Oracle Customer Success — Grupo Arcor

Grupo Arcor

Arcor Leverages Expansion Plans with Oracle

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The profit margins in our industry are small so it is crucial to have costs under control. Oracle Cloud Infrastructure Dedicated Compute Classic and Oracle Database Exadata Cloud Service provided the flexibility we needed and helped us save 25% of tech infrastructure costs while supporting the changes we were aiming for to sharpen our competitive edge.

— Oscar Alberto Botto, CIO, Arcor Group

Arcor Saves 25% of Infrastructure Costs, Improves Its Performance, and Pushes Expansion in Latin America with Oracle

Arcor is a multinational group that produces food products—most notably, sweets. Founded in 1951, the Cordoba, Argentina-based company is a large global exporter with 47 industrial plants operating in Argentina, Brazil, Chile, Peru, and Mexico. Its products are distributed to more than 120 countries.

As Arcor expands its business across Latin America, the company’s IT team started looking for a more modern and robust tech infrastructure to support this expansion. The company sought a flexible and efficient solution to increase its system’s processing capacity according to growth and ensure that its system works seamlessly 24/7. Cost savings was also a crucial factor on this search for a new infrastructure.
 
Challenges
  • Replace Arcor’s server infrastructure with a more efficient solution that supports the company’s expansion plans in Latin America
  • Reduce expenses with the purchase of new physical servers, especially during hot sales seasons for sweets, such as Easter and Argentina’s sweetness week in July
  • Increase the company’s system scalability and performance
Results
  • Adopted Oracle Cloud Infrastructure Dedicated Compute Classic and replaced 290 physical servers, now running Arcor’s entire tech infrastructure on Oracle Cloud
  • Saved 25% of infrastructure costs with Oracle Cloud by eliminating the need to purchase extra physical servers to cover temporary demand for extra capacity while also eliminating operational costs, such as electricity, maintenance, and more—in the past, the company had to purchase extra servers during a temporary boost on production that were idle after only 30 days
  • Improved data processing performance of the company’s JD Edwards EnterpriseOne ERP system with Oracle Database Exadata Cloud Service—Arcor manufacturing plants now process all operations much faster, from raw materials delivery to finished goods sent to customers
  • Gained a robust, scalable tech infrastructure with Oracle Cloud Infrastructure Dedicated Compute Classic and a powerful database platform with Oracle Database Exadata Cloud Service, which combined, allow IT staff to focus on Arcor’s business expansion plans instead of operating infrastructure
  • Ensured Arcor’s system high uptime, as Oracle Cloud does not require any interruption on the system for maintenance procedures, and also facilitated repair in case errors occur in the future—the company has not registered any error on its system since it started using Oracle Public Cloud
  • Automated regular updates while making sure that the company will always use the platform’s most up-to-date version, consistent with the best market practices
  • Permitted that future new facilities have much easier and safer access to the company’s ERP system, which allows new business units to start operating much faster while facilitating Arcor’s expansions plans in Latin America—Oracle Cloud now runs seamlessly in more than 100 sites in 14 countries

 

We wanted to migrate from the private to the public cloud, so we quoted many vendors. In the end, we chose Oracle because it offered the best service, the best cost-benefit, and the best support during the migration process. An additional advantage was that hardware maintenance costs were eliminated.

— Oscar Alberto Botto, CIO, Arcor Group

Execution

“The implementation was very challenging because we migrated the system for all units in all five countries at the same time. Together with Oracle Consulting, we’ve developed a great migration project and ran several tests for eight months so we didn’t take any risk. The transition ended up being very smooth,” Botto said.

About Grupo Arcor

Headquarters

 
Arroyito, Cordoba, Argentina

Employees

 
21,500

Annual Revenue

 
US$3.1 Billion
Arcor is a multinational group that produces food and sweets. Founded in 1951, the Cordoba, Argentina-based company is a large global exporter with 47 industrial plants operating in Argentina, Brazil, Chile, Peru, and Mexico. Its products are distributed to more than 120 countries.
Published:  Mar 29, 2019