VOLAC Case Study

“CCL have played a crucial role in our ERP replacement project. Their knowledge, objectivity and independent approach has been invaluable during this process, from the initial IT strategy through the selection an ERP vendor to the planning and management of the implementation. CCL’s expertise has been a great help to our team.”

Neville Chapman, Group Finance Director, Volac


CCL was engaged by Volac to develop an IT strategy that would standardise processes and IT systems across the business and its multiple sites. CCL recommended an integrated ERP system and guided Volac through a programme of business process change resulting in better performance monitoring and site performance, significant reduction in administrative effort and costs, and standardised processes across the entire business.

THE CHALLENGE

Volac has seen significant growth over recent years, both organically and through acquisition, and has plans to double in size within the next five years.

Volac’s existing business processes and IT systems were first implemented when the business was far smaller and less complex. Following Volac’s success and growth, their existing systems were ‘creaking at the seams’, and the processes and systems ‘inherited’ through acquisition were various and disjointed across the business.

Volac recognised that it needed to refresh and standardise its processes across the business, and approached CCL to develop and help deliver an IT strategy that was better aligned to the needs of the business and which would support its business growth aspirations.

CCL’S SOLUTION

CCL was first engaged to conduct a comprehensive analysis of the business and existing IT infrastructure at Volac. Key stakeholders, including senior management and representative users across the business, were interviewed in order to establish what IT systems and services were being used and where they were not meeting the current and future demands of the business. A number of options which would address the identified gaps were then analysed. CCL recommended that Volac put in place a modern, corporate wide, integrated ERP system to harmonise and integrate their business processes and reduce the amount of manual administrative effort caused by the current systems. CCL recommended greater emphasis was placed on planning and managing the supply chain more effectively, and that procurement processes were better aligned with the supply chain management, stock control, production and warehousing facilities across Volac’s multiple sites.

The recommendation of an integrated ERP system was accepted by the Board.

Finding the right ERP solution – requirements definition, process transformation, vendor selection and contractual negotiation

CCL started the ERP project by focusing on the key business processes at Volac, helping the company take a fresh approach to business process change. CCL’s approach was to map their existing processes, whilst also in parallel, creating a future business process model that was based on industry best practice and out-of-the-box package software on the market.

CCL worked closely with the team at Volac to develop ‘to be’ process maps for the entire business. These were then checked against existing processes in Volac’s largest production and distribution facility and their Netherlands-based joint venture company DV Nutrition with its state of the art factory, to ensure nothing had been left out.

CCL continued with the ERP system selection exercise by converting the agreed business process maps into a statement of requirements document. These requirements were used to produce an invitation to tender (ITT), which was issued by CCL to a selection of Tier 1 and Tier 2 suppliers.

CCL managed a stringent selection process, including a structured paper review of the ITT responses, demonstrations, reference visits and further iterations of supplier proposals, to ensure the vendor, and system, best suited to Volac’s business was selected. CCL subsequently provided assistance with the negotiation of the contract with the preferred supplier.

Project Management and Assurance – reducing the risk of implementation

In addition to managing the business process change programme at Volac, CCL also planned and managed a staged system implementation, to minimise the impact on the business. This was favoured over a ‘big bang’ approach, which would have been too risky and a drain on resources to implement across all of Volac’s sites in one go. The phased implementation process will take place over a period of 12 months, with the core financial and inventory systems being replaced first, followed by the factory production systems.

CCL also oversees the work undertaken by the vendor to customise the system and manages third party service providers, in order to ensure the timely delivery of the implementation project.

THE CLIENT

INDUSTRY: Food and Beverage

FOUNDED: 1970

SIZE: 240 employees annual turnover in excess of £180M

PROFILE: Volac is a market leader in the application of dairy nutrition, manufacturing and supplying high performance nutrition products around the world. Volac produces nutrition products and feeding systems for the agricultural market, dairy ingredients for human and animal nutrition formulations and high performance nutritional whey proteins.

CCL SERVICES:

  • IT Transformation
  • IT Business Case
  • Requirements Definition
  • Process Transformation
  • Project Management
  • Project Assurance
  • Business Analytics
  • Cyber Security
  • Virtual IT Director

OUTCOMES:

  • Effective, long-term IT strategy fully aligned with business priorities Improved business processes based on industry best practice
  • Fully integrated ERP system bringing together all areas of the business
  • Comprehensive supplier specification and selection process ensured identification of the right IT system for Volac’s business requirements
  • Effective contractual negotiation

BENEFITS:

  • More accurate and consistent management information across the whole business, to enable better performance monitoring and site benchmarking
  • Significant reduction in administrative effort and costs
  • Standardised, more efficient and cost-effective business processes implemented across the whole business
  • Volac’s IT landscape positioned to support future growth of the business

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“CCL’s external, objective perspective meant they could effectively challenge the status quo. This was particularly useful to us during the selection of an ERP vendor. They questioned our thinking and preferences, which made us really consider what it was that we needed from our system – ultimately resulting in the selection of a system better suited to the real needs of the company”

“We have been very impressed with CCL’s efforts during the time we have been working together. Their ability to fit in with our internal team has been invaluable.”

Neville Chapman, Group Finance Director

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