Best Practices 2018

October 2018

1
Summary
ZONE PRACTICE MAIN TOPIC
i CAB (Dashboard Camera) SECURITY/SAFETY
AFRICA
Pallet Step with Ladder SAFETY
China Direct Delivery DELIVERY
Forklift safety management system SAFETY
APAC
Nose Cone- Delivery Trucks FLEET
Wheel Chocks – Blocking door SAFETY
Tablet-based cycle counting system WAREHOUSE
EUROPE Automatic bulk creation of labels for inbound pallets WAREHOUSE
Sorting Empties within 24 hours WAREHOUSE
Digital Checklist SAFETY/FLEET
Greening our Logistics the Smart Way GREEN LOGISTICS
MIDDLE AMERICA
Airport-type Traffic Plan SAFETY/WAREHOUSE
Routing in packs DELIVERY
Driver Self Checkout DELIVERY
NORTH AMERICA DPO Portal DPO
OPSCOM SERVICE LEVEL
Pallet Blocker with Unique Key WAREHOUSE
Pedestrian Flag Sign for Truck SAFETY
Open Side Trap Truck’s Sensor SAFETY/WAREHOUSE
SOUTH AMERICA
Extra power FLEET
Digital forklifts check list FLEET
Hydraulic Oil Filtration FLEET
2
AFRICA ZONE

PRESENTATION TITLE GOES HERE 2017 3

i CAB (Dashboard Camera)
Name of Responsible: Selwyn Kok
DC & Zone: Baragwanath DC Africa Zone
Date of Implementation: 20 Jan 2018
i-CAB (Dash Cam Process)
Initial situation before Best Practice Implementation Best Practice Description

The aim of the dash cams is to improve tracking and safety of all fleet as part of the anti hijacking project. Before
In addition they help with the tracking of speeding and negligent driving.
We have also used the reports from RMS as part of our driver meetings & behaviour and consequence
management initiatives.
From a security perspective it also helps with investigations from a fleet and stock investigation point of
view

Benefits brought by Best Practice

After
Pallet Step with Ladder
Name of Responsible: Carl Williams
DC & Zone: Bellville DC Africa Zone
Date of Implementation: April 2018
Platform Step with Ladder
Initial situation before Best Practice Implementation
Best Practice Description

Before
• Some tráilers fitted with fixed three
steps with no hand rails
• Regular climbing on crates to
access product
• Crew regularly climbed on the
outside of tráiler and used crates as
footholds – high risk of falling

Benefits brought by Best Practice

After

• Control set for safe access to

product for crew.
• More effective loading and
unloading of product as persons do
not have to balance.
• Quality not comprimised as no
stepping on crates.
APAC ZONE

PRESENTATION TITLE GOES HERE 2017 8

China Direct Delivery
Name of Responsible: Horace Zhao
DC & Zone: APAC N
Date of Implementation: 2018
China Direct Delivery
Initial situation before Best Practice Implemenation
Best Practice Description 最佳实践件描述
实施最佳实践前的状态

China e-commerce is leading in the world with over 1.3trillion New energy fleet
USD in 2017, more than 70% CAGR since 2009.Opportunity
believed to leverage global B2B solution in a known consumer
ruck branding painting
shopping model, increasing NNS, maximizing shopping Payment via E-wallet with WeChat or Ali-Pay
experience and expanding distribution and availability. E-Invoice by QR code scanning
Lower visibility in Logistics:
• Order accuracy, Real-time order tracking
• Cash mode Big data analytics
• Service Segmentation Real-time BI dashboard 11 City
• Real-time online stock and intelligent replenishment
10 FTEs
Benefits brought by Best Practice 最佳实践带来的收益
2 Million
First Delivery Drop
4 City Size
25 cases
Cost Efficiency 19/08/2015
63% cost reduction from 2015 to 2018 5 FTEs
Operation Excellence 1 City 306K cases
JD partnership :Dedicated process optimization team
1 City
Facilities
2 FTEs Drop
17.2 cases
0 FTE Size
New energy fleet and Truck branding painting 46K cases
288 cases
Technology Drop
7.5 cases
Drop
Zero Cash Size
2.4 cases Size

Real-time BI dashboard
2015 2016 2017 2018
 Why Direct Delivery in China?
Background RTM in China is based on traditional WS, including SP brands, with some specialization per channel, however
with no exclusivity.
China e-commerce is leading in the world with over 1.3trillion USD in 2017, more than 70% CAGR since 2009.
Opportunity believed to leverage global B2B solution in a known consumer shopping model, increasing NNS,
maximizing shopping experience and expanding distribution and availability.

01
Logistic Partner
Alternative RTM
For places or channels with no wholesaler (RTM legacy issue)

02
Enhance Coverage
Improve Execution, coverage, distribution & volume per POC

03
Green Field Expansion
Helps ABI to expand faster to blank areas (Green Field)

04
Other Benefits
Better control of POCs and STR quality, higher NNS & MACO/HL

11
 Build alternative to solve RTM legacy issues  Direct Distribution – DDC
3-Year Vision
VISION REASONS TO BELIEVE 3YP VALUE

Direct Distr: 5% of total China NR

Success case from Shanghai Direct • +60 Mio USD MACO
Distribution Pilot • +100Rmb/HL

Objective and view of the future

Volume Profitability
• Volume uplift • +21% NNS/HL vs Wholesaler

Shanghai Pilot
Objectives • Better Execution • Better Premium Mix
• Premium PUSH

Coverage Contact Strategy

• More POCs activated • 100% New Contact Strategy
• Direct Contribution to higher 100%
Numeric Distribution • Better service
• Better Cost to Sell

DDC Net Revenue (in Mio US$)

3-Year KPI

12
Logistics Evolution
B2B 2.0
-Nationwide roll-out
B2B 1.0 -Individual replenishment and
stock management
-City pilot in Shanghai
-Dedicated logistics FTEs
-Stock under W/S channel
-Fixed 3PL fleet
-Order service by KA team
-D+1 Delivery with different
-D+1 Delivery with order
cut-off time
before 4 p.m.
-Cashless
-Cash collection
-Online scoring
-Telecom support
-Reverse logistics 11 City
10 FTEs
B2B 3.0
2 Million -Quick expansion
First Delivery Drop -Partner operation excellence
4 City Size
25 cases program
19/08/2015
-Real-time online stock and
5 FTEs intelligent replenishment
-Order process automation
1 City 306K cases -Sharing delivery
1 City
-Service Segmentation
2 FTEs Drop
17.2 cases -Zero Cash
0 FTE Size -Better cost
46K cases
288 cases
Drop
Drop Size
7.5 cases
Size
2.4 cases

2015 2016 2017

2018 13
360° Service in B2B Direct Delivery 3.0

Operation Excellence Facilities

JD partnership New energy fleet
DPO embed into JD operation Tailor-made uniform
Dedicated process optimization team Truck branding painting

Sales Support Responsiveness

Full channel (phone + online chat + email) Real-time stock in B2B store
Multi-batch delivery & Night delivery
Instant deposit return and reward point
Online Chatbot POC Automatic order taking

Segmentation Technology
Value added service Payment via E-wallet with WeChat or AliPay
Time window selection E-Invoice by QR code scanning
Drop size Real-time order tracking
Big data analytics
Real-time BI dashboard

14
Vision  to be the most technologically advanced logistics operations in FMCG
Cost Performance

37

24

14

2016 2017 2018

USD/HL
Forklift safety management system
叉车安全管理系统

Name of Responsible: Oliver You

DC & Zone: SHDC, APAC N
Date of Implementation: 2018
Forklift safety management system
Initial situation before Best Practice Implemenation
Best Practice Description 最佳实践件描述
实施最佳实践前的状态

• No real-time visibility control Alarm system

无法对叉车有实时可见度控制
• No reminders for workers around the forklift
对于叉车周围出现工作人员没有提醒 Data management
• No driving authorized to particular driver
没有对叉车驾驶人员实施智能授权驾驶
• No speed control system
驾驶过程中没有对速度的把控
• Related data by manual record
Authorization
叉车相关数据由人工记录

Benefits brought by Best Practice 最佳实践带来的收益

• Alarm system ensure driving safety,

separate people from FLT
警报系统可以确保驾驶安全，人车分离
• FLT driving authorized to particular driver
对每台叉车进行授权驾驶
• Automatic data collection, and data kept
traceable in cloud
相关数据自动收集并保存在云端
• Reduce the time cost
降低时间成本
 Back up 补充说明
Objective 目的

• Authorization to FLT driving. 对叉车进行授权管理

• FLT driving safety. 叉车安全驾驶
• Separate workers from FLT. 人车分离
• Data collection. 数据收集

Introduction 简介

 Only authorized driver  Set speed limitation, once
can driving the forklift. violation happen the
只有授权的司机才 audible and visual alarm
可驾驶叉车 will warn the driver.
设定限速，当超过设定值时
会发出警报来提醒司机
 Receiver fit on the FLT, worker take the  Collect data,
signal card. Once the worker or other release report.
FLT is in a dangerous area, alarm will 自动收集数据
run loudly to warn the guys. 并上传至云端
叉车带有接收器，工作人员带有信号
发射器。当工作人员进去叉车作业区
是，会发出巨大的警报来提醒作业人员
Nose Cone- Delivery Trucks#1
Name of Responsible: Forrestfield DC
DC & Zone: Forrestfield - APACS
Date of Implementation: July 2018
Nose Cone – Delivery Trucks
Initial situation before Best Practice Implemenation
Best Practice Description

Timeline :
• Only 5 out of the 10 x 12T rigid
trucks don't have a nose cone
• 14/06/18 – Idea
installed on top of the cab, in Proposed
front of the body • 14/06/18 – Quote
application sent to CQE
• This causes a higher fuel • 04/07/18 – Request
consumption due to drag update on quote
• 20/08/18 – Quote for
testing of $1,800
including installation from
major motors
Benefits brought by Best Practice Project Description : • 20/18/18 - Estimated =
1% fuel savings = $250-
• Proposed by : Brad Salter saving per year
• Implementation time :
• Area of improvement : Fuel
Consumption (Cost)
• Routine Discussion : Fleet
• Reduction in drag, improved Weekly Meeting
• Project Owner : Brad Salter
horsepower, improved stability • Planned completion date :
Oct-18
• Completion Date : TBA
Wheel Chocks – Blocking door #2
Name of Responsible: Forrestfield DC
DC & Zone: Forrestfield - APACS
Date of Implementation: June 2018
Wheel Chocks – Blocking door#2
Initial situation before Best Practice Implemenation
Best Practice Description

• Wheel Chocks manually placed under truck • Mobile Wheel Chock Stand
tyres Mobile Wheel Chock stand is able to be lifted and moved
by the forklift for placement. Wheel Chocks are fixed to the
stand providing protection against rollaway and drive away
risks. The Stop sign limits access to the vehicle/cab and
drivers keys are isolated during loading/unloading by the
key holder positioned on the sign.

Benefits brought by Best Practice

• Reduction in risk of Manual Handling

Injuries caused by placing and removing
wheel chocks
• Efficiency in time, by using forklifts to locate
wheel chocks under truck
• Giving full control of the Truck/Vehicle to
the forklift operator, further reducing the risk
of drive away.
EUROPE ZONE

PRESENTATION TITLE GOES HERE 2017 23

Tablet-based cycle
counting system
Aninya Apers

DC Antwerp, Belgium

WINNER OF ZONE
BEST PRACTICE AWARD 2018
 PROBLEM IDENTIFIED
• Time-consuming inventory counts on
paper with a lot of manual inputs and
high chance of errors
SOLUTION
• Replacing paper lists with an
automated Excel on a tablet and
desktop of the WH manager which
synchronizes automatically

BENEFITS / IMPACT ON RESULTS

Tablet-based 1) Less counting mistakes

cycle counting 2) Less manual input in SAP => saves time for WH manager
system 3) Easily keeps track of stock differences
Inventory accuracy 4) More eco-friendly 0 to 400 EUR
COST (cost of 1 tablet)
WLP
OWNER Aninya Apers
BEFORE: Time
consuming Entering everything line 1) Counting/typing errors
cycle counts by line into SAP => stock differences
Inventory accuracy 2) Time-consuming
WLP
OWNER Aninya Apers
NOW: Tablet-
based cycle
count
Inventory accuracy Let’s take a look at the demo
WLP
OWNER Aninya Apers
NOW: Tablet-
based cycle
count
Inventory accuracy
WLP
OWNER
 1) Quicker
2) Less counting/typing errors
3) Tracking of stock differences:

NOW: Quicker
& less
mistakes
Inventory accuracy
WLP
OWNER Aninya Apers
Automatic bulk creation of
labels for inbound pallets
(non-WMS warehouses)
Rafael Chataev

DC Domodedovo, Russia
 PROBLEM IDENTIFIED
• Without WMS system in a warehouse,
all information on pallet labels had to
be filled manually by employee
responsible for receiving inbound.
• That was ineffective as it required
quite a lot of time, approx. 10 min per
SKU
• Sometimes manually filled labels
would contain errors
SOLUTION
• Automate the process of pallet labels
creation in order to cut down on
inefficient man-hours and improve
traceability
• Once inbound shipments are created in
ERP, WH manager can immediately
print pallet labels and pass on into
warehouse to identify all inbound
pallets for storage

Automatic bulk
creation of BENEFITS / IMPACT ON RESULTS
labels for • 3-4 times less time to prepare pallet labels: 15 minutes in total, no matter how many
inbound pallets SKU received
(non-WMS • No risk of human error: better product traceability and inventory accuracy
warehouses)
Inventory accuracy
COST None
WLP
OWNER Rafael Chataev
 • Data from SAP ERP used as input
• Information about each shipment, - SKU name, batch number,
production/expiration date, - is bulk-processed into a standard label
template
• Labels are then printed automatically by WH manager and passed on
to WH team once blind control is completed

NOW:
Automatic bulk
creation of
labels for
inbound pallets
(non-WMS
warehouses)
Inventory Accuracy
WLP
OWNER Rafael Chataev
 Inbound flow:

Sticking
Blind
labels on
control
pallet
Inbound Unloading Place in
NOW: truck storage
Automatic bulk
creation of
labels for
inbound pallets Shipments
data in ERP Bulk creation of labels
(non-WMS
warehouses)
Inventory Accuracy
WLP
OWNER Rafael Chataev
 DC Obukhovo DC Istra DC Antwerp

ADOPTED BY
OTHER DCS:
Automatic bulk
creation of
labels for
inbound pallets
(non-WMS
warehouses)
Inventory Accuracy
WLP
OWNER Rafael Chataev
Sorting Empties within
24 hours
Joris Post & Koen Renkens

DC Helmond, Netherlands
 PROBLEM IDENTIFIED
• Warehouse is full with empties due to
many unsorted empties
• Warehouse is too small to store
unsorted empties for more > 1
working day
SOLUTION
Empties need to be sorted on daily basis:
• Drivers sort empties on the truck
• Drivers and warehouse employees sort
empties in warehouse
• KPI sorting productivity measured on
daily basis and reviewed in meetings

All empties are

sorted within
24 hours by BENEFITS / IMPACT ON RESULTS
both • No chance of empties overflow in warehouse -> visible 5S in warehouse, fewer
warehouse associated safety hazards
employees and • Improvement in sorting productivity
truck drivers
5S
COST None
WLP
OWNER Joris Post
 Target:
Empties need to be sorted in less than 24 hours
Solution:
• Drivers sort empties already on the truck
• Drivers and warehouse employees sort empties in warehouse after truck arrival
on same day
• Drivers and warehouse employees sort empties in warehouse before truck
departure the next day

100% empties
are sorted by
next day’s
truck departure
5S
WLP
OWNER Joris Post
 • Empties are sorted within 24 hours (each day)
• Truck drivers feel responsible for sorting empties on the truck during delivery,
making it easier to sort empties in the warehouse

Empties sorted
within 24 hours

Structured
sorting area in
terms of 5S
5S
WLP
OWNER Joris Post
 Sorting area is structured:
• Visible 5S in sorting area
• Fewer associated safety risks due to overflow of unsorted empties in warehouse
• Improvement in sorting productivity

Empties sorted
within 24 hours

Structured
sorting area in
terms of 5S
5S
WLP
OWNER Joris Post
MIDDLE AMERICA ZONE

PRESENTATION TITLE GOES HERE 2017 40

Best
Practices
Mexico
2018
Digital Checklist

Name of Responsible: Ramiro Jesús Uc Burgos

Email: ramiro.uc@gmodelo.com.mx
DC & Zone: Mérida, México
Date of start: May 2018
Digital Checklist
Initial situation before Best Practice Implemenation Best Practice Description

• Bad visibility of compliance in the process.

Salesforce Checklist
• Lack of analysis of incidents with greater App
ocurrence.
Used for Forklifts, Trucks,
• Lack of follow-up fixing issues according to SLAs. Cars & Motorcycle.

• Paper consumption and lack of track record. iOS & Android (Tablets &
Mobile Phone)

Benefits brought by Best Practice

• Avoid use of vehicles with critical failures. Online Dashboard

• Salesforce Database – DPO Analytics. DPO Routine

• Daily visibility of fleet condition – All over the Used by CORE & TCT
country.

• Corrective Maintenance cost avoidance.

• Savings in Paper Consumption - Green Logistics

Digital Checklist

How this App Works?

Let’s See…
Digital Checklist

Download Salesforce App in your mobile.

Digital Checklist

1.- Go to Menu

2.- Go to Checklist
Digital Checklist

3.- Go to Nuevo for a New Checklist

4.- Select Type of

Vehicle

Forklift, Truck, Car &

Motorcycle
Digital Checklist

5.- Select Unidad

6.- Write the Truck #

Digital Checklist

7.- Fill the Information

8.- Fill Critical Items

from the Checklist
Digital Checklist

10.- Save All

9.- Fill Non-Critical

items from the
Checklist
Digital Checklist
Maintenance Driver Checklist - Online Dashboard
Digital Checklist
Next Steps:

Connect Digital Checklist with Telematics System.

Send messages to the CORE, TCT & All Management Team on each DC.

Block the vehicle when a Critical Item is reported with a failure.

Greening our Logistics the
Smart Way

Name of Responsible: Carlos Huitron

Carlos.huitron@gmodelo.com.mx
DC & Zone: Oceanía, México
Date of Implementación: May 2018

Logistics Chain Carbon Footprint Mexico City2018

 Mexico City represents 0.1% of the country’s Mexico is moving towards Natural Gas and
land and accounts for 7% of total emissions Electric vehicles to reduce the CO2 emissions
88% reduction
84% reduction
70% reduction

Grupo Modelo operations include 8 Distribution

https://www.gob.mx/cms/uploads/attachment/file/164914/PACCM-2014-2020completo.pdf Centers and 1 Brewery inside this megacity
Emission Control Programs
- “Not moving today” 20% of total vehicles won’t be able
to circulate on a given day; 40% if contingency is declared
& 100% for carry truck’s from 6-22 hrs
- Car Verification only vehicles that pass this yearly test
are allowed to circulate freely at every hour
- Restricted access to vehicles in certain areas like
downtown
Https://www.unotv.com/noticias/estados/distrito-federal/detalle/que-automoviles-no-circularan-este-jueves-811275/

43% CO2 emissions are in T2

http://www.sedema.cdmx.gob.mx/storage/app/media/cambioclimatico.pdf
 Oceania Green DC
Objective:
At 2018 Q4, getting the Oceania DC certified by
government through Green Practice initiatives,
Today, only in Mexico City ensuring 30%
reduction in energy & water consumption will
get us up to a 40% Payroll Tax reduction per
year for 2 years, with a chance to extend to 4
years.

Methodology timeline:
- Analyze, Q1: Calculating the real CO2 emission
in the logistics chain
- Plan, Q1: Analyze benefits of different
technologies
- Research, Q2: Create a plan, and collect the
information
- Implement , Q2,3: Run test pilots and measure
the results
- Results,Q4: Show final results
 • Represents 35% of Electricity Bill • Determining Ton Co2 Reduction
AC replacement annually

• 14% Energy reduction • Like taking 1 truck out of circulation 9

Led lights replacement months

• 900, 000 L saved • Volume equals to 30 T1 trucks full

Rain water collector of BEER

• 4°C Reduction inside office • Like taking 1 truck out of circulation 7

Green roof months

Gas Truck • 46% ton CO2 reduction per truck

Green • 60% ton CO2 reduction per Forklift• Li-ion technology better than
E- Forklift
DC Lead-Acid

E- Truck • 80% ton CO2 reduction per truck

Organic residues • Creation of waste management program

Inorganic residues • Alligned with circular packaging

Greener supplies • Through innovation

Bicycle parking • Enable spaces to incentivize the use of bicycles

E- forklifts pilots

Company Technology Pilot Status

Li-ion Running

Li-ion Pending

Li-ion Pending
Gas Truck pilots

Company Technology Pilot Start date

Compressed 2018 Q4
Natural Gas

Compressed
TBD
Natural Gas
Greening
Greening our
our business
business for
for the
the
next
next 100+
100+ years
years

Logistics Chain Carbon Footprint Mexico City2018

E-Truck pilots

Company Technology Pilot Start date

2018 Q4 or
2019 Q1

Li-Ion Ambev Brazil is

testing the truck
first

Li-Ion TBD
Our Dream..
Our dream

“To have a Green Logistics Chain in Mexico City that sets the
benchmark of sustainability world wide for all ABI operations”
Airport-type Traffic Plan
Name of Responsible: Mauricio Durán Chediak
DC & Zone: Pereira - COPEC
Date of Implementation: : March 2018
Airport-type traffic plan
Initial situation before Best Practice Implementation
Best Practice Description

• High risk of accidents due to transit of
vehicles in opposite directions
• High risk of running over pedestrians
• Reckless driving
• Messy vehicle traffic
• Delays in attention to T1 siders
Airports have probably the safest layouts to ensure operation
of aircrafts.
We found this model to be very helpful as directions and
segments are marked by continuous lines differentiated by
color, serving as a strict guide for the mobilization of vehicles.

We adopted this road sign scheme for entry and exit of the DC,
with red continuous segments for tier I (primary transport), blue
Benefits brought by Best Practice color for tier II (retailers, key account and rural partners) and
red/blue segments shared by both.

• Reduced the risk of accidents

• Reduced traffic
• Standardized the way of driving inside the DC
generating discipline and safety culture
• Reduced 10% in TCT for T1
Airport-type Traffic plan
Before
Airport-type Traffic Plan After
Airport-type Traffic Plan
Routing in packs
Manager: Denis Spray
DC & Zone: Arequipa - MAZ
Date of implementation : Jun’18
Included in benchmark sessions : Aug’18
Routing in packs

Objectives

• Optimize the maximum capacity of the trucks by respecting weight

restrictions and quality standards
• Eliminate lack of space during loading
• Enable daily PIs & targets for Transport Control Tower (Capacity
Occupation and TLP planned)
• Eliminate the impact of time dispersion in loading
Routing in packs

Initial situation

SKU
Limited •Volume (m3)
Parameters
620 ml 1000 ml
information on •Inverse Logistics (issues,
NCP) Weight per case 13,9 21,7
Roadshow Cases per pallet 84,0 45,0
Pallets by truck 8,0 8,0
Total weight 9.341,0 7.812,0
Time planned 9,7 7,1

Changes in
the mix •Sustained growth of 1-liter format
 Routing in packs

Proposed solution: Analysis of capabilities

Capability
Model
Weight
Cases Pallets Packs
(Kg)

Freightliner M2 6x2 1008 14410 12 1440

120 Pack’s

Freightliner M2 4x2 (*) 672 10830 10 1080

Freightliner M2 4x2 (**) 672 10720 8 960

Mitsubishi Fuso 360 5650 8 514.3 Capacidad en

Bodegas 37.1
Packs (***)

(*) Weight limit: 9 pallets

(**) Weight Limit: 90% of maximum capacity
(***) Capacity of lower bins: 26 Physical cases 620/630/650 (37.1 Packs).
Routing in packs

Proposed solution: Improved process

Interface Interface
Orders Deliveries
SAP – Routing Roadshow – Truck load
validation generation
Roadshow SAP

Modification
Cases-> packs
OWD 1.1
DC Load verification
Setting daily
targets

Transport
Target validation
Control Tower
Routing in packs

Benefits

 Increase in Capacity Occupation (+ 15pcks / 383 HL per month)

 Improvement in TLP (+1 pck / HH)
 Adequate segregation of the non-conforming product
 VLC Savings: 20K USD per year (Arequipa)

Current coverage(volume): 58% 21%

PERÚ COPEC
NORTH AMERICA ZONE

PRESENTATION TITLE GOES HERE 2017 73

Driver Self Checkout
Name of Responsible: Max Foster
DC & Zone: Tulsa WOD (NAZ)
Date of Implementation: November 2017
Driver Self Checkout
Initial situation before Best Practice Implementation Best Practice Description

• Local Routers were responsible for creating
digital truck loading diagrams
• Centralized Truckloading began in November
2017 as an expansion of the CORE
• Drivers lacked visibility into the routes of the
other drivers and the loads on their trucks prior
to departure
• Drivers relied on supervisors to post PIs by
driver to see performance compared to the rest
of the team
• Touch screen TV next to Driver Morning
Meeting Visual Board
• DPO Analytics for deep dives into individual
driver performance
• Roadnet maps of entire territory deliveries for
the day so drivers can provide driver feedback
to routers if they see opportunities to improve
productivity or service time

• Ability to view and

Benefits brought by Best Practice
reprint truck inventories
• Driver feedback app for
• Driver ownership over departure process Centralized Routing and
• Daily deep dives into PIs that affect the delivery Truckloading with ability
productivity and service level to view CORE
• Visibility and accountability by local team and responses to action
CORE throughout the entire process from sales items through the
order to delivery touchscreen TV
DPO Portal
Zone: NAZ
Date of Implementation: 2015 - Present
Driver Self Checkout
Initial situation before Best Practice Implementation Best Practice Description

• Paper forms for 5S Audits, Manager &

Supervisor Checklists, OWDs, etc
• Multiple Excle Actions Logs for different
Routine Review Meetings
• Manual refusal tracking
• Skills matrix had to be updated manually
after every OWD or training was completed

Benefits brought by Best Practice

• One stop shop for all DPO related items

5S Audits Refusals Modulation

5S Calendar Skills Matrix
OWD Audits Abnormality Reports
OWD Calendar Action Logs
MCL/SCL And so much more!
OPSCOM
Zone: NAZ
Date of Implementation: August 2018
OPSCOM
Initial situation before Best Practice Implementation Best Practice Description

• Approximately 10% of ABI volume in the US Many Ideas Worth Sharing

is distributed by ABI WODs and remaining  Variable Compensation - Drivers

 Variable Compensation - Pickers
volume distributed by over 500 Independents  Voice Pick
 Multi-Pallet Picking
• Legal restrictions vary by state and some  End Loader Fleet Mix
 Warehouse Management System
states prohibit ownership of Tier II by ABI  GPS Solutions
 Scales and Wrappers
 Delivery Carts & Half-Pallets
 Material Handling Equipment
 Automation
 48-Hour Delivery Model
 Temp & Part Time Staffing
Strategies
 Recruitment and Pre-Hire Testing

Benefits brought by Best Practice

1 2 3 4 5
Focus Function KPIs
• Platform for Best Practice Sharing among Safety Program & Pre- Employee Engagement At-Risk Pay, Base + Turnover
People Operations Temp/Part Time Labor Service Training for Drivers
WOD and Independent Wholesalers Employment Screening Process Commission Structure Absenteeism

• Creation of Best in Class Roadmap based Employee Engagement

Operations S&OP Routine KPI Meeting Visual Management Shift Handover Meetings 6-sigma Problem Solving
Net Ops Productivity
on DPO Principles
• Overall higher perception of our brands in Process Warehouse Annual Layout Analysis
Workplace Transport
Slotting Tool with Routine
Quality Management
MHE Enhancement
Warehouse Productivity
Safety Routine Warehouse Quality Index
the market due to exceptional service level
Driver Feedback Routine Refusal Modulation Delivery Equipment Cases per Truck
could lead to market share growth Delivery Annual Reroute
(Master Data)
Minimum Order Quantities
Process Enhancement Delivery Productivity

Truck Loading / Pallet Pick Plus / Warehouse Management Automation, Picking Productivity
Warehouse Organization Software WMS Light System
Voice/Touch Picking
Scale-Wrappers Breakage & Mispicks
Technology
Live Tracking and Refusals
Delivery Handheld Invoicing Dynamic Routing Tool
Monitoring
Telematics Dynamic Resequencing
Miles per Route
SOUTH AMERICA ZONE

PRESENTATION TITLE GOES HERE 2017 80

Pedestrian Flag Sign for Truck
Ernesto Salgado– Safety Leader
DC Mercado Central - LAS
April 2018
Pedestrian Flag Sign for Truck
Initial situation before Best Practice Implementation Best Practice Description

They are 2 flexible barriers by side with red / white

• For the daily routine of the delivery task, a
safety cones is used, which is tied to the
back of the truck. When it reaches the POC, it
is placed in a visible part in the street,
indicating that loading tasks are being
realised by helpers and truck drivers. Is a
good approach for major visibility and safety
issues.
• Cones are lost or broken frequently. Due to
that we found a lot of unsafe actions for not
using it.
Benefits brought by Best Practice
ribbon of
7.5cm x 50cm followed by a flag.
They are placed on the 4 sides of the truck, with a
rubber stop that does not allow it to turn arbitrarily and
in turn serves as a lock when it is making the signaling.
In signaling position the flag protrudes 50cm from the
side of the vehicle. It has the same purpose that the
cone does, alerting others vehicles in general and
safeguarding our delivery team.
75 USD/Truck

• Quicker use: 10 seconds to use

• Lower risk of slips, trips and falls with
the ropes of the Cones
• Less breakage. The barrier with the flag
is made of flexible material
• Cost Reduced in the replacement of
cones.
Pedestrian Flag Sign for Truck
DC Mercado Central – Safety - LAS
Open Side Trap Truck’s Sensor
Ernesto Salgado – Saftey Leader
DC Mercado Central - LAS
April 2018
Open Side Trap Truck’s Sensor
Initial situation before Best Practice Implementation Best Practice Description

A sensor placed in the opening and closing of the

tarpaulins of the truck, it is allowed to connect the
With side trap open: telemetry system where it is parameterized at first(the
parameter change remains to be defined) in:
• Fall of products from the truck, leading to
risks of falling on people. The truck turns on, moves 5 meters with the side trap
• Breakage of products open > An alarm triggered that informs
• Product sun exposure (quality) CIRULATING WITH OPEN CANVAS

In this first moment we do not activate the boozers

already installed. If activated, they would sound each
Benefits brought by Best Practice time they move according to the new parameterization.
It is also possible trough the telemetry
• Connection to the telemetry system system(Logictracker) to send notices to the emails
(Logictracker) every time the unsafe task occurs.
• KPI’s Monitoring (Circulating with the 85 USD/Truck
traps open canvas) – Safety and
Quality indicator (For the breakage of
our products and sun exposure)
• Boozers connected to the system
• Locate by telemetry where unsafe
actions occur
Open Side Trap Truck’s Sensor
Pallet Blocker with Unique Key
Sebastián Cicarone – Warehouse Leader
CD Mercado Central - LAS
August 2018
Pallet Blocker with Unique Key
Initial situation before Best Practice Implementation
• Too many padlocks, chains and keys for
one unique system. It wasn’t possible to
clearly control the blocking system with more
than one key.
• The actual blocking system was not reliable
enough. It could be taken away easily
without much effort.
• Having spare parts could lead to missing.
• We needed to spend money to buy padlocks,
keys and chains.
Benefits brought by Best Practice
• WH analyst is the only person in the DC
enabled to unblock the held pallet.
Consequently we gained control over
held products.
• Stronger and more reliable system
against mistakes / vandalism.
• Fewer investment required.
• More durable blockers and simplified
application with less spare parts.
Best Practice Description
After the pallet blocker global mandatory
practice was required, we find out that we
could simplify the padlock-key-chain
system.
For that, we created a Pallet Blocker with
Unique Key that was designed by our
maintenance team. It is made of light but
still strong materials. It consist of a
mechanical block that it can be only
opened by one unique key that works for all
the blocks in the DC.
This makes possible to our WH analyst to
have a strict control over the held products
by being the owner of the key. For this
system we only need to buy the key(once)
and the block for each blocker.
90 USD/Pallet
Palestrante: Daniel Braga - Horizonte
Melhores Práticas
Green Logistics
 Green Logistics

Descrição:
O otimizador é um aditivo que tem
a finalidade de melhorar as
propriedades do combustível
proporcionando melhor eficiência
na combustão e como consequência
a redução das emissões de
poluentes e melhora do consumo.
 Green Logistics
Cenário Anterior:

Relatório CTA Plus

- Média de Consumo Sem Extra Power:
2,55 KM/L

Resultado Obtidos:

Relatório CTA Plus

- Média de Consumo Com Extra Power:
2,68 KM/L
 Green Logistics

Cenário Atual:

R$
51.675,84/ANO
5% de Economia

R$ 4.306,32/MÊS
 Green Logistics

Investimento:
 Green Logistics

Contribuição para o Mundo Melhor:

- Condensação do Ar dentro do Tanque;
Cenário Anterior: - Decantação da Umidade nas Paredes;
INTERIOR DO TANQUE DE COMBUSTÍVEL - Lamina d’água no fundo do tanque;
- Proliferação de Microrganismos (bactérias
e fungos);
- Redução do aproveitamento energético do
combustível;
- Aumento da emissão de poluentes
(Monóxido de Carbono / CO² - Combustível
não queimado.
 Green Logistics

Contribuição para o Mundo Melhor:

MELHOR COMBUSTÃO REDUÇÃO SIGNIFICATIVA DE GASES

 Green Logistics
Contribuição para o Mundo Melhor:

408

8.830

68.111
 Green Logistics

Contribuição para o Mundo Melhor:

ESSA É NOSSA
CONTRIBUIÇÃO PARA UM
MUNDO MELHOR
Palestrante: Daniel Braga

Operador: Grupo Horizonte

Filial: Manaus
Contato: (92) 99490-1760
E-mail: daniel.Braga@grupohorizonte.com.br
Fleet Pillar
Melhores Práticas
Green Logistics
 Green Logistics

Description:

Application of the digital checkList of forklifts,

aiming at the non-use of paper and contributing
to sustainability.
 Green Logistics
Before:
 We used CheckList printed where we needed 864 pop / year per forklift.
 Delays in handling information, generating communication failure and not meeting
availability goals;
 Accumulation of files, with large number of papers and risk of loss;
 Low visibility of equipment progress and staff disconected

After:

 Availability achieved with the fastest direct information in the system, reduced the of
maintenance deadlines and faster action in the root causes.
 There was no more issue of reliability between teams, now they work closer
 5s and conservation of equipment increased with the use of photos at each check list.
 Green Logistics

Current Scenario:
 Clearer CheckList, with objective information
 Immediate information, after filling out, info is sent
via email to the Fleet Team.
 Daily images of conditions of
 Forklift Operator´s Engagement
 Sustainability, zero paper emission, plastics and a
massive gain in storage.
 Green Logistics

Investiment:
TABLET
Total: $199
 Green Logistics

As Was: To Be:

6.683

 41 Trees represent 6,683 kg of CO2 captured from the environment!

Fleet Pillar
Melhores Práticas
Green Logistics
 Green Logistics

Description: Hydraulic Oil Filtration

Use of equipment for filtering hydraulic oil, aiming at reduction
in disposal by 70%.
 Green Logistics

Investiment: $ 197,00 USD

 Suction filter Y, stainless steel grille, 400 micron.

 Nominal pressure filter: 10 microns.

 Electric Motor: 1hp, 60Hz, 4-pole and shielding.

 Hose with metal tips.

 Pressure gauge with filter oil change indicator.

 Green Logistics
Before:

Consp. 40L

Discharged 40L

70%
After:

Filtered Oil 28L Discharged 12L

 Green Logistics

Total Consumption Saving H1 2018! LE

28L $79 56L

1 FL $112
40L
140L $394 280L
Reg 2.000L $5.6K 1.400L $ 4K 2.800L

BR 14.000L $40K 9.800L $ 28K 19.400L

 Green Logistics

Contribution For a Better World!

 One liter of used lubricating oil can contaminate one million

liters of water.

 A thousand liters of this oil, can destroy a water treatment

plant for 50 thousand inhabitants.

 Today, Reverse Logistics collects only 36% of the oil used in

Brazil.
 Green Logistics

Contribuição para o Mundo Melhor:

ESSA É NOSSA
CONTRIBUIÇÃO PARA UM
MUNDO MELHOR