Case History


Strada Statale, 63/65
12069 - Santa Vittoria d'Alba - CN

Tel: +39 0172 477111

santa.vittoria@diageo.com
www.diageo.com

Diageo Operations Italy Spa

Food & Beverage


Diageo Plc is a leader in the worldwide market of premium alcoholic beverages. The company was created in 1997 by the merger of the two largest operators in the sector, Grand Metropolitan and Guinness. In 2001, Diageo Plc expanded its product portfolio by acquiring part of the Seagram's alcoholic beverage division. The company's history is closely connected with that of its famous brands, which, today, consist of a collection of global brands such as: Smirnoff, Baileys, Guinness, Johnnie Walker, José Cuervo, J&B, Captain Morgan, Tanqueray and Crown Royal. Diageo Plc is listed on the London and New York Stock Exchanges; the company currently operates in 180 countries and has about 23,000 employees.

Products:

WMS

StockSystem

WAREHOUSE LOGISTICS MANAGEMENT

Software for the management of logistics processes.

Diageo Operations Italy Spa

Diageo's global numbers

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Diageo is among the leading players in the premium alcoholic beverage industry, was formed in 1997 by the merger of two major players in the industry, England's Grand Metropolitan Plc and Ireland's Guinness Plc.

BRANDS

PRODUCTION SITES

COUNTRIES IN THE WORLD

EMPLOYEES

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The Group operates in our country through two companies: Diageo Italia SpA, based in Turin, which is responsible for the marketing and distribution of the brands in its portfolio, and Diageo Operations Italy, based in Santa Vittoria d'Alba, Cuneo, which is one of the most important production centers at the European level.

Ninety-seven percent of the entire volume originated at the Santa Vittoria facility is destined for export, as part of a large market whose main destination is Great Britain (56 percent).

Thanks to Replica Sistemi's solutions, we can monitor every stage of production, any nonconformity and rationalize logistics flows. In addition, with the introduced traceability system, times, quantities and location of materials are recorded, we comply with current regulations but, at the same time, we are able to create development strategies, internal risk management, supply chain coordination. Finally, not to be forgotten, thanks to the new system, we have centered the compliance requirement for the purpose of quality certification.

Marco Bencini

Global Diageo Business Services – Service Delivery Lead

NEEDS

In 1994, Diageo felt the need to computerize its information system and decided to make a software selection and chose IBM's AS/400 ERP with the verticalization for the wine-wine sector developed by Replica Sistemi.

In 2000, it installed the Wine & Spirits module to manage all issues related to tax and customs warehousing.  In the same year, anticipating what were the traceability obligations imposed by Regulation (EC) No. 178 of the European Parliament and European Council of January 28, 2002, to ensure food safety in the food and beverage sector, Diageo decided to implement Replica Sistemi's StockSystem WMS.

The goals were:

  • to activate a system capable of tracing its goods at every stage of the production and distribution chain, complying with the growing demands of the markets
  • to adopt a marking system in accordance with EAN standards (SSCC) to guarantee consumer rights and protect its brands

LEGAL REQUIREMENTS

The tracking/traceability regulation has defined clear requirements:

  • Identification of relevant material and products for which traceability is to be ensured
  • identification and recording of incoming materials and their suppliers
  • definition of the flows in the company of the identified materials and the registration methods
  • definition of how to record the materials used in each product batch and the destination of the product batches
  • keeping track internally of all transfers of material flows and intermediate batches at process stages (not just incoming and outgoing batches)
  • ensuring the safety of food production, both to trace the causes of problems themselves and to provide a benchmark for suppliers by facilitating the allocation of any responsibilities

From a technical point of view, it was necessary to:

  • connect the various enterprise information systems together: ERP, Production Management Systems (SCADA, MES), Laboratory Management Systems (LIMS),Maintenance Management Systems (CMMS), Warehouse Management Systems, Access/Customs System, and the enterprise tracking site;


  • Simplify and speed up the exchange of information between the various components of the supply chain; both internal and external (Raw Material Producers, Processors, Distributors, Consumers).

DIRECT

  • Traceability for food safety (EC Reg. 178/2002) and technical traceability (UNI 10939)
  • Upward traceability (ability to find the origin and characteristics of products at each point, to search for the causes of a quality problem upstream and downstream in the supply chain)
  • Descending traceability (ability to find the location of products at each point in the supply chain, determining their destinations and origins, to manage their withdrawal).

INDIRECT

  • Supply chain traceability is a powerful tool for controlling quality processes
  • Material flows are managed thus allowing to have under control: every stage of production, any nonconformity, rationalization of flows and logistics
  • With traceability, times, quantities and location of materials are recorded
  • Allows compliance with current regulations but also creates development strategies, internal risk management, supply chain coordination
  • Compliance requirement for the purpose of quality certification.

COMPETITIVE

  • Decreased production costs
  • Increased competitiveness of products in the market
  • Transparent products
  • Customer loyalty
  • Brand Protection
  • Improved Corporate Image and Reputation

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