Getting an edge on the competition
Globus Group, a pioneer in the manufacture of food packaging in Australia and New Zealand, was running on a fifteen year old, internally-written AS400 system that was rapidly reaching it’s sell by date and which required three full-time IT staff to run. The system was not coping with the increasingly high demands placed on suppliers by wholesalers which meant that supply chain capabilities had to be extended and enhanced. Darko Supurovic, Group Technical Manager at Globus notes, “Traditionally, our line of business is not at the leading edge of technological development, but we had to take the lead. We realized we had to further develop our systems, increase usability and add web interfaces in order to stay one step ahead.” The food packaging industry is characterized by seasonal variations, with peaks during the Christmas and Easter periods. To operate efficiently, reliable planning software is critical. It should enable information to be shared with suppliers so that this information can be passed as far back along the supply chain as possible to prepare those involved for the changes that occur. The aim is to keep inventory levels as low as possible to optimise capital utilisation whilst guaranteeing uninterrupted sales. In other words, it’s a question of balance. Globus required an effective ERP system to project them into the future while allowing for seasonal variations. Developing new functionality would be too time consuming and costly so, Globus, along with consultants at Price Waterhouse Cooper, embarked on a multi-vendor ERP software evaluation to find the ERP vendor capable of delivering the perfect solution. IFS was among the top rated vendors on this short list. The vendors were then judged on their openness, support infrastructure, price, services and the depth of analysis available from the collected business information. A key requirement for the winning vendor was their ability to cope with the seasonality demands of the food packaging industry. Globus required a complete ERP system, which they would begin implementing on February 1st and given the higher demands on Globus across the summer period, the system needed to go live on July 1st. Globus, after their complete investigation into the market for ERP business solutions, found IFS the most attractive and flexible alternative as Darko Supurovic noted, “We felt that integration with external and internal systems would be easiest with IFS,” specifically, IFS/Connect™ within the prescribed IFS solution achieved this for Globus. It is a platform independent open framework for the integration of business logic with external business processes, applications and devices. IFS Connect makes it possible to expose Business APIs through multiple protocols and formats, for example, as web services. Overall for Globus, the IFS ERP solutions’ price, flexibility and integration capabilities placed them well ahead of their competitors.
Project Implementation
And so began the implementation of the IFS Applications™ solution within Globus. The scope of this project encompassed a revamp of both the hardware and software systems in order to successfully implement the new complete ERP system. New systems included: Hardware
IBM X232 P3-1.26Hotswap (Windows 2000 Server Service Pack 2)
IBM X220 P3 1.13Hotswap (Windows 2000 Server Service Pack 2)
IBM APC Smart-UPS 3000MiB Software
IFS Applications 7™ Service Pack 2
IFS/Financials™
IFS/Manufacturing™
IFS/Distribution™
IFS/Business Performance™
IFS/Sales & Marketing™
IFS/Connect™
IFS/Web Kit™
Oracle 8.1.6.3.8 With a dedicated team of five at Globus as well as three dedicated IFS employees, the four month implementation process was a success with the entire ERP system going live on July 1st as planned. The major challenges faced by IFS and Globus were found during the planning phase. The time restrictions placed added pressure on the implementation process and demanded more resources than what would usually be expected with an ERP implementation. However, IFS’ implementation methodology helped IFS foresee this challenge so the IFS team were able to adequately prepare and successfully overcome the periodic resource strain. One of the biggest challenges during this project was the cultural change and training issues that surfaced once the implementation was complete. After fifteen years using the same AS400 system, Globus employees found their administrative and data responsibilities habitual and entrenched. The migration of data and changes to administrative processes involved significant training which then changed the cultural atmosphere of the Globus workplace. The IFS implementation methodology is a process that aids a successful implementation by delivering quality, efficiency and cost control. This is achieved by a series of checklists managed in phases for effective project management, risk management and understanding the intricate needs of the client both prior to and during the implementation. Cost control mechanisms such as the completion of timesheets by consultants, quality assurance and resource and succession planning ensure success. Following the implementation methodology allowed IFS to easily adapt their training programs to ideally suit Globus’ needs. Also, their continued support proved invaluable as any subtle hitches in the employees’ knowledge was taken care of immediately and thoroughly. Today, all processes are running very smoothly and easily. Given the developmental nature of IFS’ ERP system, Globus and IFS remain in close contact with various reconfigurations, updates and support services. IFS has become an integral part of Globus’ daily operations allowing the company to grow and develop parallel to new developments in IFS’ technology. The IFS team ensures it is as innovative as possible in utilising IFS software to Globus’ specific needs.
Demonstrating Results
The outcome of the project has been that all of Globus’ production data is now located in the same database and the systems are integrated through the entire product lifecycle. The resulting benefits are enhanced control of the product lifecycle from production to delivery and therefore increased accuracy, facilitating follow-up and planning. Manual work such as duplicate entries, have been eliminated, saving money and reducing errors. Globus has also been empowered with the ability to analyse and prioritise data and therefore make business-critical decisions more easily. By proactively monitoring Globus’ production and sales data, IFS Applications easily maximizes resource utilization across the manufacturing lifecycle by internally managing resources, planning, progress and costs with extensive manufacturing specific capabilities including time, costs, schedules, maintenance, quality control, resources and other planned activities. Previously, Globus ran customized legacy systems. Forecasts were handled manually and information was spread across several systems. The planning tools from IFS that are now used at Globus are extremely sensitive and react quickly to changes. Historical data and transactions from sales and production are located in the IFS software. Darko Supurovic continues, “We now have a planning tool that is easier to use and that gives us a clear overview of our operations. Thanks to the openness of the IFS solution, it’s easier for us to access data from different sources—an absolute criterion for accurate forecasts.” With IFS’ built-in process support for approvals, Globus can now maintain control over the entire change management process maintaining quality standards, an imperative deliverable for successful manufacturing organisations for the food and beverage industry. Further, they now manage product data across the entire product lifecycle via one, integrated system from design to aftermarket sales and service, resulting in a reduction in the time to market through concurrent development using one data-source for engineers, partners and suppliers. IFS has implemented sophisticated product data management (PDM) configuration capabilities to keep track of Globus’ entire product range, regardless of individual models or serialization. As a direct result, Globus now maintain control and visibility over product characteristics, structure of components/assemblies, relationships between parts/products, documents, change management and costs giving them overall transparency and enabling in-depth analysis of business and sales processes. Overall, IFS and Globus have sustained a six year prosperous relationship as a result of the implementation and maintenance of the IFS ERP solution. ROI is expected to continue to grow with each upgrade and the Globus staff are enjoying working with the new system. IFS’ ERP solution together with the implementation methodology has directly resulted in easy access to business critical information and reports, consistent costing, better management of internal and external data, better analytical and planning tools and much greater transparency in the company’s operations. Darko Supurovic notes, “We are extremely happy with IFS and the ERP solution they designed for us. It has exceeded expectations and continues to help Globus maintain their position as a leading food packaging manufacturer.”
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