Upgrading to Oracle E-Business Suite Release 12.1.3 enabled Suguna Foods to standardize its business processes, including sales, production, procurement, inventory, and poultry-health maintenance across 20,000 farms that are operated through 150 branches. The deployment provided an integrated ERP platform for all business divisions, such as hatcheries, feed mills, and breeding farms to gain enterprisewide data visibility and enhanced production control.
For example, Suguna Foods used Oracle Process Manufacturing’s lot-costing functionality to accurately calculate and capture actual batch-feed costs, providing the right amounts of ingredients required to produce the correct feed recipe for specific poultry types throughout their lifecycles. It also allowed the company to perform detailed cost analyses, such as for comparing the standard and actual feed costs for each farm’s consumption to minimize waste.
“Feed constitutes nearly 75% of our total product cost, so it was critical for us to determine the exact consumption requirements for each farm. Thanks to Oracle’s integrated ERP platform, we have improved the accuracy of daily feeding volumes to 99%, up from 80% accuracy with the legacy platform, enabling us to enhance control over poultry production and ensure on-time delivery of chickens to customers, including processors and retailers,” said S. Karunanithi, CIO, Suguna Foods.
The integrated ERP platform also promoted staff accountability and more accurate data to support better decisions. “For example, feed-mill employees now receive updates on mortality rates for each farm, which is critical as this affects required feed volumes. It also helped the pharmaceutical unit to quickly determine the reason for mortality, based on the information provided by the feed mill, such as feed quantity, enabling faster action to minimize mortality rates,” Karunanithi said.