Diageo is revamping its upstream replenishment process with one of the largest Collaborative Planning, Forecasting and Replenishment (CPFR) programmes in the industry.
The first manufacturer to use the CPFR facility on online exchange GNX upstream, Diageo will automate its replenishment process with selected dry goods suppliers.
If the initial pilot with three suppliers of glass, packaging and labelling is a success, the scheme will be rolled out to key suppliers by the end of next year.
Diageo will share production plans, stock levels and upcoming delivery schedules with participating suppliers via GNX on a daily basis, helping suppliers make better informed decisions on production planning and deliveries.
Alerts are generated to both parties whenever depot stock cover moves beyond pre-set boundaries.
This should make for more accurate replenishment with reduced administrative costs, lower inventory, reduced logistics costs and better availability, said Diageo global supply collaboration director Paul Reilly.
"This will play a key part in achieving our aim to reduce the inventory value of dry goods in our joint supply chains by 50% in two years. It's a real first for our industry."
The project, which is being piloted in Scotland, mirrors work Diageo is doing downstream with retail customers, said Reilly.
"We have made the commitment to integrate collaborative replenishment planning end-to-end across the supply chain."
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