Freight and customersNetwork

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warming up
Freight
$73k
per day, at baseline demand
B-doubles
122
per day, all lanes
Mean haul
287 km
weighted by pallets
On rail
10%
over 700 km and 60+ pallets
Delivery points
17
12 accounts
Locked by article
$4k
5% of the bill, one plant can make it

The network

four plants, one DC, 17 docks
Stillwater Brewing, Canning Vale — 113 pallets/dayBarossa Ridge Wines, Margaret River — 78 pallets/dayTallow Creek Brewery, Townsville — 143 pallets/dayNinety Mile Brewing, Dandenong — 534 pallets/dayRedgum Brewing, Abbotsford — 403 pallets/dayGolden Vale Preserves, Shepparton — 157 pallets/dayYarra Bend Vineyards, Healesville — 41 pallets/dayGolden Vale Preserves, Berri — 81 pallets/dayMurray Foods, Griffith — 78 pallets/dayMurray Foods, Mildura — 64 pallets/dayBarossa Ridge Wines, Nuriootpa — 294 pallets/dayTallow Creek Brewery, Yatala — 407 pallets/dayStillwater Brewing, Silverwater — 515 pallets/dayHunter Vale Estate, Pokolbin — 39 pallets/dayCape Otway Spirits, Geelong — 127 pallets/dayClearwater Beverages, Rocklea — 781 pallets/daySouthern Pack Solutions, Altona — 307 pallets/dayVictorian distribution centre — every WA pallet is picked from herePerth DC — every WA pallet is picked from hereMelbourneSydneyBrisbaneAdelaide
plant distribution centre customer dock, sized by volume road rail
Select a plant to isolate what it despatches. 33 lanes, 12 accounts, 17 delivery points.

Four furnace sites for a country the size of Europe. Western Australia has no furnace at all, so every pallet sold there crosses the Nullarbor once, in volume, to the Perth DC and is picked from there — which is the entire reason that building exists.

What each plant despatches

volume and cost are not the same ranking
PlantB-doubles/dayTonnes/dayDocksFreight/day$/tonne
Melbourne Works41.04576$8k$17
Brisbane Works39.94644$17k$37
Sydney Works23.82646$16k$59
Adelaide Works17.72035$33k$162

Adelaide runs the fewest trucks and carries the largest bill. It is the only plant that can form wine ware, and it is the closest furnace to a state with none — so it pays for the geography twice.

Where it costs the most to serve

by delivery point
Delivery pointAccountHaulB-doubles/dayFreight/dayServed from
Stillwater Brewing, Canning ValeWA2,659 km3.3$14kAdelaide
Barossa Ridge Wines, Margaret RiverWA2,933 km2.3$13kAdelaide
Tallow Creek Brewery, TownsvilleQLD1,377 km4.2$11kBrisbane
Ninety Mile Brewing, DandenongVIC245 km15.7$7kSydney, Melbourne
Golden Vale Preserves, SheppartonVIC391 km4.6$5kSydney, Melbourne
Redgum Brewing, AbbotsfordVIC125 km11.9$4kBrisbane, Melbourne
Golden Vale Preserves, BerriSA576 km2.4$4kSydney, Adelaide
Murray Foods, GriffithNSW505 km2.3$3kMelbourne
Yarra Bend Vineyards, HealesvilleVIC823 km1.2$3kSydney
Murray Foods, MilduraVIC417 km1.9$2kAdelaide

Freight you cannot route away

articles only one plant can form
ArticleToHaulFreight/dayOnly plant that can form it
15021640 ml amber longneck6 × 152 · high rise · shrink hoodRedgum Brewing, Abbotsford1,701 km$4kBrisbane Works

This lane is a production constraint wearing a logistics costume. The ware has to come from the one plant with a machine that can form it — section centres, gob band, colour — so no routing decision touches it. The lever is a mould set and a line qualification, not a carrier negotiation, and the cost lands on a freight budget where nobody can do anything about it.

It is 5% of the freight bill here, which is small — the network is well covered. It is worth watching rather than fixing: the number climbs quietly every time an article is qualified on one line only, and by then the mould spend has already been made.

Tomorrow’s trucks

17 of 133 are part loads
3
4
5
14
15
20
22
30
30
32
57
59
66
74
81
81
82
88
88
96
97
100
100
100

Each column is a B-double, filled to what it is actually carrying. A truck runs out of floor before it runs out of mass, so a part load costs nearly what a full one costs and the freight model — which prices per pallet — cannot see it. Consolidating the part loads that leave the same plant for the same state would save 6 trucks a day without renegotiating a single delivery window.

Delivered in full, on time

the one number the customer also keeps

In full is a stock problem and on time is a distance problem, and they fail independently — which is why a single percentage hides what to do about it. The cause shown is whichever failed most often on that account.

Wrap lanes

a bottleneck rather than a queue
shrink-hood
104%
2,242 pallets/day · 24.9 h of a 24 h day
stretch-wrap
53%
1,470 pallets/day · 12.8 h of a 24 h day
strapping
12%
451 pallets/day · 2.8 h of a 24 h day

Wrap type is a customer specification, not a choice, so a pallet needing a shrink hood cannot be sent to a free stretch-wrap lane. That is what makes this a bottleneck and not a queue: the plant can be at sixty per cent overall and completely blocked on one wrap.

Empty trucks going back

against cullet the business is buying
AdelaideStillwater Brewing, Canning Vale
$8k/d2,659 km
AdelaideBarossa Ridge Wines, Margaret River
$6k/d2,933 km
BrisbaneTallow Creek Brewery, Townsville
$5k/d1,377 km
SydneyNinety Mile Brewing, Dandenong
$3k/d877 km
SydneyGolden Vale Preserves, Shepparton
$812/d741 km
AdelaideMurray Foods, Mildura
$719/d417 km

Worth about $25k a day at best, and the honest version of the idea is narrower than it first looks: it only works where the return leg already exists and the customer already generates recoverable cullet. A dock two hours away is worth almost nothing. A bottling plant on the far side of a thousand kilometres is worth a great deal, because the alternative is paying a merchant full freight on glass that was already in the right place.