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Case Study- TATA Global Beverages Ltd

Updated: Dec 1, 2023

Client Overview – TATA Global Beverages Ltd (TGBL)



Tata Global Beverages is an integrated beverage business that has set out on a

journey to become the global leader in branded ‘good for you’ beverages. Tata Global

Beverages manufactures 70 million kilograms of tea in India, controls 54 tea estates, ten tea

blending and packaging factories. It owns five brands in India: Tata Tea, Tetley, Kanan

Devan, Chakra Gold, and Gemini.


SCM Issues

TGBL implemented SAP ERP system to handle all their transaction. But it was not able to handle constraint based production planning and scheduling. This lead to problems as below:

  • Each plant had their own excel file to do planning. S&OP had to manually consolidate to get the expected dispatches.

  • Plant had to wait for pending indents to come from S&OP team. This typically comes around 10 am whereas their shift starts around 6 am

  • Material requirement was checked manually before releasing the order to shop floor

  • Not able to get expected material shortage so that corrective action can be taken before shortage happens

  • No visibility to blend requirements based on indent

  • Unable to get the expected load on each of the resource based on pending indents

  • Unable to utilize the idle capacity of resources effectively

Planvisage Solution

Tata Global Beverages selected Planvisage SCM solution to improve on time

replenishment at the Depot with least disruption cost at the Factory. The main

objective was to prioritize indent orders, improve resource utilization, reduce packing

material shortage and delivery of SKU’s to Depots based on the Safety levels.


Benefits

Sales Department got the following benefits

  • Quicker S&OP planning and re-planning from 5 hours to minutes

  • Quick re-synchronizing to market and supplier dynamics

  • Demand netting based on forecast, stock and Indent orders in SKU and group level

  • Delivery to Depots with realistic dates based on priority and material availability

  • Provide visibility if order is getting delayed in advance

  • Multiple plant stock to be considered for stock calculation

  • Improving forecasting and Indenting process by using common demand data across Depots

Purchase department got the following benefits

  • Know production plan in advance for proper planning of raw material for Blends and packing material requirement

  • Consolidated Blend and Packing material across all Depots for the next 3 months

Production department got the following benefits

  • Simultaneously consider all material and capacity constraints

  • Allocate constrained capacity and material to priority quantity of SKU’s at Depots

  • Ability to re-plan in Weekly and Daily horizon for all the Indents

  • Shift-wise packing and blending plan for theentire time horizon

  • Graphical view of schedules in a Gantt chart

  • Graphical display of load on each resources

  • Pending indents and production plan is automatically generated before start of shift

  • Reduced number of stock outs at the depot as priority is given to those indents which are running out of stock

  • Better visibility to S&OP team on what is being produced and dispatched at the factory as all the plants are in common planning.

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