yields logistics savings
Implement SAP R/3 on Unisys hardware using the ASAP method and distribute access throughout the entire company.
Solution
Consultancy, delivery and set-up of Unisys Enterprise Servers running Microsoft Windows with a high-availability configuration.
Benefits
Expedient installation of a new SAP R/3 application and improved access to integrated information for all internal processes.
The Customer
There are many dramatic stories about large-scale ERP implementations – exhausting projects that go far beyond agreed schedules and budgets, with orders that fail to get processed and invoices that don’t get sent. Yet things do not have to be this way as the Fodor Group, a trading company in Rotterdam, has demonstrated. With the close collaboration of Unisys and SAP in the Netherlands, Fodor has succeeded in replacing an existing, customized application with SAP R/3 in the space of nine months.
Fodor, part of the Hagemeijer trading company, imports and distributes many well-known consumer products. According to Managing Director Steffen Smeenk, “We are active in the field of consumer electronics, including audio and video equipment. We also supply photographic products from companies such as Fuji and Olympus, and telecommunications products from Siemens and Samsung. Fodor has nine sales companies serving about 5,000 clients. These sales companies range from large retail chains to small-scale independent photographic shops.”
Calculating the Margins
The margins are small for consumer products and all parties in the chain benefit from a rapid rate of stock turnover. Automation plays a key role in this respect.
Until early 2000 Fodor used customized software that had been developed internally. “We knew for a long time that we could not use our proprietary software indefinitely,” said Smeenk. “So in 1998 we started orienting ourselves toward an ERP application that would meet a number of demands.”
The logistics process at Fodor – from purchasing to delivery to the customer – is extremely important. The main objectives of the ERP project were to reduce logistics costs, improve purchasing planning, limit stocks through more frequent purchasing, and realize a higher rate of stock turnover. Fodor presently processes orders by telephone or fax, or through sales representatives around the country. But they expect that within two or three years the majority of orders will be placed and processed electronically. Therefore, the company wanted to be ready with a new ERP application to handle future development.
Stable with SAP
In the orientation phase, a project group at Fodor examined a range of ERP packages and SAP R/3 seemed to tie in best with the demands of the company. The next step was to choose the hardware and infrastructure. Compaq was high on the list because Compaq and SAP are a popular combination in the Netherlands. However, since Fodor and Unisys have enjoyed a good relationship many years, Fodor invited Unisys to bid on the project. Additionally, Fodor knew for certain that they would use Microsoft Windows as the platform because it had developed into an extremely stable and highly manageable platform.
Unisys proved its expertise in Microsoft Windows environments and, following an intensive period of offers and proposals, Unisys ultimately came up with the best price/performance ratio. Unisys was also able to offer a complete solution – from hardware and set-up to consultancy and network expertise. Another important advantage was that Unisys Netherlands could access SAP expertise from other countries thanks to an excellent worldwide Unisys network. This enabled Unisys to be ready to deal with any potential problems quickly.
ASAP
SAP was implemented at Fodor using the SAP’s ASAP method wherein “A” stands for “Accelerated.” ASAP is a methodology whereby companies can go live in a short period of time using a clearly delineated approach. Seven ES5000 model Unisys Enterprise Servers were delivered to support the solution: one for application development, two for quality control, three for the production environment, and one for applications. Unisys provided sizing and set-up services in addition to SAP Basis Consultancy. And when these were complete, SAP Netherlands coordinated the system with Fodor’s business processes.
Paper Relief
SAP R/3 was implemented company-wide at Fodor. Today all departments use the system and the benefits are already apparent. Perviously, Fodor was largely a paper-based organization. The paper mountain has diminished dramatically and all types of information are now available on a monitor. The logistics process has also been greatly improved since it is now much easier to combine different orders from the same customer.
As Fodor moves forward they expect to gain even more insight into the effects of the new methodology and purchasing and inventories. Their consistent objective has been to integrate their information systems. The first important step in that integration process was taken with the implementation of SAP R/3. Now, the company continues to refine the system, seeking for new ways to further improve efficiency. Which is good news for Fodor and their clients.
