Castello Banfi Streamlines Wine Production Lifecycle Management with Enterprise Resource Planning Upgrade Management
 
 

Castello Banfi Streamlines Wine Production Lifecycle Management with Enterprise Resource Planning Upgrade Management

  • Oracle Customer:  Castello Banfi
    Location:  Montalcino, Italy
    Industry:  Consumer Goods
    Employees:  200
    Annual Revenue:  Over $5 Billion

Castello Banfi is one of the most prestigious Italian wine producers. The company was established in the 1970s by two Italo-American brothers, John and Harry Mariani, and is now well known in more than 50 countries. Castello Banfi is a rarity among Italian wine estates, not just because of its size (some 7,100 acres in a unique region, of which around 2,400 acres are planted with vines), its composition of single vineyards, or its state-of-the-art winery, but because it was started from scratch fewer than 35 years ago.

 
 

 
 

Challenges

A word from Castello Banfi

  • “To ensure constant innovation, which is crucial to our company’s success, we needed to upgrade to the latest version of Oracle’s JD Edwards EnterpriseOne. The vineyards represent the soul of the property, the cellar is its heart, and JD Edwards EnterpriseOne 9.0 provides irreplaceable support and enables us, through full business process control, to make important decisions to keep growing in a competitive market.” – Gabriele Mazzi, Chief Financial Officer, Castello Banfierience Practice, Accenture

  • Upgrade enterprise resource planning (ERP) system to take advantage of new features specific to the food and beverage industry as well as expand standard features used to simplify the transmission of financial and administrative data from Italy to US headquarters
  • Enable the company to trace costs and market trends, as well as analyze productivity of vineyard and fruit investments
  • Achieve greater investment and cost control through a robust, flexible, scalable, multilingual, and multicurrency system that provides advanced decision support to aid in the company’s expansion into international markets

Solutions

  • Obtained a unified data view of all factory systems in the wine production lifecycle—from the delivery of grapes to cellars, to wine delivery—with Oracle’s JD Edwards EnterpriseOne Manufacturing Management
  • Deployed Oracle’s JD Edwards EnterpriseOne Grower Management to manage data related to land and crop costs and investments, enabling the company to measure investment value from vineyard creation to maturity, as well as the annual production of each grape harvest
  • Reduced data processing time by 50% and enabled the company to trace invoices and costs for up to 20 years, verify administrative expenses, and track plots by land code, thanks to JD Edwards EnterpriseOne Grower Management
  • Used Oracle Business Intelligence Publisher to automatically send shipping documents and electronic invoices to customers via e-mail, ultimately reducing printing costs by 60%
  • Used JD Edwards EnterpriseOne Financials to create annual financial statements two months faster and create consolidated monthly financial reports more quickly, generating a unified report, including economic and property information, as well as a deep analysis of warehouse stocks and financial flows and investments
  • Aligned production and financial data to enable the company to identify manufacturing costs and accounting impact to provide a complete economic picture of the company
  • Developed a JD Edwards EnterpriseOne-based system for wine production programming, based on estimated market demand or requests collected by commercial agents about sales and unsold goods—ultimately enabling Castello Banfi to identify the final destination of wine already produced and cut production costs by 15%
  • Reduced wine, raw material, and semifinished product losses, thanks to JD Edwards EnterpriseOne Production and Distribution Planning, which provides easy access to sales information and provides insight into changing consumer preferences
  • Automated stock handling in the cellar—which represents 80% of Castello Banfi’s income—enabling the company to analyze the value of stock over time by automatically managing sales orders and establishing a value for each product in storage
  • Implemented JD Edwards EnterpriseOne Transportation Management to track shipment path and costs and enable comparative analysis among different global wine markets

Why Oracle

In its early years, Castello Banfi used an IBM ERP system that was tailored to the wine production industry. Due to its incompatibility with PeopleSoft reporting systems used in the US headquarter, the company considered solutions from SAP and Oracle. Castello Banfi chose Oracle’s JD Edwards EnterpriseOne for its flexibility and scalability, which the SAP system did not provide.

Implementation Process

Castello Banfi upgraded to JD Edwards EnterpriseOne 9.0 —which was divided into three phases—in approximately 11 months. During the initial phase, the company studied its existing processes and identified areas for improvement. In the second phase, the company outlined a logical model that would enable it to easily bring the JD Edwards EnterpriseOne system on board. Finally, the company adapted the solution to its specific processes.

Partner

Castello Banfi selected Oracle specialized partner Sinfo One for its extensive experience with Oracle’s JD Edwards platform as well as its significant references in the food and beverage sector. In addition to typical IT support, Sinfo One continues to support Castello Banfi with industry-specific IT consulting expertise.