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.
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.
Building strong relationships with customers and suppliers is also a priority for Arcor, as how it manages data even determines how products are priced, down to the gram, based on production costs. The company uses Siebel Sales and Siebel Quote and Order Capture Managed Cloud Service to centrally manage client and product master data, order management, and product return processes.
The credit management workflow cycle for new clients—including distributors, supermarkets, and wholesalers—flows smoothly, from registration, to determining which products the client can purchase with manager approval.” Before the Siebel deployment, the technologies used were not scalable, and we ran the risk that important data, such as customer credit data, would be missing, as we could not integrate information from different countries,” Fontana said.
In addition, Arcor deployed a service-oriented architecture (SOA) using Oracle SOA Suite to integrate the solutions from Oracle and other providers, simplifying IT infrastructure administration.
“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.”
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