Transcript Document 7303476

Highland Spring ERP Experience
Daniel Muir
Highland Spring Ltd in association with
University of Strathclyde CSM
RPD 01, 30th Jan 2001
Introduction
• About Highland Spring
– UK leading producer & exporter of Natural
Mineral Water
– £25m turnover, 170 employees
– Founded 1979, main site at Blackford plus St
Albans sales office
– About 20 main product groups, 100 variations
– Export to 40+ countries worldwide
Reasons for ERP Project
• Replacement of existing AS400 based, non
Y2K compliant system
• Add functionality
• Introduce integrated manufacturing systems
• Business process focus
• Roll out desktop computing
Why ERP?
• Consistent approach to development of
business requires all functions to input to
that development
• Ensure corporate objectives are properly
understood and achieved through balanced
departmental objectives
• Maximise resources within all functions to
maximise group output and results
The Process
• Created a vision (management team,
University consultancy, support)
• Assembled project team, sub-teams
• Business process review and redesign
• Created ITT for supplier selection
• Phase I implementation – physical system
(server, network), accounting, SOP & stock
• Phase II - manufacturing
The Systems Implementation
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Planning
System configuration
Testing, modification
Prototyping
Parallel running
Go – live
Reporting
How Did It Go?
• Phase I more or less on target for cost & time
• Delayed by data transfer, customisation
• Phase II slower, team structure dissolved, less
focused
• Revealed some problems that had been
unknown, took some time to fix
• Benefits now coming
Results of the project
1996
1999
% Change
Turnover
£19.7m
£25.4m
+29%
Sales / head total
£140k
£144k
+2.6%
Sales / head admin
£615k
£651k
+5.8%
95.7% (1)
+10%
Delivery performance 87%
FG transfer costs
£29.8k (2) £9.3k
-68%
Product Variety
81
+41%
(1)
(2)
January - July 2000
1998 figure
114
Results of the Project
• Improved customer service
• Inventory reduced with stock better
allocated : right product, right place, right
time
• Vast reduction in duplication of effort
• Improved information & reporting
• Internal communications revolutionised
• Positive culture change in company
Future Development
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•
Extend Manufacturing Implementation
Improve Sales Forecasting
Introduce SFDC linked to ERP
Expand Information System to Staff/
Suppliers / Customers through intranet
/extranet / e-business
Key Success Factors
• Work hard at establishing ownership & responsibility
for system within departments and users
• Get “how to” jobs within processes documented
• Manage the perception of what the system will deliver
• Develop internal expertise rather than relying on
vendor consultants
• Be aware of time lag between stages of the process
• Sustain momentum between phases of multi-phase
project
Thanks
Any questions?