Transforming a Complex Supply Chain
B U S I N E S S I N T E RV I E W
2
Where Supply Chain Management Meets Change Management Patricia Sjauw-Eik, COO – Supply Chain at Amazing Oriental, talks us through the company’s complex supply chain transformation of the last 15 months.
Written by Anna McMahon | Produced by Jennifer Davies
3
Amazing Oriental is the largest Asian supermarket chain in the Netherlands, as well as the biggest importer and exporter of Asian products in Europe.
4
he company has online and offline sales channels, a wholesale business, its own food brands, as well as a chain of restaurants/takeaways. Patricia Sjauw-Eik joined Amazing Oriental as COO – Supply Chain in November 2019. At this time, the company already had big ambitions for growth, but in order to do so, systems needed to be put in place to facilitate and enable it effectively.
their jobs well without the implementation of good systems for operation. I am responsible for the logistics operations and food production, but there was no system at all to enable these operations. Our starting point was to implement a WMS, but when we began looking at this, we needed to find the source of the master data i.e. the ERP system. The company did not have this either, so we made the decision to first implement the ERP and then the WMS.”
Patricia takes up the story; “There were issues with staff being unable to do
A logistics challenge at the time was the fact that there were products arriving
5
6
in the ports, and while the warehouses were full, the shop shelves were empty. Patricia remembers, “We needed to implement an ERP to interface properly with the WMS, but the ordering part was done by the shops. Up to this point, they had a customised POS system to enable them to place their orders. But, these days, a point of sales is no longer just a point of sales – it includes other functionalities. This became the third application. The company had intended to replace the POS, but it was not the initial plan to do everything together. However, without doing so, it would have put a lot of stress on the department to get orders from the shops.” Amazing Oriental overhauled its complex supply chain in just 15 months, with the implementation of the new ERP, WMS and POS systems. The company went live on 1st February with the ERP and WMS, as well as a number of POS systems in the shops. The roll-out of the POS in all 23 shops was completed five months ago. Patricia says, “Any time we have a new shop, we now have 7
WMS or ERP? Six questions to bear in mind
At some point, companies reach the logistical limits of their ERP system in their warehouse as order profiles change, e-commerce orders soar, lead times shorten, volumes grow on the back of booming business, or simply because there are not enough pick locations to accommodate a growing product range. Companies can either procure a new and more feature-packed ERP system with a stock module or switch to a warehouse management system. Read our whitepaper; we will go into six questions that companies need to ask themselves when they get to that point or that can inspire companies to make the right choice. Scan this code
8
the foundations ready. With the new system, the segregation of duties is very clear. You know who is responsible for each task. We have initiated the change in the whole organisation. In a transformation, it is not just about the system, but also about the processes and the people. Before the implementation, people were carrying out jobs that were not supposed to be done by them. When you are driven by a system, with an SAP that has a very strict segregation of duties, you know who is responsible for which task, and whether it is being done well.”
“Locus from Centric was chosen for Amazing Oriental’s WMS solution, and according to Patricia, it is one of the best WMS systems in the supermarket industry” 9
10
“Supply chain is so varied, and there is never a dull moment. We should encourage by example, by being the first to hire women in these jobs”
11
12
Patricia explains how change has taken place across every level of the organisation, from the operators in the warehouse to the executive layer. She says, “Even the executive management has changed in the sense of their responsibilities. These are very clearly defined now, so there is no question of who should take accountability for their respective areas. That has been the first major change, which, of course, filters down to the layers below. People understand that the way they used to work was very hard, and without much results. The implementation has been tough. It has not been an easy journey to
“In terms of what we need, they (Logres) are the best fit for us because the system is strict but flexible”
Ready for an ERP system that makes your software work smoothly together?
13
do everything in 15 months, starting from scratch with collecting all necessary master data and relearning the business process, but you can now see the results. In my operations, we have improved efficiencies and people are coming into work with a smile on their faces.” Change is something that takes time, as everyone had to get used to working in the way that the system wants you to work, as Patricia explains, “It is important because our design principle is that we do not want any accustomization, as it is tedious and expensive. You therefore have to do what the system wants you to do. It is a big change for a company that is 35 years old, where the starters then are the executives today, and many of our colleagues have been here for more than 20 years. They have only known the old way of working. So, you have to accept that it will take time and complaints will come, but the key is not to give in. If you know that what you are doing is right for the company, you should just push on. It takes time to grow an apple into the nice juicy fruit you can enjoy, so it is therefore a 14
15
continuous process for us to keep on improving.” For the ERP, Patricia and her team selected SAP Business One, along with implementation partner, Logres. She adds, “In terms of what we need, they are the best fit for us because the system is strict but flexible. They have a very clear of working, with room for configuration. You get a lot from one package, with a number of addons to choose from.” Locus from Centric was chosen for Amazing Oriental’s WMS solution, and according to Patricia, it is 16
“On 20th May 2021, w kicked off this new b with the logistics co architect and the co an amazing opportun logistics process be itself is designed. It challenging!”
we officially build project onsultant, the ontractor. It is nity to design the efore the building is very exciting and
one of the best WMS systems in the supermarket industry. She continues, “Locus is the WMS system we have selected for our ambient and conditioned facilities, totalling 25,000 square metres. We don’t want to reinvent the wheel ourselves, but learn from others. The approach of our partners is the reason why we have been able to undergo our transformation in 15 months. They know their audience and speak the same language, which means you do not waste valuable time.” So, how do you choose the right partners to accompany and support you on your transformation journey? 17
Patricia answers, “Experience is important, but also knowledge of the industry and a willingness to work with you hand-in-hand. Even when the going gets tough, they never give up. Everyone wanted to make the project a success because it was extremely challenging, not to mention the fact that we were in the middle of a pandemic. We kicked off on 4th March 2020, a week before the Dutch government asked everybody to stay at home to work. It was very tough, and our vendors had never previously implemented anything without visiting the customer. We did all the training online, across a huge group of different users from various departments. It is something that had never been done before.” Regarding Amazing Oriental’s growth plans for the future, Patricia’s lips are sealed, but she can tell us that the company is working on building an XXL warehouse including a new head office. She adds, “On 20th May 2021, we officially kicked off this new build project with the logistics consultant, the architect and the contractor. It is an amazing opportunity 18
to design the logistics process before the building itself is designed. It is very exciting and challenging!” Ending on the subject of gender diversity in supply chain, Patricia says, “We have to show how exciting and interesting it is to work in supply chain. My daughter Pearlsy graduated cum laude and with an honours distinction in mastering supply chain management at RSM, and is now working with me. If I couldn’t convince my own daughter it is interesting, how could I convince other people’s daughters? Women are absolutely capable of working in supply chain – in terms of their communication, their sense of responsibility, and their approach. We have great skills for pulling off big projects. There is so much we can participate in, from demand planning and sourcing, to production and logistics operations. Supply chain is so varied, and there is never a dull moment. We should encourage by example, by being the first to hire women in these jobs.” For further information, visit www.amazingoriental.com 19
www.amazingoriental.com
20