Carozzi implements new SAP functionality to manage its ice cream business.

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Carozzi added a new business to its portfolio: ice cream. This meant a challenge and an opportunity to learn in several areas. One of the areas that faced new demands was logistics, since it was not only necessary to market and distribute ice cream, but also to manage some 15,000 cabinets, the refrigeration machines used in warehouses and supermarkets to maintain the temperature required by ice cream. Novis was selected, for its expert service in both SAP solutions and logistics, to implement a solution that would manage everything that the new line of business required. The project was carried out in a virtual modality.

Empresas Carozzi is a Chilean multinational company specialized in the food industry. Created in 1898, it is today considered one of the most respected mass consumption companies in Latin America. It currently has a total of 11,037 employees and annual sales of US$1,247 million.

Carozzi commercializes a wide variety of products in 18 food categories: flours and premixes, candies and sweets, cereals, pet food, juice concentrates, tomato sauces, rice, pasta, desserts, fruit pulps, powdered juices, chocolates, jams, cookies and snacks, oatmeal, ethnic products, salty snacks, coffee, and others. It has operations in Chile, Argentina and Peru and commercial offices in Paraguay and the United States. It also exports to some 50 countries around the world, including Brazil, Japan, and Mexico.

In mid-2020, Carozzi completed the purchase of the Bresler ice cream brand, acquiring all the company's fixed assets, specifically, all those related to ice cream production, the production plant and machinery. For Carozzi, this purchase represented an opportunity to develop a new category, create synergies with its brands and integrate it into a portfolio of products. In fact, the entry into the ice cream business is in line with the company's strategic objective: to grow in categories in which it is not present, based on traditional brands and high consumer preference.

Diego Méndez Lazo, IT project manager at Carozzi, in charge of the company's logistics projects, tells us a little about the process. “We initially used the applications that came with the purchase of Bresler, but after a short time we evaluated that we required more and better control and management tools, so we researched the market to see what options were available. SAP is our main platform and the first choice when it comes to automating new processes. We talked to companies with similar problems, invited Novis to participate in the tendering process and selected their proposal to take on this challenge, due to their solid experience in the field and the good recommendation of their clients”.

The solution presented by Novis contemplated generating a tool in the ERP SAP that would allow the control of the cabinet, from a mobile device, covering from its purchase, stock control, to the relationship with clients. The process included a series of tasks such
as:

1. Purchase and stock control of the equipment in the warehouse, together with its status. Integrate the model to be in line with the company’s asset purchase practice.

2. Loan request process from the commercial area and its approval instances.

3. Control of equipment in stock and its delivery (dispatch) with its DTE integration component. Equipment information is stored georeferenced and with photographic support.

4. Assignable document and commodatum contract as a printable element, which can be attached as an annex to a document in the system.

5. Also configure the reverse logistics or equipment return process.

In the design of the solution presented to Carozzi, there were two alternatives for processing equipment control in SAP ERP. The first one, using the SD module; the second one, using the Add On ETM.

Both have a common denominator: the equipment master data configuration, using the MM and PM modules. Considering the pros and cons of each alternative, Carozzi selected the first one. The proposed working mode was remote.

We did not want to reinvent the wheel, we hired a solution implementation service, run by expert consultants, who taught us the industry’s best practices and we were adapting to that, to avoid the use of Z programs.

The Novis consulting team did an excellent job, which was characterized by their good treatment and experience, they are very good professionals. We had to make several business decisions and we were grateful for the points of view they gave us.

“There were three key users on the Carozzi project team, and the end users are a group of 60 salespeople throughout the country, who were very happy with the solution provided. On their mobile devices they now have an application designed with SAP Fiori that allows them to receive requests for orders or pickup of cabinets and can then register the delivery or pickup of these in SAP. They have stopped using Excel spreadsheets for management,” concludes Diego Méndez.

The project was carried out in a very complex period for everyone, due to the COVID-19 pandemic. However, “everything was carried out impeccably and it was 100% home office, both in the development of the project, follow-up meetings and functionality testing. We are proud to have been able to meet the client’s needs in all aspects, adapting to the different changes in the original definition of the project, which allowed us to successfully complete the implementation to the satisfaction of Carozzi’s internal clients”.

This project demonstrates once again the efficiency gains of working remotely.

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