Delicato Family Wines

Delicato Family Wines is one of the fastest growing wine companies in the world celebrating 90+ years of California winemaking and grape growing heritage. The company has been family-owned and operated since they were founded in 1924, and three generations of the in Delicato family have fostered the winery’s commitment to innovation, quality and environmental stewardship. Delicato Family Wines has harnessed the family’s long-term focus and solidified the winery as an internationally recognized leader in the industry.

CHALLENGES

• Rising raw materials and finished goods inventory
• MRP and its support of purchasing automation not understood
• Inventory strategies and master data not aligned
• Frustrated users and excessive manual processes and workarounds
• Lack of trust in the system leading to ineffective use of MRP generated requirements for manufacturing and procurement
• Lack of visibility to incoming inventory to acknowledge commitment on incoming Sales Orders
• SAP reporting functionality not being utilized to support business and process performance KPI’s
• Master data settings not aligned with business processes

SOLUTIONS

• Supply Chain transformation utilizing Reveal’s oVo® methodology
• Focused on optimizing inventory, capacity and production planning to support improving service levels
• Education for demand planners, buyers, production planners, schedulers, shop floor, and management on existing SAP tools
• Education on SAP Available to Promise functionality
• Education on managing master data to align with business rules
• Established ownership and accountability of master data and aligned MRP strategies
• Deployed Production Capacity, Scheduling, Planning and Dispatching strategies using SAP as the system of record
• Improved communication and process alignment across the supply chain to support strategic initiatives
• Established Process Aligned Teams (PATs) to address daily supply chain challenges identified through the oVo® process
• Set KPI’s and alignment with strategic business performance measures

BENEFITS

• Reduced Overdue Demand Elements by 96%
• Reduced Overdue Supply Elements by 95%
• Reduced Red Lights (potential service level disruption) by 90%
• Reduced Exception Messages by 53%
• Optimized 93% of average value of targeted Finished Goods Inventory
• Optimized 84% of average value of targeted Raw Materials
• Production Planning and shop floor utilizing detailed scheduling tools in SAP
• Optimized production line capacity and throughput rates
• Regained functionality of standard fields back to intended usage
• Implemented replenishment strategies driving improved inventory turns for raw materials and finished goods
• Educated and empowered users and management team
• Aligned KPI’s to business objectives
• Simplification and standardization of procurement processes
• Improved level of trust and visibility of production data
• Increased schedule attainment and production efficiency
• Strategic to going live in new 740,000 sq. ft. multi-purpose facility
• Created Direct Import supply chain channel
• Aligned platform for transition to S/4 HANA