KAISA CONSULTING CUSTOMER SUCCESS STORIES:
Food
KFC
AT A GLANCE:
Summary
Ramcar Group of Companies
(RGC), the franchise holder of
Kentucky Fried Chicken (KFC)
and Mister Donut in the
Philippines, decided that to be
able to continue providing
Finger Lickin’ Good food, they
need to improve the ERP
system in place. Kaisa
Consulting carried out a
version upgrade from SAP R/3
version 4.0B to SAP R/3
version 4.7.
Key Challenges
• Integrate Web-ordering
applications and POS Backoffice systems with the ERP
• Ease report generation to
improve response time of the
business
• Improve system controls
without compromising the
speed of the process flow
• Use historical data in the old
system as reference points for
forecasting
• Users reluctance to change
Project Objective
Enhance the current SAP R/3
system to improve control and
visibility across the Enterprise
Solutions and Services
• Business process
re-engineering
Implementation Highlights
Simultaneous implementation
of SAP R/3 across the
Enterprise, which comprised
of 55 companies having 83
plants
Key Benefits
• System controls enhanced the
business controls
• Improved GUI improved the
ease of use
• With a more systematic
process in doing stock
transfers, loss of in transit
inventory have been reduced
• Historical data is readily
available to be used as a
forecasting tool
• Integrity of the reports is
intact
Existing Environment
SAP R/3 version 4.0B
Database
Informix 9.3
Hardware
Compaq ProLiant DL580 G2
(4 x Intel PIII 2.7 GHz, 3 GB
RAM)
Operating System
Kaisa Consulting upgrades SAP system to
version 4.7 to enhance business functions.
Before year 2000, KFC Philippines was using multiple IT
solutions to address their corporate requirements.
Because of this, the integrity of the reports became
difficult to validate and management had a hard time
tracking down their stocks. The KFC management could
not react as quickly and as timely as they wanted to. The
reason behind these problems was evident: the systems
could not communicate with one another.
In 2004, Kaisa Consulting updated KFC’s enterprise IT
structure with SAP R/3 version 4.7 to be able to solve
KFC’s growing problem of misinformation and inaccurate
reports. The existing version used by KFC at that time
was 4.0B and although it drastically helped the fast-food
chain in its business functions, it was unable to fully
support KFC due to increasing demands of the market,
expansion projects and new business ventures. KFC
realized that they need to enhance their ERP system to
be able to support and be prepared for the ever-changing
market.
Windows 2000 Advanced
Server
Why Kaisa Consulting?
• SAP R/3 version 4.7
• Seamless solutions cater to
company’s concerns
• SAP BW 3.0B
• Delivers on-time
• IBM’s WebSphere Business
Integration Express Plus 4.3.1
(as the integration tool)
• Unparalleled expertise in SAP
allows effective change in
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Kaisa Consulting Customer Success Story: KFC
Fully integrated system increased visibility across the Enterprise.
The project with KFC involved business enhancements, corporate restructuring,
user training/ re-training, new report requirements, and legacy systems integration
with SAP. With a team of seasoned SAP consultants, Kaisa spearheaded the
challenge. The upgrade turned out to be an overhaul; it addressed everything from
Financial Accounting to Asset Management to Controlling to Materials Management to Sales and Distribution to Production Planning to Customer Service.
Through the joint effort of KFC and Kaisa Consulting, a fully integrated system was
installed and it drastically increased visibility across the enterprise. Data integrity
and reliability became intact. Also with the improved GUI and SAP Enjoy transactions, the users are not burdened to switch from window to window just to post a
simple transaction.
Integrated web-ordering applications and POS back-end systems
with ERP.
At present, there are eighty-three (83) KFC stores nationwide. Stock replenishment
and financial visibility were always the main concerns. A web-ordering system was
put in place and an integration into SAP was established. Replenishment requirements of the stores and kitchens can be viewed by the commissaries through the
MRP system in SAP. This enabled the commissaries to map out their production
and procurement plans more efficiently.
Ease report generation improved response time.
In the fast food industry, everything moves fast. All the departments should be
able to respond quickly to the requirements of the market and of the top management to be able to stay ahead of the game. Some reports were real time and some
were combined with historical data. Most of these reports were not standard, and it
entailed development from the Kaisa team. Kaisa’s solution was to use the readily
available SAP-LES, and SAP Query functionality, and SAP Business Warehousing
(BW) for more complex reports.
Improved system controls without compromising the speed of
process flow.
KFC needed to improve controls in the system and in the business process to
eliminate pilferage and unnecessary losses. New functionalities such as shelf-life
expiration date check, the use of delivery notes for stock transport, and a custom
physical inventory taking transaction among others were introduced to optimize the
flow of goods and to improve stock keeping. The main objective was to make sure
that stocks are delivered on time, of the right type, of the right quantity, and are of
the highest quality.
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Kaisa Consulting Customer Success Story: KFC
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Improved forecasting.
KFC’s Accounting and Purchasing groups were concerned that they might lose
the data of past transactions since these were logged in the old system. This
historical data is used by both groups as reference points for forecasting. Through
SAP BW, Kaisa addressed these concerns and incorporated the live data into the
reports with historical data. Through SAP BW, KFC was able to track price
changes, accounting balances, and other vital information and was able to
compare it with the current data in a seamless way.
Change drives efficiency and profitability.
It is inevitable that in every organization, users might be reluctant to change since
they might be well accustomed to their present system already. However, with the
ever evolving business landscape, it is pertinent that companies upgrade
continuously to be able to keep up with the changing times so as to not get left
behind.
In KFC, they did not expect that their cluttered business process and bad practices
were going to be replaced with a more controlled and structured environment. With
the new Enjoy transactions, enhanced report generation tools, and with more
controls in the system, the users saw that the upgrade in the system made their
load lighter and their business work process more efficient. KFC was able to
increase their annual profits as a result of the information generated by the
upgraded system.
™2006 by Kaisa Consulting. Data contained in this document serves for informational purposes only. National product specifications may vary. These materials are subject to change without notice. Kaisa Consulting shall not be
liable for errors or omissions with respect to the materials.