Peñananta S Food Corporation.A.

Peñananta S food corporation.A.

INTRODUCTION.

Capsa (Peñanta S food corporation.A.) It is a company dedicated to the collection, transformation of the raw material, mainly milk, and sale of products derived from this (cheese, milk, cream, butter, …).

The company has a wide transport network for both the collection of milk to its suppliers and for the distribution in stores and points of sale. The form of logistics organization has been facilitated since the beginning of the company with the implementation of new technologies such as the TMS program that allows to know in real time all movements of merchandise and final products.

Beginnings.

The precedent of what is now known as the Agrarian Society, Central Lechera Asturian.

After becoming a agricultural society (similar to a cooperative);The growth by creating new dairy plants and achieving the best competitiveness in products, became the main objectives of the corporation;Starting with the inauguration of its first factory and current central headquarters in the industrial estate of Grandin Spain. The final product was packaged in non -reusable plastic bottles until the arrival of his first Brik design in 1980.

The company began collection of its raw material;The milk, in 1972 and was in that same year when the first cattle feed were created that would sell both to livestock partners and other farms.The exports of their products began in 1986 and currently its logistics network has 47 load points.

A few years later in 1997, the Asturian milk central became part of Capsa and becoming one of its majority shareholders along with the Larsa, Ato, Innova and Vega de Oro brands;All of them, companies specialized in the dairy sector.

Developing

Company growth and new products.

Over time the company has been consolidated as one of the main dairy distributors brands, becoming the first best selling brand after white brands and the best in terms of quality of its products. This is because from 2005 and until 2017 the company developed a greater variety of products such as butter or cooking natas, enriched special milk, others suitable for lactose intolerant and celiacs, different types of cheeses and yogurts, etc. The company currently has ninety different references of products.

In 2005 a new plastic bottle design was also launched that resulted in a market revolution because of the attractiveness of its oval shape.As of 2017, the company began to focus on developing 100% natural products and the highest possible quality possible.

The company has also sought the development of new transport models for its merchandise, as well as the implementation of technology in its day to day to keep registration of all activity;In addition, those in charge of logistics departments strive to find new transport options and close agreements with other companies that benefit both brands.

FUTURE PLANS.

The main ambitions of the company for the future are to take care of both its customers and its suppliers and employees, the environmental commitment through the use of broader trucks that allow transporting more goods and thus reduce the number of individual trucks and bet onthose of sustainable fuels to reduce CO2 emissions.

On the other hand, the company plans to expand even more and propel its quality and sales rates to deal with external skills, both in Europe and beyond the continent, thus ensuring a promising future to all its members.

Another measure that the company intends to implement are the IDBI codes to expedite the loading and unloading procedures to the carriers. Bidi codes are similar to QR;both, codes that can be scanned from a mobile application to show information about albaranes and orders in this case.

Logistics system.

SUPPLY CHAIN.

Capsa’s supply chain consists of several steps, beginning with demand planning based on sales of previous years, commercial promotions and consumption adjustments;After this, the company carries out the supply of raw materials such as milk, collected daily in tank trucks on the farms of livestock partners or soybeans, brought from Isenheim (France) in truck to the Wuttemberg region (Germanyia), where it is loaded into trains to take it to El Puerto de Rotterdam (Netherlands) and from there by boat to the port of Gijón (Asturias);Finally, it is transported in truck to the different factories. From Germany many of the containers are also transported.

In the case of soybeans, the route is so complex because it allows the company to reduce its transport costs against the option to transport it directly;In addition, in this way it does not occupy unnecessary space in the stores that already have enough stock.

In the case of setbacks in the supply phase, the company claims to have stock for a month in raw materials such as soybeans that have approximately one year of expiration.

Once the supply is carried out, the production is planned and starts, as well as the packaging and storage in pallets that are stored in stores such as the Automatic Granda warehouse waiting for the hundreds of trucks that arrive and start from thisthroughout the month.

ORDERS MANAGEMENT.

Customers make their orders through different ways such as fax, phone calls or email. Once the order is received, it is passed to delivery management where a load warehouse and the load and delivery dates are established. Subsequently, transport are grouped based on the geographical area, the schedules to be met, the weight of the customer load and specifications and the bearing is offered to a company that decides whether to accept it or not. CAPSA’s commitment is to guarantee the delivery of orders to its customers within a maximum period of 48 hours during which the first day the load is made and the second day the delivery.

TMS program (transportation management system)

Currently, the company has implemented the TMS system for the optimal management of its orders. It is a Generix computer program in which the orders registered during the year are shown, ordered by load points, dates and delivery places;This allows real -time control over the activity around each order.

 The offers offered are recorded in the program, which through a colored code shows whether the transport company has agreed to do it or not. The program was gradually implemented by taking the Asturian region as a place of proof and that by its complicated orography it will really know the potential of the program, after the satisfaction obtained by the good results of the test it was decided to implement in the entire logistics structure.

Once the service is hired, the monitoring is done through the program itself, since it is possible to know the situation of the truck at all times and even shows a map with the route that the carrier must follow.The TMS has other functions such as comparing the different transport rates of each company and offering the cheapest ones, although those who are responsible for transportation logistics prefer to perform this work personally to ensure to guarantee maximum profitability to the company.

As we have already seen, technology develops an important work in the company, and have all kinds of programs for the management of various functions, such as TMS with orders;In turn, there is a wide database called SAP to which all the departments of the company have access and where each one records its activity and collects the information it requires.Some useful computer programs are, for example, the SAP APOS to plan both demand and production;SAP MM, for milk supply management and other raw materials and SAP SD and WM that work on orders and sales, as well as store and stock management.

TMS was implemented as a measure to correct SAP limitations such as the difficulty in automating daily processes or the impossibility of combining different warehouses and modifying routes, in addition to SAP did not compare the different transport installments or allowed contract management and auction. Another negative point against TMS is that this directly links the supplier and the client, since the orders are made directly through TMS. 

SAP also offered the ability to manage order incidents or carry out real -time monitoring. Currently both programs are used continuously and there are more accessories for SAP as part of those mentioned, such as the programs analyzer that allows the user to obtain direct information from SAP such as the day with more incidents or returns, the causes of these, etc .;

Another advantage that TMS supposes is appreciated when offering a bearing, since through TMS the number of subcontractations is reduced, since some carriers often accept offers of portes with the intention of subcontracting them to their acquaintances, which entailsA problem for CAPSA since the subcontractors do not compromise in the same way with the company or worry about ensuring that the portes reach their destination in good condition.

TMS supposes the company a fixed expense of 100.000 euros per year to the company but in turn a 2% savings in transport management with respect to the year with SAP.

Delivery of merchandise.

The way in which CAPSA transports its products to the sales stalls is in PalehicThey plan to expand the load capacity with the so -called gigacamions of about 50 capacity pallets.

In the case of delivery of dry products (without the need for cooling)and from which the order is prepared and distributed in smaller rigid trucks. This is because trailers cannot enter cities to directly download goods.

In the case of the delivery of refrigerated products, it will always be carried out through the delegations, where the logistics phenomenon known as “Cross Docking” takes place that consists of the rapid delivery of the product without generating stock as with the press, byexample.

CAPSA has regulatory stores that have a large storage capacity and from them it is supplied with delegations and distributors, the company has some of them in Seville and Valencia. For their part, distributors make the purchase of final product on their own to later sell it to their own customers, some of them are in Zaragoza.

Actually, for Capsa the stalls play a role of both customers and competitors, since there are supermarkets such as;For example, Mercadona that has its own white milk brand (landowner) and promotes it to a greater extent than the milk of Asturian milk milkshelving background. 

The company itself acknowledges that the ideal would be to eliminate the distribution chain to these stalls and distribute their products directly to private homes, although this measure would not be profitable at all and currently only shipments are made from 100 kilograms.The work of the Transport Logistics Department is to coordinate the routes so that the maximum load capacity of the trailers is used and vacuum trips are avoided, in this way cases such as trucks with merchandise to download in two points arise in two pointsother than the same route.

In addition to the transport of orders to stalls, the company is also forced to distribute goods among the different factories and over time new models have been devised for the organization of these routes and agreements have been closed with other companies with other companies. These agreements suppose a benefit for both parties, so that if a company such as San Miguel has a bearing from southern Spain to Asturias and the return does it in a vacuum, Capsa offers a bearing for a modest price, of thisform, CAPSA takes the merchandise to its destination economically and San Miguel earns money and compensates for the vacuum trip.

Capsa has currently closed agreements of this type with companies such as Heineken, San Miguel, Pepsico, Raw Superdrink ..

GEOMER (management and optimization of merchandise flows S.L.).

Geomer is a company that began operating in 2015, two years after launching TMS, from Capsa Food that emerged with the purpose of managing the dandruff void since it could only operate with its own merchandise what it causedNumerous empty bears.

The joint performance of Geomer and TMS caused a great boost for the company contributing to largely reducing the number of vacuum trips and organizing its routes more efficiently;In addition to providing the company with the option to carry out transport for other companies although this only represents approximately 10% of the Geomer activity.

Being Geomer a company of Capsa;Although it operates separately, the economic result of its operations is reflected in the Capsa results account.

The results obtained in the last year were 18 million euros, of which the gross margin was one million.

Returns and incidents of orders.

If we take into account the volume of movements that the company performs day by day, counting about 140 daily portes and approximately 350 deliveries, it is logical to think that incidents occur in some of the deliveries which brings with it the return of the order and some extra coststo the company.

The causes can be varied, such as errors with the order, with the load, problems with the labeling or difficulties to meet the schedules, among others. When the client detects some of these incidents, he gives part to Capsa’s consumer service and the return is processed following a few steps in which the reception albaranes and invoices are reviewed and subsequently returning the collection to the customer.

In the case of incidents such as poor condition of containers due to transport or traffic accidents, the company is responsible for re -packaging the product in bottles and briks in perfect condition and suitable for sale.It is also possible that some merchandise that could not be sold prior to their expiration are returned. In the case of milk, this is stored in cameras where it is allowed to be included in feed for animals. The same happens with excess milk in factories, which is used to make milk powder.

conclusion.

After having analyzed all the previous information, you can see a great evolution of the company from its beginnings to the present and also show us the important weight that technology can have in the day -to -day life of a company of such size, which easilyIt has been able to adapt when passing from the years with new developments of products and infrastructure and the implementation of new vehicles in the field of merchandise transport that are currently increasingly sustainable;All this, without taking into account the multitude of plans and measures that they hope to adopt in the future.

On the other hand I have learned about the important work that the logistics team meets in a company and everything behind each business activity that is carried out, the organization and coordination between departments and between employees.

Bibliography.

• Meeting with the head of Logistics of Capsa Transport: Adrián Fariña Castellanos.
• Website for information about IDBI codes.
• Presentation by slides on Central Milkish Asturian (CAPSA):.