Vreugdenhil Dairy Foods
Every day, millions of people worldwide enjoy dairy and dairy ingredients from Vreugdenhil Dairy Foods. The high-quality and nutritious milk powders are used as ingredients for infant nutrition, for delicious milk in a glass, or as ingredients in the food industry. For example, for the finest chocolate, ice cream, cookies, and culinary applications. They bring you the best of milk!
Vreugdenhil Business Solutions
- SAP Extended Warehouse Management
- SAP Transportation Management
- MES Integration
What does the client say?
We are looking confidently towards the future.
The expiration date of our old system Navision had passed. Aspects such as transportation and production were separated in it. When selecting a new package, we focused on what best suits Vreugdenhil. We wanted an integrated package that allows us to serve customers well. We have a complex supply chain; how do you get that into an ERP package? Furthermore, we were looking for a package that ensures a more disciplined way of working. Another reason was that a large part of the food industry works with SAP, which simplifies collaboration.
Michiel Duim
Supply Chain Director @ Vreugdenhil
Challenges and Solutions
Challenges
- A complex supply chain that allows no room for disruptions.
- Customers worldwide relying on delivery guarantees.
- Highly challenging project conditions, such as the COVID-19 crisis and the seasonal peak of milk production.
Advantages
- SAP S/4HANA provides a single source of truth.
- Increased efficiency and the ability to deliver better service to customers worldwide.
- A significant portion of the food industry uses SAP, facilitating collaboration.
Solutions
- SAP S/4HANA for a standardized approach.
- A closed system that prevents errors and increases efficiency.
- A phased go-live approach of one production facility every three to four weeks with interim evaluation and feedback.
From grass to glass: Vreugdenhil opts for an efficient supply chain with SAP S/4HANA
Out with silos, time for a Single Source of Truth (SSoT)
Previously, the entire process ("from grass to glass") was managed from an outdated ERP system. Business processes were insufficiently integrated and lacked transparency; departments operated as silos and were not aligned. "Aspects like transportation and production were separate worlds. We aimed to transition to an efficient, integrated, and transparent system with minimal error risks," says Albert de Groot, CEO of Vreugdenhil. A well-functioning system with minimal error margin was the challenge. The solution? As a platform, SAP S/4HANA provides a single source of truth and a transparent way of working based on standard processes. Moreover, a large portion of the food industry utilizes SAP solutions, simplifying collaborations. Therefore, the choice of SAP S/4HANA was a logical one for Vreugdenhil. The transition to S/4HANA enables Vreugdenhil to standardize processes and harmonize departments.
A successful phased go-live
The implementation journey was not without its challenges and required a 24/7 mentality with day and night shifts. "Vreugdenhil's supply chain is unique. There is no room for disruptions," says De Groot. "Moreover, the implementation coincided with the peak of milk production in spring. The COVID-19 crisis also didn't make the process any easier. Many people had to work on the project from home." NTT DATA Business Solutions and Vreugdenhil opted for a phased go-live due to the challenging circumstances, a choice that proved successful. One production facility was brought live at a time, with intervals of three to four weeks. During those weeks, experiences and feedback were collected and insights were incorporated into the next production facility.
Early results thanks to standardized workflows
SAP S/4HANA is now running satisfactorily. There are still some efficiency and deepening efforts on the agenda. For example, work is still underway on workflow tooling to expedite the data process around articles, reducing the lead time for creating a new article. Additionally, business intelligence capabilities are being explored, and systems are being integrated to streamline processes on the customer side. However, the implementation is already yielding results for Vreugdenhil. Employees make fewer mistakes, transparency increases, and reports are available in the blink of an eye, making the organization much more efficient and scalable. SAP S/4HANA provides Vreugdenhil with standardized workflows for all departments and links within the entire supply chain.
About Vreugdenhil
Employees: 477
Revenue: €786,000,000
Every day, millions of people worldwide enjoy dairy and dairy ingredients from Vreugdenhil Dairy Foods. The high-quality and nutritious milk powders are used as an ingredient for baby food, for delicious milk in a glass, or as an ingredient in the food industry. For example, for the finest chocolate, ice cream, cookies, and culinary applications. They bring you the best of milk!
