Navision solution carving niche in meat industry
Case Study: A custom designed software system is improving business processes and increasing profits for Greenlea Premier Meats...
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Established in 1993, Greenlea Premier Meats is a privately owned beef processor and exporter, employing 247 staff in its Hamilton head office and Morrisville plant. Exporting to over 30 countries all year round, and with more than 8,000 farmers supplying Greenlea, the company is a major exporter to the international beef industry. In October 2002, Greenlea adopted Microsoft Business Solutions-Navision, an integrated business management solution, in conjunction with the Fujitsu MeatPro add-on module, to supersede the limitations of an ERP system developed in-house. The custom module was developed by Fujitsu, a Microsoft Business Solutions partner, to integrate with Microsoft Navision and provides automation and business control for meat processors. Ultimately, Greenlea wanted a solution that would provide total integration of its sales, inventory and livestock procurement processes with its financials, in order to increase margins whilst adhering to the industry's strict regulations. The new Microsoft Navision system has increased the speed and accuracy of livestock procurement processes by at least 50% and reduced overheads while automating a number of accounting functions to increase staff efficiency. Heavily supervised industry, with tight margins necessitated an integrated solution "Buying cattle on a grade, weight or per head basis creates an intricate purchasing system," said Hurford. "We needed a solution that was dynamic enough to accommodate our industry needs, including complex customs and foreign documentation requirements, whilst integrating the information back into financials." Previously, Greenlea was using a proprietary ERP system developed in-house by the IT team in 1993. Initially DOS-based, the system was eventually migrated to Windows. Although it managed the livestock procurement efficiently, it could not drill into accounting information at a detailed level, or integrate easily with other software packages, including Microsoft Office. The previous system was also a menu driven application rather than form driven. Microsoft Navision, in conjunction with Fujitsu MeatPro, delivers holistic business solution The fully integrated solution, which went live in October 2002 and was implemented in a rapid four month time frame, handles the company's supplier management, production, administration and financials. It is used by more than 20 staff spanning the company's livestock procurement, sales and financials departments. Microsoft Navision is also supported by a Microsoft SQL Server 2000 database, making it very flexible. "The primary reason we choose Microsoft Navision was the ease of use," explained Hurford. "Anyone in the company can jump on and use the solution with only minimal training. This is a real advantage in a small industry and means that someone else can pick up on a job easily if a core staff member is away." Hurford added that Greenlea's decision to work with Fujitsu and Navision resulted from the fact that both had a proven track record within the meat industry. "The combined solution was already tried and tested by other meat processing companies and this gave us the confidence that it would suit our business. "It is also one of the few applications available in the market that cater for the meat industry while also offering financial management capabilities. It also meant we did not have to invest any additional time and money in customising the solution to meet our specific industry requirements." Richard Malloch, Microsoft Navision Product Manager, Fujitsu said that the company has a heritage of customers in the food processing industry and decided to invest resources into developing a full-scale meat industry solution. The meat industry is one of the most important in New Zealand but it is a tough sector," said Malloch. "Margins are tight and it is crucial for operators such as Greenlea Premier Meats to better manage their margins by gaining control over their procurement costs and more efficiently managing their suppliers. "In just two years, Fujitsu MeatPro has become the most comprehensive meat industry solution in New Zealand and Australia." Benefits: Streamlined procurement processes and efficiencies within financial management Using Microsoft Navision, we've been able to reduce our overheads and make a resource saving in our livestock department. Staff can now generate all invoicing from head office where as previously they had to produce invoices at each plant, which would then be reconciled at our head office. "The time it takes for us to process these invoices has also been halved." Accurate sales and inventory information is also helping staff become more efficient. Staff can now get a screen projection of the stock figures they have sold and forecast future numbers with increasing accuracy. Hurford said: "Navision has taken a lot of the guesswork out of our inventory management. There are a lot of checks and balances within the system, which gives us the confidence that the data is accurate." Reporting across the board is also a lot quicker and easier. The ability to re-value stock easily is important from the Board's perspective - this is a standard reporting feature within Microsoft Navision. Previously, we had to run through a number of spreadsheets to get this information. "Microsoft Navision allows us to make better business decisions. For example, we can now quickly respond to the fluctuating exchange rate, which has a big bearing on the type of stock that we need to procure." Greenlea's creditors are now also paid electronically and receive electronic remittance, creating efficiencies including reduced paper costs. The company can drill down into invoicing in great detail, which it previously lacked. Sales order processing, particularly for exporting, has also improved. "It is important that our ERP system can encompass a dual unit of measure so that the company's products can be sold by weight or by carton in various currencies - Microsoft Navision delivers this functionality out of the box," commented Hurford. "The system can also accommodate extremely complex customs and foreign documentation requirements and ensures we meet the industry standards." Future Direction: Upgrading to future versions while adding functionality "The CRM module will help staff within our livestock procurement department better manage their supplier relationships. With more than 8,000 farmers supplying Greenlea with cattle, this is an obvious advantage," concludes Hurford. David Guy, Microsoft Business Solutions Partner Group Manager, said that Fujitsu MeatPro is a strong example of how a partner can build a vertical application on the Microsoft Business Solutions development platform. "Microsoft Business Solutions' applications are very customisable and a core part of our business strategy is encouraging partners to develop vertical market solutions for specific industries," said Guy. "Greenlea Premier Meats is a great example of a company that has been able to reduce costs and achieve greater operational efficiencies as a result of adopting a Microsoft Business Solutions' application in conjunction with the additional vertical functionality our partner has developed." For more information about this case study contact Fujitsu |
May 2004
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