Arcor SAIC Uses the Cloud to Unify and Improve Availability of Core Business Applications and Optimize IT Team Resources
 
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Arcor SAIC Uses the Cloud to Unify and Improve Availability of Core Business Applications and Optimize IT Team Resources

  • Oracle Customer:  Arcor SAIC
    Location:  Córdoba, Argentina
    Industry:  Consumer Goods
    Employees:  20,000
    Annual Revenue:  $1 to $5 Billion

Arcor SAIC, a leading food manufacturing company in Argentina, is a leading global producer of sweets and the main exporter of candy from Argentina, Brazil, Chile, and Peru. Arcor has 39 production facilities (29 in Argentina, 5 in Brazil, 3 in Chile, 1 in Mexico and 1 in Peru). It specializes in manufacturing candy, cookies, chocolates, ice cream, and food products, including Arcor, La Campagnola, and Topline brands. In 2004, through its participation in Bagley Latinoamerica S.A., the company formed with the Danone Group in manufacturing cookies, alfajors, and cereals for Latin America, becoming one of the leading companies in the region. Grupo Arcor has a production volume of three million kilograms per day and sells its broad product line in 120 countries across the world.

In 2009, Arcor looked to transform its IT platform to integrate systems and business processes—from sales to production planning—across the various countries in which it operates. “We began an initiative, called Antares, which called for a review of the company’s commercial, industrial, administrative, and logistic processes. The required changes went far deeper than a system migration and would have an impact on all operations at a global level,” said Oscar Botto, CIO, Arcor.

The company looked to standardize and streamline processes as well as to expand visibility across its various operating groups. Arcor moved from a classic IT model, one with applications that were complex to administer, to uploading applications and technologies into Oracle’s private cloud, administrated by Oracle Managed Cloud Services to the reduce total cost of ownership and create a reliable and scalable IT infrastructure. It began in Argentina—which represents 60% of the group’s business. With Arcor’s software residing in a single Oracle data center, Arcor could optimize configuration, performance, availability, and ensure timely management and maintenance of its critical business systems.

 
Moving Beyond Finances

A word from Arcor SAIC

  • "With Oracle Managed Cloud Services administrating our IT platform for the Arcor group in Argentina, we’ve gained in performance, flexibility, and reliability for our systems and business processes. The challenge that lies before us is to take this model to the other countries where we operate to strengthen our overall IT strategy." – Oscar Botto, Chief Information Officer, Arcor SAIC

Although Arcor initially selected JD Edwards EnterpriseOne Managed Cloud Service to standardize administrative and financial processes across the group, the environment extends much further today. “We integrated solutions including Oracle’s Demantra demand planning and Oracle’s Siebel customer relationship management solutions to better serve the business,” Botto said. Arcor now stores all of the group’s business information, including sales, purchasing, and product information, on Oracle Database, Enterprise Edition Managed Cloud Service. It also benefits from a service level agreement for availability and issue resolution.

Additionally, Arcor chose Demantra Demand Management Managed Cloud Service and Demantra Predictive Trade Planning Managed Cloud Service to support product demand forecasting. “We used spreadsheets, and everything was in silos,” said Renata Fontana, IT demand management manager, Arcor. “Now, we can predict monthly and annual demand for more than 1,200 candy and cookie products. The process has become a continuous forecasting cycle, starting 16 months in advance and involving various departments, such as marketing, sales, and manufacturing. We adjust figures quarterly, based on Demantra-generated estimates.”

This insight has improved efficiency, from demand planning, to production and final distribution. There is now better visibility, improving collaboration between sales and manufacturing efforts, as when manufacturing must determine production to meet sales projections.

In addition, Arcor selected Oracle Hyperion Planning for its financial planning. “With JD Edwards, we can determine factory profitability. Using Oracle Hyperion Planning, we took the financial data produced by JD Edwards and examined profitability, product-by-product. There is greater detail and precision, which enables us to make informed decisions about markets, products, and which factories we should use for manufacture. Today, our discussions are based on market data. We used to get our information from spreadsheets, but this data wasn’t integrated. Today, for example, we all see the same marketing and logistics information, which is key for mass-consumption companies, such as Arcor,” Botto said.

 
Better Management, Greater Efficiency

 
 

 
 

Challenges

  • Redefine, simplify, and integrate the group’s industrial, administrative, and commercial processes, within a standard resource planning platform for all business units, to increase productivity and implement best practices
  • Deploy productive and administrative processes- including purchase of raw materials for food production, inventory management and fixed asset control- using managed cloud services to gain process efficiency and simplify administration of the IT infrastructure

Solutions

  • Selected Oracle Managed Cloud Services to manage Arcor’s private cloud and integrate global processes in a reliable and unified platform
  • Standardized financial, commercial, and logistics administration within JD Edwards EnterpriseOne 9.0, which has more than 4,500 users and manages over 164 million daily transactions across 29 food production facilities and executive offices in the country—improving operational efficiency
  • Implemented Oracle SOA Suite to integrate Arcor systems with those of other entities, including the Federal Administration of Public Revenue, the Revenue Agency of Buenos Aires province Companhia Colabora Internacional (shipping control), various banking, and foreign trade brokers—complying with company’s tax obligations and improving visibility into shipments, stock in transit, and export destinations
  • Used Siebel Quote and Order Capture and Siebel Sales for product master data administration—from product conception to sales—and for client administration, from presentation to registration—replacing several spreadsheets and achieving a unified workflow
  • Integrated demand planning, distribution, production, and supply processes, using Demantra Demand Management—gaining visibility and greater insight into performance for improved decision-making

Why Oracle

“We selected Oracle Managed Cloud Services because we understand that the company that develops the software and solutions knows them best and, therefore, can provide the best service,” Botto said. “We have reinvested the time and resources previously spent managing software and hardware into value-added initiatives.”

Implementation Process

Arcor SAIC began its enterprise, IT initiative in 2009, implementing JD Edwards EnterpriseOne 9.0 in Argentina, administrated by Oracle Managed Cloud Services in a private cloud in Oracle’s data center in Austin, Texas. This approach aligned with the standardized global business process model that the company established in its Antares Program. Between 2010 and 2012, Arcor expanded its relationship with Oracle Managed Cloud Services to include Demantra, Siebel, and Hyperion solutions.

To integrate solutions from Oracle and other IT providers, including a third-party electronic invoicing system, Arcor deployed a services-oriented architecture using Oracle SOA Suite. The company is now expanding its private cloud for Argentina to branches in Uruguay, Paraguay, Bolivia, Mexico, the United States, and Colombia.

Advice from Arcor SAIC

  • Expand ability to focus on core business needs by outsourcing IT infrastructure to the cloud, which ensures the scalability required for growth
  • Integrate critical applications to support business processes and eliminate information silos
  • Standardize processes following industry best practices
  • Engage the participation of key people in each process, to leverage their functional knowledge and organizational representation