Implementation of Improvement Measures for the Refusal % reduction in Distribution Centers of a Peruvian Brewing Company

Abstract

The order's delivery process of this Peruvian brewery generates many rejected orders and, therefore, cost overruns, for which the present work aims to make an analysis of the main problems, such as product quality, truck loading errors and non-payment of clients; and propose improvement actions to reduce refusals, operating and transportation costs. In addition, the purpose of the research is to demonstrate the profitability of the proposed improvements, both establishing a prepaid service and implementing RFIDs for inventory control, based on the current situation of the company and its logistics network, and analyze how these improvements affect the main KPI refusal percentage. On the other hand, the methodology has followed the IMRAD structure, and tools such as Input Analyzer and the Monte Carlo Method were utilized. The main findings of the research explain that the refusal % was reduced from 2.28% to 1.83%, and the benefit / cost of the proposed improvement actions has a value of 1.83, indicating that for every dollar invested, there is a benefit of 1.83 dollars. This proposal, shows that these actions are effective and feasible, maintaining the service level and reducing the costs previously mentioned.