News | September 29, 2006

Old Neighborhood Foods Integrates All Manufacturing Processes And Increases Inventory Visibility With CDC Software's Ross ERP

Use of Ross ERP Increases Competitive Advantage with Improved Operations, Customer Relationships and Cost Savings

Atlanta - Ross Systems, a provider of enterprise software solutions and a division of CDC Software, a subsidiary of CDC Corporation, announced that Old Neighborhood Foods, a third-generation branded and private-label manufacturer of quality meat products, improved operations and customer relationships using CDC Software's Ross ERP solution. The manufacturer has integrated its systems company-wide and gained complete control over all aspects of manufacturing; improved seasonal scheduling and forecasting, and increased inventory visibility.

For more than 90 years, the Demakes family in Lynn, Mass., has been producing meat products with dedication to old-world quality and taste under the Old Neighborhood Foods name. In response to the business' continued growth of 10 percent annually for the past five years, an enterprise solution was needed to accurately manage and track all of its manufacturing, forecasting and costing processes. The company's former legacy system was tailored for food distributors and lacked key manufacturing capabilities, specifically, supporting the company's just-in-time manufacturing methods. In addition, Old Neighborhood Food's warehouse and manufacturing facilities were not in the same location, making it a challenge to keep accurate records of inventory. As a provider with demonstrated knowledge in their business, CDC Software partnered with Old Neighborhood Foods and implemented Ross ERP.

"With Ross ERP as our core system, we have visibility across the entire enterprise, which gives us a competitive advantage in the market," said Peter Katsos, director of MIS at Old Neighborhood Foods. "The underlying Web-based technology platform gives us access to instant information at both of our two facilities. We can now track and compare raw materials to actual product yield measurements automatically, producing an accurate picture of how much raw material is needed for production."

Old Neighborhood Foods also uses Ross ERP for scheduling and forecasting to more accurately meet seasonal demand and improve customer service. The company generally sees a spike in orders during the spring and summer picnicking months, and can now schedule jobs in accordance with orders, meeting demand without producing excess inventory that could go to waste. Ross has enabled better inventory tracking and production planning, saving Old Neighborhood Foods nearly $300,000 in spoiled merchandise alone since the installation of the system. With the Ross ERP in place, Old Neighborhood Foods tracks inventory and plans sales in real-time based on lot expiration.

As a result of the company's increased control over the manufacturing process, Old Neighborhood Foods has more confidence in their production capabilities. Now, it no longer reserves funds on a month-to-month basis to support write offs and can focus on growing the business, increasing the breadth of product offerings, and taking a more aggressive stance against competitors.

"At CDC Software, we continually cultivate business-specific knowledge for each of our customers," said said Beth Berndt, director of industry solutions, focused on the food and beverage sector. "With unparalleled expertise in food processing, we are able to meet Old Neighborhood Food's specific needs, helping their company grow along with their products' popularity. By standardizing on Ross ERP, the company Old Neighborhood Foods has gained the edge it needs to increase efficiency across the organization and move into a leadership position."

SOURCE: CDC Corporation