Danone Mexico | BBR - Brochure

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Partners:


Digitization-led logistics


Produced by Jassen Pintado Interviewee Carlos Caratachea, Supply Chain Director for Danone México


Danone México

Food

A complete operation willing to develop, obtain and make the most from the best available resources, enabled to get to know clients, ease their access to products and achieving their satisfaction while benefiting the company, its partners and suppliers

W

ith more than a

contributing to consumers’

century since it first

diet and nutrition.

opened for business in Europe, Danone

at 7th place worldwide, performing

established a solid

a key role in the company’s global

presence around

business strategy.

the world in the dairy products and drinking water industries. The Danone group set foot in Mexico almost half a century ago and has strengthened its leadership through an important

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Danone’s operation in Mexico ranks

SOLID NATIONWIDE OPERATIONS

The brands managed by Danone in Mexico are grouped into three business units: • Essential Dairy Products (EDP)

product portfolio, fulfilling the mission

and plant-based products: Activia,

of bringing health through food and

Bene G, Danmix, Danone, Danonino,

hydration to the most possible people.

Danup, Danette, Dany, Oikos, Vitalínea,

Also, Danone has established a solid

YoPro and Leche de Origen Danone

reputation as a reliable household

(milk), all of these are dairy products,

name as a result of the highest quality

besides the Silk brand of coconut, oat,

standards shared by its products,

rice and soy beverages.


Food

Danone México

• Bonafont: One of Mexico’s

2020 Sustainability Prize from the

beloved brands of quality drinking

Transportation Innovation Week, for

water, available in sizes from 20oz.

the first electric refrigerated truck

to 340oz.

prototype. In 2017 and 2019 the company was awarded the National

• Bonafont en Tu Casa (home delivery service): Bonafont water

Prize for Logistics. The first of these for using a natural gas-fueled delivery

straight to Mexican households through fleet and a strategy optimization in the Greater Mexico City area, and the recyclable and returnable bottles in 45oz. and 83oz. sizes.

second time for their control tower app. During the last five years, Danone’s

Danone supplies nearly 300,000

facilities have been reconditioned

clients involved in the retail industry,

to guarantee service and supply for

besides convenience store chains and

consumers nationwide.

supermarkets. The company has 45 facilities nationwide. Danone’s almost 1,000 delivery routes serve approximately 50,000 clients every day. Danone’s plant in Irapuato, Guanajuato is the group’s largest yoghurt plant in Latin America and in recent years has earned important accolades, such as the

“100% of these facilities were conditioned to support the company’s organic growth and innovation strategy,” said Carlos Caratachea, Supply Chain Director for Danone México. PROVED EXPERIENCE IN EVERY DEPARTMENT

Caratachea, a biochemical engineer, graduated from ITESM (Monterrey

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Danone México

Food

Institute of Technology and Higher

Besides all the awards obtained in

Education) - Queretaro Campus.

Danone, as well as the Total Productive

His wide experience in the food

Maintenance award, from the Japan

and beverage industry has taken

Institute of Plant Maintenance for

Caratachea to leading companies such Unilever’s Tultitlan plant, in 2020 as Jumex, Jugos del Valle, Comedores Caratachea became recipient to the Industriales, Coca-Cola FEMSA and

Eminence in Logistics award, on behalf

Unilever, where he has performed in

of the Soy Logístico association.

areas such as production planning,

“I never accomplished any result by

materials, demand, quality control,

myself, I always did it with help from

warehouse management (both for

focused, disciplined teams, striving

finished products and raw materials),

for ‘how should we’ ways to achieve

systems and distribution, among

results,” the executive declared.

others, obtaining knowledge about every link in the supply chain. Caratachea arrived at Danone in

One of the supply chain’s main traits

2005. Before being named Supply

at Danone Mexico is the willingness

Chain Director in mid-2020, he was in

to explore, learn and include new

charge of nationwide Distribution and

technologies enabling them to ease

Storage for five years, and from 2012

tasks, save and improve results, thus

to 2016 he led the production plant at

leading to increase the value chain.

Irapuato to be the best plant during

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TECH DRIVEN

Danone’s investments in disruptive

five straight years among 140 Danone

technologies, such as smartwatches,

plants worldwide.

RFID and warehouse management


Danone México

Food

I’ve never accomplished any result by myself, I always did it with help from focused, disciplined teams, striving to achieve results Carlos Caratachea, Supply Chain Director for Danone México

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ENTENDEMOS EL MOVIMIENTO

Gestionamos y digitalizamos las flotillas con telemetría e inteligencia artificial generando grandes beneficios para nuestros clientes Ahorro en su distribución. Incrementar productividad. Crear estrategias operativas eficientes. Prevenir accidentes. Optimizar la cadena de suministro Crear una cultura diferente en hábitos de manejo.

“Transformamos el movimiento en información útil para la toma de decisiones en sus flotillas”

www.gosmo.mx


Food

Supplier Profile

systems have been useful for inventory management, orders and also for digital research resulting in the detection of new clients. For planning and consumer service tasks, Danone relies on RPA for data

N u m b e r o f E m p l o ye e s : 82

Ye a r E s t a b l i s h e d : 2004

Industr y: Logistics

Main Ser vices: Te l e m e t r y, F l e e t M a n a g e m e n t a n d Fu e l M a n a g e m e n t w i t h e - w a l l e t

R e c e n t P r o ye c t s : C o n t r o l To w e r w i t h D a n o n e , D i g i t a l i z a t i o n o f distribution and supply chains, cold chain control, control of pharmaceutical fleets, c o m m e r c i a l a n d d i s t r i b u t i o n f l e e t s , p r ov i d i n g a fully managed end-to-end ser vice

P r e s i d e n t /C E O : J o a q u í n B e r n i We n n e ke r s

extraction and analytics. “We’ve thrusted the use of technology to simplify tasks and improve our service and savings indexes,” Caratachea explained. Digital technologies in vehicles and devices have made operations easier, providing delivery workers predetermined routes, designed according to each day, schedule and other conditions in their area, aligned with the control tower, which not only monitors delivery times, but also offers support in client geolocalization. The control tower allows making decisions to plan routes and delivery times

We b p a g e w w w.g o s m o. m x

according to possible traffic conditions

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Danone México

Food

The “Proyecto Ma rga r ita” strategy helps smal l mi lk producers in the Jal isco Highlands

such as temporary road restrictions,

in possible unscheduled stops in the

roads under construction or repairs

delivery route.

and traffic accidents, among other critical events, in real time, protecting

understanding of what the market

operational continuity.

offers to create solutions which

Currently, the Danone fleet is working with new devices that not only share the vehicle’s location, but also its temperature and built-in photosensors detect cargo door openings involved

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“We are evolving toward an

become sustainable,” the executive declared. STRATEGIC PARTNERS AND SUPPLIER DEVELOPMENT

Creating synergies and establishing


Food

Danone México

collaboration programs is a key factor

solutions. There’s a willingness to

for Danone Mexico. The main goal of

explore new business opportunities,”

working hand in hand with large retail

Caratachea commented.

chains is finding solutions able to

On the other hand, there are

optimize supply while reducing costs.

suppliers evolving into levels of

The company has strong relationships

highly specialized collaboration.

with Ferrero Rocher and Mars in

The company that first supplied a

logistics and product delivery.

monitoring system for Danone’s trucks

“The most important aspect is the creation of mutually beneficial

is currently in charge of Danone’s control tower. Freight trucks with two

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Danone México

Food

decks and dedicated freights are a

propose bring business opportunities,”

result of built trust after accomplished

the executive explained.

goals and the vision of economy of scale and volume sales. In fact, the refrigerated electric truck -which already earned a prize- was a Danonedriven collaboration between a truck manufacturer, a car body maker, the refrigeration system supplier and the

GLOBAL SUPPORT FOR ONE OF THE BEST MARKETS

Being part of a global corporation like Danone implies aligning and following determined standards, as well as fulfilling its commitments to

financing entity. The company also

subjects such as the environment,

models.

having multiple resources available

shares close relationships with startups health and sustainability. On the other hand, this also means as a reference about different operation A common trait about these and other suppliers and their relationship

to share experiences and success

with Danone in Mexico is their vision

stories to improve best practices.

to create high-value, appealing, sustainable and solid strategies. “Danone stands out for venturing

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which help every operation worldwide

Support from the global headquarters also includes digital resources such as the “Campus X”

into investments with support and

e-learning platform, which offers

collaboration from local suppliers.

training sessions in different topics

They’ve helped us with their flexibility

such as quality, R&D, production,

and willingness to take steps along

supply chain and sales, among others.

with us, because the solutions we

Each country’s operation is subject


Danone México

Food

We’ve thrusted the use of technology to simplify tasks and improve our service and savings indexes - Carlos Caratachea, Supply Chain Director for Danone México

D a n o n e’ s p r o d u c t p o r t f o l i o i s compr ised of Essential Dai r y Products, Danone en tu Casa b o t t l e d w a t e r d e l i v e r y, a n d Bonafont bot tled water

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Danone México

Danone’s commitment to sustainabi l it y is ca r r ied th rough ever y day actions based on its “OnePlanet. OneHealth.” vision

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Sector


Food

Danone México

Danone stands out for venturing into investments with support and collaboration from local suppliers.

They’ve helped us because we create business opportunities - Ing. Carlos Caratachea, Director de Cadena de Suministro de Danone México

to reviews, detecting improvement

becoming a safe and healthy space

areas and also to exchange resources

for its staff by conditioning its facilities

which are not in use in a certain

to comply with sanitary measures

country.

and preventive protocols, besides

“The support we have from the group arranging new operation models supported on technology, such is key to achieve our goals faster,” Caratachea declared.

as virtual meetings, new digital platforms for communication and

CHANGES DERIVED FROM COVID

Consequences derived from the

other resources alike. These conditions also resulted in

COVID global pandemic resulted

improvements in communication

in a flurry of new measures in

with clients and detecting a rising

businesses worldwide, and Danone

awareness in consumers about product

Mexico was no exception.

sizes from the data generated during

Danone’s operation was transformed, the quarantine period.

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Danone México

Food

The p roduct del ive r y depar tment is furnished with the best dig ital resou rces, besides earning Danone an awa rd fo r the electr ic refr igerated tr uck p rotot ype

“COVID has led us into a more mature and complete operation, able to fulfill our clients’ and consumers’

individuals and the planet. In terms of sustainability, there’s been significant progress in efforts

expectations,” the executive explained. aimed at renewable energy, packaging, CORPORATE SOCIAL RESPONSIBILITY: CONTRIBUTING TO GROWTH

Both in Mexico and on a worldwide

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water, regenerative agriculture and carbon footprint reduction, among other matters, as it actually happens with the company’s vehicle fleet, two

level, Danone engages in active efforts

cargo decks in trucks and reducing

to achieve its “OnePlanet. OneHealth”

the use of fossil fuels is focused on

ambition, focused on the wellbeing of

reducing the carbon footprint and other


Food

Danone México

emissions. Also, the plant in Irapuato runs on wind power. Danone also runs important projects

Currently, more than 500 Mexican producers from the state of Jalisco have become small entrepreneurs,

which have become a transforming

or the Madre Tierra (Mother Earth)

force in its social environment,

program, a regenerative and

as it has been with the Margarita

sustainable agriculture program

program, a sustainable strategy

offering a significant increase in

favoring milk supply by developing

productivity to small producer

small producers who lacked the

communities with strawberry crops

proper technical advice to increase

in Maravatio, Michoacan.

and improve their production.

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Danone México

Food

The “Madre T ier ra” prog ram benef its strawber r y c roppe r s i n Ma ravat i o, M i choaca n

Evolution and increasing digitization as a process facilitator Upcoming developments at Danone undoubtedly bring some kind of excitement amidst the evolution that

whom different distribution models are being developed, according to context and conditions. The arrival of the refrigerated vehicle becoming part of Danone’s distribution

the logistics and chain supply areas are network for smaller clients is servicing capable of displaying. The pandemic brought along new entrepreneurs that must be serviced and supplied, for

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a recently discovered sector which seems to grow. For Danone it is highly important to offer


Food

Danone México

variety in its portfolio with water and other products able to contribute to the transformation of Mexicans’ diet and for consumers aware of the products they use. Undoubtedly, it is expected that Danone will continue adopting digital resources and directing efforts toward reducing any environmental impact. “Driving green tech helps a lot, that’ll be here in upcoming years, more digitization producing data that enables us to serve what clients need and demand,” finalized Carlos Caratachea, Supply Chain Director for Danone Mexico.

FOUNDED: 1919 (in France) INDUSTRY: Dairy and plant products, drinking water WEBPAGE: www.grupodanone.com.mx

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www.grupodanone.com.mx carlos.caratachea@danone.com