ERP Strategy, Roadmap and Implementation for leading American Dairy Organization
About Customer
The customer is an American dairy organization. It is owned about 450 dairy farm members located in Various locations in the US. Today, customer annual sales are about 2 to 3 Billion. The customer produces a full line of dairy-based and other products for wholesale, retail, grocery and foodservice customers. They also produce butter, cheese, milk powder, and whey products for institutions, food brokers and food processing companies.
Business Challenges
The customer due to the perishable nature of the products with low shelf life, they have very different supply chain problems. They do not have any control over the incoming supply of milk as whatever produce from forms has to be consumed irrespective of demand. Also, the price of raw milk and dairy products prices are fixed by commodity market regulatory boards at the end of every month. This has a significant impact on pricing and profitability and company has to optimize the product mix on the fly.
Due to the unpredictable nature of the business, the company needs high-speed processing plants and very good warehouse distribution and transportation delivery capabilities. The customer has identified over near about 1000 capabilities pertaining to product tracking and traceability, lot / sub-lots controls, expiry dates, FIFO based material management, etc., to improve their supply chain, reduce operations cost and provide best possible customer service. Their current years old legacy system and Oracle 11i systems are not capable to handle the business challenges and added business risk as they do not support several business requirements. The company was depending on several manual touch processes resulting in an excess cost of operations. And therefore, Customer decided to implement systems that would make them nimble and reduce costs.
| Sl. No | Phase | Release | Project |
| 1 | Phase -1 | R1 | R12 Foundation and Legacy Systems Replacement R1 |
| 2 | R2 & R3 | Legacy Systems Replacement R2 &R3 | |
| 3 | Phase-2 | R1 | Transportation Management (OTM) |
| 4 | R2 | Finance and Manufacturing(MFG) | |
| 5 | R3 | E-Commerce Portals | |
| 6 | R4 | Demand Management | |
| 7 | Phase-3 | R1 | Finance, Order To Cash(OTC), Ware House Management Systems(WMS), Manufacturing(MFG) |
| 8 | R2 | Procurement and Rest of Finance | |
| 9 | R3 | Supply Chain Planning and Prod. Scheduling | |
| 10 | Phase-4 | R1 | Quality of Laboratory Information |
PPT has done a Proof of Concept (POC) to demonstrate the future state capabilities including RF / mobile hand-held warehouse management functions to increase the speed and accuracy of inbound and outbound materials movements across the supply chain. A multi-phase, multi-release Oracle ERP roadmap was finalized to implement future state capabilities to replace the current systems with sophisticated systems
Business Benefits
- Reduce Cost of Logistics (Transportation and Warehouse)
- Standardize Processes and Enable Sub-Lot Tracking and Controls
- Pricing Process Simplification and Automation
- Replace Legacy systems and Oracle 11i with Supported System
- Reduce Risks
- Operational Risk
- Implementation Risk
- Increase Opportunity for Success
- Multiple threads to better enable success
- Effectively manage the risks, cost/benefits, organizational impacts
