Enhancing Digital Transformation in Manufacturing SMEs

22nd of MayBrussels

2015

Nick DavisHobsons Brewery

Gary PattisonSaker Solutions

INDEX1. WHAT WE ACHIEVED

2. HOW WE DID IT

3. HOW I4MS HELPED

4. HOW WE WILL TAKE IT FORWARD

WHAT WE ACHIEVED

1. Quality is the key to success

• All beer has unique characteristics

• Each beer is at its best within a specific age window

I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

• Client sites consume casks at different rates• Some much faster than others

• Need to ensure that casks will be opened at the optimum time so beer is consumed when it is neither too young nor too old

WHAT WE ACHIEVED

2. Craft brewers embrace benefits of simulation modelling

• Corporate brewers are long standing proponents of simulation• High capital investment• Strategic business change

• Less than 20 large breweries in the UK• Most of which have used simulation

• In contrast, craft brewers:• c. 1,350 in the UK• Estimated 15,000 across the EU

• Simulation enables• Better operational decisions

I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

• Assuming a 15,000 HL/PA production with a spoilage rate of 0.5% eliminates the following negative economic effects:

• Loss of beer sales revenue c. 18,000 Euros / PA

• Extra energy requirements 5,000 Euros / PA

• Barrel utilisation costs 3,000 Euros / PA

• Increased carbon footprint

• Reputational costs, HUGE

• C. 15,000 European craft brewers, multiplying the losses creating significant deficit to the industry and creditability.

WHAT WE ACHIEVED

3. Economic Impact

I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

• Traditionally all stock was picked on an ‘oldest used first basis’

• Approach did not take into account:• The age at beer is at its best • When beer will be consumed

• Application generates:

• Delivery schedule – which casks are to be delivered to whom today

• Are future deliveries covered (considers future orders & forecast)

• Simulation used to test robustness of allocations:

• Variations in consumption times

• Variations in demand forecasts

HOW WE DID IT?

Application

I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

HOW I4MS HELPED

Removal of barriers and opportunity to embrace benefits

I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

• Removal of all barriers preventing craft brewers making use of leading edge, simulation based decision support tools.

• Simulation was seen as

• Too costly• Software• Services• Skills

• However, benefits and value of decision support are highly desirable

• Qualitative

• Quantitative

• Off-the-shelf decision support tool to allow Craft Brewers to maximise quality and leverage sales.

HOW I4MS HELPED

Application User Interface

I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

• Hobsons ‘Case Study’ / Reference site

• Initial targeting of specific key craft brewers through Hobsons

• Wider proactive marketing campaign through SanderWerbung GmbH

• Potential already identified for uptake in other food and beverage industries – strong analogy with diary industry

• Further initiative underway through InnovateUK to extend capabilities.

HOW WE WILL TAKE IT FORWARD

Exploitation

I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

• For the same size 15,000 HL / PA brewery controlling quality a 50% reduction in spoilage is attainable.

• Saves 13,000 Euros annually in production costs, energy and loss of sale revenue.

• Improves carbon footprint.

• We believe that within year three 10% of the UK breweries (130) will adopt the simulation template saving approximately 1.7M Euros per year.

• Additional sales will also accrue along with a stronger reputation.

• Beer Duty

HOW WE WILL TAKE IT FORWARD

Economic Benefits

I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

THANK YOUFOR YOUR ATTENTION

Nick DavisHobsons Brewery

Gary PattisonSaker Solutions