Getting an edge on the competition
Globus Group, a pioneer in the manu-facture of food packaging in Australia and New Zealand, was running on a 15-year-old, homegrown AS400 system that was rapidly reaching its sell-by date. 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 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 back along the supply chain to prepare those involved for changes that occur. The aim is to keep inventory levels as low as possible to optimize capital utilization while guaranteeing uninterrupted sales—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 PricewaterhouseCoopers, embarked on a multi-vendor ERP software evaluation. IFS was among the top rated vendors on this short list. The vendors were judged on their openness, support infrastructure, price, services and the depth of analysis available from the collected business information. A key requirement the ability to cope with the seasonality demands of the industry. Globus required a complete ERP system, which it would begin implementing on February 1st—and that needed to go live on July 1st. IFS was the most attractive and flexible alternative, as Darko Supurovic noted, “We felt that integration with external and internal systems, thanks especially to IFS Connect, would be easiest with IFS.” IFS Connect makes it possible to expose Business APIs through multiple protocols and formats, for example, as web services. Overall for Globus, the price, flexibility and integration capabilities of IFS’ solution placed them well ahead of their competitors.
Project Implementation
The implementation project encompassed a revamp of the hardware and software systems. 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 arose during the planning phase. However, IFS’ implementation methodology helped IFS foresee this challenge so the IFS team was able to adequately prepare and successfully overcome the periodic resource strain. Following the implementation methodology allowed IFS to easily adapt its training programs to suit Globus’ needs. IFS has become an integral part of Globus’ daily operations, allowing the company to grow and develop parallel to new developments in IFS technology.
Demonstrating Results
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, has been eliminated, saving money and reducing errors. Globus can now analyze and prioritize 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, forecasts were handled manually and information was spread across several systems. Now, Globus has planning tools that 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 to access data from different sources—an absolute criterion for accurate forecasts.” Globus can now maintain control over the entire change management process maintaining quality standards, an imperative deliverable for successful manufacturing organizations 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. Sophisticated product data management (PDM) configuration capabilities keep track of Globus’ entire product range, regardless of individual models or serialization. As a result, Globus now maintains 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 enjoys working with the new system. IFS Applications 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 its position as a leading food packaging manufacturer.”
Facts about Globus
With more than half a century in the industry, the Globus Group is a pioneer in food processing and packaging. Headquartered in Sydney, Australia, the company has 160 employees in its operations, which cover Australia and New Zealand. While maintaining a sharp focus on its foundation product, meat packaging, the Globus Group consists of five divisions that provide all-round service to the food industry in Australia and internationally.
Benefits
- Quick, easy reporting
- Detailed reports
- Integration of all components and business areas (manufacturing, accounts, distribution, etc.)
- Integration to other packages, such as Excel.
- Consistent costing
- Disciplined processes
- Ability to plan currency purchases and associated savings
- Cost savings associated with invoice printing on plain paper
- Remote access via Web interface
- Easy, flexible shop order updating for manufactured customer orders
- Enhanced inventory control
- Significant time and cost savings
- Enhanced service delivery capability.
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