The three Australia and New Zealand subsidiaries of this global company faced increased competition due to the entry of new competitors. It was necessary to improve the customer level of service and reduce the cost of production and administration. The business is highly seasonal and presents complex scheduling problems. The existing information systems were not Year 2000 compliant. In addition, it was necessary to start integrating the organization and services of the three companies, which had been operating independently.

Our principal led the project as financial systems director of the company.

Our plan was to review the economic drivers and identify the benefits stemming from the implementation of SAP R/3 integrated with manufacturing optimization application, I2 Technologies Rhythm as well as other products; and to design a business model for the integration of services and materials management within the 3 companies. We created and trained a project team and started the re-design of the core business processes and the organization of sales and services. Mornington designed the SAP configuration and developed the integration points with I2. There was also a need for a client/server infrastructure; the software was implemented.

The company resolved its year 2000 problem. The business units are gaining benefits in reduced operational costs and improved flexibility. Scheduling optimization benefits in higher plant throughput and lower cost of materials are starting to materialize and will grow in the 12-24 months following implementation, as the algorithms are fine tuned. Delivery time and unit costs will decline, reinforcing the competitive position of this manufacturer.