To combat tightening margins, Ornua aimed to improve processing and delivery times by eliminating manual processes from the supply chain. How could it achieve its goal?
Ornua created an integrated, highly automated trading partner integration platform—enabling it to achieve faster delivery times for perishable goods, minimize wastage and protect its margins.
Eliminatesmanual supply chain processes
Speedsonboarding of new suppliers and customers from days to hours
Shrinksthe risk of wastage and protects margins
Business challenge story
Targeting global growth
Operating from 14 subsidiaries worldwide, Ornua has sales and marketing teams working in-market across all four corners of the globe—from Algiers to Beijing to Lagos and LA. Ornua has pre-packing and blending facilities located in Germany, the UK, the USA and the Middle East. Headquartered in Dublin, Ornua exports to over 116 countries with annualized sales of over EUR1.8 billion. The co-operative’s key strategic areas of focus are: brand growth; new product development; in-market expansion; capital expenditure and mergers and acquisitions; and route to market.
Group subsidiaries in the UK, Spain, Germany and North America pack, distribute and market a wide selection of branded products, dairy ingredients and specialty food items of both Irish and non-Irish origin.
At a time when the cost of goods is rising and margins are tightening, companies like Ornua want to help ensure that timely and accurate information is flowing through a centralized supply chain. Due to the perishable nature of its products, it is also important for Ornua to improve processing and delivery times by eliminating manual processes from the supply chain.
With a business community comprised of hundreds of suppliers and customers across 116 countries, Ornua recognized the need to build a real-time, electronic commerce element into its supply chain as a means of growing its global business. As the company moved from a legacy environment to a real-time enterprise resource planning (ERP) system, the challenge was to integrate its diverse range of suppliers and customers with a broad set of requirements, demands, and technology environments.
Streamlining the supply chain
To deliver the targeted flexibility, Ornua selected IBM® Sterling B2B Integrator and IBM Sterling B2B Collaboration Network, enabling full integration with every trading partner. The solution enables Ornua to connect to its trading partners in an efficient, cost-effective way—simplifying and streamlining supplier relationships upstream, and providing comprehensive visibility throughout the supply chain.
With a significant percentage of orders coming through electronic data interchange (EDI), Ornua needed a solution it could trust to handle the flow of information. IBM Sterling B2B Collaboration Network provides Ornua with comprehensive connectivity that simplifies real-time collaboration with suppliers and customers independent of their technical capability.
Today, several departments within Ornua use IBM Sterling B2B Integrator for customer orders, supplier invoices, and stock movements. To support partners with limited technological sophistication, the company supports many transactions through web portal interfaces.
The company is also using IBM Sterling B2B Integrator to support the various integration requirements of its ERP migration project. John O’Moore, General Manager, Information Systems at Ornua, explains: “Instead of ripping and replacing systems, we wanted to create business processes that traverse legacy and varied ERP environments. We selected IBM Sterling B2B Integrator for its proven technology, capable of supporting real-time exchange of data between all parties using a wide range of data formats.”
Cultivating more efficient trading relationships
With IBM Sterling B2B Integrator and IBM Sterling B2B Collaboration Network, Ornua has a solution that manages both direct and indirect communications to build highly effective and efficient trading relationships. By streamlining its supply chain, Ornua is able to onboard suppliers and customers faster—reducing the onboarding process from days to hours, depending upon each customer’s needs.
Ornua has achieved enhanced visibility across its supply chain, enabling real-time tracking and reporting so the company can make faster and better-informed business decisions—helping to minimize errors and create additional efficiencies.
Looking to the future, IBM provides Ornua with a reliable, scalable, and security-rich communications foundation for enhanced global collaboration.
John O’Moore concludes: "Meeting customer requirements is critical and at the forefront of CIO discussions. Integration technology is essential if companies are going to minimize inventory and optimize on-shelf availability. Our IBM solution is sufficiently scalable to meet the future demands of customers and suitably flexible to address our corporate growth plans."
About Ornua – The Home of Irish Dairy
Ornua – The Home of Irish Dairy is an agri-food commercial co-operative that markets and sells dairy products on behalf of its members, and is Ireland’s largest exporter of dairy products. Ornua owns the iconic Kerrygold brand, Pilgrims Choice, Shannongold, MU, Eureka! and BEO milk powder brands.
- Consumer Products: Smarter Supply Networks
- Sterling B2B Collaboration Network