Optimizing Warehouse Management with Oracle ERP
About Client
A 100-year-old American dairy cooperative headquartered in Seattle, Washington, is owned by over 450 dairy farm members across five states. With annual sales exceeding $2 billion, it produces a full range of dairy products, including butter, cheese, milk powder, and whey, serving wholesale, retail, and food service markets.
Operating through two divisions—Ingredients (ID) and Consumer Products (CP)—the cooperative processes millions of gallons of milk daily across 13 plants and distributes products nationwide and internationally via five company-owned distribution centers and six third-party logistics providers.
With a rich legacy, the cooperative has adapted to industry challenges, remaining competitive in an evolving market.
Objective / Challenges
With perishable products and low shelf life, the cooperative faces unique supply chain challenges. It must process all incoming milk regardless of demand, while dairy prices are set monthly by regulatory boards, impacting profitability. To stay competitive, the company needs real-time product mix optimization.
Unpredictable supply and demand require high-speed processing, efficient warehousing, and strong distribution capabilities. Identifying over 1,000 key improvements—including product tracking, lot controls, and FIFO management—the company recognized that its 30-year-old legacy system and Oracle 11i could no longer meet its needs. Relying on manual processes increased costs and risks.
To enhance agility and reduce costs, the cooperative decided to implement modern, scalable systems.
Solution Implemented
| Sl.No | Phase | Release | Project |
| 1 | Phase – 1 | R1 | R12 Foundation and IMI Replacement R1 |
| 2 | R2 & R3 | IMI Replacement R2 & R3 | |
| 3 | Phase – 2 | R1 | Transportation Management (OTM) |
| 4 | R2 | CP – Finance and MFG | |
| 5 | R3 | E-Commerce Portals | |
| 6 | R4 | Demand Management | |
| 7 | Phase – 3 | R1 | ID, Finance, OTC, WMS, MFG |
| 8 | R2 | Procurement and Rest of Finance | |
| 9 | R3 | Supply Chain Planning and Prod. Scheduling | |
| 10 | Phase – 4 | R1 | Quality (LIMS) |
Business Benefits
- Enable P&L Visibility and Reporting by Customer / SKU / Plant
- Reduce Cost of Logistics (Transportation and Warehouse)
- Standardize Processes and Enable Sub-Lot Tracking and Controls
- Pricing Process Simplification and Automation
- Replace IMI and Oracle 11i with Supported System
- Reduce Operational and Implementation Risks
- Increase Opportunity for Success by managing risks, cost / benefits.
