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Oracle Customer Success—Grupo Bimbo, S.A.B. de C.V.

Grupo Bimbo, S.A.B. de C.V.

Bimbo Group Optimizes Baked Goods Distribution Costs and Cuts Daily Transport Scheduling Time in Half

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With Oracle Transportation Management Cloud we have achieved an integrated solution for distributing our bakery products, providing us with nationwide visibility across our 22 distribution centers and a 1% savings in transport costs.

— Fernando Espejo, Logistics Vice President, Grupo Bimbo, S.A.B. de C.V.

Grupo Bimbo, S.A.B. de C.V. (Bimbo) is a Mexican company that produces food products, and is a national leader in the baked goods industry. Bimbo produces over 10,000 products, including breads and cookies, across more than 100 brands including Bimbo, Marinela, Oroweat, Arnold, Brownberry, Thomas’, Sara Lee, Barcel, Entenmann’s, Fargo, and many others.

Bimbo operates a distribution network with over 58,000 routes and more than 3 million points of sale located in 33 countries spanning North, Central, and South America, as well as Asia and Europe. Its major markets include Argentina, Brazil, Chile, China, Spain, United States, Panama, and Portugal.

 
Business Challenge
  • Optimize the distribution costs of the company’s food products to boost profitability
  • Achieve greater visibility of the entire nationwide baked goods transportation network, eliminating manual processes which use spreadsheets for each distribution center to reach optimal use of its transport infrastructure and human resources
Results
  • Bimbo initially implemented Oracle Transportation Management on-premises, but licensed cloud in 2016 and migrated to the cloud platform. It also worked with Capgemini to establish system requirements and configurations before the implementation.
  • Saved significantly on freight costs, including fuel and carrier hours, by using Oracle Transportation Management Cloud to expand visibility into and control over logistics for the company’s baked goods production facilities
  • Halved the time needed daily to schedule product distribution—from 90 minutes using spreadsheets to 45 minutes using Oracle Transportation Management Cloud, thereby ensuring the timely delivery of baked goods each day
  • Reduced human resource costs associated with product delivery by using Oracle Fleet Management Cloud to efficiently assign routes to operators and trucks, accurately calculate rates for each trip, and ensure proper payment to each operator
  • Improved the rate negotiation process thanks to the complete visibility of transport costs nationwide including the number of kilometers and stops, the centralization of such rate information, and the elimination of decentralized spreadsheets
  • Used Oracle Transportation Operational Planning Cloud to automate trip calculations and the number of trucks needed to transport the food, thus eliminating errors and inefficiency associated with manual scheduling
  • Integrated Oracle Transportation Management Cloud with Oracle Order Management to automate sales order creation nationwide, replacing paper forms previously used at each of the 22 plants and optimizing transport efficiency

Why They Chose Oracle

"Bimbo has relied on Oracle technology for many years. Oracle Transportation Management is a leader in the transport management sector, and Oracle’s expertise in providing these solutions was a key factor in our decision. We secured the appropriate level of management and support for the solution, which allowed us to focus more resources on strategic priorities."
— Francisco Javier Puente Ruiz, System Logistics Manager, Grupo Bimbo, S.A.B. de C.V.


About Grupo Bimbo, S.A.B. de C.V.

Headquarters

 
Mexico City, Mexico

Annual Revenue

 
Over $5 Billion

Partners

Bimbo worked with Capgemini, an Oracle Platinum Partner, to establish the parameters for the Oracle Transportation Management Managed Cloud Service implementation. "Capgemini certified the logistics model that we designed using Oracle solutions, allowing us to ensure that our products are delivered in a timely fashion and optimize transport management, and then we implemented the cloud-based solution," said Julio César Flores Lastiri, supply chain IT project leader, Grupo Bimbo, S.A.B. de C.V.

Published:  Jan 01, 2018