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Diageo Uganda Logistics Case Study

SCCG Completes Logistics Hub Modelling Project for Diageo

Diageo is a global leader in beverage alcohol with iconic brands in spirits, beer and wine.

Consumer demand across Uganda has been growing steadily and in order to maintain high levels of customer service, Diageo Uganda needed to expand both its production and distribution capacity at their brewery site in Kampala. It was decided that to free up space for increased production, distribution activities should be consolidated into a new Logistics Hub, located nearby. This Hub needed to provide not only secure storage facilities for finished goods and returnable bottles but also, shunting capacity to and from the brewery, truck parking and office space. Diageo engaged the specialist Warehouse Consultants at The Supply Chain Consulting Group (SCCG) for support in developing a Master Plan for the site. The consultants at SCCG conducted a detailed assessment of existing flows, future volumes, processes and handling methods to develop a planning base for future distribution requirements. SCCG used this planning base to develop initial layout options for the site.  This involved the demolition of existing warehouse facilities and expansion of the overall site.  These options were reviewed by a joint project team which included the current third-party provider of logistics services and the developer for the site.  This joint approach enabled a cost-effective final layout to be developed which met the future needs not only of Diageo but also of the developer and future operator of the site. Once the layout was agreed upon, SCCG produced CAD drawings for the whole site along with a phased implementation plan which identified how the site should be developed over a period of several years to provide the required capacity increases while maintaining flexibility to respond to any future changes in the demand profile. Finally, a report summarising the proposed designs, along with the supporting data analysis and assumptions made was developed. Key to the success of the project, was the involvement of the developer and operator at the design stage which ensured that all the stakeholders were aligned with the final design.