Savola Foods Arabia belongs to the Savola Group, one of the most successful and fastest growing multinational food companies in the Middle East. Founded in 1979, the Savola Group was ranked 12th in terms of revenue among the top 100 Saudi companies in a 2009 report published by Saudi Arabia’s leading daily newspaper, Al Eqtisadiah.
In light of Savola Foods Arabia’s goal of being the most efficient food product manufacturer in Arabia and Levant, the company needed to automate its manual supply chain by implementing an integrated information system. The company wanted to track each manufacturing-related activity—from forecasting to delivering finished goods—in a single, integrated enterprise resource planning (ERP) system.
To meet its goals, Savola Foods Arabia deployed Oracle Process Manufacturing and Oracle Advanced Supply Chain Planning—key Oracle E-Business Suite Release 12 applications—to automate important manufacturing functions—such as material requirements planning, production reporting, item-cost calculation, production scheduling, formula generation, and quality assurance—across the entire supply chain. It also established granular control over inventoried materials and facilitated analyzing the cost of goods sold. Using the Oracle applications, Savola Foods Arabia achieved 99.9% accuracy for monthly inventory tracking by continuously monitoring materials status, product shelf-life dates, and lot-expiration dates.
“We had previously streamlined a number of key business processes with Oracle E-Business Suite and are very satisfied with the solution overall, said Fawaz Kilfaden, regional IT executive director, Savola Foods Arabia. “To include our manufacturing processes in the integrated application suite and manage our full business cycle with Oracle E-Business Suite, we added Oracle Process Manufacturing. We believe that Oracle E-Business Suite Release 12 is the best ERP solution in the market to meet our business needs.”
The commitment of both Savola Foods Arabia and Mahindra Satyam’s project teams, as well as the harmony between these teams, were key factors in achieving a successful implementation. Savola Foods Arabia’s department heads and a steering committee facilitated the change management process. Further, Savola Foods Arabia went live during a seven-day factory shutdown, which enabled it to reduce the back-log for users in the initial Oracle Process Manufacturing introduction.
Savola Foods Arabia executed the Oracle implementation in close collaboration with Oracle partner Mahindra Satyam, a leading global IT services and consulting provider. Savola Foods Arabia’s implementation is part of a nine-phased project aimed at deploying key Oracle E-Business Suite Release 12 applications to cover financials, distribution, human resources, and manufacturing, and serve as a standard ERP system for Savola Group in Saudi Arabia and Egypt.