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SAP Customer Reference
Almarai Dairy (KSA)
Desert Dairy at Technologies Leading Edge
Submitted by
Clinton Jones
- Almarai Dairy (October 2003)
Almarai, the largest vertically integrated
dairy company with its headquarters in Riyadh, the Capital,
geographic and commercial centre of the Kingdom of Saudi Arabia,
extends throughout the Arabian Peninsula, leading and influencing
the Agricultural, Dairy Processing and Food Distribution Industries.
Almarai, a household word synonymous with freshness, quality and
service, meaning "green pastures" or "meadow" in Arabic, has a high
profile and is one of the leading brand names in the Arabian
sub-continent. Growth has been largely organic for this business and
accordingly many of the systems in use were developed in house.
The Company commenced operations in Saudi Arabia in 1976. Driven by
the desire - "to fulfil the need to translate up-to-date
developments in agriculture and food industries into practical
activities", Almarai has since grown under the direction of His
Highness Prince Sultan Bin Mohammed Bin Saud Al Kabir, who
recognized the potential to transform traditional dairy farming of
Saudi Arabia to meet the needs of this fast developing country.
Almarai’s activities vary from dairy and arable farming, dairy
processing, to the manufacture, sale, marketing and the distribution
of a wide range of fresh and long life branded dairy products. To
put these activities into the geographic context of the Arabian
sub-continent and to appreciate the challenge which is overcome
daily by the company, one can imagine the parallel of growing forage
in Holland, feeding it to cows in Northern Ireland and placing the
milk on the shelves of Supermarkets in Athens. To further complicate
matters, ambient temperatures can often exceed 50 degrees.
Professionally managed and market driven, Almarai is
administratively divided into three operating Divisions, each with
its autonomous conventional management structures, two central
support divisions and a central Marketing division.
Business Systems in Almarai is a subset of the Finance central
support division. In the past three years the company has seen
double digit organic growth and the consequence of this has been the
fact that the IT infrastructure has had to keep abreast of the
changing demands of the business. Infrastructure was normalised in
2001 to Cisco switched Local Area Networks, Compaq/HP Intel servers
and Compaq/HP desktop computers in anticipation of the roll-out of
SAP R/3 on Compaq/HP Alpha GS and ES series servers in October 2002
to almost all the divisions and across more than a dozen locations.
A WAN infrastructure had to be built using an amazing array of
technologies including Very Small Aperture Terminal (VSAT) Satellite
technology, leased lines, Avaya's Orinoco Wavelan RF networking and
Internet VPNs. One of the biggest challenges say Clinton Jones,
Infrastructure and Technical Support Manager for Almarai, was the
fact that the first world SAP R/3 solution was to be deployed in
locations where one could barely find electricity and telephone
lines let alone enterprise class networking. The local TELCO - Saudi
Telecom struggled to find circuits to accommodate the connectivity
hungry business and accordingly Almarai had to go it alone and build
a private Satellite based WAN which eventually they hope to replace
with conventional copper or fiber optic connectivity through the
local Telco exchange some 30 miles away.
Whilst the new infrastructure and the deployment of SAP to more than
400 users (50% of the user-base in Almarai) represented a real test
of the business' will to commit to technology, next on the list was
the roll-out in Q1 of 2003 of the Intermec 700 series PocketPC based
handheld's for retail van sales of fresh and long-life dairy food
products. The initial pilot of around 25 units in the Saudi coastal
town of Dammam, home to the petrochemical giant ARAMCO was a
resounding success and is now being extended further to include all
remaining 30 depots by the end of Q1 2004.
There's hardly a division within the business that has not been
touched the rolling benefits emanating from SAP demonstrating
improved visibility of inventory, improved profitability reporting
and business process effectiveness. The most recent activities have
included the first phase deployment of Cisco 7900 series IP phones
connected to an AVVID IP Phone infrastructure on the largest and
newest of the Almarai Dairy Farms, home to more than 12,000 Dairy
Cattle. Almarai is currently building another $200M manufacturing
facility on the Almarai Campus near the City of Al Kharj, 135km
south of Riyadh, and this will be home to more than 500 employees
and more than 200 IP Phones. The important elements to us, are
reducing the overall cabling elements and costs in the new building
and adjoining sites, having an internally maintainable
infrastructure that we can maintain without calling on 3rd party
providers and pushing through integration like voice-mail to email
messaging says Jones.
Initiatives for 2004 for the business will include extending the
functionality of SAP by deploying SAP W/M, improving business
intelligence, again through leveraging off information in SAP and
the company's Business Objects data mart and building a resilient
disaster recovery environment to support all the business' IT
infrastructure.
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