G. Costa finds the perfect ingredient for its automated manufacturing processes

G. Costa, a distributor and manufacturer of speciality foods, completed an implementation of an integrated financial, manufacturing, warehousing and distribution IT solution from JBA in early 1997. This was part of a project to modernise its distribution systems, achieve year 2000 compliance and link its three sites via one IT system. Two years later G. Costa is realising the full benefits of JBA`s Food software. It has seen a 23% drop in inventory, improved its manufacturing operations, enhanced its customer service and gained a complete overview of the whole group. Supported by these ongoing improvements within the organisation, G. Costa`s sales increased by 22% in just 18 months.

G. Costa is the holding company of two food manufacturing organisations, Keddie Saucemasters and Zest Foods, and operates as the sales and distribution arm within the group. Many of the products sold under its main Blue Dragon brand are produced at the Keddie Saucemasters and Zest Foods manufacturing sites. In addition, the group supplies own-brand products for the top seven UK multiple retailers, including Tesco, Sainbury`s and Asda. It also acts as an agency for other branded food products, such as Tabasco Sauce, Pogen, Amora Maille and Conimex.

G Costa was established in 1879 by agent and Italian importer Mr F. B. Costa. The business was passed onto his son, Gimo Costa in 1903, giving the business its current name, G. Costa. Bomb damage sustained in World War II in 1945, forced G. Costa to share Keddie`s premises in Peckham, and this was the start of the partnership between the two companies.

Keddie also has an interesting history, in that it was founded in 1851 by Mr P. Keddie, as a manufacturer of pickles, sauces and relishes, it soon built up a reputation and in 1922 became the principal supplier of sauces for ocean-going passenger ships.

In 1989 G. Costa purchased Keddie, and in the following years strengthened is presence in the speciality food market, by acquiring the Curry Club and Abdullah brands. Additionally, in 1993 G. Costa acquired Saucemaster Ltd, and in 1996 it bought Zest Foods, the high quality sauce manufacturer. G. Costa`s turnover in 1998 was lb30 million.

G. Costa now has its three sites linked to an IBMAS/400 server at its Aylesford location. The three facilities are networked via a very fast kilostream telecommunication link, which ensures that data is processed in real time.

In order to support its rapid organic growth, G. Costa realised that it needed to install a supporting IT infrastructure, and in June 1996, drew up a shortlist of Enterprise Resource Planning (ERP) software companies which included SAP, JD Edwards and JBA.

G. Costa chose JBA`s industry specific off-the-shelf software package, JBA Food, above the other solutions, because it required very few modifications to meet the needs of G. Costa, and as a result was considerably more cost effective than those offered by the other vendors.

G. Costa installed JBA Food in two phases. It completed stage one in mid 1996, when it implemented the distribution module for the packaged and finished goods operations, at its Aylesford site. Six months later, the second stage was completed. This saw the implementation of the manufacturing module, which covered the bulk sauce operations at the two Welsh sites. All modules within the system went live on time in early 1997.

The success of the project was immediately evaluated. Nick Williams, financial director for the G. Costa Group, says: "We wanted to see results from day one. As soon as the software went live at 9.00am on Monday morning, I expected orders to be processed and goods despatched and invoiced on that day. This was achieved without any hitches."

Today G. Costa runs all of its operations from sales order processing through to despatch using JBA Food software. Customers can place orders directly through EDI (Electronic Data Interchange) technology, which links to the JBA software. G. Costa`s account managers can also download orders into JBA Food from their laptops via a fax modem.

Orders are then picked up by G. Costa`s distribution centre at Aylesford, where a batch allocation and picking note is raised. The order is then despatched with a delivery note and an invoice is immediately created. Altogether G. Costa delivers around five million cases a year and invoices over half a million lines.

Williams says: "From my office in Aylesford I can see across all three sites, using the JBA system. I now have greater control over the enormous volume of products and information within the company. I am also able to track any order and its status, which enables me to know what is being despatched and if there are any problems. It helps us to be more proactive and solve problems before they materialise."

The manufacturing sites in Wales receive their orders and schedules from the distribution centre. Inventory management information held on the system allows G. Costa to monitor stock levels and ascertain whether orders can be fulfilled.

When orders arrive at the Keddie Saucemaster and/or Zest factories, a works order is raised. This is a menu that lists ingredients, quantities, type of packaging and product specification that is required by the customer. The works order is linked to the JBA recipe control (routes and structures) modules, which is the central point for recipe changes. This ensures that recipes are amended/updated centrally and allows audit trails to review any changes that have taken place.

The Keddie Saucemaster factory, which is the larger of the two factories in Wales, has three main production lines, accounting for bottled, sacheted and bulk products. Both factories are driven by JBA Food, which manages raw material inventory and production scheduling through MRP (Materials Requirements Planning) and MPS (Master Production Scheduling).

On average the bottling line fills several thousand cases a day. Production scheduling is complex, as it has to take into account the type of product being manufactured. For example, whole grain mustard has to soften after it has been mixed, before it is pumped into jars, therefore resulting in a two stage manufacturing operation. In total, G. Costa has around 700 product lines.

Sue Taylor, commercial director at Keddie Saucemasters Ltd, comments: "The whole manufacturing process is now computerised, which was a bit of a culture shock for us at first. Previously every procedure was carried out manually, from the works order to the despatch note, and although this was manageable it was by no means efficient. Using JBA Food we now have far greater control over the whole enterprise and it gives us time to concentrate on improving the manufacturing processes themselves."

G. Costa also has to forecast production and account for occurrences that may effect market demand, such as events like the Chinese New Year or retail product promotions. JBA Food provides reporting tools that help G. Costa prepare for these surges in demand. This is critical to efficient production scheduling and inventory management.

Williams says: "The IT infrastructure was implemented to sustain the many changes within our environment. JBA`s software accommodates these changes and even helps us evaluate the best way forward. It enables us to identify strengths and weakness within all our operations allowing us to ultimately provide our customers with a better service."

So happy is Williams with the IT solution that he has recently become the vice-chairman of JBA`s National User Group. The group is made up of representatives from JBA`s customer base that meet together to discuss industry issues and the JBA software.

Williams concludes that he views JBA as a business partner rather than just a supplier: "In our meetings we are provided with opportunities to discuss industry and IT issues with JBA. This has helped JBA to address food industry issues and therefore drive its product development strategy. From this feedback JBA has developed a software package, which I believe leads this market sector by a long way. Undoubtedly we are both growing at the same time."