Service Type: Governance, Strategy and Operations
Project: End-to-End ERP and Commodity Management System Mandate
Context:
A privately-held manufacturer of foodstuffs and ingredients, operating across the entire food cycle from grain transportation via rail and truck to branded finished goods, faced a challenge of outgrowing its existing financial reporting and commodity supply chain systems. The platforms for commodity supply, ERP interfaces, logistics, manufacturing, and commodity risk management lacked integration, leading to manual processes to bridge the gaps. This disjointed approach hindered the company’s ability to expand revenue profitably and resulted in the misallocation of working capital.
Approach & Results:
A multidisciplinary team was assembled, comprising experts in commodity hedging, financial management, and system providers. The objective was to identify tailored solutions to streamline and integrate business processes while enhancing risk and supply chain management. Vine Advisors collaborated to identify a solution capable of seamlessly integrating various processes, including physical grain purchases, hedge instruments, bulk and branded product sales, inventory management, and financial reporting encompassing key income statement and balance sheet data. Opting for a cloud-based solution not only reduced in-house IT costs but also facilitated broader stakeholder deployment.
The outcome was a comprehensive solution that provided timely financial reporting, efficient inventory and price management, and streamlined product delivery to multiple markets. Additionally, it enabled the management and optimization of bank and credit lines, contributing to improved operational efficiency and profitability for the company.
