Summary:

Logan Consulting helps a meat casing manufacturing company implement a global ERP solution.

The Client:

This Illinois based company specializes in the manufacturing of cellulose and fibrous casings for the processing and packaging of frankfurters, dry and semi-dry sausages, smoked meats, sausages, deli meats, poultry and dairy products around the world. The company operates in multiple nations with plants in the United States, Latin America, and Europe.

The Opportunity:

The client had been acquired by a private equity firm that instructed the management team to prepare the corporation for a potential sale.

The potential sale was made less attractive due to disjointed systems and high IT costs. From a global perspective the company’s technical infrastructure consisted of multiple hardware and operating system platforms that were not compatible. The catalogue of applications software included two manufacturing ERP systems, two different financial ERP systems, a Human Resources system, multiple MES (Manufacturing Execution Systems), and proprietary consolidation routines.

Management could not effectively analyze the cost of the same product manufactured at different sites. Nor could sales view customers from a global perspective due to multiple master files systems and nomenclatures. And management could not provide financial statements to the private equity ownership in a timely and confident manner.

Logan Consulting was originally engaged to analysis in order to author a Strategic Information Systems Plan (SISP). In this role, Logan Consulting would examine existing software and hardware, user satisfaction and needs, IT costs, and management objectives. The company’s management desired recommendations on what technological infrastructure was required to tighten up operations, provide analytical tools, and in general – make the company more attractive to a potential buyer.

The Solution:

Upon completion of the SISP, it became evident that a global ERP backbone was required. This was confirmed not only by the intangible benefits that it would bring to the client, but also by a detailed cost/benefit analysis that offered an attractive project ROI. Therefore, Logan Consulting’s role was expanded to conduct a global ERP selection project.

The global selection project brought together the business process leaders from throughout the globe. The “act” of selecting software also resulted in multiple other business synergies and process improvements. This mirrored parallel projects that were transforming the company from multiple organization structures to one global structure defined by business process and not nationality. All of the above contributed to a leaner enterprise with lower operating costs. From an analytical standpoint, information could now be mined to provide easy answers to management questions.

The Results:

  • The SISP clearly recommended a global ERP backbone that was capable of handling all business processes.
  • Detailed analysis found that such a global ERP backbone could be implemented in less than 18 months and would prove to be less costly on a monthly basis than the incumbent mixture of systems.
  • Logan Consulting led a selection team through requirement’s definition, vendor analysis, and ultimately through contract negotiations.
  • A global ERP system was implemented and the company was ultimately sold – meeting the goals and requirements of the private equity investors.