SAP AT CO OPERATIVE BULK HANDLING LTD. (CBH)

Case Study:2

The Company

• Co-operative Bulk Handling Limited (CBH), Perth, Australia.

• Company website: http://www.cbh.com.au/• Co-operative bulk handling ltd. (CBH) based in Perth,

Western Australia, stores, transports and markets more than 10 million tonnes of grain annually, some 40 percent of Australia’s total production.

• CBH is controlled over by 5700 grower shareholders, and exports around 95 percent of the grain tonnage it produces to more than 20 countries.

The Problem/Situation

• Strategic diversification through corporate acquisitions, development of enhanced services for growers and closer integration with world markets lead to considerable increases in workload for the IT infrastructure.

• In parallel with these changes, senior management took the opportunity to review business processes, looking in particular for efficiencies and cost savings.

• With almost 200 grain receive points, twelve administration offices, four ports and 19 million tonnes of total storage capacity, managing the logistics alone is a complex business.

• The company turned to automation whenever possible to increase efficiency and productivity, to help control staff costs and enhance its ability to respond quickly to customers’ needs.

The Solution and Implementation

• From 1998, CBH adopted SAP R/3 applications for up to 900 users to run the business, combined with specific grain-handling and administrative systems at multiple sites.

• Since practically all operations touched SAP applications at some point, the company settled on SAP software as one of the strategic foundations for CBH.

• The IT team reviewed the – total cost of ownership– new functionality – workload requirements– design of new IT infrastructure

• Goals:– increasing processing efficiency .– response times improvements– automate workflow processes.– speed up the internal information flow

From Legacy to New ERP

• Attracted by the advanced functionality in my SAP ERP software, CBH turned to mySAP ERP.

• Functionalities in mySAP ERP are:– PLM (Project Lifecycle Management)– CRM (Customer Relationship Management)– SCM (Supply chain Management)– SRM (Supplier relationship Management)

SAP R/3 in 1998 at CBH

Now, mySAP ERP at CBH

• Since R/3 was running on AS/400, the initial challenge was to migrate to the Windows environment.

• The company now runs or plans to run financials, controlling, human resources, payroll, maintenance, procurement, sales and distribution, and project management applications.

The Benefits

• Processing speed raised by about 90%.• Transactions that took more than 45 minute to run could be

completed in less than 5 minutes .• With my SAP ERP, CBH has the potential to take advantage of :

– automated report generation and delivery.– with on-screen acceptance and approval.

• Improvement in maintenance program and production planning.

• Now, managers can see the status, approve necessary actions and make informed decisions without the delays .

• The new system also lowered system administration workload and costs.