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Melissa Kikizas shrinks stock levels by 10 percent, boosts cash flow, cuts delivery delays by 20 percent
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
The 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 The 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.
The 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.
Operational Impact
Quantitative Benefit
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