IBM Case Studies Melissa Kikizas shrinks stock levels by 10 percent, boosts cash flow, cuts delivery delays by 20 percent

Edit This Case Study Record

	Melissa Kikizas shrinks stock levels by 10 percent, boosts cash flow, cuts delivery delays by 20 percent IBM

Melissa Kikizas shrinks stock levels by 10 percent, boosts cash flow, cuts delivery delays by 20 percent

IBM

Technology Category	Analytics & Modeling - Real Time Analytics Application Infrastructure & Middleware - Database Management & Storage Infrastructure as a Service (IaaS) - Private Cloud
Applicable Industries	Food & Beverage
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Inventory Management Supply Chain Visibility
Services	Cloud Planning, Design & Implementation Services System Integration
Challenge	Melissa Kikizas, a pasta and semolina producer, was looking to reduce inventory levels across its warehouses in Greece to unlock significant financial benefits. However, the company was concerned about the risk of under-stocking. The company operated multiple warehouses across Greece to serve its domestic and international markets. The company realized that reducing inventory levels in its warehouses had the potential to unlock significant financial benefits. However, it needed to identify the optimal quantity of stock at each of its warehouses, and orchestrate its manufacturing and distribution processes to ensure that it delivered the right quantities of products at the right time. Previously, the company relied on a series of non-integrated systems to manage its businesses, which led to inefficiencies. Read More
About Customer	Melissa Kikizas S.A. is a producer of pasta and semolina, handling everything from grinding the wheat to delivering the finished branded foods. The company was founded in 1947 and is headquartered in Athens, Greece. It employs 220 people and generates annual revenues equivalent to approximately USD 80 million. The company distributes over 50,000 tons of pasta per year to thousands of retailers in Greece and across the European Union. As its business thrived in domestic and international markets, Melissa Kikizas wanted to maximize the financial benefits of growth. To serve its customers effectively, it operates a number of satellite warehouses across Greece. Read More
Solution	Melissa Kikizas deployed end-to-end business processes based on SAP ERP software hosted in an IBM private cloud. This enabled the company to identify and maintain the optimal stock levels at each of its warehouses. The company, working with a team from IBM Global Business Services, replaced manual business processes with an integrated, automated approach, supported from end-to-end by SAP ERP applications. From a single point of control, the company can plan, manufacture and deliver optimal quantities of stock to each warehouse – ensuring it can fulfill every sales opportunity without over-stocking. The SAP software runs in a private cloud on high-performance IBM Power 720 Express servers, with IBM DB2 database software. The company uses a single, integrated system to manage all of its business processes – from the production of raw materials to the delivery of goods to its customers. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Real Time Analytics

Application Infrastructure & Middleware - Database Management & Storage

Infrastructure as a Service (IaaS) - Private Cloud

Applicable Industries

Food & Beverage

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Inventory Management

Supply Chain Visibility

Services

Cloud Planning, Design & Implementation Services

System Integration

Challenge

Melissa Kikizas, a pasta and semolina producer, was looking to reduce inventory levels across its warehouses in Greece to unlock significant financial benefits. However, the company was concerned about the risk of under-stocking. The company operated multiple warehouses across Greece to serve its domestic and international markets. The company realized that reducing inventory levels in its warehouses had the potential to unlock significant financial benefits. However, it needed to identify the optimal quantity of stock at each of its warehouses, and orchestrate its manufacturing and distribution processes to ensure that it delivered the right quantities of products at the right time. Previously, the company relied on a series of non-integrated systems to manage its businesses, which led to inefficiencies.

About Customer

Melissa Kikizas S.A. is a producer of pasta and semolina, handling everything from grinding the wheat to delivering the finished branded foods. The company was founded in 1947 and is headquartered in Athens, Greece. It employs 220 people and generates annual revenues equivalent to approximately USD 80 million. The company distributes over 50,000 tons of pasta per year to thousands of retailers in Greece and across the European Union. As its business thrived in domestic and international markets, Melissa Kikizas wanted to maximize the financial benefits of growth. To serve its customers effectively, it operates a number of satellite warehouses across Greece.

Solution

Melissa Kikizas deployed end-to-end business processes based on SAP ERP software hosted in an IBM private cloud. This enabled the company to identify and maintain the optimal stock levels at each of its warehouses. The company, working with a team from IBM Global Business Services, replaced manual business processes with an integrated, automated approach, supported from end-to-end by SAP ERP applications. From a single point of control, the company can plan, manufacture and deliver optimal quantities of stock to each warehouse – ensuring it can fulfill every sales opportunity without over-stocking. The SAP software runs in a private cloud on high-performance IBM Power 720 Express servers, with IBM DB2 database software. The company uses a single, integrated system to manage all of its business processes – from the production of raw materials to the delivery of goods to its customers.

Impact #1	With tight control and full visibility of every process, the company has streamlined its manufacturing and distribution processes.
Impact #2	The company prepares granular business intelligence reports using the SAP Business Warehouse application, and offers its decision-makers real-time dashboards with information on year-on-year sales performance, order forecasts and more.

Impact #1

With tight control and full visibility of every process, the company has streamlined its manufacturing and distribution processes.

Impact #2

The company prepares granular business intelligence reports using the SAP Business Warehouse application, and offers its decision-makers real-time dashboards with information on year-on-year sales performance, order forecasts and more.

Benefit #1	10 percent reduction in stock levels in satellite warehouses improves cash flow.
Benefit #2	20 percent reduction in shipping delays ensures timely customer deliveries.
Benefit #3	25 percent cost-avoidance achieved by deploying SAP solutions in the cloud instead of on-premise.

Benefit #1

10 percent reduction in stock levels in satellite warehouses improves cash flow.

Benefit #2

20 percent reduction in shipping delays ensures timely customer deliveries.

Benefit #3

25 percent cost-avoidance achieved by deploying SAP solutions in the cloud instead of on-premise.

Download PDF Version

Overview

Melissa Kikizas shrinks stock levels by 10 percent, boosts cash flow, cuts delivery delays by 20 percent

Operational Impact

Quantitative Benefit