Casa Oliveira engaged IBM Global Business Services and IBM Global Technology Services to design, implement and host an environment based on SAP ERP, including Financials (FI), Controlling (CO) Materials Management (MM),Inventory Management (IM) and Sales & Distribution (SD) modules. The SAP ERP solution runs on five IBM System x3650 servers, with IBM System Storage TS3100 Tape Library Express providing backup, managed by IBM Tivoli Storage Manager and IBM Tivoli Continuous Data Protection for Files. Visit http://on.fb.me/LT4gdu to 'Like' the official Facebook page of IBM India Smarter Computing.

1. we know
they know
Casa Oliveira toasts greater business insight
with SAP and IBM Global Technology Services
Overview
 The Challenge Inventory Management (IM) and to alter its marketing strategy and
Accelerated growth put pressure on Sales & Distribution (SD) modules. sales promotions accordingly.
existing sales, purchasing, financial The SAP ERP solution runs on five
and payroll systems at Venezuelan IBM System x3650 servers, with  Key Solution Components
drinks importer Casa Oliveira. A IBM System Storage TS3100 Tape Industry: Wholesale distribution,
lack of integration between these Library Express providing backup, services
processes prevented the company managed by IBM Tivoli Storage Applications: SAP® ERP with
from identifying and acting on Manager and IBM Tivoli Continuous modules including Financials,
opportunities for greater efficiency. Data Protection for Files. Controlling, Inventory Management,
Sales and marketing reports had to Materials Management and Sales &
be generated manually – meaning  The Benefits Distribution
they were time consuming and out Time spent managing orders Hardware: Hosted in an IBM ®
of date upon completion. Casa and associated invoices reduced facility in Venezuela on five IBM ®
Oliveira was unable to adjust stock by 90 percent. Decreased the System x3650 servers with one
levels to match demand, could not proportion of tasks done manually Intel® Xeon® Processor 5400 Series
target sales promotions effectively, from approximately 70 percent processor each, IBM System
and found it difficult to reduce to 10 percent. Tasks that could Storage® TS3100 Tape Library
waste. Other manual processes, previously only be performed once Express.
such as the calculation of tax due every six months (for example Software: IBM Tivoli® Storage
on imported goods, introduced running sales reports) can now be Manager, IBM Tivoli Continuous
the risk of error and associated completed weekly, speeding the Data Protection for Files, Oracle
penalties. flow of management information. database.
Real-time data allows Casa Services: IBM Global Business
 The Solution Oliveira to adjust stock levels to Services – Technology Strategy;
Casa Oliveira engaged IBM Global match customer demand without IBM Global Technology Services
Business Services and IBM Global the expense of importing surplus – Strategic and Application
Technology Services to design, goods or the danger of stock-outs. Outsourcing.
implement and host an environment Information on demand fluctuation
based on SAP ERP, including by season, geographical area and
Financials (FI), Controlling (CO) competitive presence is also now
Materials Management (MM), available, enabling Casa Oliveira

2. “We estimate that SAP Founded in Venezuela in 1962 by were dealing with these all manually,
ERP has enabled us the Portuguese immigrant Américo meaning it could take up to six hours to
Oliveira, Casa Oliveira began as a process a single container.
to cut the number
small company intended to bring the
of tasks performed taste of Portuguese cuisine to the “Employees would generate each
manually from 70 South American country. The company template, make a product-by-product
percent to just 10 evolved to specialize in importing and check, verify current tax rates before
percent. Streamlining distributing liquor, wine, champagne calculating the amount due and then
and other beverages. Headquartered make a note of when it was due to
our processes has
in Boleita Norte, Caracas, Casa Oliveira be paid. This left us vulnerable to
also allowed us to employs 70 people full-time, and human error and the serious penalties
significantly decrease another 50 on a sub-contracted basis. we would incur as a result, as well
overall operation costs, as pushing our operational costs
which we can then Adopting an SAP ERP solution, unacceptably high.”
hosted by IBM Global Technology
pass onto our clients,
Services, has enabled Casa Oliveira Sales, purchases and financial
keeping our products to increase automation across processes were not integrated,
competitively priced.” operations, boosting efficiency and making it difficult for Casa Oliveira to
accelerating processes in a highly gain an end-to-end view of business
Moisés Paula De Sousa, Partner at Casa
competitive market. The company performance. Managers wanted to be
Oliveira
has gained real-time insight into sales able to identify which products were
data, enabling adjustment of supply most popular to maximize revenue,
levels to correspond with demand analyze seasonal variations to help
and making more effective marketing meet customer demand, and highlight
possible. With SAP ERP hosted by IBM, lucrative gaps in the market.
Casa Oliveira has increased agility
and responsiveness, while replacing De Sousa says, “As a wholesale
a number of manual tasks with more distributor, we need to be at the very
cost-efficient and reliable automated forefront of market trends, predicting
processes. what the retailers need to have in
stock before they know it themselves.
Moving towards automated processes However, our previous system was
Many of the management information holding us back, as it was simply
and financial reporting activities at too time consuming and difficult to
Casa Oliveira were manual, such as generate sales reports. Importation
validation of sales reports, individual and transport costs are our biggest
product prices and purchase expenditures, so it is vital for us to
requests. Specifically, calculation estimate demand of a particular
of the tax due on imported goods product as closely as possible,
was performed manually, which was ensuring we import enough to meet
slow and introduced the risk of errors orders while minimizing waste.”
and consequent penalties from the
authorities. Finding the right partner
Casa Oliveira began working with a
Moisés Paula De Sousa, Partner at local software company to develop a
Casa Oliveira, explains, “Working custom-built solution, but the end result
in importation means we encounter did not meet expectations. Instead,
many regulations. For example, when a Casa Oliveira began seeking a tried-
shipment container lands in Venezuela, and-tested commercially available
seven different payment tax templates enterprise resource planning (ERP)
are generated once the invoice is solution, confident that the relatively
presented to customs. Before, we larger investment would yield bigger

3. benefits. The company selected SAP a stable and scalable solution was put “We truly believe
ERP, including Financials, Controlling, into place. Following this, all systems that deploying SAP
Materials Management, Inventory were put into production for the two
ERP on IBM hosted
Management and Sales & Distribution, week ‘joint verification phase’, enabling
running on infrastructure hosted by the IBM Global Technology Services
infrastructure has
IBM. team to calibrate systems to optimize optimized processes at
performance. Finally, the project Casa Oliveira, making
“After looking at similar companies, we entered the ‘stable operation phase’, us faster, more agile
found SAP ERP had a very impressive where IBM began to provide MidRange
and efficient.”
track record of success, and the eXpress hosting for Casa Oliveira’s
kind of functionality and integration SAP environment, which includes Moisés Paula De Sousa, Partner at Casa
we wanted,” says De Sousa. “Rapid a call center to efficiently resolve Oliveira
implementation was a high priority to Level 1 equipment problems; technical
us, and IBM consultants were able hardware support for IT maintenance;
to make strong guarantees based and management of the Microsoft
on long-held experience with similar Windows 2008 operating system, five
projects. days a week, eight hours per day.
“Outsourcing the infrastructure to IBM Capitalizing on the extensive expertise
enables us to enjoy the benefits of the of the IBM consultants, Casa Oliveira
new solution without the cost of training is able to pursue opportunities more
staff,” continues De Souza. “We are proactively, making it easier for
free to focus solely on our primary the company to achieve corporate
business objectives, confident that our objectives and use resources ultra-
IT infrastructure is being maintained by efficiently.
experts in their field.”
Storage is provided by a single IBM
Hosted at an IBM facility in Venezuela, System Storage TS3100 Tape Library
the IBM solution includes five IBM Express. IBM Tivoli Storage Manager
System x3650 servers with Intel Xeon is used for backup and recovery.
Processor 5400 Series processors, This enables Casa Oliveira to be
running the SAP applications in confident the IBM teams responsible
the Microsoft Windows Server for hosting the company’s business
environment, supported by an critical applications are utilizing
Oracle database. The Intel Xeon the sophisticated range of storage
Processor 5400 series is a quad core management capabilities available
CPU with leading performance and with IBM Tivoli solutions. IBM Tivoli TECHNICAL LANDSCAPE
performance per watt advantages. By Storage Manager helps to maximize Servers: Five IBM System x3650
providing the performance headroom business continuity by decreasing servers with one Intel Xeon Processor
needed to confidently consolidate backup and recovery times and 5400 Series processors, 12-16 GB
applications onto fewer systems, the maximizing application availability with RAM and six disks with 73 GB, IBM
Intel Xeon processors help optimize advanced data recovery management System Storage TS3100 Tape Library
return on investment and increase technologies. Administration workload Express
Casa Oliveira’s efficiency and is decreased with the automated Software: IBM Tivoli Storage Manager,
responsiveness. data protection capabilities designed IBM Tivoli Continuous Data Protection
specifically for SAP environments. for Files, Oracle databse, SAP ERP
The project was divided into three with modules including Financials,
stages: firstly, a 16 week ‘transition Deploying IBM Tivoli Continuous Data Controlling, Inventory Management,
phase’, during which IBM Global Protection for Files enables real-time, Materials Management and Sales and
Business Services worked with continuous backup for crucial data, Distribution.
Casa Oliveira to fully understand the running transparently in the background Users: 22 concurrent users of SAP
company’s needs, helping to ensure with a light footprint. The seamlessly

4. integrated IBM Tivoli solution further individual products using the SAP that can also be passed onto our
minimizes the backup and recovery solution - something that would never clients, as we tell them which
window, ensuring Casa Oliveira can have been possible before,” says De products are doing well in the market
restore to point-in-time as required Souza. “Instead of relying on sales that they do not currently carry – a
with data integrity guaranteed. reports compiled every six months that highly popular new capability.
were out-of-date upon completion, Ultimately, we feel that working with
Accelerating business processes managers now have access to weekly IBM and SAP we are well-equipped
Deploying SAP ERP has enabled Casa reports. These include data such for further success and expansion.”
Oliveira to automate and standardize as product demand by client and
many everyday operations, resulting in geographical area. They can also
better use of resources. By increasing track seasonal demand and study
the efficiency of its processes, Casa competitors’ presence in the market
IBM Deutschland GmbH
Oliveira is able to pass on savings to its sector. This has transformed the
D-70548 Stuttgart
customers. responsiveness of our company to ibm.com/solutions/sap
market trends, ensuring we stay at IBM, the IBM logo, and ibm.com are trademarks
of International Business Machines Corporation,
“With SAP ERP, managing orders the front line of a highly competitive
registered in many jurisdictions worldwide. A
and the associated invoices could marketplace. current list of other IBM trademarks is available
on the Web at “Copyright and trademark
not be easier,” comments De Souza.
information” at http://www.ibm.com/legal/
“Now, all payable taxes on an order “Promotions and price-setting are copytrade.shtml
are pre-calculated, a single check is critical to our success, and the SAP Intel, the Intel logo, Intel Xeon and the Intel Xeon
logo are trademarks or registered trademarks of
performed before invoices are passed ERP solution gives us the tools to
Intel Corporation or its subsidiaries in the United
automatically to the accounting wield this weapon as effectively as States and other countries. UNIX is a registered
trademark of The Open Group in the United
department. The time taken for this possible. We are also able to predict
States and other countries. Linux is a trademark
process has been cut, in terms of man demand levels more accurately than of Linus Torvalds in the United States, other
countries, or both. Microsoft, Windows, Windows
hours, by approximately 90 percent ever before, enabling us to order just
NT, and the Windows logo are trademarks of
– a huge advantage for the company. enough to minimize transportation Microsoft Corporation in the United States, other
countries, or both.
Accuracy rates are much higher now costs, whilst avoiding disappointing
Other company, product or service names may
too, allowing us to avoid the cost of customers.”
be trademarks, or service marks of others.
paying penalties to the authorities.
This case study illustrates how one IBM
Opportunities for the future customer uses IBM and/or IBM Business Partner
technologies/services. Many factors have
“We estimate that SAP ERP has Casa Oliveira is able to leverage its
contributed to the results and benefits
enabled us to cut the number of tasks new deeper understanding of the described. IBM does not guarantee comparable
results. All information contained herein was
performed manually from 70 percent marketplace to forge stronger
provided by the featured customer and/or IBM
to just 10 percent. Streamlining relationships with clients. For example, Business Partner. IBM does not attest to its
accuracy. All customer examples cited represent
our processes has also allowed it has been able to offer major clients
how some customers have used IBM products
us to significantly decrease overall the ability to connect directly to the and the results they may have achieved. Actual
environmental costs and performance
operation costs, which we can then SAP ERP solution to track orders, a
characteristics will vary depending on individual
pass onto our clients, keeping our significant value-add that could prove customer configurations and conditions.
products competitively priced.” a key competitive edge for the future. This publication is for general guidance only.
Photographs may show design models.
The company is also currently
© Copyright IBM Corp. 2011. All rights reserved.
Gaining market insight considering implementation of SAP
With integrated SAP ERP solutions, Customer Relationship Management
Casa Oliveira is able to quickly and (CRM), encouraged by the success of
easily gain a comprehensive view the SAP ERP implementation.
of business performance, with real-
time sales order information helping De Souza concludes, “We truly
managers to plan future imports and believe that deploying SAP ERP on © Copyright 2011 SAP AG
SAP AG
more closely match stock levels to IBM hosted infrastructure has Dietmar-Hopp-Allee 16
demand. optimized processes at Casa Oliveira, D-69190 Walldorf
making us faster, more agile and SAP, the SAP logo, SAP and all other SAP
products and services mentioned herein are
“Our marketing department is now efficient. The greater insight into the trademarks or registered trademarks of SAP AG in
able to pull real-time information for marketplace has provided benefits Germany and several other countries.
SPC03306-VEEN-00 (January 2011)