KAISA CONSULTING CUSTOMER SUCCESS STORIES: Food

KFC
AT A GLANCE:
Summary
Ramcar Group of Companies (RGC), the franchise holder of Kentucky Fried Chicken (KFC) and Mister Donut in the Philippines, decided that to be able to continue providing Finger Lickin Good food, they need to improve the ERP system in place. Kaisa Consulting carried out a version upgrade from SAP R/3 version 4.0B to SAP R/3 version 4.7.

Implementation Highlights
Simultaneous implementation of SAP R/3 across the Enterprise, which comprised of 55 companies having 83 plants

Kaisa Consulting upgrades SAP system to version 4.7 to enhance business functions.
Before year 2000, KFC Philippines was using multiple IT solutions to address their corporate requirements. Because of this, the integrity of the reports became difficult to validate and management had a hard time tracking down their stocks. The KFC management could not react as quickly and as timely as they wanted to. The reason behind these problems was evident: the systems could not communicate with one another.

Key Benefits
System controls enhanced the business controls Improved GUI improved the ease of use With a more systematic process in doing stock transfers, loss of in transit inventory have been reduced Historical data is readily available to be used as a forecasting tool Integrity of the reports is intact

Key Challenges
Integrate Web-ordering applications and POS Backoffice systems with the ERP Ease report generation to improve response time of the business Improve system controls without compromising the speed of the process flow Use historical data in the old system as reference points for forecasting Users reluctance to change

Existing Environment
SAP R/3 version 4.0B

Database
Informix 9.3

Hardware
Compaq ProLiant DL580 G2 (4 x Intel PIII 2.7 GHz, 3 GB RAM)

Project Objective
Enhance the current SAP R/3 system to improve control and visibility across the Enterprise

Operating System
Windows 2000 Advanced Server

In 2004, Kaisa Consulting updated KFCs enterprise IT structure with SAP R/3 version 4.7 to be able to solve KFCs growing problem of misinformation and inaccurate reports. The existing version used by KFC at that time was 4.0B and although it drastically helped the fast-food chain in its business functions, it was unable to fully support KFC due to increasing demands of the market, expansion projects and new business ventures. KFC realized that they need to enhance their ERP system to be able to support and be prepared for the ever-changing market.

Solutions and Services

Business process re-engineering SAP R/3 version 4.7 SAP BW 3.0B IBMs WebSphere Business Integration Express Plus 4.3.1 (as the integration tool)

Why Kaisa Consulting?

Seamless solutions cater to companys concerns Delivers on-time Unparalleled expertise in SAP allows effective change in

www.kaisa.com

Kaisa Consulting Customer Success Story: KFC

www.kaisa.com

Fully integrated system increased visibility across the Enterprise.

The project with KFC involved business enhancements, corporate restructuring, user training/ re-training, new report requirements, and legacy systems integration with SAP. With a team of seasoned SAP consultants, Kaisa spearheaded the challenge. The upgrade turned out to be an overhaul; it addressed everything from Financial Accounting to Asset Management to Controlling to Materials Management to Sales and Distribution to Production Planning to Customer Service. Through the joint effort of KFC and Kaisa Consulting, a fully integrated system was installed and it drastically increased visibility across the enterprise. Data integrity and reliability became intact. Also with the improved GUI and SAP Enjoy transactions, the users are not burdened to switch from window to window just to post a simple transaction.

Integrated web-ordering applications and POS back-end systems with ERP.

At present, there are eighty-three (83) KFC stores nationwide. Stock replenishment and financial visibility were always the main concerns. A web-ordering system was put in place and an integration into SAP was established. Replenishment requirements of the stores and kitchens can be viewed by the commissaries through the MRP system in SAP. This enabled the commissaries to map out their production and procurement plans more efficiently.

Ease report generation improved response time.

In the fast food industry, everything moves fast. All the departments should be able to respond quickly to the requirements of the market and of the top management to be able to stay ahead of the game. Some reports were real time and some were combined with historical data. Most of these reports were not standard, and it entailed development from the Kaisa team. Kaisas solution was to use the readily available SAP-LES, and SAP Query functionality, and SAP Business Warehousing (BW) for more complex reports.

Improved system controls without compromising the speed of process flow.

KFC needed to improve controls in the system and in the business process to eliminate pilferage and unnecessary losses. New functionalities such as shelf-life expiration date check, the use of delivery notes for stock transport, and a custom physical inventory taking transaction among others were introduced to optimize the flow of goods and to improve stock keeping. The main objective was to make sure that stocks are delivered on time, of the right type, of the right quantity, and are of the highest quality.

Kaisa Consulting Customer Success Story: KFC

www.kaisa.com

Improved forecasting.
KFCs Accounting and Purchasing groups were concerned that they might lose the data of past transactions since these were logged in the old system. This historical data is used by both groups as reference points for forecasting. Through SAP BW, Kaisa addressed these concerns and incorporated the live data into the reports with historical data. Through SAP BW, KFC was able to track price changes, accounting balances, and other vital information and was able to compare it with the current data in a seamless way.

Change drives efficiency and profitability.

It is inevitable that in every organization, users might be reluctant to change since they might be well accustomed to their present system already. However, with the ever evolving business landscape, it is pertinent that companies upgrade continuously to be able to keep up with the changing times so as to not get left behind. In KFC, they did not expect that their cluttered business process and bad practices were going to be replaced with a more controlled and structured environment. With the new Enjoy transactions, enhanced report generation tools, and with more controls in the system, the users saw that the upgrade in the system made their load lighter and their business work process more efficient. KFC was able to increase their annual profits as a result of the information generated by the upgraded system.

2006 by Kaisa Consulting. Data contained in this document serves for informational purposes only. National product specifications may vary. These materials are subject to change without notice. Kaisa Consulting shall not be liable for errors or omissions with respect to the materials.