Coca-Cola HBC Italy optimises daily delivery processes with Zebra

Coca–Cola HBC Italy (CCHBC) is one of the world´s largest bottlers of Coca-Cola Company products. In Italy it manages production, vending and delivery processes as well as trade marketing and category management activities for central-northern Italy.

Established in 1995, the company took over full operational processes through acquisition. In 2005 it became Coca-Cola HBC Italy S.r.l. consisting of 2500 employees, running 15 product lines, in 155 sizes, across 7 factories, 4 storage locations and a technical service centre, covering 70% of the national turnover. CCHBCs product line includes carbonated (CSD) and non-carbonated (non-CSD) soft drinks, juices, water, sports and energy drinks, and ready-to-drink beverages such as teas and coffees.

The Challenge
In 2005, CCHBC Italy distributed products via the channel: wholesale dealers used to order from the company directly. From January 2006, the marketing strategy changed from an indirect delivery process model to a direct one: each outlet (bar, restaurant, pizzeria etc.) became a direct customer of CCHBC Italy with respective sales teams visiting sales outlets individually. This resulted in clients increasing from 10,000 to more than 150,000!

Every morning delivery drivers would arrive to collect pre-printed delivery notes that had been prepared with daily delivery lists. After each delivery the customer was given the top copy of the delivery note with the driver keeping the second copy for himself. Any subsequent customer changes had to be hand written on the document.

After completing delivery rounds, drivers would return to the distribution centre where the manager compared the original delivery list against what had actually been taken from the truck. Following this check the clerk manually recorded any stock and delivery changes. Finally, all the delivery notes were sent to a third party where they were scanned and stored. This process of checking between 5,000 and 10,000 deliveries per day across the company, and managing any changes was both exceptionally time consuming and very expensive.

The Zebra® Solution
The project’s main objective was to streamline and make more accurate the check-in process, while ensuring that delivery handling changes were significantly more efficient. To implement such operational changes CCHBC Italy decided to use mobile hardware that would optimise deliveries whilst reducing back office work. The solution consisted of Zebra RW 420 mobile printers, combined with a handheld terminal (PDA) and a route pad for housing both devices - making transportation and recharging easier.

Overnight,daily route accounting information clarifying the amount of product to be delivered is downloaded into each driver’s PDA. During deliveries any customer changes are recorded onto the PDA. The system automatically re-evaluates the order and highlights any linked promotions. To complete the delivery both driver and client sign the delivery note on the PDA. The Zebra RW 420 printer then prints a final delivery note that is free of manual corrections and includes any customer requested changes. A second copy is also printed which the driver keeps for reference.

On completing their deliveries drivers return to the storage and distribution centre where the depot manager checks the stock left on the truck and records any changes. At the same time, each delivery’s data is sent wirelessly, using GPRS, straight to the central system. Each customer record is updated and that day’s delivery is closed, all in one go. All changes are immediately reconciled to the customer’s account, reducing the administrative workload and minimising any errors. The check-in phase ends when both the driver and depot manager print and sign copies of each check-in document.

Before implementation across the business, the mobile solution was tested for 3 months at the Buccinasco (Milano) depot. The pilot involved 8 drivers carrying out functionality testing before it was rolling out across all 400 drivers at all 11 distribution centres. This process enabled each step to be fully customised to meet CCHBC Italy requirements.

The Benefits
The mobile delivery management system has resulted in the following key benefits to CCHBC Italy:

• Procedure simplification: by digitising information and automating the download of this data, the whole process is much faster. A process that used to take up to15 minutes per driver (who made 30 deliveries per day) was reduced to15 seconds. Also printed documents are clearer than before and free of manual changes, improving overall billing and reducing customer queries.

• Electronic document storage: data is transferred wirelessly, removing the need to scan in the delivery notes. This saves time and energy and dramatically reduces the number of errors.

• Cash-flow: once the driver returns to the depot, all data about his delivery round is downloaded, allowing invoices to be released in minutes instead of days.

“We’re very proud that Italy is the first country in the Coca-Cola organisation to implement such a solution. It has made a remarkable improvement in managing the delivery process and customer administration,” said Claudio Ferla, mobile solutions business system manager, CCHBC Italy. “Working with Zebra Technologies has allowed us to find the ideal solution for the company, helping us improve efficiency in a very short time.”

The new solution works across several areas: delivery drivers, depot managers and settlement clerks validating bills and storing sales records. Each location has had two hours of training from business and logistics staff, supported by an IT expert. CCHBC has been careful to ensure change has happened gradually.

During the first month both the old paper based system and the new mobile printing system were used in parallel, allowing workers to become familiar with the new system. Staff have been quick to appreciate how the new system improved delivery information accuracy and has made information transfer, quicker and easier. “They have reacted positively to the new delivery process and can see the benefits in their working day,” added Ferla.

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