Case study: Haleon strengthens supply chain performance with Verity drones

Haleon, a global provider of consumer health products that serves over 170 markets worldwide. Their purpose to deliver better everyday health hinges on ensuring timely product availability.

In South Africa, Haleon sought to enhance its delivery performance and inventory accuracy and partnered with logistics-provider DSV Solutions. At the Park | Gauteng warehouse, Africa’s largest integrated logistics center, DSV deployed a Verity system, an AI-powered drone system for automated inventory counting for precise and reliable inventory management. This technology offered the potential for an accurate, prompt understanding of product locations within the Park | Gauteng facility.

Haleon needed accuracy while handling growth

Haleon had previously taken multiple steps to enhance inventory management, including upgrading to improved facilities, implementing a new WMS and conducting more rigorous manual stock counts. But, none were sufficient to meet their growing operational needs.

Shrinkage and stock misplacements were identified as the main culprits, further compounded by delays in detecting discrepancies due to the lack of real-time inventory visibility. To strengthen their service levels and meet their rapidly growing demand, Haleon recognized the need for a more advanced and sustainable system for inventory control.

Their search led them to DSV Park | Gauteng facility, powered by the Verity system.

"The drones were initially not in [the] scope [of Haleon’s tender], but when we saw how they seamlessly worked with DSV’s WMS, we knew they would be a game-changer. It was the key tool we needed to regain confidence in our inventory management,” said Matthew Henry, senior manager, customer service and logistics at Haleon

Immediate visibility in inventory management

In January 2024, Haleon was officially onboarded to the Verity system at DSV's Park | Gauteng distribution center.

Daily autonomous scans from Verity drones provided Haleon with immediate insights into inventory locations and conditions, particularly for high-value consignments. This level of transparency enabled the Haleon-DSV team to identify and resolve issues, maintain control over inventory flow and make data-driven decisions.

"It was like a big monkey off the back - knowing the drones will call out issues fast gave us the confidence we needed," Henry said.

Within the Park | Gauteng facility, the drone system conducts daily cycle counts, empty bin checks and continuous inventory tracking across over 10,000 pallet locations, including those within temperature-controlled zones.

“We’re proud to be Haleon’s partner in keeping their brand promise and delivering high-quality service to their market,” said Brett Sauerman, director of planning & customer services, DSV Solutions. “Thanks to Verity, we’ve been able to provide inventory visibility from day one, tracking their high-value goods, and ensuring smooth operations. Our partnership has led to an immediate improvement in service levels, and it’s been rewarding to help them meet critical consumer demand.”

According to the case study, published by Verity, Haleon saw the following impact on its operations:

• Enhanced the stability of on-time, in-full (OTIF) performance to consistently exceed 95%.
• Inventory accuracy increased to 99.8%, reducing stock misplacements and saving millions of dollars in potential write-offs.
• Daily scans of high-value items, combined with weekly full inventory scans, enable faster error detection and quicker resolution.
• Automated inventory scanning, including empty bin checks, has lowered labor costs.
• Prompt stock visibility provided the necessary insights for swift decision-making.

“We’re really excited about our partnership with Haleon and how the Verity technology is transforming our supply chain,” said Stanley Macmillan, director at DSV Soltions. “The possibilities with autonomous drones are enormous - we’re just scratching the surface of what they can do.”