The ABO Group, having outgrown its old business management system, has chosen SAP solutions to modernize the management of its business processes. As a result of this investment, ABO has become one of the major SAP users in Hungary.
The Hungarian-based food processing company, which is also present in several other Central and Eastern European countries (namely, Ukraine, Romania, Slovakia and Serbia), deals with fodder and grain production, milling, and stock breeding. The ABO Group recently decided to introduce a new, up-to-date Enterprise Resourse Planning system, to coordinate its business and production activities and to unite the companies within the group. The holding chose HostLogic’s SAP All-in-One based food processing solution. A vitally integral part of the system, which was successfully launched in January, is the Special Food Processes Module developed by HostLogic. This module, which since its debut has been introduced to various other companies, covers the most important functions specially characteristic of food industry, from raw material purchases to the weighing of delivery vehicles, among others.
The new IT background has opened up new possibilities for the group which could not even have been thought of in the previous IT system. The precise segmentation of customers and sales, the careful administration and controllability of work processes, the previously inconceivable precision in the management of materials and stocks all have increased the productivity and marketability of the corporation, which will in turn have a beneficial effect on the activities of its partners and customers.
The most important aim of the introduction of the new system was to reach a high level of standardization and to increase efficiency. Each member company of the group brought with them their unique work systems and traditions; now, with the new SAP-system implemented, these companies can work together in a unified structure.
The unification of these member companies with their different traditions, dissimilar work processes and administrative phases, and their integration into the central system posed a serious challenge to the enterprise as a whole. One of the most important tasks of the introduction was to make about 250 employees as SAP users at the member companies accept the standardization of the processes. In spite of the diversity among the member companies, the implementation of the common template-based solution at the holding level was largely successful.
The system, which cost about 720,000 euros, is one of the most complex SAP-systems implemented in Hungary. Apart from providing a solution to the traditional tasks in business, billing, acquisition, and quality management, the system also covers stock and HR management, and production controlling; moreover, new data warehouse (BI) and CRM functions will be added in the first half of 2008. All of this points towards the development of a complete business intelligence system, which at the same time integrates best practices in international agriculture, food processing, and business management into the system of the corporation and its subsidiaries.
After the implementation is complete, the food processing group has become not only one of the major SAP users, but also one of the most up-to-date participants in the European food markets. Thus, the introduction of SAP at the ABO Group has provided unified and more efficient business processes and standardized administration for the whole organization, and has also made production more cost-effective.
About ABO Group
ABO HOLDING Zrt., which was privatized in 1993, and is mostly owned by Hungarian entrepreneurs, employs 1,600 people. The holding has by now become a major business dealing with grain and fodder production and milling in Central and Eastern Europe (Slovakia, Ukraine, Romania, Serbia). The grain trade division has a storage capacity of almost 700,000 tons, the mills of the holding process about 400,000-450,000 tons of grain a year, and the fodder companies provide complete nutrition solutions for every age group of various farm animals (poultry, swine, cattle, sheep, rabbit).
Annual return from sales: approx. 180 000 000 EUR
Grain acquisition: 800,000-1,000,000 tons/year
Milling: 400,000-450,000 tons/year
Fodder production: 200,000-250,000 tons/year
Number of employees: approx. 1,600
Source: ABO group
March - 2008
20th March 2008