BATTLEGROUND #3: Funding the journey

By optimising our performance, we are creating a solid financial footing to fuel our growth. Already we have achieved cost and cash savings of €200 + €200 million through our Operational Excellence Plan launched in 2016. Having seen the benefits of smarter purchasing, targeted media investment, strategic allocation of resources to priority brands, we continue to invest in digital solutions that allow us to improve efficiency and create business value through data.

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funding our ambition

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Industrie 4.0, transforming Operations for the business of the future

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The rise of new digital industrial technology, known as Industry 4.0, is actively contributing to improving productivity, quality and working environments across many industries. Pernod Ricard has embraced Industry 4.0 principles and technologies – from automation to big data and connected objects – to drive a strategic transformation across its global operations. 

To enable the Group to accelerate its collective operational performance, Operations leaders from across Pernod Ricard came together in 2017 to identify a list of promising technologies for our business. “We decided to take an approach aligned with our decentralised model, testing each selected initiative through a series of pilot projects across our wine and spirits sites worldwide,”  explains Rodrigo Fernandez, Group Operations Performance Manager. “This has allowed us to make focused investments and evaluate each solution and its potential business benefits on a case-by-case basis.” 

The Group’s Industry 4.0 journey has followed a test-and-learn approach. By allowing our teams to identify the most appropriate solutions for different business needs, cross-fertilise ideas and analyse the benefits of initial technology pilots, Pernod Ricard is creating the right conditions for its Brand and Market Companies to move more quickly on replicating promising solutions. 

With the central Group Operations’ team playing a key role in coordinating Industry 4.0 initiatives and guiding future technology investments, together with Pernod Ricard Winemakers for its winemaking activities, Pernod Ricard is well-placed to transform and accelerate operational efficiency, creating new value-added services that benefit its employees, customers and partners. 

 

CONTROL TOWER: a live panoramic view of our global supply chain

At any given time, thousands of sea containers are on the move between the Group’s various Brand and Market Companies across the globe. For the supply chain teams who need to have access to their whereabouts in real-time, the process has been a highly manual and time-consuming one: requiring them to compile information from each of their shipping providers’ individual websites. 

To tackle this complex supply chain issue, Pernod Ricard deployed a new digital solution that provides real-time visibility of all shipments across the Group’s numerous sea freight providers on one single platform. The new ‘Control Tower’ combines information provided directly from each carrier with the Group’s automated identification system data to show the precise location of all shipments at any moment. 

Centralising this critical data is not only a significant time saver for the supply planners in 62 of our global offices for whom it is critical to track shipment progress, it also allows them to be more proactive in anticipating and communicating accurate lead times. In addition to which, this new tool facilitates generating comprehensive reports on the performance and reliability of our shipping partners and measuring our carbon footprint. 

 

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COBOT: collaborative solutions power productivity

Collaborative robots (COBOTs) bring the complementary skills of man and machine together. To explore the benefits that this technology can bring to benefit both people and industrial performance, two of Pernod Ricard’s Brand Companies have been testing how the use of COBOTs can streamline activities on the production line and support bottling operations. 

The Group’s first COBOT was tested at our Absolut facilities in Sweden to relieve operators from arduous, noisy and ergonomically challenging tasks. After the success of their first two pilots, the local Operations’ team continued to deploy additional COBOTs on their packing lines. Delivering immediate productivity gains and cost savings, Absolut further invested in this new technology by creating a dedicated COBOT for training teams to design future COBOTs. 

The Martell bottling plant in France deployed its first COBOT in 2018. Engaging the local team in the operational design from the start of the project made it faster to adapt and deploy the COBOT tailored to their local needs, to reduce employees’ exposure to repetitive movements and musculoskeletal strain. Equipped with a series of sensors, the Martell COBOT works safely alongside operators to prepare shipping cases for bottles. Besides improving employee safety, the COBOT is a valuable resource supporting Martell’s premiumisation strategy. As the brand’s high-end products require more manual handling, this new tool has proved a fast and efficient solution to manage the wide variety of packaging needs that result from the many different Martell bottle formats. 

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IOT APPLICATION IN MANZANARES: a real-time solution for better resources management 

Connected devices can inform and guide real-time decision-making for better resource management. A long-time pioneer in operational excellence initiatives, Pernod Ricard Spain’s Manzanares facility spearheaded a pilot programme to evaluate the use of sensors for monitoring water usage in the production environment. 

Through the installation of multi-function sensors on production equipment across the site, the team is able to track in real-time on a central dashboard its water usage along with a variety of other site operations. This system allows the local teams to identify issues – such as unusual variations or potential leakages that typically take time to detect – and implement corrective actions in a more reactive manner. These same sensors are powered by solar panels making this a solution with a doubly positive ecological impact. 

From this experience gained at Manzanares and from its different pilots, Pernod Ricard will continue rolling out the most relevant and cost-effective solutions across its many operational sites to further optimise Operations’ performance across the Group. 

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prime

DISCOVER PRIME IN OUR INTEGRATED ANNUAL REPORT FY19 (P. 73)

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© Pernod Ricard 2020