Udderly Efficient

September 15, 2004 by SAP News

Dairy Industries Jamaica of Kingston, Jamaica, is one of the region’s largest producers of dairy products. The company’s goods are enjoyed throughout Jamaica, as well as in the Caribbean community (CARICOM), the United States, and Canada. When a global consumer packaged goods company began selling in Dairy’s marketplace, the company moved quickly to face the competition. “One company, in particular, came into Jamaica with very competitive prices,” says Ryan Peralto, General Manager, Dairy Industries Jamaica. “If we couldn’t find a way to produce our volumes at a lower throughput cost, we would have lost our competitive edge.” Dairy restructured to reduce costs, then sought an information system that would allow it to operate at reduced staffing levels. The company selected ARIS SmartPath for Consumer Products/Food, a qualified mySAP All-in-One solution from IDS Scheer Small and Medium Enterprises (IDS Scheer SME), an SAP vertical solutions reseller (VSR).
“With the SAP solution, we get information in real time and online, without needing a lot of administrative personnel to do reports and compilations,” Peralto says. Dairy has been able to keep staff levels low, even as business increases, and make quicker business decisions. “It once took 7 to 10 days to process end-of-month accounts. With the SAP solution, we’re down to between 2 and 3 days,” Peralto says. “Getting information that quickly after the previous month makes a big difference in our ability to make decisions during the current month.”
Dairy’s IS Manager Wayne Williams says information is also more accurate. “Before the SAP solution, we did inventory counts on a monthly basis and the process would take 2 to 3 days,” he says. “With SAP, we’re a lot more confident with the figures. We count inventory on a quarterly basis, and it only takes 1 day.” Better inventory control also delivers cost savings. “Our business is manufacturing, so we have to watch inventory very, very carefully,” Peralto says. “We’re leveraging SAP technology to run our business lean, with less money in inventory.”
The mySAP All-in-One solution from IDS Scheer SME has proven to be indispensable for the company. “Dairy would be hard-pressed to function as we do and remain competitive without the SAP solution,” Williams says. “We need to be flexible, and we get that flexibility from information that is ready at hand and provided in real time by mySAP All-in-One.”

Accelerated rollout with SAP Best Practices

Dairy credits IDS Scheer SME with providing crucial assistance during the on-time, on-budget rollout that took just four months – under testing conditions. “We were implementing while we were reengineering the entire company,” Williams says. “It was a hectic and traumatic time. IDS Scheer SME quickly learned our business culture and understood what we were trying to achieve. The consultants mastered the environment in which the company was currently operating and worked with that.”
IDS Scheer SME accelerated the rollout by using the built-in content, tools and methodologies available in mySAP All-in-One solutions. The ARIS SmartPath for Consumer Products/Food solution offers out-of-the-box flexibility combined with the power of SAP’s 30-plus years of technology expertise to bring affordable, integrated solutions to small and midsize companies. With the ARIS solution designed for Dairy’s industry, IDS Scheer SME delivered industry-specific functionality and business-process automation built around SAP Best Practices.
“We had some old ways of doing things,” Peralto says. “The ARIS SmartPath for Consumer Products/Food solution is based on best practices. We stuck to a decision to work with these best practices as incorporated into SAP. This enabled us to implement a standard system without modification, which means lower maintenance costs and less dependence on specialist IT knowledge.”

Comprehensive process efficiency

Dairy focuses its operations around SAP Best Practices for improving efficiencies across sales and distribution, production planning, materials management, financial accounting, and controlling. In addition to better distribution and inventory management, the mySAP All-in-One solution helps Dairy with short-term (one to three months) scheduling. “We forecast to the end of the year and plan purchasing of raw materials and packaging materials along with that sales plan,” Williams says. “We also do production planning: We establish a 6- to 12-week production schedule that drives our material requirements planning system and rolls into our purchasing process.”
The ARIS SmartPath for Consumer Products/Food solution also helps with quality control and lot tracking. “Everything coming off the production line has a lot-tracking number,” Peralto says. “When you produce food, there is a holding time before you get the lab results that authorize release of the goods. This is very easy to track in the SAP-based solution – everything is stored by batch date, so we can quickly access how much produce we have on board, where it is, the date we produced it, and when it is ready for release.”

Real-time information for key performance indicators

Dairy uses SAP to continuously call up transaction and business process information for real-time performance metrics. “Each of us here at Dairy is paid incentives based on company performance,” Peralto says. “SAP provides the data for us to capture these key performance indicators (KPIs).” Ease of use for approximately 30 users is key to that process, as well as the company’s ability to manage overheads. “Transactions are quick and easy to understand,” Peralto says. “Once you put something in, everyone can access it. This has really made our life easier, to the point where, if somebody leaves the company, we reevaluate whether we need to replace them.”
“It makes users more independent,” Williams adds. “They can log into the system and get the information they require, rather than asking another department to furnish it. They can execute the transaction as soon as they get the information that triggers it, so they can quickly take care of whatever comes across their desks each day.”

Returning focus to the business

The improved information flow enables Dairy managers to think less about transactions and more about business strategies. “When your life is easier – because the information is there anytime you need it – you can focus on activities that are going to improve your business,” Peralto says.
To view a video about Dairy’s All-in-One solution, visit http://www.sap.com/solutions/smb/allinone/customersuccess/
Learn more about mySAP All-in-One solutions at: http://www.sap.com/solutions/smb/allinone/
For more about IDS Scheer SME, link to: http://www.ids-scheer.com/sme/

Susan Twombly

Susan Twombly

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