Krispy Kreme

In: Business and Management

Submitted By asyna
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Integrated Visual Systems
Shining the light on technology

Krispy Kreme Doughnut case study

Purchasing a secret yeast-raised doughnut recipe from a French chef in New Orleans, Vernon Rudolf opened the first Krispy Kreme in Winston-Salem, NC in July of 1937. The plan was to supply doughnuts to local grocery stores, but customers soon started inquiring about purchasing hot doughnuts. A hole was cut in a wall of the store and he started selling “Hot Original Glazed” doughnuts directly to customers. Currently, Krispy Kreme produces more than 7 million doughnuts a day. There are 357 retail stores in the US and Canada. All the ambient temperature ingredients and store supplies are shipped from the company’s distribution warehouses in NC, IL, and CA. In October 2002, they shipped their first load of mix to Australia and have added locations in the UK, Korea and Mexico. The original project, installed in March of 1999, automated what was at that time the lone distribution warehouse in Winston-Salem, NC. The goal was to eliminate the manual/paper-based system and go to a real-time, RF-based pick and ship process. Krispy Kreme runs the Macola Progression Series ERP system and needed a WMS that would interface directly to it and provide updates on a real-time basis for inventory, order status, etc. To accomplish the task, IVS developed a Macola interface module that posts transactions to Macola as they occur in the warehouse.

““We have seen an ROI in labor reductions, freight savings and the fact that we don’t have to special ship orders due to picking errors. Previously, 86% of the orders we shipped were complete. Since the system was implemented we’ve never had less than 99.5% complete.” - Joe Pennell, Vice President - Distribution and Logistics , Krispy Kreme

Integrated Visual Systems
Shining the light on technology

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