Cases / YPÊ
Paragon Case: Ypê Success Story
Ypê products are present in homes of all social classes, from the big capitals to the smallest Brazilian cities. PARAGON participated in this market history!
Ypê Case: Contributing to Brazilian Households
When we hear the name YPÊ, several products that are part of our daily lives at various times and places immediately comes to our minds. Few brands represent the comfort and well-being in homes so well.
After all, the company’s products are present in homes of all social classes, from large urban centers to the smallest Brazilian municipalities, with an extensive portfolio divided into three categories: house cleaning, clothing care and body hygiene.
To ensure a strong presence and an image so well built among consumers throughout Brazil over decades, YPÊ invests heavily in the supply chain and in logistics to serve the retail market through the Distribution Center in Amparo (SP).
The company also has four manufacturing units in three states. It was in Amparo that we had the opportunity to establish a project to optimize the spatial use of the DC.
The company’s challenge is to always have the best operational conditions to respond to the demand for finished products and to serve the market quickly and safely.
It is in this context that PARAGON worked in partnership with YPÊ. Let’s talk about the PARAGON YPÊ CASE, another success story!
Ypê Case: The Challenges
A Distribution Center is a living body within the business strategy of serving clients, whether they are final consumers or resellers.
This is criticality important for YPÊ, which operates with a large portfolio of products with high turnover.
Speed with efficiency and safety must be the main goal in managing a Distribution Center, and this requires investments and permanent monitoring. Any deviation in a process can represent a loss of quality in external care.
It is an industry where a large amount of data can be used to assess risks and opportunities based on several indicators, where we can highlight:
- Available area and future occupation planning;
- Allocation of human resources;
- Good storage practices (temperature, humidity, stacking, access);
- Handling equipment usage fee.
For the PARAGON YPÊ PROJECT, the client’s focus was to assess the effective storage capacity of finished product pallets in the stacker crane at the distribution center (DC) in Amparo.
This analysis aimed at identifying whether the current structure of the DC met the potential increase in the company’s demand. Important decisions, involving financial investment or review of logistics strategies would result from this work.
Ypê Case: Solutions
We can divide the solution into two major steps:
1 – Data Gathering
This phase is crucial in mathematical modeling and scenario simulation projects at PARAGON in all market segments, but especially in supply chains, where there is a wealth of data to support the construction and decision steps.
Historical and projected demand data, stacker crane storage capacity, buffers and operating times were collected.
2 – Solution Construction
This is the most important step of the project: the time to apply the scenario simulation solution.
From all information collected in the first step, PARAGON can build a highly complex mathematical model that will assess the capacity of the buffer stacker system to absorb the demand for pallets.
In the simulation, we can analyze the behavior of the system from various hypothetical situations, with all the wealth of information previously collected. Absolutely everything that can impact the desired metric will be used.
Thus, it is possible for the client to view not only the behavior of the system at different stages of demand, but also the operational and performance impacts.
Ypê Case: Results
The solution adopted in the project allowed the company to identify at what level of demand the Distribution Center structure capacity would not be sufficient.
At this critical point, an alert is generated for the Strategic Planning sector indicating that it is necessary to expand the plant.
With the solution, YPÊ obtains some major benefits for its planning:
- Avoids an initial investment in an oversized area;
- Enables the development of a more structured schedule for the increase in area, which implies better planned expenses – better negotiations with suppliers and rational use of other resources.
Another important aspect is that the methodology and technology of this project can be used in the future in studies of other areas of the Amparo Distribution Center or other company units.
Ypê Case: Client Testimonial
VIdeo
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