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Avicola La Guasima unites its business and expands into new markets with IBM and SAP
The Challenge To create a solid foundation that would support expansion into new markets such as beef production, Venezuelan poultry farming company Avicola La Guasima needed to gain a tighter control of its existing business processes. With no real integration between IT systems within the different business units, it was difficult to gain an accurate overview of operations or enhance operational efficiencies. The Solution Avicola decided to create a standardized set of finance, production and logistics processes managed by SAP ERP, with key performance indicators generated by SAP NetWeaver Business Warehouse and displayed in SAP NetWeaver Portal. Working with IBM Business Partner Amazing Global and SAP Services Partner SofOS, the company built a new IT infrastructure based on IBM Power Systems and storage technologies, and deployed the SAP applications within just seven months. Innovative The Benefits For the first time, all Avicola’s business units have been united with a single set of end-to-end processes: SAP handles everything from changing the recipe for the chicken-feed through to automatic alerts when a delivery truck is lost or stolen. IBM infrastructure provides a highly available, high-performance platform for the solution, using advanced virtualization technologies to maximize energyefficiency and help the company achieve its environmental targets. With the IBM and SAP solution, Avicola has seen its IT management costs decrease by 38 percent, compared to its previous IT landscape. features like geolocation and integration with Twitter enable the company to control its distribution network and protect traveling salespeople and delivery trucks transferring food to farms and poultry to processing plants. Key Solution Components Industry: Consumer products, Industrial products Applications: SAP® ERP 6.0, SAP NetWeaver® Business Warehouse, SAP NetWeaver Portal Hardware: IBM ® Power® 520 Express, IBM System Storage® DS4700 Express, IBM System Storage DS3400 Express, IBM System Storage TS3100 tape library Software: IBM AIX®, IBM Tivoli® Storage Manager, Oracle database Services: IBM Business Partner Amazing Global, IBM Business Partner InfoStore, SAP Services Partner SofOS
“The maintenance contract for the solution is also very costeffective, and the use of IBM Tivoli Storage Manager for SAP backups makes it easy for us to protect our data quickly and reliably.”
Alexander Ryczko, IT Manager, Avicola
Avicola La Guasima started out more than 30 years ago as a small family-run business, and has grown exponentially to become the largest poultry farming company in Venezuela. Its business now covers every aspect of the value chain, from genetics and reproduction through incubation and farming to sales and distribution. Headquartered in Valencia, Venezuela, the company has 2,000 employees, eight distributors, two distribution centers and its own fleet of delivery trucks, which cover 84 sales routes throughout the country. Its chickens produce 11 million eggs every month. “Two years ago, Avicola decided that it needed to modernize its IT infrastructure, and I joined the company to help with that process,” comments Alexander Ryczko, the company’s IT Manager. “We had a situation where different business units used different IT systems, and there was no real integration on a company-wide level. The procurement, sales and distribution chains were not integrated with the production system, which led to situations where one part of the business could accept an order to move some stock, without knowing whether the stock was actually available.
The system offered insufficient monitoring and control of our operations, so it was difficult to get a snapshot of a business process or a sales trend at any given time.” Dealing with rapid business growth Although the company had prospered for many years without imposing strict control over its business processes, the situation was becoming unsustainable. Rapid growth meant that Avicola needed to become more scalable, and the company was also planning to expand its operations into related new markets. To make this possible, Avicola required a more standardized approach to business process management, which could be re-used to support new operational areas, such as beef production – and in turn this required new, flexible, highperformance and scalable IT infrastructure. Avicola evaluated various options before deciding to build a solution around SAP ERP applications. “We didn’t just want a financial management solution – although of course financial management was important,” explains Ryczko. “We wanted something that could manage our entire business from end to end, including procurement, poultry production, quality management and logistics processes as well. SAP ERP was one of the only solutions we saw that could offer the range and scale of functionalities we needed.” Building a high-performance infrastructure “First, however, we needed to establish a technological infrastructure capable of meeting the resource demands of the SAP applications. We asked for proposals from IBM and HP, and IBM’s Business Partner Amazing Global showed that they could really adapt to our needs and build a solution
that was customized for our business. We also had good previous experience of IBM hardware and support, so we were confident that they were the right partner for this project.” Amazing Global helped Avicola purchase the hardware for its new SAP ERP 6.0 and SAP NetWeaver Business Warehouse solutions. The new infrastructure is based on four IBM Power 520 Express servers, each built on the IBM POWER6 processor architecture. The SAP applications and Oracle database were implemented in IBM AIX 6.1 LPARs with help from SofOS, an SAP Services Partner and one of the largest IT consultancies in Venezuela. IBM System Storage DS3400 and DS4700 disk systems support the production and development environments, and backup and recovery processes are handled by IBM Tivoli Storage Manager. With optimized functionality for SAP environments, Tivoli Storage Manager addresses SAP business continuity issues by helping to shorten backup and recovery times and to reduce operational costs and administrative efforts. Meeting environmental objectives “We were able to use the advanced virtualization capabilities of the IBM Power 520 servers to minimize the number of servers we needed – cutting electricity and air-conditioning costs in our data center, and making a significant contribution to the company’s environmental objectives,” comments Ryczko. “Moreover, with the IBM infrastructure in place, we now had a highly available, high-performance platform that would enable us to innovate and really push the SAP environment to its full potential.” The new SAP ERP environment provides a truly end-to-end business
process management solution for Avicola, supporting production and logistics processes such as transport and warehousing as well as monitoring clients’ credit limits using the usual financial accounting and cost controlling functionalities. “Looking at our business processes from end to end, we used to have five, six or seven different systems handling different stages in the process,” explains Ryczko. “Now we just have SAP. To take just one example, let’s look at chicken feed: our nutritionists load recipes into the SAP system, which delivers them to the feed plants, where the ingredients are weighed and mixed and delivered to the farms. The nutritionists can then monitor how much the chickens actually eat, and SAP communicates the data across the entire system. So instead of having different parts of the process take place in completely separate operational units with no communication, we actually have visibility across the whole business.” Innovative integration Looking at logistics processes, Avicola has taken a truly innovative approach by integrating SAP with technologies such as virtual odometers, geolocation and even Twitter. “Our sales teams travel across the country in trucks, delivering our products to customers,” comments Ryczko. “The SAP solution can track the trucks and uses a virtual odometer to record how far they have been driven since their last service, which helps us to schedule maintenance effectively.” Tweeting with SAP “In some areas of the country, there are problems with vehicle theft – so we use geolocation to notify us automatically if one of the trucks
“The IBM and SAP solution gives us much better control over our business processes, and this enables us to adapt in a much more agile way to challenges and opportunities. As a result, we are not only running our poultry business more efficiently – we have also been able to move into the beef, pork and processed food production sector, opening up a whole new world of possibilities for Avicola.”
Alexander Ryczko, IT Manager, Avicola
TECHNICAL LANDSCAPE Servers: IBM Power 520 Express, IBM System Storage DS4700 Express, IBM System Storage DS3400 Express, IBM System Storage TS3100 tape library Software: IBM AIX 6.1, IBM Tivoli Storage Manager, SAP ERP, SAP Netweaver Business Warehouse, SAP Netweaver Portal, Oracle database
leaves its proper territory, or if the truck and its driver have been separated. The drivers can also use Twitter on their mobile phones to give information about their whereabouts and status, and the information goes directly into SAP. We call this solution ‘SAP Habla’ [‘SAP Talks’], and it’s really a useful tool for keeping our drivers, vehicles and cargo safe.” Rapid implementation Even though Avicola has spent time developing these advanced features within the SAP environment, the initial implementation itself was completed within just seven months. “Amazing Global did an excellent job with the infrastructure side of the project, helping us deliver a rapid implementation at a low cost,” says Ryczko. “The maintenance contract for the solution is also very cost-effective, and the use of IBM Tivoli Storage Manager for SAP backups makes it easy for us to protect our data quickly and reliably.” With the IBM and SAP solution, Avicola has seen its IT management costs decrease by 38 percent, compared to its previous IT landscape. This is mainly due to the fact that support for the IBM and SAP technologies is available from local IT companies in Valencia, so Avicola no longer needs to hire expensive consultants from other countries. Moving into new markets Above all, the new IBM server and storage solutions provide a highperformance platform for Avicola’s SAP environment that enables users across the company to collaborate with each other and gain insight from enterprise-wide information – creating a truly ‘joined-up’ business for the first time.
“Our statistics reflect an increase in the availability of critical applications by 6.02 percent. This is quite a high figure, considering that we are comparing critical platforms which operate across the whole business group.”
Alexander Ryczko, IT Manager, Avicola IBM Deutschland GmbH D-70548 Stuttgart ibm.com/solutions/sap IBM, the IBM logo, and ibm.com are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of other IBM trademarks is available on the Web at “Copyright and trademark information” at http://www.ibm.com/legal/ copytrade.shtml Intel, the Intel logo, Intel Xeon and the Intel Xeon logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a trademark of Linus Torvalds in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both. Other company, product or service names may be trademarks, or service marks of others. This case study illustrates how one IBM customer uses IBM and/or IBM Business Partner technologies/services. Many factors have contributed to the results and benefits described. IBM does not guarantee comparable results. All information contained herein was provided by the featured customer and/or IBM Business Partner. IBM does not attest to its accuracy. All customer examples cited represent how some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. This publication is for general guidance only. Photographs may show design models. © Copyright IBM Corp. 2010. All rights reserved.
The combination of SAP applications and IBM hardware is also much more reliable than the previous solution, and overall system availability for critical applications has increased significantly. “Our statistics reflect an increase in the availability of critical applications by 6.02 percent,” says Ryczko. “This is quite a high figure, considering that we are comparing critical platforms which operate across the whole business group.” He concludes: “The IBM and SAP solution gives us much better control over our business processes, and this enables us to adapt in a much more agile way to challenges and opportunities,” concludes Ryczko. “As a result, we are not only running our poultry business more efficiently – we have also been able to move into the beef, pork and processed food production sector, opening up a whole new world of possibilities for Avicola.”
© Copyright 2010 SAP AG SAP AG Dietmar-Hopp-Allee 16 D-69190 Walldorf SAP, the SAP logo, SAP and all other SAP products and services mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries. SPC03294-VEEN-00 (December 2010)
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