Ach Food Analysis

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SAP Business Transformation Study | Consumer Products | ACH Food Companies

ACH Food Companies: Transforming from a Commercial to a Consumer-Branded Business Famous food brands from ACH Food Companies Inc. – like Mazola, Spice Islands, and Durkee – are in nearly every pantry in America, yet have you heard of this company? That’s because, historically, ACH Food Companies served the commercial side of the food industry. Transforming itself into a consumer-branded business required an integrated suite of applications from SAP.

SAP Business Transformation Study | Consumer Products | ACH Food Companies

Executive overview
Company ACH Food Companies Inc. Headquarters Cordova, Tennessee industry Consumer products – food Products and Services Manufacturer of food products, including cooking oils, corn starch, and spices employees 1,000 revenue US$1 billion Web Site www.achfoods.com Partner Deloitte Consulting LLP BuSineSS TrAnSFormATion The company’s top objectives: • Transition from commercial-focused firm to consumer-branded business • Support acquisitions-based strategic growth plan • Significantly improve business processes, including forecasting, planning, profitability analysis, and new-product development The resolution: • Replaced legacy system with an integrated suite of highly dependable applications • Performed a customer valuation assessment with SAP to set performance targets • Initiated a dual-wave implementation of SAP® Business Suite software The key benefits: • Improved information consistency with one source of the truth • Increased speed and flexibility in assimilating acquisitions • Enhanced or added new processes, such as customer and product profitability analysis Read more

ToP BeneFiTS ACHieved

20% 75%

Reduction in finished goods inventory

Less time for internal new-product initiation

25%

Reduction of close process, from 8 days to 6
See more metrics

“The future support for our legacy software was in doubt, and we didn’t want to bet on futures. In SAP, we found a stable, mature product that made our future course clear and certain to us.” Donnie Steward, Chief Information Officer, ACH Food Companies Inc.

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SAP Business Transformation Study | Consumer Products | ACH Food Companies

Executive overview Company objectives Resolution Business transformation Future plans

Choosing the way forward
If you have names like Mazola, Argo, Spice Islands, and Durkee sitting in your pantry, then you should also know the name of the leading midmarket manufacturer of consumer-branded products who brought them to you – ACH Food Companies Inc. – but you probably don’t. “We like to say we’re the company nobody’s heard about,” says Donnie Steward, the quiet company’s CIO, “but most pantries are filled with our products.” There is a good reason you may not have heard of ACH Food Companies, even though its products are so familiar to us all. Today, ACH Food Companies is an American subsidiary of Associated British Foods. Historically, however – especially from 1952 to 1995, when ACH Food Companies was part of the Kraft Foods/Anderson Clayton spin-off – it served the commercial side of the food industry almost exclusively. Over time, ACH Food Companies evolved a legacy system to support its commercial business. “By 2006, our application landscape was filled with point-to-point interfaces and a hodgepodge of poorly integrated applications,” explains Steward. “We were in high-acquisition mode. But bringing in an acquisition and integrating it into our landscape was extremely difficult.” Its legacy system was preventing ACH Food Companies from achieving its growth objectives and becoming the consumer-branded company it wanted to be – an organization centered on process orientation and continuous improvement.

“We no longer wanted to live in functional silos. We needed one source of truth. Those factors led us to start the search for a new platform to support our consumer-branded business...
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