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39 At ECasks we have over 170000 containers in our fleet casks and kegs and return logistics and efficiency of supply chain management is essential in ensuring that we have enough stock in place to fulfil not only planned orders but also be able to supply ad hoc orders. This is because brewers more and more often find themselves unable to keep up with increased demand. We use RFID scanning technology on all of our casks and kegs it is the simplest way of generating genuine management data and works perfectly in the real world of brewing. RFID tags cant get lost forgotten wet or ripped off casks. You can also easily scan them back in and out run reports showing where your outstanding containers are understand which customers have a better return cycle time than others and use RFID to conduct bespoke sales analysis. This technology also allows for another level of pricing. If you know that certain pubs are better at returning containers than other pubs you could even start pricing based on return cycle times. This would add a truly unique USP to your sales arsenal. If your average return cycle time is six weeks for local for every week you improve your average cycle time your asset utilisation improves by 1.8 cycles per year. This means that in a fleet of 2000 containers it would allow you another 3600 deliveries annually with the same containers generating an extra revenue of c.216000 with the same capital cost base. While there are already some very good returns scanning systems on the market ECasks favours RFID scanning because of its ability to flex and adapt as technology in the market changes. Although the majority of our fleet use low frequency discrete scanning our keg fleet c.40000 units uses high frequency RFID tags that allow for bulk scanning and gate scanning. We are now also able to scan full trailers of casks or wholesale yards of kegs within seconds. If the technology then moves forward and RFID scanning points are rolled out across the country we will be able to see our casks kegs moving through RFID gateways. As a logistics business this improving technology will not only be vital in traceability and managing recovery costs but it will also help the industry start to track and trace containers being sold abroad. Speaking to Kegwatch recently they tell me that the biggest issue in the industry at the moment is kegs and casks being transported to Eastern Europe. As if to highlight the problem on 21 March this year a Polish national appeared in Crown Court following his arrest in January for keg theft. Tracing your assets no matter what type is vital for the improved profitability of your business but if the assets just arent there to recover the opposite of the cycle time calculation becomes a reality. In this situation it becomes even more costly for your business. Imagine you lose the UK average of your population every year because you cant control the reverse logistics. At the current national average 5 of your 2000 population thats 100 casks per year meaning your annual sales would be reduced by 860 c.51600 to 16340 firkins. On top of the reputational risk to your business and theoretical loss of revenue you would potentially have to reinvest in the containers to ensure that your sales didnt drop so your capital costs would be increased by a further 5200. ECasks has been working in conjunction with many of our customers over the last few years looking at their supply chain movements their return cycle times losses and costs to understand the cost benefit or using rental casks above that of using their own. We have found that the majority of breweries are very focused on the despatch costs of their product however the return logistics costs are generally hidden. Along with the additional benefits of increased cycle time through your own population the additional value that we have managed to unlock for several brewers has been truly surprising. On the back of these investigations we are working with more and more regional to micro sized breweries retagging their population. When you consider the price of tagging a cask is c.3.50 against the cost of a container at over 50 anything that can be done to reduce the capital cost of purchasing new containers has to be an advantage. Close Brothers Brewery Rentals is also now helping breweries spread the cost of this by offering tailored solutions to meet the needs of the brewery. Ultimately as a brewer where do you see the value in your business Is it controlling your caskskegs through the minefield of return logistics Or is it creating great tasting beer that builds your reputation and drives sales and revenue growth for you So the next time you are asked by your sales team for an order of 90 casks you dont have instead of asking yourself how do I get hold of them ask instead do I have the right solution to my supply chain needs to most effectively manage my population and ensure that my total cost base is as low as it could be Sources BBPA Kegwatch Incourts.co.uk James Lewis is the General Manager of ECasks part of Close Brothers Brewery Rentals. He has worked in asset tracking and rental for over 10 years. james.lewisclosebrothers.com future for population tracking www.closebrothers.com For more information visit 39_Layout 1 21042016 1422 Page 1