Baltika optimizes supply chain management on the basis of Oracle Strategic Network Optimization

The Oracle corporation announced that, the Baltika brewery for implementation of strategic tasks of optimization of a supply chain and to the centralized formation of the master production schedule of products on the basis of sales forecasts selected the solution Oracle Strategic Network Optimization (Oracle SNO) which is optimum meeting its requirements. Today in Baltika system implementation of mid-term and long-term planning which gives the chance continuously to estimate influence of each solution on costs and revenues of the company on all global supply chain, says Oracle is complete.

The schedule system is integrated into a corporate information system which core is "ERP Monolit", and represents the integrated set of three components: the designer of supply chain designs — this component of a system is the independent application implemented within the project by Monolit-Info company which describes structure of interaction of elements and creates a supply chain design; the business application of Oracle Strategic Network Optimization — provides calculation of an optimal distribution model of material flows of logistic network within the set restrictions and effective objectives of optimization; the storage of models and the system of cubes for the analysis of results of calculation — are implemented within the project by Monolit-Info company and provide the analysis of results of distribution of material flows and costs for results of optimization of a supply chain.

The system of master planning helps to plan on a centralized basis work of all Russian production sites of Baltika on the basis of the sales forecast and to distribute production volumes between the plants. The solution of Oracle allows to minimize the expenses connected with raw materials purchase, production and delivery of finished goods. A system gives the chance to solve multiple parameter optimization problems of big dimension of satisfaction of the available demand with the minimum costs for limited time, noted in Oracle.

"System implementation of master planning allowed to develop the transparent IT tool which gave an opportunity to optimize costs on all supply chains. Thanks to updating of a system became possible more quickly to react to changes and to analyze activity of service of logistics. It is possible to note that now a system on the basis of Oracle Strategic Network Optimization is an integral part and the obligatory instrument of decision making concerning supply chains in Baltika" — Babinsky Sergey, the logistics director of Baltika brewery noted.

The project team consisted of specialists of Baltika company, division of Oracle Consulting and Monolit-Info company. Within the project in Baltika several models of planning were created that provided flexibility and convertibility of a supply chain design, reported in Oracle. Now in the company 4 groups of supply chain designs are used: generalized — based on the enlarged data on the company for 3 years ahead (long-term planning), annual (mid-term planning), 60-day (short-term planning) and decade — for optimization of distribution of finished goods.