"We are great in our business and making excellent products but we need QAD to keep us competitive technologically."
Ueli Trachsel, Finance & IT Manager, Wander Ltd.
Company -->Wander Ltd.
Headquarters -->Neuenegg, Switzerland
Industry --> Food and Beverage
Products -->Ovomaltine powder, bread spread and malt extract
Solutions Utilized --> QAD Enterprise Applications Enterprise Edition (EE)
‘VALUE ASSESSMENT’ APPROACH GETS PARENT COMPANY APPROVAL FOR SUCCESSFUL ERP, DSCP AND EDI UPGRADES
THE COMPANY: WANDER
Wander Ltd. is a Swiss food and beverage manufacturer, best known for their wide variety of Ovomaltine-based products. The company is strategically positioned in the market as a manufacturer and distributor of quality Swiss-made products. Wander Ltd. directly supplies the retail market in Switzerland and exports products through independent distributors into several European countries. In addition to their Ovomaltine product lines, Wander Ltd. markets and distributes Twinings Tea and Caotina in German speaking countries in Europe. Wander Ltd.’s history dates back to 1865. The company employs a staff of 250 at their manufacturing location in Neuenegg, close to Bern, Switzerland. They are part of TwiningsOvo group within Associated British Foods (ABF). Associated British Foods earns £13.4 Billion in annual sales, and has 130,000 employees worldwide in 50 countries. ABF includes many brands such as Twinings, Silver Spoon, Kingsmill, Patak’s, Jordans Cereals, Speedibake, Dorset Cereals, Ryvita, Blue Dragon and Mazola.
THE CHALLENGE: OUTDATED TECHNOLOGY LAGS BEHIND UP-TO-DATE PRODUCT INNOVATIONS
Wander Ltd. has been a very successful company for many years with their core Ovomaltine powder, but the market has changed around them. “Switzerland, Germany and Austria are saturated markets with limited growth potential — so we have to come out with new products on a constant basis,” comments Ueli Trachsel, Finance & IT manager of Wander Ltd. “We are also manufacturing in a high cost country with stable currency — the strong Swiss franc — which makes it more difficult for us to be as competitive with lower cost countries.” “We need to consistently create new products to keep our factory in Switzerland recognized as an important brand differentiator,” adds Trachsel. “We need to have the right technology to be efficient both in production and cost management now and in the future.” “We are constantly thinking of how to create the most effective enterprise to meet consumer needs and desires while increasing sales, efficiency and profitability,” adds Trachsel. “We handle product creation in-house but turn to QAD to help us with our technology.“ Some of the technology challenges Wander Ltd. was experiencing were:
• A dated ERP version with limited capability compared to the current QAD ERP systems
• Dissatisfaction with the user interface, lack of visibility and reporting capabilities
• Outdated forecasting and production planning tools with insufficient support for the application version, operating system and hardware
• Electronic data interchange (EDI) tools that were no longer in step with customer technology • A need to improve productivity and efficiency, and reduce headcount
• Increasing platform risk with an old demand and supply chain planning (DSCP) system
• Heightened operating costs and non-optimal management of product supersession and stock expiration
• A need to meet parent company ABF’s strict ROI criteria and internal justifications to qualify for project funding
THE SOLUTION: GETTING PARENT COMPANY APPROVAL AND UPGRADING TECHNOLOGY
Wander Ltd. recognized that they would need to propose a way to offset the investment of a new ERP system to replace the aging system currently in place. By adopting a value assessment approach, they determined the best choices for maximizing Wander Ltd.’s technology investment. QAD conducted a Q-Scan to help Wander Ltd. define the scope of needed changes which included:
• An upgrade to QAD EE
• Replacement of previous DSCP solution with QAD DSCP
• Reimplementation of newer QAD EDI
“After many productive, value-based business discussions with QAD, it was decided upgrading to QAD EE, installing DSCP to replace our previous DSCP solution and updating our EDI system would be done as one project,” comments Steffen Grill, IT manager with Wander Ltd. “Our onsite product team worked closely with a QAD project manager using QAD standard product solution implementation Easy On Boarding (EOB).” “Having the QAD EOB model was very helpful. We were able to do the work within very clean timelines. The ‘go-live’ process went very well as a result. We were able to ship products and get invoices out the first day,” notes Grill. The entire process took just over a year from initial planning to ‘go-live.’
THE BENEFITS: FASTER, MORE ACCURATE AND MORE TRANSPARENT CUSTOMER SERVICE
The first and most immediate benefit Wander Ltd. saw with the installation of QAD DSCP was the elimination of the platform risks associated with their outdated system. Operating costs were also reduced and Wander Ltd. now has a richer functionality than was available before. “The new DSCP system is a very different way of working than the old system. After managing our system for 12 years without an update, we now have the newest DSCP,” comments Andy Eichenberger, demand planner, Wander Ltd. “With QAD DSCP we have transparency and the ability to change things as needed rather than being boxed into a rigid, unresponsive system. We can play around and use the system as we want and need.” Other benefits Wander Ltd. has with the new QAD DSCP system include:
• 50% time savings in managing product supersession when one product replaces another
• Easier and quicker capacity planning with a simple and more reliable set up
• Faster and easier data extraction • Reduction in required stock with increased forecasting accuracy and better management of expiring stock
• Quicker and simpler integration of distributors via web access
• Reduced recurring costs for DSCP maintenance & support compared with previous solution hosting & support “We are also now using QAD EDI as our standard of communicating with our customers and suppliers,” notes Grill. “This gives us much more flexibility for future connections and we are able to connect to new customers much more quickly.” Wander Ltd. expects future savings from easier expansion — including new messages and new trading partners — of their now standardized and simplified EDI implementation. “Our long-term relationship with QAD really helped during the project,” concludes Trachsel. “They understand our needs and how the product addresses those needs — it’s what really made the project successful.”
"It’s not enough to have great products in today’s market. It’s imperative to have current technology to effectively compete."
Ueli Trachsel, Finance & IT Manager of Wander Ltd.
Azienda specializzata nella produzione alimentare ( sopratutto del Ovomaltine)
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