Ahmed Mohamed Saleh Baeshen Produces Tea Batches 50% Faster, Cuts Stock Management Costs by US$400,000 Annually with Upgraded Enterprise Applications
 
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Ahmed Mohamed Saleh Baeshen Produces Tea Batches 50% Faster, Cuts Stock Management Costs by US$400,000 Annually with Upgraded Enterprise Applications

Ahmed Mohamed Saleh Baeshen & Co. (BAESHEN & CO.)is one of the best known fast-moving consumer goods companies in Saudi Arabia’s rapidly growing consumer goods sector. Established more than 80 years ago, the company produces tea, sugar, beverages, and other products. BAESHEN & CO. buys, samples, blends, packages, markets, distributes, and sells variety of teas. Its flagship brand Rabea Tea competes strongly with multinational brands. BAESHEN & CO. combines the qualities of a long-standing family business with the latest, advanced technology to achieve maximum efficiency and control for its fully independent supply chain. Its tea factory meets Hazard Analysis and Critical Control Points international food safety standards, and ISO 9001-2000 international quality management standards, as certified by the Saudi Arabian Standards Organization.

 
 

 
 

Challenges

A word from Ahmed Mohamed Saleh Baeshen & Co.

  • “Oracle E-Business Suite is the only logical choice for any ambitious manufacturing or distribution company of our size in this region. Together with Oracle, we optimized and automated financial business processes with the support of the very best local consultants available to train our users in best practices and new functionality.” ‒ Zahid Mohammed Ali, IT Applications Manager, Ahmed Mohamed Saleh Baeshen & Co.

  • Upgrade existing enterprise resource planning (ERP) software to the latest licensed versions and replace an antiquated and disparate system to stabilize and accelerate consumer goods business processes, such as procurement, forecasting, and credit approvals, enabling greater throughput and revenue
  • Maintain the company’s proprietary and business-critical, custom- tea-blending module—which combines inventory, costing, and forecasting functions—and integrate it fully into the back-end operations for more flexible finance and supply chain application deployment, improving visibility and management controls
  • Migrate to a more scalable and reliable server operating system capable of implementing application updates with zero-downtime in a live consumer goods environment, without interruption to production and revenue generation
  • Enable all employees to seamlessly adjust to new business process requirements at every point in the supply chain for tea, sugar, beverages, and other products

Solutions

  • Deployed Oracle E-Business Suite12.1.3, mapping the 45% of applications customized under BAESHEN & CO.’s previous Oracle E-Business Suite implementation, transforming these modules into standardized, fully automated, best-practice tools and accelerating consumer goods business processes, such as procurement, forecasting, and credit approvals, enabling greater throughput and revenue
  • Saved between eight and ten days of work each month by accelerating end-of-month accounts closing with Oracle Subledger Accounting and Oracle General Ledger, due to transparency and centralized control of businesswide accounts, coupled with automated reporting
  • Improved visibility and ability to manage tea, sugar, beverages and other stock with Oracle Inventory, enabling intelligent, individual lot control rather than bulk manual inventory picking, saving a minimum of US$400,000 per year through superior stock management, less waste, and reduced labor costs
  • Reduced the time required to complete business processes, such as credit policy approvals, budget forecasts, and work order processing by an average of 25%, while eliminating managerial approval turnaround delays entirely through centralization and transparency
  • Enabled Oracle Process Manufacturing to automate of the creation of tea batches based on work-order-generated blend sheets, saving about 40% to 50% in overall process time, and supporting the production of more than 2,000 batches of tea per month, rather than 1,200 batches
  • Used Oracle Financials and Oracle Purchasing to link financial budgetary controls with procurement, and then monitor and control capital and operational and marketing expense budgets, providing full financial visibility for accurate consumer goods production planning
  • Improved traceability and accountability in procurement by initiating paperless, automatic digital approvals and electronic purchase orders with Oracle Purchasing, enabling even tighter budgetary control and purchase management for consumer goods trading
  • Replaced Microsoft Windows with Oracle Linux, delivering enterprise-class scalability, reliability, and performance for Oracle E-Business Suite applications, while enabling zero-downtime updates and customizations, as well as a single point of vendor contact and support for all business critical software
  • Worked with Oracle partner Wipro Arabia to create business process training videos, and Oracle User Productivity Kits for all users, conducting extensive hands-on training to ensure a smooth transition from Oracle E-Business Suite 11.0.5 to 12.1.3

Why Oracle

“We had successfully used Oracle E-Business Suite for more than 10 years. We wanted to update to the latest version to maintain Oracle license support and gain greater flexibility and scalability while accurately mapping the 45% of customized modules we tailored to our consumer goods business over that decade. Oracle delivers the most robust financial software available. Our users are very familiar with the technology, and Oracle partner Wipro Arabia’s unrivalled presence as a consultancy in Saudi Arabia made it easy for us to train our employees and successfully go live on time and with a streamlined transition,” said Zahid Mohammed Ali, IT applications manager, BAESHEN & CO.

Implementation Process

BAESHEN & CO. established a steering committee to help guide its big-bang go live over a five-month rollout. The phased installation first mapped the previously customized modules to ensure a smooth migration to Oracle E-Business Suite 12.1.3. The team completed the implementation within budget and with 10 days to spare in the timeline, enabling BAESHEN & CO. to also conduct an internal review and final checks before going live.

“The Oracle implementation was a truly cross-functional effort. Everyone saw the importance of the project and contributed to its success. BAESHEN & CO. is a company that truly understands the importance of technology and automation in the business. The nearly full-suite implementation was a testament to this project. The quality, speed, and ease of the implementation was admirable, and I would like to thank Zahid Ali, the project manager, for his efforts to ensure this,” said Ali Alzain, head of IT and corporate services for Ahmed Mohamed Saleh Baeshen & Co.at the time of project implementation.

“We believe successful implementation is achieved through a balance of significant experience, a working knowledge of today's best practices, and access to cutting-edge technology. This is a collaborative success that made Ahmed Mohamed Saleh Baeshen & Co. a pioneer in the region,” said Khalid Baeshen, Chief Executive Officer, Ahmed Mohamed Saleh Baeshen & Co..

Partner

BAESHEN & CO. selected Wipro Arabia, the regional arm of a well-established Oracle partner with excellent local presence and a large pool of skilled consultants, experienced with Oracle E-Business Suite and the Saudi consumer goods market.

“Choosing the right partner was very important to us. We invited 12 partners to deliver the Oracle E-Business Suite solution required to automate our consumer goods processes, produce tea batches faster, and cut stock management costs. We then reduced the short list to three, based on local presence, availability, reputation, market share, and management enterprise. Ultimately we selected Wipro Arabia as our preferred implementation partner to take advantage of the local availability of a rich consultant pool, unrivalled contingency planning, and the extensive expertise necessary to fill any unforeseen gaps in knowledge, skills, and deliverables,” said Zahid Ali.