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DSS case studies
Cerbona Food and Trade Plc.
The Company CERBONA Rt. is one of the most significant Hungarian food industry and commerce enterprises in the country. The company headquarters is located in Székesfehérvár. The legal predecessor of the company was the Fejér County Corn Trading and Milling Industrial Company that was privatized in 1995. 93% of the shares are owned by Cerinvest Kft., in which the company management has majority ownership. The brand Cerbona was introduced in 1988, and the public limited company also took this name. In addition to cereal sales, company activities also cover the manufacturing and sales of ground wheat and corn, morning cereals, snacks, muesli, muesli bars, pasta, and recently baked goods. Most of the products are sold on the domestic market, but the proportion of export is continuously increasing. The company realized a turnover in excess of HUF 10 billion in 2000 and is employing a staff of more than 700. The ISO 9002 quality assurance certificate is a guarantee of the good quality of CERBONA Corp. products.
The Challenge
At the start of 1998, CERBONA has reached a size and magnitude of production where the administrative system used so far was no longer capable of monitoring company processes, partly due to the extensive nature of company activities. The company had 8 sites, some responsible for manufacturing, and some for commerce. International department store chains are crucial for CERBONA making a profit. Keeping in touch with these poses a great challenge for the company: keeping up the supply of merchandise swiftly and without interruption calls for an increasingly tight cooperation between manufacturers and the sales staff. This can only be provided for by utilizing cutting edge IT systems.
Answering to the Challenge
CERBONA choose the MFG/PRO integrated company management system capable of managing an extensive supply network that includes buyers and suppliers to provide for these tasks.
During the first phase of system introduction, in the second half of 1998, ISYS-ON staff installed financial, accounting, inventory management, and sales modules at 46 workplaces located at 6 sites.
Using the logistics modules, the company is implementing order management, delivery control, efficient inventory management, continuous stock level monitoring, and the issuing of more than 60,000 invoices each year.
The fact that the 6 sales locations are connected to the central MFG/PRO system via leased lines to be able to retrieve up to date data shows the level of integration of the system.
During the second phase of system implementation, starting with January 2000, the production management system was introduced, first in the Food Industry Business Unit, and later in the Milling Business unit. As a pilot, some international department store chains are already using the EDI to post their orders to the company.
Starting with October 2000, bakeries were added to CERBONA as a result of a buyout. This meant an additional large quantity of data processing for the IT system and the connection of 3 new sites. The fact that the new business units were integrated within a short period of time without any major difficulties proves the flexibility, well designed structure, and wide range of features of the MFG/PRO, proving that the decision made in 1998 was justified.
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