• Tweet this Share on Facebook Share on LinkedIn Share on Google+ Email

Explore how other customers are generating value with SAP technology.

More customer stories ›

Customer Snapshot

The Happier the Herd, the Sweeter the Milk

Hamra farm in Sweden has

~200

milking cows, and visitors are welcome!

 

Dairy always tastes better when it comes from a happy cow. The world leader in full-service dairy farm supply, DeLaval, helps farmers maintain and milk animals in a way that increases profits and ensures animal comfort. But providing great service in over 100 countries meant improving supply chain transparency and global coordination. With the SAP Business One and SAP Event Management applications, DeLaval can better serve the world’s dairy farmers and their cows.

 

Company

DeLaval International AB

Headquarters

Tumba, Sweden

Customer Website

www.delaval.com

 

Revenue

€955 million

Number of Employees

4,415

Implementation Partners

---

Line of Business

Supply Chain

Industry

Industrial Machinery & Components

Featured Products

SAP Enterprise Resource Planning, SAP Event Management, SAP Business One, SAP Supply Chain Management

History

130 years of dairy perfection

                  

  • 1883AB Separator (later DeLaval) was founded
  • 1894AB Separator acquired Hamra Farm in Tumba, Sweden, which became a test and demonstration center
  • 1911The company organized the first International Dairy Congress in Hamra, Sweden
  • 1961A new factory was inaugurated in Tumba, Sweden, and new investments made Hamra a world-leading development and training center
  • 1963AB Separator changed name to Alfa Laval AB
  • 1991Tetra Pak purchased Alfa Laval AB, creating Alfa Laval Agri
  • 2000Alfa Laval Agri became DeLava
  • 2004DeLaval equipped 200 Chinese villages with milking centers
  • 2005A new cooling tank factory was inaugurated in Wroclaw, Poland
  • 2010DeLaval surpassed the 2,500 mark for feeding stations sold in a single year

Business Model

One cow or a hundred

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-delaval-serving-farms-of-every-size-everywhere-vidcj1083.mp4
  • 488
  • 275

Serving farms of every size, everywhere…

Whether a farm has one, one hundred, or tens of thousands of cows, DeLaval solutions and services help turn dairy farms into cutting-edge dairy operations the world over. IT plays a key role in making that happen by linking markets together and providing common processes and a unified way of working.

Success Strategy

Leading the herd

As DeLaval continues its global expansion, the dairy industry is becoming ever-more competitive. Unified operations and global data access and control are critical. With the help of continued investments in IT, DeLaval intends to stay well ahead of the herd. This means more farmers achieving sustainable, profitable milk yields, ensuring high-quality milk and food production, and improving life for animals and milkers alike.

 

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-delaval-serving-farms-of-every-size-everywhere-vidcj1083.mp4
  • 488
  • 275

Quick into the market...

The Challenge

Disharmony in the system

When running a global manufacturing, distribution, and services company, unified systems and processes are a must across all regions and business units. But smaller entities within DeLaval were running disparate ERP systems that made data consolidation difficult and complicated the harmonization of reporting and intercompany processes.

 

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-delaval-serving-farms-of-every-size-everywhere-vidcj1083.mp4
  • 488
  • 275

Unified systems are a must…

A perfect example was the need for a standardized order management system that would enable transparent order tracking right through to DeLaval’s customers. On-time-in-full (OTIF) delivery to the end customer is crucial, but can be difficult given the complexity of DeLaval’s supply chains.

 

“External suppliers, our own factories, various freight forwarders, our own order management, the sales offices, and, of course, our customers are all involved in our fairly complex project business. Since our systems tend to be customized, the components are brought together from several countries using a mix of transport flows to various consolidation points and then shipped to the customers…We wanted to move away from conventional track and trace to processes that were as standardized as possible worldwide. And we needed a single application that would notify us proactively about defined events at specific times.”

– Christian Wreth, Supply Chain Manager of Supply Chain Development, DeLaval International AB

Enter SAP

Turning and returning to the best solutions

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-delaval-serving-farms-of-every-size-everywhere-vidcj1083.mp4
  • 488
  • 275

Addressing issues of disparate ERP systems…

A long-time user of SAP solutions, DeLaval uses the SAP ERP application at all its distribution centers and larger entities. To address the issue of disparate ERP systems at its smaller operating units, DeLaval worked with SAP to establish a two-tiered strategy that combined SAP ERP with the SAP Business One application.

 

To standardize order management, DeLaval chose the SAP Event Management application. Not only is the application accessible online, allowing internal and external partners to access and process information simultaneously, it also provides comprehensive monitoring capabilities to keep close track of deliveries and freight costs. Plus, several orders from one customer can be coordinated at the project level.

The SAP Experience

Timely and dependable delivery

From its global rollout of SAP Business One to the planning, implementation, training, and user support for SAP Event Management, DeLaval can count on SAP to deliver projects quickly and efficiently. Fully committed to project success, the SAP Consulting organization has provided DeLaval with an integrated approach that helped ensure that SAP Event Management would deliver all the required process improvements. And DeLaval is now running SAP Business One in South Korea, Colombia, Turkey, India, and Ukraine, with plans to continue rolling out to newer markets.

 

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-delaval-serving-farms-of-every-size-everywhere-vidcj1083.mp4
  • 488
  • 275

10 weeks to go live with SAP Business One in a new market

“One of the great things about SAP Business One is that it is quick to implement. From decision to go-live is no more than 10 weeks – and that’s tremendous.”

– Steve Woodgate, Business Integration, DeLaval International AB

Running Better

 

“In addition to the excellent collaboration with SAP Consulting during the project, the on-time completion was a highlight. We were able to present the functionality of SAP Event Management live to our management with answers in real time and over the Internet.”

– Andreas Kästner, IT Project Manager, DeLaval International AB

Benefits

Bundles of business benefits

Lower costs, thanks to better coordination of customer projects. Faster response times in the event of disruptions in the supply chain, thanks to automatic alerts. Mapping of processes in the standard system. And, last but not least, high acceptance among users.

 

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-delaval-serving-farms-of-every-size-everywhere-vidcj1083.mp4
  • 488
  • 275

Faster decisions thanks to the central product catalog

Now every DeLaval operation running SAP Business One is connected to SAP ERP via the central product catalogue. The result is accurate master data that can be accessed across all business entities. And selective reporting by operation gives users faster access to the information they need, reducing manual administration and accelerating business decisions.

 

96% faster financial reporting cycles,
from 4 weeks to 24 hours

With SAP Event Management, DeLaval can map the key stages of a logistics process running on the SAP Supply Chain Management application, seeing issues like delays early on.

 

Faster response times

in the event of distruptions in the supply chain, thanks to automatic alerts

 

Greater transparency

in the order management and supply processes

 

 

 

Improved data quality

and support for continuous monitoring using direct interfaces between SAP ERP, the SAP Business Warehouse application, and SAP Event Management

 

Lower costs

thanks to better coordination of customer projects

High

user acceptance

 

Mapping

of processes in the standard system

 

Journey Ahead

Always sharpening the competitive edge

As DeLaval continues to expand the safe, sustainable, and humane production of milk around the globe, they will continue to rely heavily on their partnership with SAP. From continued rollouts of SAP Business One to deployments of SAP Event Management in China and Russia, the company will stay ahead of the game and on the cutting-edge of technological innovation, so DeLaval’s customers can do the same

 

That means better dairy products and oh so many more happy, healthy cows!

Related Links