EGG PRODUCT BUSINESS GAINS SIGNIFICANT EFFICIENCY IMPROVEMENT WITH STREAMLINED END-TO-END SUPPLY CHAIN

 
A trusted brand at the breakfast table, Sunny Queen Australia wanted to enhance inventory management and improve service delivery in order to offer finest quality fresh farm eggs and egg products to Australians. With Microsoft Dynamics AX, Sunny Queen successfully transformed their integrated supply chain which resulted in significant efficiency gains, enhanced inventory management and increased business visibility.

Founded in 1930, Sunny Queen is now one of Australia’s top egg and egg product suppliers with sales and distribution offices spanning the country.

Sunny Queen’s value-added egg product range is seeing fast-growing demand from a wide range of food service customers. The company is constantly reviewing ways to move products through the supply chain faster, to get them to the supermarket shelves at their freshest. To be truly effective, Sunny Queen knew that it needed to solve its inventory control issues, eliminate manual processes and streamline its end-to-end supply chain. A review of the company’s IT infrastructure revealed a legacy system that could not meet future requirements.

After an extensive evaluation, Sunny Queen decided on Scalable Data Systems and Microsoft Dynamics AX. The solution was a complete end-to-end supply chain, process manufacturing, and distribution model including Scalable’s Electronic Data Interchange (EDI) and Rebates modules along with demand planning, business intelligence (BI) and warehouse automation. In addition, Sunny Queen also decided to virtualise its systems with Microsoft Hyper-V and implementing Microsoft Terminal and Remote Desktop Services to enable remote access to Microsoft Dynamics AX. “Unlike our previous system, Microsoft Dynamics AX is purpose-built to address the unique needs of our industry” says Robert Yarnold, National IT and Communications Manager at Sunny Queen Australia. “As a fully-integrated system, Microsoft Dynamics AX gives us ‘one version of the truth’ across all business functions. We are also assured by its proven robustness and scalability.”

“We are pleased with the service and dedication of Scalable Data Systems, who stationed staff at each of our offices for two-days after system live, to ensure that the system ran like clockwork” adds Mr Yarnold. The first-phase saw the implementation of finance, inventory, sales and trade, with production shortly after while the second-phase included implementation of the RF smart warehouse management solution across Sunny Queen’s six distribution centers.

Effective inventory management is key to Sunny Queen’s success and instead of manually reconciling inventory figures like before, all data is now consolidated at the general ledger, which enhances Sunny Queen’s inventory visibility − from stock received from farms, stock on hand to stock in transit.

With an integrated supply chain, Sunny Queen has successfully eliminated manual processes and streamlined efficiencies. For example, through the use of Scalable’s EDI module, Sunny Queen can now process customer orders faster by electronically sending, receiving and acknowledging customer orders and supplier purchase orders.

Upon receipt of customer orders, warehouse processes automatically generate pick and pack orders on shelves by load, which provides clear instructions to forklift drivers on exact lots for truck loading.

Customers are informed electronically regarding expected delivery dates, and upon customer’s acknowledgement of receipt, the invoice is automatically generated and sent electronically to the customer.

By virtualising its systems with Microsoft Hyper-V and implementing Microsoft Terminal and Remote Desktop Services to enable remote access to Microsoft Dynamics AX, Sunny Queen gained significant efficiency savings. “We have seen significant efficiency gains with virtualisation. We now have a very stable system that delivers peace of mind with its live migration and failover clustering capabilities,” says Mr Yarnold.

With better visibility of customers; historical purchase behaviour, demand planning is now enhanced. “Though we are dealing with hens who cannot be rushed into producing eggs to meet our demand, Microsoft Dynamics AX gives us the enhanced visibility to work with our farms to smooth out the production” adds Mr Yarnold.

Sunny Queen can now automatically tally weekly receipts from its suppliers and generate a recipient created tax invoice, which is sent to the supplier for verification against their records. This means discrepancies are adjusted in the following week’s invoice. Managing rebates and joint-promotions with large retailers is now much simpler using Scalable’s Rebate Management solution. “We are assured that the sales figures captured are accurate. Based on these figures, rebates can now be easily calculated. No time is lost in reconciling our figures against the retailers records, which helps to improve customer service levels and satisfaction” says Mr Yarnold. Sunny Queen also achieves better control when dealing with special pricing requests for in-store promotions. Mr Yarnold adds: “Special rebates can now be easily input into the system for electronic approval. With role-based secured access, we now have full control over rebates and special product costing.”

Sunny Queen’s management can now review business performance in greater granularity by product and region. Delivered margin reports also provide critical visibility into profitability. “Instead of waiting a month to know if we are profitable on certain products, this solution provides real-time visibility into margins and profitability” explains Mr Yarnold. “This enables faster pricing decisions, which increases our responsiveness to dynamic market conditions and empowers us to go-to-market quicker with new products.”