Case Study: Diageo achieves 99%+ service levels and significant inventory reduction with ToolsGroup SO99+

Diageo - Customer Case Study

Diageo, the global premium drinks company, faced a complex North American supply chain (8 plants, 5 contract manufacturers, 13 import flows, 42 warehouses) and a tough trade-off: support volume growth, new SKUs and volatile demand while keeping working capital under control. After cutting finished goods inventory by 18%, Diageo’s team, led by VP Flavio De Simone, concluded the “low hanging fruit” was gone and selected ToolsGroup’s SO99+ to provide the smarter inventory technology they needed.

ToolsGroup’s SO99+ was bolted onto Diageo’s SAP ERP and Manugistics SCP to analyze demand, optimize safety stocks and feed inventory parameters back into planning, moving Diageo from a static annual process to a dynamic monthly, portfolio-level, multi-echelon optimization. The ToolsGroup implementation delivered service levels above 99% (US bailment network 99.6% rising to 99.8%), improved inventory turns by 10% in six months and 30% in 18 months, reduced out-of-stocks and freed working capital.

Diageo

Flavio De Simone

VP Supply Chain Development