Hungarian food processing company – international standards. 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 business management 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 200 employees (the future 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 fullest 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 will 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.
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. 45 billion HUF
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
HostLogic is a Gold Channel Partner of SAP in Hungary, offering complete SAP-based business solutions, stable IT systems, consultancy, system administration and application support as hosted services for over 10 years. HostLogic was the first in Central and Eastern Europe and ninth in Europe to become an "Advanced SAP Hosting Partner.”
Since 2004 the company has been awarded each year as winner with the largest number of SAP licence sales or the largest number of new clients.
As director Péter Fárizs says, the company’s leading position that it has now had for five years is the result of the special services it provides in Hungary and the Central and Eastern European region, most importantly, its technological background which makes it possible to implement its systems as application service provisions and hosting constructions for SME’s. The company offers special industrial SAP solutions to the food, wholesale, retail and IM&C sectors.
24th Februar 2009
RUGET Hungary - manufacturing
" Ferrero Hungary decided to rely on an external SAP service partner, HostLogic, to increase internal efficiency and flexibility – by taking advantage of HostLogic’s focus on SAP technology and experience in SAP hosting and application management services. Thanks to this partnership, Ferrero people can free up quality time for core business activities."
Director, Project Management Office
"The SAP implementation was planned on a template developed in Malaysia however it was not in compliance with Hungarian accounting regulations and commercial practice. We needed an experienced Hungarian consulting partner for the localization project. The competence and expertise of HostLogic’s consultants were outstanding which made a smooth go-live possible."
"We needed a flexible, professional partner with international experience in SAP operation, business consulting and implementation. We have had several projects so far, all of these were fulfilled precisely according to the contract. In my opinion HostLogic is a client oriented, reliable partner, who offers complete professional services for affordable prices. I can recommend HostLogic to anyone who wants to support its business processes with a correct IT partner."
Lufthansa Technik Budapest Kft./
"Taking everything into account I think hosting service is much more cost effective than operating your own system. In my opinion hosting is not a luxury service. If there is no extreme situation and need, like for a special research company, it is luxury to build up and run your own professional and experienced IT department for SAP operation. We have been partnering with HostLogic for 8 years, and now we renewed our contract again for 4 years more. I think this is someting that can best show our satisfaction with both the SAP system and the Hosting service."
IT and investment manager
"We needed to find a professional IT company to separate and take over the operation of our SAP system in Hungary. Finally we chose HostLogic, becuase we felt it is the company who can provide the best support for such a company, who is not very familiar with IT. HostLogic very quickly saw through our claims and offered us a complete professional service for the operation of our SAP. Compared to the high level of service, their proposal was so competitive we could not choose anyone else."
“With the introduction of hosting services we did save some costs; however, there are other, non-financial benefits that are more important. Employee work loads have decreased, and our data are stored with maximum security, which is a significant aspect. Also, there are no production shortfalls because of system downtimes. With the hosting services we are more relaxed than if we ourselves had to operate our system."
Kabai Táp Zrt./
"The SAP program makes it possible to introduce business process modules gradually. Thus, in 2008 we expanded our IT functionalities with the help of HostLogic: our sales team was tied into our integrated system by way of a PDA network. With the introduction of our mobile sales system our salespeople can work with up-to-date and accurate data, and our sales managers receive similarly accurate and up-to-date information from our sales representatives."