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KN Drinks Logistics rolls out Paragon software

Following a major pilot in three regional distribution centres, KN Drinks Logistics has started a national roll-out of Paragon’s enhanced routing and scheduling optimisation solution, as the company seeks to improve its radial distribution planning operations in the brewing and drinks sector.

Transport planning for KN Drinks Logistics’ national client base is both a large and highly complex process, processing up to 6,000 orders per day through their 20 depot national network. They operate five different vehicle types and one, two and three-man crews in meeting the tight delivery windows and restricted access constraints of much of our 30,000+ strong delivery account base.

KN Drinks Logistics and Paragon jointly worked together to establish a series of performance improvements in what is a complex and demanding operation, and this is now coming to fruition after a 12 month project. Among the areas identified to improve were, ease and speed of planning, reductions in vehicle movements and reduction in distances travelled, with no consequent adverse impact on already very high levels of delivery service level performance.

Consequently, the Paragon software now incorporates several refinements of its underlying scheduling algorithms and optimising techniques. It also gives the depot planning teams more influence over how the optimisation should be best carried out – so they can take account of operational experience which, for example, shows that in certain depots it is better to plan small vehicles before larger vehicles and then undertake final optimisation using an enhanced ‘Trip Improver’ option.

Following the successful pilot, the enhanced Paragon routing and scheduling software is now being rolled out across the entire KN Drinks Logistics network.

Early operational results have been impressive, with significant improvements across a range of key performance indicators (KPIs), including a kilometres per tonne, and average distance travelled decrease. In addition, KN Drinks Logistics has seen a real reduction in vehicle movements which is also having a positive impact on its carbon footprint.

As a result of Paragon’s software developments KN Drinks Logistics are now able to plan more quickly than before and with better results in what continues to be a challenging environment. Daily planning, which previously took up to five hours as a manual process in some depots, can now be completed in no more than 2 hours – a dramatic 60% time saving. This in turn allows the planners to undertake more what-if type analysis and look for other opportunities to drive operational efficiency.

“Paragon’s willingness and determination to work closely with our team has had a major impact on the success of the project, we are already achieving the outstanding results anticipated at the outset and now have an excellent planning tool that enables us to produce more efficient plans much more quickly.” Allan Jagger, Business Systems Manager, KN Drinks Logistics

Quick facts:
  • 3PL beverage distribution
  • 6,000 orders per day
  • 20 depot national network
  • 30,000+ delivery account base
  • Operating five different vehicle types
  • One, two and three-man crews
  • Tight delivery time windows
  • Restricted access constraints
  • A wholly-owned UK subsidiary of Kuehne + Nagel
Benefits reported:
  • Planning time cut by 60%
  • Improved strategic planning
  • Reduced carbon footprint
  • Average distance travelled reduced
  • Kilometres per tonne improved
  • Planners now have time to look for opportunities to drive operational efficiency
KN Drinks Logistics rolls out Paragon's routing and scheduling software nationally

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