KFC franchisee Restaurants Development Co. feeds growth with Oracle Cloud ERP

Restaurants Development Co. embraces Oracle Cloud ERP to meet changing needs and business growth as the fastest-growing KFC franchisee in Thailand.

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There's been a lot of disruption and change in the market. Oracle Cloud ERP provides fast, accurate financial information for our team to make informed decisions. Oracle Cloud is very stable, the uptime is excellent, and we don't have downtime.

AndrewCEO, Restaurants Development Co.

Business challenges

One of the fastest-growing restaurant companies in Thailand, Restaurants Development Co. had an outsourced back-office accounting setup that was slow to accommodate changes and too rigid to support the company’s aggressive growth and expansion plans.  Maintaining financial applications using legacy technology created operational cost and risk for the award-winning KFC franchisee. To mitigate this risk, Restaurants Development wanted to move from its existing system.

In addition to the constraints of doing business using the legacy system, Restaurants Development also had difficulty collating financial information from more than 150 restaurants spread across the Kingdom of Thailand. The challenges of manually adding new restaurants and consolidating existing ones further added inefficiencies and reporting constraints. The existing complicated and time-consuming system made streamlining and improving the supplier payment process difficult.

The company wanted to transform its finance and supply chain operations with modern best practices, systems, and controls to drive the franchisee’s growth and profitability. It sought a cloud-based ERP system to enhance the business user experience and take advantage of the latest technology, while minimizing disruption to existing business processes. The system needed to be scalable, customizable, and easy to integrate with other business applications.

Oracle Cloud ERP grows with us. I’m confident we can run 500 restaurants with this system.

AndrewCEO, Restaurants Development Co.

Why Restaurants Development Co. chose Oracle

After gathering requirements, Restaurants Development evaluated multiple applications, including Oracle, Sage 300, SAP BI, and Microsoft Dynamics. Company leaders saw the opportunity to further optimize financial processes and implement modern reporting with the latest cloud technology offered by Oracle Cloud applications.

To streamline back-office financial processes and procurement, the company decided to embrace the modern, low-cost, and low-risk Oracle Cloud ERP and Oracle Cloud Procurement applications.

Restaurants Development has become more flexible and better able to make timely business decisions and act with data-driven, real-time intelligence from a simple and standardized cloud solution.

Results

By transitioning from an outsourced back-office accounting function to Oracle Cloud ERP, Restaurants Development has modernized back-office operations and consolidated financial information onto a single platform. This has enabled the company to make faster decisions and spur business growth.

The highly available and resilient Oracle Cloud ERP helps collect, consolidate, and report financial data from across the company’s restaurants, serving as a single source of truth that supports streamlined processes.

Further, digitally enabling the finance team has increased its productivity. The number of restaurants grew from 150 to more than 200 during the peak of the pandemic, without adding additional headcount in the accounting and finance team. In addition to improving efficiency and productivity, the lean structure also empowered the entire organization across supply, demand, and business partners.

With more than 240 suppliers, the franchisee’s cloud native solution makes it easier for the financial team to collaborate while working remotely, handling payments and other supplier data that the company uses daily. This has optimized not only financial reporting and other business processes, but also enabled timely supplier payments and better vendor relationships. The company can enhance reporting capabilities with out-of-the-box and customized KPIs, enabling faster decision-making.

The new system is also helping the company benefit from increased data transparency with real-time dashboards. Now Restaurants Development has visibility into supply and demand data, resulting in a reduction in out-of-stock and excess inventory. The company now stocks one-third of what was used six years ago and can better track inventory levels, manage access, and know lead times in an automated way.

Further, the company is able to reduce warehousing charges, lower logistics costs, and increase the efficiency of supplier management and collaboration, leading to agile procurement processes.

The organization is now leading the transformation to digital, paperless operations management to simplify and streamline processes and ultimately integrate sustainability into its core strategy.

Partners

Restaurants Development Co., in collaboration with iCE Consulting, implemented future-proof, standardized Oracle Cloud ERP and Oracle Cloud Procurement applications to enhance business agility and operational efficiency.

Published:June 10, 2022

About the customer

Restaurants Development Co. is a large and fast-growing franchisee of KFC in Thailand. The company employs over 4,000 people across more than 200 restaurant locations in the country.