems are used?
BASIS, MEI SAP
What are the annual sales for last year?
$9,096,916 $17,500,000
What type of warehouse design is used?
Warehouse Slotting (slot-picking)
Single and Double deep and/with drive in
Where is product shipped? Vending machines, stores, other distributor
Local, Chile, US and Caribbean - to the US they only export “sofrito” and to the Caribbean they export condensed soups and to Chile a product called caldo cazero
How many unique products are manufactured/distributed from the facility?
Over 400 NATA = 95 and Los Santos = 45
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Results and Results: Impact
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
Summary• Nestle Panama SA is a private company in Panama City, Panama. • Nestle Panama distributes locally, nationally, and internationally.
• Baton Rouge Coca-Cola Bottling Company is a division of Coca-Cola Bottling Company United, Inc.,
• Baton Rouge Coca-Cola distributes locally and regionally.
• Warehousing, distribution, technology, etc. are critical business functions.
• Although Baton Rouge Coca-Cola produces more, directly distributes more(no outsourcing), has more employees, a LEED warehouse, and impressive technology, Nestle Panama’s profit is greater because of national and international reach.
• Future studies = how the variety of product calls for different warehousing functions and layouts and the types of distribution used—rails, trucks, ship—for the two locations.
Study Abroad in PanamaJuly 2013
THE UNIVERSITY OF
SOUTHERN MISSISSIPPICenter for Logistics, Trade and TransportationAndCollege of Business
THE UNIVERSITY OF SOUTHERN MISSISSIPPIfounded in 1910
Thanks!
Center for Logistics, Trade and Transportationand
College of Business