SPC Ardmona set to embark on supply chain makeover
- 01 March, 2007 11:22
Food processing company, SPC Ardmona, is rolling out a supply chain solution to gain greater visibility into operational performance and expenditure.
Owned by Coca-Cola Amatil, the company has been manually handling plant management and strategic planning by using Excel spreadsheets.
However, as the business expands and the volume of variable factors increases including the cost of production, labour and freight, and seasonal fruit cycles, SPC Ardmona needed a better planning and modelling solution.
As a result the company has implemented Infor SCM Advanced Planning (AP) to optimise its Australian fruit production operations, and improve customer service.
Mike McCormack, corporate planning manager at SPC Ardmona, said it was a strategic priority to re-model the business for optimum productivity.
He said this required greater visibility of operations at the plant level, specifically an accurate insight into production costs at each level and location across the business.
"This included the ability to proactively determine the start and end of the various fruit processing seasons in order to be able to direct better use of labour, resources and capital at its Goulburn Valley plants," McCormack said.
"This involved being able to ask a wide range of 'what if' questions that trade-off labour costs against fruit degradation and storage costs, and also factor in market demand and other economic conditions that affect production."
SPC Ardmona also wanted to provide the best service to its customers through ensuring all sales demands are covered.
"This required having visibility into changing customer needs, and also the granular understanding of its operations, enabling managers to drive costs out of production," he added.
McCormack said the company chose Infor SCM AP for its proven performance in the agri-business market, where it has impressed industry executives for its ability to manage the intricacies of seasons and harvests, which help organisations balance short term supply versus long term demand.
Ross Bolden, sales manager, supply chain management solutions (ANZ) at Infor, said the solution comes with business specific experience built in, which means providing the most out-of-the box functionality on the market today.