In August 1996, when Kellogg SA decided to deploy Oracle`s Consumer Packaged Goods (CPG) Application solution in its organisation, it outlined a number of very specific business objectives. Among the key objectives was that the new system had to deliver improved quality and control of order management and discounts. Cost management features such as variance analysis, reporting and tracking were vital to improving cost management. Furthermore, the system had to strengthen the production planning process. Kellogg SA also needed to align its business systems solutions with Kellogg globally in line with Kellogg`s worldwide strategy. Says Kellogg SA, IS Manager Chris Tugman, "With the new system our primary goal was to refocus our activities on business analysis. By streamlining and automating our data management through interfacing our business systems and creating a single information source we have successfully achieved this goal." Tugman continues "A very definite yes, we have improved the quality and control of order management and discounts. We know what orders are coming in, what`s being shipped and we are in a position to use the sales order information in the production planning process." In terms of improving cost management Tugman says that there is still some work required here but they are a lot closer to understanding the accurate cost of producing their products. "By dedicating our key users one hundred percent to the implementation, involving them in all configuration and set-up decisions they now have a far higher level of ownership and responsibility for the new system." Tugman goes on to say "I see this as our single biggest success - they own the system, it is their system." Kellogg SA is currently running Oracle Financials 10.6 and Oracle Manufacturing 10.6 on the Oracle7 database on Digital Equipment hardware platform. "The system has now been running live for eight months, we are now in the maintenance mode rather than the implementation mode," says Tugman. "Our short term plans are to upgrade to Applications 10.7 for its web-deployment capabilities, and are likely to go with Oracle`s Network Computing Architecture (NCA) along with the `thin client` infrastructure." "Its a luxury to implement an upgrade so soon after deploying the system," continues Tugman. "We are now in a position to revisit certain set-up decisions and improve efficiencies where we can." Long-term plans include installing GEMMs Manufacturing, IMI (order entry), TSW (plant maintenance) and Manugistics (demand planning) modules on a "need to use" basis. "We`ve been very fortunate to have had the cream of the Oracle consulting team working on this project which has meant that the implementation has been undertaken quite smoothly and rapidly. Kellogg`s will continue to work with Oracle to ensure ongoing success," he concludes. Worldwide, the Oracle solution enables Kellogg to leverage its global supply and manufacturing structure which includes 36 manufacturing facilities in 22 countries on six continents. Kellogg`s markets it products in more than 160 countries.
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