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Amaro Foods achieves full traceability, reducing waste and costs

Using ERP to standardize business processes and move away from manual-paper-based practices

Customer

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Customer Profile

A member of the Libstar Group, Amaro Foods produces and supplies bakery products, including soft rolls, a braai range, croissants, speciality breads, wraps and hot cross buns. Its clients include a leading upmarket retailer as well as a major fast food franchise. With manufacturing facilities in Epping, Montague Gardens and Killarney Gardens in Cape Town, Amaro Foods produces goods of the highest quality, which can be attributed to the skill of its workforce and high quality ingredients.

Their Business Challenge

Amaro Foods needed to standardize its business processes across four business units and move away from manual paper-based practices to a fully integrated solution with live, accurate data.

The Solution

In line with the Libstar Group’s decision to standardize on SYSPRO across its operation, Amaro Foods implemented SYSPRO and the TransLution Production & Warehouse Management system to create a seamlessly integrated solution.

The Outcome

In addition to standardizing its business processes across the four business units to ensure they are consistently followed, Amaro Foods now has full traceability on all its products. The company has also enhanced efficiencies, reduced errors and improved turnaround times.

“I am confident our product quality will keep improving. We can guarantee that our information is live, close our jobs more frequently and identify variances quickly and easily, thereby reducing both waste and costs.”
– Wouter Nel, ICT Manager, Amaro Foods.

The best product at the best price

The seamless integration between SYSPRO and TransLution met all Amaro Foods’ business requirements and ensures its processes and functions work optimally, resulting in the best product at the best price.

Prior to the integration with TransLution, Amaro Foods used SYSPRO purely as a procurement and selling platform. The middle section of the operation was effectively blank, with transactions being recorded manually on pieces of paper. Understandably, the error rate was high and supplying accurate information quickly was a constant challenge.

“We needed to make sense of what products were being made, whether quality standards were being met and what our yields and variances were. First Expiry First Out rules needed to be implemented properly and a lot of functionality had to be added to ensure our product reached the customer in the best possible way,” says Wouter Nel, ICT Manager of Amaro Foods.

Amaro runs four separate sites, each of which operates as a business unit in its own right and is dedicated to a specific aspect of the operation: artisanal breads, par-baked products, flatbreads and gluten-free goods. The flatbreads factory can produce 47,000 wraps an hour and supplies Amaro’s largest wrap customer with 1 million units a week, while sales of hot cross buns top 1.8 million during Easter week. Amaro produces more than 9200 tonnes of products annually.

The implementation of the SYSPRO/TransLution solution enabled Amaro to standardize its business processes across all four business units, ensuring consistency. All transactions are processed in SYSPRO, and one of the objectives of the new solution is to facilitate SYSPRO transactions on the shop floor to ensure the business rules defined in SYSPRO are being adhered to. The shop floor staff are seamlessly guided through the Syspro business rules by the scanner functions ensuring that transactions are completed accurately.

Amaro was also on a major drive to achieve full traceability of its products. “TransLution has given us that from A-Z, backward and forward. Traceability is a critical aspect in the stringent audits undertaken by our clients, and before the solution was implemented this ability was severely lacking,” Nel says.

Tackling implementation challenges with topnotch change management

The implementation was challenging, with four separate sites, manpower shortages, high levels of complexity and the need for multiple, extremely specific rules to ensure recipes are followed correctly. In addition, Amaro’s staff had to transition from a manual system to fully integrated technology.

Nonetheless, the implementation was an outright success. Nel attributes this achievement to the excellent skills of the TransLution implementation team as well as his internal change management team.

“Without the dedication and hard work of our production system controllers, Azra Sheik-Amod and Berenice Thompson, this solution would never have worked,” Nel says. “It is essential to have change managers who own the system and drive it. We could have designed the best system ever, but without them it simply wouldn’t have been successful.”

Grant Wise, General Manager: Africa of TransLution Software, says: “The Amaro project is typical of how we prefer to implement TransLution. We like SYSPRO to be in place so that the business rules can be understood and put in place. Wouter was already getting the business running properly on SYSPRO, so our initial discussions revolved around gaps on the shop floor and ways to enhance efficiencies, reduce errors and improve timelines.”

Rather than adopting a big bang approach, Amaro and TransLution identified one of the plants for a pilot project. Once staff had a better understanding of how to use the solution, the next step was to take it throughout the entire process from purchase orders to data capture – and everything in-between – and finally the finished goods store.

“It’s taken 18 months to two years, with components of the system going live during that time,” Nel says. “We went live end-to-end on 1 January 2023 but will maintain our approach of continuous improvement and ongoing change management. Right now, everybody’s on board and we’re happy with the system. All in all, it was a highly successful implementation.”

Following recipes to a T

In the world of baking, it’s essential to follow each recipe to the last gram and be meticulous about steps such as proving times and oven temperatures. For a professional, high quality bakery like Amaro Foods, it’s even more important.

As a result, there was a strong focus on recipe adherence and product quality. With SYSPRO, Nel and his team can trace back and show the process that was followed compared to the recipe.

“With SYSPRO and TransLution, we have full traceability which ensures a consistent, high quality product every time. It also promotes accountability at specific stages in the manufacturing process and assures our team leaders, supervisors and users that they are receiving the correct information,” Nel says.

Previously, staff on the shop floor had no way of knowing if they were working from an old, incorrect version of a recipe, which caused significant problems with finished products as well as waste. Amaro Foods’ customers expect the highest quality, so the use of expired stock in the products is unacceptable.

“TransLution solved that problem, and I am confident our product quality will keep improving. We can guarantee that our information is live, close our jobs more frequently and identify variances quickly and easily, thereby reducing both waste and costs,” he says.

From a stocktake perspective, the system has added substantial value.

“In the past, it was impossible to do an accurate, timely stocktake, and there were many audit findings,” Nel says. “The traceability capability has made a huge difference in both those areas, to the extent that we now get top marks in our audits.”

Planning ahead

Nel explains that the first priority was to derive transactional value out of the system by managing the monetary movement of stock. The next step will cover the non-transactional information, which focuses on product quality.

“We will be going through every process step-by-step,” he says. “We will be quantifying waste by weight in the baking process and measuring the quality specs of the product. We currently don’t have those measures in place, so it’s critical that we are able to collect that value-adding information.

“We also want to include an Internet of Things project so that we can collect sensor information relating to temperatures, humidity and pH levels. Ultimately, our end goal is a completely paperless factory and warehouse. It’ll be tough, but that’s the dream,” Nel says.

“With SYSPRO and TransLution, we have full traceability which ensures a consistent, high quality product every
time. It also promotes accountability at specific stages in the manufacturing process and assures our team leaders, supervisors and users that they are receiving the correct information.”
– Wouter Nel, ICT Manager, Amaro Foods.

Achieve business success with SYSPRO ERP

SYSPRO is a leading, global Enterprise Resource Planning (ERP) software provider, specializing in key manufacturing and distribution industries. SYSPRO’s ERP solution empowers customers to take the next step – whether it is expanding into new territories, adding new product lines, transforming business processes, or driving innovation.

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