PT. Nippon Indosari Corpindo (NIC) is improving their Business Operation performance by applying the method, technology, and process designed specifically for the CPG (Consumer Package Goods) industry in the package of SAP Best Practices.
Yusuf Hadi, PT. Nippon Indosari Corpindo’s General Manager, stated that after implementing the special package, the “Sari Roti” and “Boti” producer should be able to improve their information system procedure, simplify and integrate their business process and accelerate their business decision process.
Alex Honki, the Project Manager of PT. Nippon Indosari Corpindo, explained that this project was initiated by the company in an effort to apply change in all of their business aspect in accordance with the company’s vision, mission, target, strategy and values.
“During that time, we were in the ‘comfort zone’ and needed to make improvements, including the information technology system”, stated during the 2007 SAP Summit session.
The vision and mission of NIC are to be the largest and the most profitable bread manufacturer in Indonesia in terms of producing and distributing high quality, healthy, hygienic and halal at an affordable prices for the people of Indonesia.
In regards to the information system technology, NIC is facing a non-integrated business process with voluminous database while most transactions are operated manually through individual programs or system.
NIC selected SAP Best Practices as it was judged to help accelerate the change process. The complete set of the best practices in the industry, the direct benefit from the system implementation, the total cost of ownership, the return on investment rate and low risk were also considered.
The SAP Best Practices used by NIC was the FastCPG design specifically for the CPG industry. This package is the foundation to implement the Enterprise Resource Planning (ERP) with a standard configuration that allows further custom modification.
One of FastCPG’s capability is closely related with operation is providing a Business process flow maps to ease the integration process. FastCPG also includes various business scenario and able to handle multiple data transition from the previous system.
The project implementation of FastCPG was done by PT METRODATA Electronics Tbk for five months plus one month for the support, began on July 31, 2006 and was fully operated on January 2, 2007.
The business benefit of FastCPG implementation is an integrated business process, an easier information technology management system, a better control process, a reduced administration workload and a reduced labor rate of about 1.86% overall.
"In fact, there is a division that can reduce the employee up to 23%. In addition, the supervisor-level employees can focus on the analysis rather than handling the administration and transactions," said Alex.