Avicola unites its business and expands into new markets with IBM and SAP


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This white paper is an IBM case study. To create a solid foundation that would support expansion into new markets such as beef production, Venezuelan poultry farming company Avicola La Guasima needed to gain a tighter control of its existing business processes.Working with IBM Business Partner Amazing Global and SAP Services Partner SofOS, the company built a new IT infrastructure based on IBM Power Systems and storage technologies, and deployed the SAP applications within just seven months.

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Avicola unites its business and expands into new markets with IBM and SAP

  1. 1. we know they knowAvicola La Guasima unites its business andexpands into new markets with IBM and SAP Overview The Challenge features like geolocation and  Key Solution Components To create a solid foundation that integration with Twitter enable the Industry: Consumer products, would support expansion into new company to control its distribution Industrial products markets such as beef production, network and protect traveling Applications: SAP® ERP 6.0, SAP Venezuelan poultry farming salespeople and delivery trucks NetWeaver® Business Warehouse, company Avicola La Guasima transferring food to farms and SAP NetWeaver Portal needed to gain a tighter control of poultry to processing plants. Hardware: IBM ® Power® 520 its existing business processes. Express, IBM System Storage® With no real integration between  The Benefits DS4700 Express, IBM System IT systems within the different For the first time, all Avicola’s Storage DS3400 Express, IBM business units, it was difficult business units have been united System Storage TS3100 tape library to gain an accurate overview of with a single set of end-to-end Software: IBM AIX®, IBM Tivoli® operations or enhance operational processes: SAP handles everything Storage Manager, Oracle database efficiencies. from changing the recipe for the Services: IBM Business Partner chicken-feed through to automatic Amazing Global, IBM Business The Solution alerts when a delivery truck is lost or Partner InfoStore, SAP Services Avicola decided to create a stolen. IBM infrastructure provides a Partner SofOS standardized set of finance, highly available, high-performance production and logistics processes platform for the solution, using managed by SAP ERP, with key advanced virtualization performance indicators generated technologies to maximize energy- by SAP NetWeaver Business efficiency and help the company Warehouse and displayed in SAP achieve its environmental targets. NetWeaver Portal. Working with With the IBM and SAP solution, IBM Business Partner Amazing Avicola has seen its IT management Global and SAP Services Partner costs decrease by 38 percent, SofOS, the company built a new IT compared to its previous IT infrastructure based on IBM Power landscape. Systems and storage technologies, and deployed the SAP applications within just seven months. Innovative
  2. 2. “The maintenance Avicola La Guasima started out more The system offered insufficient contract for the solution than 30 years ago as a small family-run monitoring and control of our business, and has grown exponentially operations, so it was difficult to get a is also very cost- to become the largest poultry farming snapshot of a business process or a effective, and the use of company in Venezuela. Its business sales trend at any given time.” IBM Tivoli Storage now covers every aspect of the value Manager for SAP chain, from genetics and reproduction Dealing with rapid business growth backups makes it easy through incubation and farming to sales Although the company had prospered and distribution. Headquartered in for many years without imposing strict for us to protect our Valencia, Venezuela, the company has control over its business processes, data quickly and 2,000 employees, eight distributors, two the situation was becoming reliably.” distribution centers and its own fleet of unsustainable. Rapid growth meant delivery trucks, which cover 84 sales that Avicola needed to become more Alexander Ryczko, IT Manager, Avicola routes throughout the country. Its scalable, and the company was also chickens produce 11 million eggs every planning to expand its operations into month. related new markets. To make this possible, Avicola required a more “Two years ago, Avicola decided that it standardized approach to business needed to modernize its IT process management, which could be infrastructure, and I joined the company re-used to support new operational to help with that process,” comments areas, such as beef production – and Alexander Ryczko, the company’s IT in turn this required new, flexible, high- Manager. “We had a situation where performance and scalable IT different business units used different IT infrastructure. systems, and there was no real integration on a company-wide level. Avicola evaluated various options before deciding to build a solution The procurement, sales and distribution around SAP ERP applications. chains were not integrated with the production system, which led to “We didn’t just want a financial situations where one part of the management solution – although of business could accept an order to move course financial management was some stock, without knowing whether important,” explains Ryczko. “We the stock was actually available. wanted something that could manage our entire business from end to end, including procurement, poultry production, quality management and logistics processes as well. SAP ERP was one of the only solutions we saw that could offer the range and scale of functionalities we needed.” Building a high-performance infrastructure “First, however, we needed to establish a technological infrastructure capable of meeting the resource demands of the SAP applications. We asked for proposals from IBM and HP, and IBM’s Business Partner Amazing Global showed that they could really adapt to our needs and build a solution
  3. 3. that was customized for our business. process management solution for “The IBM and SAPWe also had good previous experience Avicola, supporting production and solution gives us muchof IBM hardware and support, so we logistics processes such as transport better control over ourwere confident that they were the right and warehousing as well as monitoringpartner for this project.” clients’ credit limits using the usual business processes, and financial accounting and cost this enables us to adaptAmazing Global helped Avicola controlling functionalities. in a much more agilepurchase the hardware for its new SAP way to challenges andERP 6.0 and SAP NetWeaver Business “Looking at our business processes opportunities. As a result,Warehouse solutions. The new from end to end, we used to have five,infrastructure is based on four IBM six or seven different systems handling we are not only runningPower 520 Express servers, each built different stages in the process,” our poultry business moreon the IBM POWER6 processor explains Ryczko. “Now we just have efficiently – we have alsoarchitecture. The SAP applications and SAP. To take just one example, let’s been able to move intoOracle database were implemented in look at chicken feed: our nutritionists the beef, pork andIBM AIX 6.1 LPARs with help from load recipes into the SAP system,SofOS, an SAP Services Partner and which delivers them to the feed plants, processed food productionone of the largest IT consultancies in where the ingredients are weighed sector, opening up aVenezuela. and mixed and delivered to the farms. whole new world of The nutritionists can then monitor how possibilities for Avicola.”IBM System Storage DS3400 and much the chickens actually eat, and DS4700 disk systems support the SAP communicates the data across Alexander Ryczko, IT Manager, Avicolaproduction and development the entire system. So instead of havingenvironments, and backup and different parts of the process takerecovery processes are handled by place in completely separateIBM Tivoli Storage Manager. With operational units with nooptimized functionality for SAP communication, we actually haveenvironments, Tivoli Storage Manager visibility across the whole business.”addresses SAP business continuityissues by helping to shorten backup Innovative integrationand recovery times and to reduce Looking at logistics processes,operational costs and administrative Avicola has taken a truly innovativeefforts. approach by integrating SAP with technologies such as virtualMeeting environmental objectives odometers, geolocation and even“We were able to use the advanced Twitter.virtualization capabilities of the IBMPower 520 servers to minimize the “Our sales teams travel across thenumber of servers we needed – cutting country in trucks, delivering ourelectricity and air-conditioning costs in products to customers,” comments TECHNICAL LANDSCAPEour data center, and making a Ryczko. “The SAP solution can track Servers: IBM Power 520 Express, IBMsignificant contribution to the the trucks and uses a virtual odometer System Storage DS4700 Express,company’s environmental objectives,” to record how far they have been IBM System Storage DS3400 Express,comments Ryczko. “Moreover, with the driven since their last service, which IBM System Storage TS3100 tapeIBM infrastructure in place, we now had helps us to schedule maintenance librarya highly available, high-performance effectively.” Software: IBM AIX 6.1, IBM Tivoliplatform that would enable us to Storage Manager, SAP ERP, SAPinnovate and really push the SAP Tweeting with SAP Netweaver Business Warehouse, SAPenvironment to its full potential.” “In some areas of the country, there Netweaver Portal, Oracle database are problems with vehicle theft – so weThe new SAP ERP environment use geolocation to notify usprovides a truly end-to-end business automatically if one of the trucks
  4. 4. leaves its proper territory, or if the truck “Our statistics reflect anand its driver have been separated. increase in theThe drivers can also use Twitter on availability of criticaltheir mobile phones to give informationabout their whereabouts and status, applications by 6.02and the information goes directly into percent. This is quite aSAP. We call this solution ‘SAP Habla’ high figure, considering[‘SAP Talks’], and it’s really a useful that we are comparingtool for keeping our drivers, vehicles critical platforms whichand cargo safe.” operate across theRapid implementation whole business group.” IBM Deutschland GmbHEven though Avicola has spent time D-70548 Stuttgart Alexander Ryczko, IT Manager, Avicoladeveloping these advanced features ibm.com/solutions/sapwithin the SAP environment, the initial IBM, the IBM logo, and ibm.com are trademarks of International Business Machines Corporation,implementation itself was completed registered in many jurisdictions worldwide. Awithin just seven months. The combination of SAP applications current list of other IBM trademarks is available on the Web at “Copyright and trademark and IBM hardware is also much more information” at http://www.ibm.com/legal/“Amazing Global did an excellent job reliable than the previous solution, and copytrade.shtmlwith the infrastructure side of the overall system availability for critical Intel, the Intel logo, Intel Xeon and the Intel Xeon logo are trademarks or registered trademarks ofproject, helping us deliver a rapid applications has increased Intel Corporation or its subsidiaries in the Unitedimplementation at a low cost,” says significantly. States and other countries. UNIX is a registered trademark of The Open Group in the UnitedRyczko. “The maintenance contract for States and other countries. Linux is a trademarkthe solution is also very cost-effective, “Our statistics reflect an increase in the of Linus Torvalds in the United States, other countries, or both. Microsoft, Windows, Windowsand the use of IBM Tivoli Storage availability of critical applications by NT, and the Windows logo are trademarks ofManager for SAP backups makes it 6.02 percent,” says Ryczko. “This is Microsoft Corporation in the United States, other countries, or both.easy for us to protect our data quickly quite a high figure, considering that we Other company, product or service names mayand reliably.” are comparing critical platforms which be trademarks, or service marks of others. operate across the whole business This case study illustrates how one IBMWith the IBM and SAP solution, Avicola group.” customer uses IBM and/or IBM Business Partner technologies/services. Many factors havehas seen its IT management costs contributed to the results and benefitsdecrease by 38 percent, compared to He concludes: “The IBM and SAP described. IBM does not guarantee comparable results. All information contained herein wasits previous IT landscape. This is solution gives us much better control provided by the featured customer and/or IBMmainly due to the fact that support for over our business processes, and this Business Partner. IBM does not attest to its accuracy. All customer examples cited representthe IBM and SAP technologies is enables us to adapt in a much more how some customers have used IBM productsavailable from local IT companies in agile way to challenges and and the results they may have achieved. Actual environmental costs and performanceValencia, so Avicola no longer needs opportunities,” concludes Ryczko. “As characteristics will vary depending on individualto hire expensive consultants from a result, we are not only running our customer configurations and conditions.other countries. poultry business more efficiently – we This publication is for general guidance only. Photographs may show design models. have also been able to move into the © Copyright IBM Corp. 2010. All rights reserved.Moving into new markets beef, pork and processed foodAbove all, the new IBM server and production sector, opening up a wholestorage solutions provide a high- new world of possibilities for Avicola.”performance platform for Avicola’sSAP environment that enables usersacross the company to collaboratewith each other and gain insight from © Copyright 2010 SAP AG SAP AGenterprise-wide information – creating Dietmar-Hopp-Allee 16a truly ‘joined-up’ business for the first D-69190 Walldorftime. SAP, the SAP logo, SAP and all other SAP products and services mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries. SPC03294-VEEN-00 (December 2010)