Benefits of $100K-plus a month from SAP deployment, says Ego

Peter Dinham
Tuesday, 11 August 2009 11:37

IT Industry - Deals

Oppenheim said the Melbourne-based manufacturer of well-known brands including QV, Aqium and SunSense, would invest just over $2 million in software and systems to move the company from its existing Pick-based system and reduce the application landscape from eight to one.

According to Oppenheim, growing markets in the Middle East, UK and Asia are providing additional warehouse, supply chain and financial challenges and, he said, with exports making up one-quarter of production output, it was identified that “consistent, best practice processes were needed to drive transparency across the business and effectively increase the capacity of the warehouse without further investment.”

The first phase of the roll-out will focus on core functionality relating to financials, controlling, asset accounting, sales & distribution, inventory management, procurement, warehouse management and production planning software.

Oppenheim said “stock-outs have been a significant issue for our business, as most retail outlets, especially in our export markets, simply won’t accept backorders – that is, they won’t wait until the product is in supply.  Insufficient product quantity in stock leads directly to the loss of sales and disappointed consumers. The new software will enable us to use better forecasting and production planning tools, which we expect will reduce stock-out occurrences significantly.”