Arabian Beverage Company Improves Inventory, Procurement, Sales Control, and Visibility with Updated Enterprise Resource Planning
 
 

Arabian Beverage Company Improves Inventory, Procurement, Sales Control, and Visibility with Updated Enterprise Resource Planning

Headquartered in Safat, Kuwait, Arabian Beverage Company (ABC) is one of the country’s leading juice companies. For 50 years, the company has produced healthy, high-quality beverages for global consumers. Its product line includes high-quality juice, mineral water, and dairy drinks. All product ingredients uphold the regional customs of halal, while meeting all European food and beverage regulations. ABC constantly looks to improve the machinery and technology used in production processes to deliver optimal performance and high safety levels for operators, while minimizing waste and overhead.

 
 

 
 

Challenges

A word from Arabian Beverage Company

  • “Oracle is in the unique position of offering two extremely powerful enterprise resource planning suites. However, it was the manufacturing industry specialization and our own specific inventory requirements that made JD Edwards EnterpriseOne such an attractive solution to manage our production costs, down to the details, and to build our business efficiencies from a position of strength.”– George Bassily, ERP Manager, Arabian Beverage Company

  • Gain full visibility and control over a large, widely distributed inventory of perishable beverage ingredients and products
  • Deliver more accurate and timely financial reporting to management, enabling quicker and more informed beverage production cycle decision-making
  • Automate beverage-ingredient and product-material procurement from the supplier network, reducing time and manpower required to fulfill orders
  • Train users on the new enterprise resource planning (ERP) system and processes relevant to their job functions

Solutions

  • Improved procurement and sales-order accuracy while reducing waste and labor overhead by integrating Oracle’s JD Edwards EnterpriseOne Inventory Management, JD Edwards EnterpriseOne Sales Order Management, and JD Edwards EnterpriseOne Procurement and Subcontract Management with JD Edwards EnterpriseOne Financials to provide a comprehensive view of inventory across two warehouses, four logistical offices, and a fleet of more than 120 sales vehicles
  • Provided senior management with real-time operational reports based on sales order, inventory, procurement, and manufacturing management data, increasing transparency into regional beverage sales and the ingredients and products that will help maximize revenues
  • Reduced finance team’s headcount due to the tighter integration and automation for procurement, sales orders, cash management, and financial reporting, delivered by JD Edwards EnterpriseOne Financials
  • Automated with JD Edwards EnterpriseOne Procurement and Subcontract Management procurement processes involving more than 150 ingredient and material suppliers, allowing ABC to complete each procurement transaction in 10 minutes using self-service, rather than taking four hours using previous manual processes
  • Reduced time and manpower required to process sales orders, manual invoices, and spreadsheet data entry, from four people to just one person who spends only one hour updating orders in JD Edwards EnterpriseOne 9.1
  • Introduced monthly stock wastage reporting by using JD Edwards EnterpriseOne Inventory Management and JD Edwards EnterpriseOne Quality Management to manage goods’ expirations, record and report damage volumes and causes, reducing company and consumer costs
  • Provided 50 new JD Edwards users across the business with full classroom training, delivered by partner Cyret Technologies, taking an average of two to three days per module

Why Oracle

Arabian Beverage Company evaluated a number of ERP solutions from well-known providers, including SAP, before deciding Oracle was the best choice due to its blend of technology, industry experience, and support services. It then reviewed Oracle E-Business Suite as a further option before deciding that JD Edwards EnterpriseOne delivered all the inventory, procurement, and sales order controls it required, while also offering a level of manufacturing costing specialization that perfectly matched ABC’s needs.

“My own professional background is in ERP consultancy, so I knew that what was really important was to implement the most user-friendly technology with the best features for the business and the strongest ongoing support. JD Edwards is the most powerful and intuitive ERP solution for a manufacturer of our scale, and Oracle’s in-person and online support is second to none in terms of speed and quality,” said George Bassily, ERP manager, Arabian Beverage Company.

Implementation Process

The implementation at ABC’s headquarters and two warehouses in Safat took six months to complete, going live, on time and on budget, on January 1, 2013. Previously, ABC had used JD Edwards EnterpriseOne 8.12, which was deployed in 2008. In 2013, ABC worked with an in-house consultant and consulting partner Cyret Technologies to implement the latest JD Edwards EnterpriseOne version, rather than simply upgrading old systems. For this reason, deployments of JD Edwards EnterpriseOne Inventory Management, JD Edwards EnterpriseOne Procurement and Subcontract Management, and JD Edwards EnterpriseOne Manufacturing Management were entirely new to the business. Cyret also provided postimplementation user training and on-going support.

Partner

ABC worked with Cyret Technologies, an international Oracle Platinum Partner and Oracle University Training Partner, serving the Middle East region and which has an extensive implementation, consultation, and training history with JD Edwards ERP applications. ABC selected Cyret following strong recommendations from industry peers in Kuwait. After evaluating three suitable Oracle partners, ABC was most impressed with Cyret’s previous experience and expertise in implementing JD Edwards for diverse industries, including projects specifically addressing cost accounting in consumer goods plants. Following the implementation, Cyret delivered classroom-based training to 50 key users, using a team of eight trainers.