Solution Spotlight: Alternative Fuels
Company: County Beverage Co., Inc., Lee’s Summit, Mo.
Business Type: Anheuser-Busch wholesaler
Challenge: To improve vehicle performance and reduce costs
Solution: The Powershot 2000/Diesel Fuel Saver fumigation system County Beverage Co., Inc. recently installed LPG (propane) fumigation systems on a number of the company’s trucks with positive results. Diesel fuel has a burn efficiency of 75 percent in the combustion process and by introducing LPG into the combustion system via the air improves the combustion to 95 percent efficiency, which results in extra power and increased fuel economy.

County Beverage chose the Powershot 2000/Diesel Fuel Saver fumigation system. County Beverage Co. has 11 trucks fitted with the Powershot/DFS LPG system and plans to install the system on its entire fleet.

“The benefits of the system are many, however most important are the mileage gains. The trucks have improved by two to four miles per gallon and have seen significant cost per mile reductions. A 2006 570 International was getting 3.28 mpg and went to 6.50. All four of my 570s have the same results,” says Ron Burkhart, fleet manager. “While the savings are most important to the bottom line, the improved combustion of the diesel fuel also makes the fleet greener, by using less diesel and reducing black smoke. The trucks run smooth, with a bit more performance and there have been no maintenance issues at all.”

County Beverage has a 10,000-gallon on-site filling station supplied by Amerigas/Missouri, which services the trucks and company forklifts.

Parts From Your PC
American Body Co. is speaking directly to beverage fleet professionals via its latest online venture, BeverageTruckParts.com. The site enables beverage distributors and commercial body shops to purchase parts specifically for beverage trucks and trailers. American Body Co. debuted the site at Beverage World’s own BevOps/Beverage Fleet Summit in April.

BeverageTruckParts.com showcases more than $1 million in inventory, partnering with top suppliers to offer a wide range of parts, at competitive prices, the company says. Parts offered include everything from door panels to hardware.

Route Accounting Systems
As distributors take on more brands and, in turn, more SKUs, things can get complicated and route accounting can help provide an end-to-end solution.
HighJump Software, a global provider of supply chain execution solutions, released HighJump Route-Center On-Demand, a Software as a Service (SaaS) version of the HighJump RouteCenter route accounting system.

“We frequently hear from our beverage distribution customers that they want to simplify their IT and software infrastructure so they can focus on core business processes. HighJump RouteCenter On-Demand allows beverage distribution companies to implement a modern route accounting system without the complexity and cost of on-premise infrastructure,” says Timothy Campbell, president and CEO, HighJump Software. “HighJump RouteCenter On-Demand leverages our experience delivering SaaS solutions and is consistent with our broader strategy to offer HighJump solutions in SaaS and cloud computing deployment environments.”

The system includes order management, inventory management, route settlement, pricing, promotions and integrates with HighJump Software’s mobile software suite. The system also provides taxation and regulatory reporting to help manage the complex, highly regulated nature of alcohol sales.  Additionally, HighJump RouteCenter allows beverage distributors to perform e-commerce transactions with retailers and supplier organizations. And since the solution is hosted at HighJump Software’s data center, no hardware or server upgrade purchases are required.

Solution Spotlight: Hybrid Vehicles
Company: Powers Distributing Co.
Business Type: A beer distributor based in Orion, Mich. running 40 to 45 trucks daily to 2,600 retail accounts.
Challenge: To convert its delivery fleet to fuel-efficient hybrids
Solution: The purchase of 20 Navistar International DuraStar Hybrid beverage tractors

Three years ago, Powers Distributing began the process of converting part of its delivery fleet to hybrid tractors. Hybrids made sense for economic and environmental reasons. While hybrid tractors cost 20 to 30 percent more than conventional tractors, hybrids can reduce fuel costs by 20 to 22 percent. Powers now has 20 Navistar International’s DuraStar Hybrid beverage tractors on the road, more than any other beer distributor. According to Gary Thompson, COO and general manager, Powers’ hybrid tractors reduce greenhouse gas emissions by 6.52 tons per year, per tractor.

“Each of our tractors will reduce oxides of nitrogen by 35 percent, carbon dioxide by 24 percent, particulate matter by 78 percent and hydro carbons by 33 percent,” Thompson says.

Fleet Management: Tech Tools
The top four areas of fleet management that are continuously evaluated are: how to improve productivity, reduce costs, improve safety and improve customer service, says Jason Koch, co-founder and president of Telogis Fleet.

Telogis Fleet offers Enterprise Dashboard, a reporting tool designed with large fleets in mind. Says Koch, “The difference with Enterprise Dashboard is you take raw data and turn it into something more visual,” like a pie chart or a bar graph as opposed to a spreadsheet. “This reporting tool turns data into information so you can, for example, compare one vehicle vs. another vehicle, a branch office vs. another branch office, even a region with another region,” he explains.

Rich Marchant, vice president of Crescent Crown Distributing Co., LLC, says the addition of MobileCast from UPS Logistics Technologies has become one of the most important investments the company has made when it comes to fleet management. MobileCast gives distributors the opportunity to see their routes in real time using GPS tracking.

Crescent Crown Distributing, based in Phoenix, Ariz., runs 90 routes a day and handles 1,200-plus SKUs in a chain-driven market.

Troy Drown, logistics supervisor for the company, says MobileCast allows night dispatchers to more efficiently plan routes for the following day by telling them how well routes are being executed with actual vs. planned data and account arrival and departure times. Drown says this should ultimately result in a reduction in miles driven, improved customer service and, by being able to view a driver’s location, increased driver productivity.

Solution Spotlight: ERP Software
Company: Athens Distributing Co. of Tennessee
Business Type: A wine and spirits distributor with three facilities in Nashville, Memphis and Chattanooga
Challenge: To replace a 30-year-old legacy system Solution: Apprise Software’s ERP solution

For 30 years, Athens Distributing Co. of Tennessee relied on a legacy system for sales reporting and invoicing with a second system for accounts payable activities. The distributor wanted to find a replacement system that could integrate its entire operations, streamline business processes and improve data sharing across its three offices. Athens now relies on the Apprise enterprise resource planning (ERP) solution to help manage warehouse inventory and gain visibility into sales history.

“With Apprise, it’s easier to apply payments and easier to correct them since we can see calculations on screen. Now we can see more detailed transactions beginning on day one of the Apprise system,” says Scott Moore, partner and COO.

Point-of-Sale Solutions
In order to stand out, beverage brands and POS (point-of-sale) materials have to grab consumers’ attention often. One of the latest innovations in POS marketing is a bioluminescent technology that allows posters, signs, banners and bottle labels to light up, flash and even give the appearance of animation. Nature’s Flash Lite uses naturally occurring crystals derived from certain species of algae and seaweed that are known for their illuminative qualities to produce special effects. According to Progressive Edge, the company behind Nature’s Flash Lite, the production costs are 35 percent of a comparably-sized neon sign and operational costs can be 95 percent less. The panels also are lightweight and durable as they are created without glass.

Solution Spotlight: Warehouse Management Systems
Company: Del Papa Distributing
Business Type: A diversified beverage distribution company based in Galveston, Texas, which serves customers in seven counties
Challenge: To improve inventory control and reporting, warehouse mapping, integration to suppliers’ shipping and invoicing systems, voice-pick and real-time performance metrics
Solution: Softeon’s warehouse management system

While Del Papa’s core business is marketing, selling and delivering beer from Anheuser-Busch InBev, it has recently begun carrying other beverage products such as waters, energy drinks and specialty teas with the goal of being the preferred beverage distributor of its business partners. However, the continued growth of its product portfolio adds complexity to its business. Starting in October 2009, the Softeon warehouse management system (WMS) went live at Del Papa Distributing’s Galveston facility, followed by its Victoria facility in January 2010 and its Beaumont facility to follow soon. The system provides real-time visibility across the entire supply chain, over the web and through performance dashboards.

“The platform allows for very detailed program changes to be made and delivered quickly. From an IT/IS standpoint, we can now deliver data and functionality that we have been talking about for quite some time,” says Keith Johnson, head of Information Technology at Del Papa Distributing.

All-Electric Vehicles
Last month, Navistar unveiled its new eStar truck, the first full-production, purpose-built all-electric truck.

According to the company, the eStar all-electric truck is the first medium-duty commercial vehicle to receive U.S. Environmental Protection Agency (EPA) certification as a clean-fuel fleet vehicle as well as California Air Resources Board certification as a zero emissions vehicle.

The Class 2c-3 electric truck has a range of 100 miles per charge, making it ideal for many urban applications. When it returns to its home base at the end of the day, it can be plugged in and fully recharged within six to eight hours, Navistar says.

Unlike other electric trucks that are reconfigured models of fossil-fuel trucks, the eStar truck has been purpose-built for electric power, creating an advantage with a low center of gravity, as the battery is between the frame rails, not mounted on top, and a 36-foot turning radius. The eStar is engineered with superior aerodynamics, a walk-through cab and a quick-change cassette-type battery that can be swapped out in 20 minutes, enabling around-the-clock operation. It is capable of carrying payloads up to two tons.
With zero tailpipe emissions, each eStar truck can reduce greenhouse gas emissions by as much as 10 tons per year.

Solution Spotlight: Route Accounting/Management Software
Company: 55 degrees, Cleveland, Ohio
Business Type: Fine wine distributor
Challenge: 55 degrees wanted to streamline the process of having sales representatives call in to the office from the road to check on inventory and place orders.
Solution: Santrio’s Open for Business, a wholesale order management system fully integrated into QuickBooks.

55 degrees was finding that answering calls from its sales reps in the field typically fell to the warehouse supervisor and took up roughly more than half of his day.  Santrio’s Open for Business has improved the sales process, raised the efficiency of the warehouse and resulted in increased sales.

Each of 55 degrees’ sales representatives is now outfitted with a netbook and wireless Internet data service. As they call on each of their customers, they can access real-time information on inventory as well as view past orders and open invoices. This allows the sales representatives to better manage their accounts. As they check inventory, they can place the orders on the spot. The sales order is immediately sent to the warehouse where it is printed and fulfilled.

Solution Spotlight:Automated Storage and Retrieval System (AS/RS) Upgrade
Company: The Louisiana Coca-Cola Bottling Co., Harahan, La.
Business Type: Soft drink bottler
Challenge: The outdated storage and retrieval machines (SRM) at Harahan were showing wear in many of the basic mechanical systems and were at a point that needed to be addressed with urgency. There was concern that there would be substantial downtime in the near future that would result from the failure of these systems.
Solution: The bottler contacted Retrotech, Inc. to upgrade its four-aisle, unit-load AS/RS system.

After the major upgrade, the system now has new motor drives that are less expensive to support; upgraded power rails are a more robust style, with enclosed construction that is more tolerant of impact by falling debris and safer due to the closed design; improved braking control during e-stop conditions has eliminated flatspots from developing on the wheels; combined with a spill elimination program and regular maintenance, Coca-Cola should experience a significant increase in rail life and machine uptime, and finally the SRMs are now more reliable, more accurate and are running smoothly, with less downtime.

Material Handling
The typical beverage warehouse is like a small city, with a lot going on at any one time, but all with the goal of moving and storing product in the most efficient way possible. Each year, the marketplace sees advances in the technology designed to do this and the past 12 months have been no exception.

Crown Equipment Corp., for example, introduced its first company-manufactured internal combustion (IC) forklift, the Crown C-5 Series. The new forklift, designed to push the limits of IC performance, leverages the company’s heritage in material handling to deliver what the company says is “commanding advantages to owners and operators seeking improved power and strength, service and uptime, and comfort and safety.” It features an industrial engine that was jointly developed with John Deere Power Systems.

This spring, AS/RS provider Westfalia Technologies announced that its systems are feasible and economical for existing low bay warehouses, not just new, high-rise buildings.

Westfalia manufactures high density AS/RS able to store pallets up to 12 deep in a single storage lane. The key is its Satellite rack entry vehicle, which is engineered to smoothly and quickly glide under the pallet, gently lift it and move it back to the crane.

Solution Spotlight:Field Service Management, Delivery and Tracking
Company: Corporate Coffee Systems LLC, Westbury, N.Y.
Business Type: A provider of the latest office products and equipment, including coffee, tea, soda, juices, snacks and paper products
Challenge: To find a technology that enables next day delivery, no matter the time of day the order is placed, while also increasing customer satisfaction and enhancing profits. Also, to maximize mobile sales and technical staff productivity while reducing delivery vehicle speeding.
Solution: Intergis Visual Control Room

Corporate Coffee recognized that its business was becoming more complex and required a better approach to routing and scheduling sales appointments as well as deliveries, billing and compensation. So the company chose Intergis Visual Control Room to better manage its 14 delivery trucks, five service vans and technician calls. Before Intergis VCR, thecompany’s daily completion rate was about 95 percent and now it accomplishes about 99.9 percent of its deliveries daily.

The Intergis VCR software suite with dispatch capability automates the process of resource allocation and workload balancing as well as unforeseen schedule challenges, which are easily displayed on a VCR screen. Another major plus: reducing vehicle speeding by sending an alert to management.

Handheld Devices
Handheld devices, including mobile computers and printers, are now smarter and faster and are a necessary tool for delivery drivers and salespeople. As technology improves, so does the durability, speed, ease-of-use and affordability of handheld devices.

Addressing the need for workforce mobility, Zebra Technologies Corp. released a new application that allows mobile printing from a Smart Phone. Mobile workforces can now print directly from BlackBerry smart phones to Zebra printers, eliminating the need for a bulky, expensive handheld terminal, the company says.

Germany-based Movis Mobile Vision offers a handheld computer with a built-in printer that captures customers’ signatures, automatically updates changes to invoices and prints a receipt, which can help drivers save time and keep track of vehicle inventory. Motorola updated its MC75 enterprise digital assistance (EDA) handheld device with beefed up technology with Windows Mobile 6.5 and more features and functionality. The MC75A is compact, weighs less than one pound and maximizes processing power, application flexibility, data capture capabilities, connectivity options, security and manageability—in one device.

Handheld devices being used by delivery drivers and salespeople also need to be able to withstand the occasional bumps, drops and spills that come as part of fast-paced mobile usage. The PB51 mobile printer by Intermec is 20 to 30 percent faster time-to-receipt than competitive products and has a drop survival of 26 drops at five feet.

Pallets
Beverage distributors continue to have a wide range of choices when it comes to pallets. Some choose “white wood” pallets, while others rent from a provider of pooled wooden pallets, such as market leader CHEP, or PECO. Also available today are plastic pallets with embedded RFID chips for tracking from iGPS.

CHEP reports that it continues to invest in its on-line application, Portfolio Plus. Users can coordinate an order/collection, submit a request for resolution or view real-time reconciliation of physical asset movements. And it continues to evolve with partners focusing on real-time analytics and account health monitors supported by subject expert professionals at CHEP.

Solution Spotlight: Fuel Cell Technology
Company: Coca-Cola Consolidated, Charlotte, N.C.
Business Type: Soft drink bottler
Challenge: To convert material handling fleet from internal combustion to a cleaner technology
Solution: Plug Power Inc.’s class-1 sit down counterbalanced GenDrive fuel cell solution

The nation’s second-largest Coca-Cola bottler is planning to install this year 40 hydrogen-powered forklifts at its Charlotte, N.C. production center. Plug Power, Inc. will provide the bottler with its class-1 sit down counterbalanced GenDrive fuel cell solution. “With these fuel cell materials handling units, we will be able to maintain productivity, decrease operating costs and lower greenhouse gas emissions by 30 percent,” says Coca-Cola Consolidated spokesperson Lauren Steele. “We assessed many different technologies for our materials handling fleet and believe the Plug Power fuel cell units give us the best overall solution.”

The solution will enable operators to run equipment at full speed for an entire shift, thus maximizing efficiency. Compact hydrogen fueling stations will be conveniently located throughout the facility, allowing for easy refueling.

Electronic Commerce
While electronic commerce has been used in the beverage marketplace for years, it seems to be reaching a tipping point as the technology becomes more user friendly and affordable. That combined with increased pressure on suppliers by major retailers, such as Wal-Mart, has spurred rapid adoption of e-commerce as beverage suppliers and distributors integrate electronic data interchange into their business applications.

E-commerce is essentially a direct exchange of transaction data between suppliers, distributors and retailers, such as advance ship notices.

There are now enterprise systems, such as warehouse management systems (WMS) and HighJump’s RouteCenter On-Demand route accounting system, that have e-commerce capabilities built in. For instance, beer distributor J. J. Taylor implemented Rutherford & Associates’ eoStar route accounting system, which helped improve accuracy and enabled e-commerce transactions.

The potential for e-commerce is so vital, industry groups are now focused on establishing standards that will make e-commerce more efficient and valuable across the industry. The Beer Industry Electronic Commerce Coalition (BIECC) conducted pilot tests of data synchronization. And through the Alcohol Beverage Industry Supply Chain Council (ABI CC), supply chain and technology leaders are working together to develop industry best practices and broaden participation in the ongoing issue of e-commerce standardization.

Eco-Friendly Solutions at NA 2010
There was one place to be in April for the latest in distribution solutions: The 2010 North American Material Handling & Logistics show (NA 2010) held at Cleveland's I-X Center. A green innovation on display was the Apollo Light Pipe, which harvests daylight and magnifies light into the work zonal cavity below, reducing the need for electric lights. When the patented light pipe harvests natural light, the InteLite control system turns off electric lights, taking companies off the grid when peak load demand—and rates—are the highest.

Another solution, from Big Ass Fans, was the new AirGo Mobile Vertical Fan, what it called its “biggest and most innovative mobile vertical fan on the planet.” This 8-foot diameter, precision-engineered fan is designed to maneuver with ease on its four, 8-inch Performa rubber tread wheels and provide an immediate air movement solution wherever it is needed.

More than 17,000 attended this year's event, viewing some 426 exhibits covering 120,000 net square feet.

From Beverage World June 15, 2010