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KAISA CONSULTING CUSTOMER SUCCESS STORIES:

Food

KFC
AT A GLANCE:

Summary
Ramcar Group of Companies
Implementation Highlights Kaisa Consulting upgrades SAP system to
Simultaneous implementation
(RGC), the franchise holder of
Kentucky Fried Chicken (KFC)
of SAP R/3 across the version 4.7 to enhance business functions.
Enterprise, which comprised
and Mister Donut in the of 55 companies having 83
Philippines, decided that to be plants
able to continue providing
Finger Lickin’ Good food, they Key Benefits Before year 2000, KFC Philippines was using multiple IT
need to improve the ERP • System controls enhanced the solutions to address their corporate requirements.
system in place. Kaisa business controls
Consulting carried out a Because of this, the integrity of the reports became
• Improved GUI improved the difficult to validate and management had a hard time
version upgrade from SAP R/3
version 4.0B to SAP R/3 ease of use
tracking down their stocks. The KFC management could
version 4.7. • With a more systematic
not react as quickly and as timely as they wanted to. The
process in doing stock
Key Challenges reason behind these problems was evident: the systems
transfers, loss of in transit
• Integrate Web-ordering inventory have been reduced could not communicate with one another.
applications and POS Back-
office systems with the ERP • Historical data is readily
• Ease report generation to available to be used as a
improve response time of the forecasting tool In 2004, Kaisa Consulting updated KFC’s enterprise IT
business • Integrity of the reports is structure with SAP R/3 version 4.7 to be able to solve
• Improve system controls intact KFC’s growing problem of misinformation and inaccurate
without compromising the Existing Environment
speed of the process flow reports. The existing version used by KFC at that time
SAP R/3 version 4.0B
• Use historical data in the old was 4.0B and although it drastically helped the fast-food
Database chain in its business functions, it was unable to fully
system as reference points for
forecasting Informix 9.3
support KFC due to increasing demands of the market,
• Users reluctance to change Hardware
expansion projects and new business ventures. KFC
Compaq ProLiant DL580 G2
Project Objective (4 x Intel PIII 2.7 GHz, 3 GB realized that they need to enhance their ERP system to
Enhance the current SAP R/3 RAM) be able to support and be prepared for the ever-changing
system to improve control and Operating System market.
visibility across the Enterprise
Windows 2000 Advanced
Solutions and Services Server
• Business process Why Kaisa Consulting?
re-engineering
• Seamless solutions cater to
• SAP R/3 version 4.7 company’s concerns
• SAP BW 3.0B • Delivers on-time
• IBM’s WebSphere Business
Integration Express Plus 4.3.1 • Unparalleled expertise in SAP
(as the integration tool) 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 Manage-
ment 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 transac-
tions, 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 require-
ments 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 manage-
ment 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. Kaisa’s 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.
KFC’s 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.