Johannesburg, 09 Jul 2008
In the competitive food manufacturing industry, Mars Africa, formerly Masterfoods South Africa, needed to manage its data and business processes as efficiently as possible, and an investment in a complete SAP solution was the first step towards achieving this goal.
The challenge that ensued was to ensure the system remained current and updated with new developments, and that the solution was used to its full potential.
It is with this in mind that the manufacturing giant turned to Bytes Systems Integration (Bytes SI) and its Business Value Realisation (BVR) offering, to assist the company to increase the ROI of its SAP implementation.
"Realising that the investment in a SAP ERP system is substantial, we need to ensure we achieve the full benefit of the solution," says Neil Long, commercial and logistics manager for Mars Africa.
"In our business the focus is on fast-moving consumer goods and to remain on top of our game means using every resource to its full potential. Investing in the SAP solution was only the start of our business strategy; it is more about how we use the solution that will really make a difference to our business. Bytes SI was the only company that offers a holistic approach to improve return on assets managed through education of users, and so became our preferred technology partner, as it was essential to ensure we used our SAP system to its full potential."
Business and technology goals
Bytes SI spent three months, mid-July 2007, educating users at Mars Africa on how to improve their use of the SAP system. By equipping users with a wealth of knowledge, training and education, and then creating a climate where ownership and accountability are embraced, Mars is now better equipped to use its ERP system to a fuller extent.
As part of the BVR process, the users at Mars were introduced to tools and functionality that they were unfamiliar with, were up until then uncomfortable using, or for which they just did not have the skills in place to use. The training extended to integration, inventory optimisation and efficient sourcing of materials and services.
The goal of adopting the BVR approach was to ensure that the Mars SAP users would start utilising the system a lot more extensively.
Secondly was to migrate the MRP processes and functionality, still being run in Excel, into the SAP system, ensuring proper integration and real-time information.
Solution
Bytes SI developed its BVR best practices to assist clients with an existing SAP installation, to effectively use and understand their SAP system, and in turn unlock real value. The initial BVR project was implemented on site at the Mars Africa plant in Rosslyn, Pretoria and involved the upskilling and educating of approximately 50 users.
As a result of the success of this initiative, Mars Africa has taken a strategic business decision to extend the roll-out of the BVR best practices, by offering further internal training. Additionally, Mars is aligning a second factory to match the work initiated in the principal plant, and will continue to take counsel from Bytes SI in the new project.
Mars Africa plans to emulate the lessons learnt at its Cape Town plant at the additional plant, resulting in a further improved ROI and in turn optimising the existing system without investing further in software and hardware.
Benefits
* Improved education and knowledge of SAP tools and capabilities
* Empowerment of users
* Increased efficiency and use of overall system
* Improved customer service
* Optimised inventory value
* More efficient sourcing and collaboration with vendors
* Improved management information
* Improved business processes
* Improved ROTA (return on total assets)
Conclusion
"Bytes SI exceeded all expectations and helped us realise the importance of achieving genuine return on our SAP investment. The additional education and training has meant that we utilise our solution beyond what other companies are capable of, and we have noticed a significant difference in the improved running of operations and greater return on asset management," ends Long.
Says Vaughan Watt-Pringle, BVR Business Stream Manager, SAP, at Bytes SI: "Historical events and lack of education were restraining the company's progress. These challenges were not unique to Mars Africa and are shared by the vast majority of SAP installations across the globe. As long as business behaviour and business rules are misaligned, companies will struggle with any ERP system."
In Watt-Pringle's opinion, the most important aspects of the project was establishing ownership and accountability. "If we cannot get the people of an organisation to embrace this, the project has failed before it has even begun. Mars Africa's commitment to the process was absolutely incredible and this was a major factor contributing to the success of the initiative."
Fast facts
Customer: Mars Africa
Web site: www.masterfoods.co.uk
Number of employees: Between 30 and 50 in first plant instalment
Country: South Africa
Industry: Food, confectionary and pet care manufacturing
Customer profile
Mars Africa is a wholly owned division of Mars Incorporated previously known as Master Foods South Africa. Mars is a family owned business since 1911 that produces some of the world's leading food, confectionary and pet care products, and has growing beverage and health and nutrition businesses. Headquartered in USA, Mars Incorporated operates in more than 65 countries and employs more than 40 000 associates worldwide. The company's global sales are approximately US$21 billion with over $100 million contributed from Africa. Mars Africa is known for its leading pet brands, Pedigree and Whiskas; the world's number one and two chocolate brands - M&M's and Snickers - as well as its leading household brand Royco. Mars has been operating in Africa since 1996 and has offices in Pretoria and Cape Town.
Software and services
* Products
o SAP technology already existed at client
Partners
* Bytes Systems Integration
* Reveal
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