Oracle JD Edwards Advanced Pricing Module Case Study
Customer Case Study: Select Harvests Implement JD Edwards Sales & Advanced Pricing Modules by Ndevr.
This is a JD Edwards Advanced Pricing module customer case study which demonstrates how the customer, Select Harvests, were able to reduce costs.
About Select Harvests
Select Harvests is Australia’s largest vertically integrated nut and health food company with core capabilities across: Horticulture, Orchard Management, Processing, Sales and Marketing.
They are one of Australia’s largest almond growers and the country’s leading manufacturer, processor and marketer of nut products, health snacks and muesli to the Australian retail and industrial markets, in addition to exporting almonds globally.
Oracle JD Edwards Advanced Pricing Project Background
While Select Harvests will ultimately move all their operations to a single JD Edwards EnterpriseOne platform, as it has underpinned their global business for a few years, this project involved the implementation of an extensive list of modules across the supply chain. The big focus was on the order to cash process of customer orders with the sales and advanced pricing modules used extensively in conjunction with advanced warehousing.
The sales module was able to handle even the most sophisticated scenario, such as the customer selling goods from one company but shipping them from another, using intercompany orders. It was also able to cater for a very specific requirement, not uncommon in the food industry, of enforcing minimum shelf life days at sales order entry.
The functionality is flexible enough to allow different minimums to be set up for different customer groups in line with their requirements. It was also possible to temporarily bypass the usual minimum in instances where stock was short dated and customers were willing to accept them.
Being able to enforce this requirement using standard functionality meant that customisations of advanced warehousing programs, which was initially anticipated, were not necessary. It also became easier to integrate EDI orders, which account for the bulk of the company’s retail sales, allowing them to know what could and could not be fulfilled before acknowledging the order with the customer. It implied that, in most instances, orders would be able to be fulfilled according to what has been acknowledged to the customer.
JD Edwards Advanced Pricing, A Platform for Growth & Flexibility
All their pricing needs, including pricing for transfer orders, are handled using the advanced pricing module. This includes any trade terms contracted individually with customers (for instance, as a discount off an invoice or as rebates). The solution is not only functional but was also designed so that, from an accounting perspective, it allows for future growth within that line of business. It also allows the customer to be able to attribute any promotional costs to the relevant brand for samples orders.
JDE Advanced Pricing Reduces Costs
One of the customer’s main warehouses is managed by a 3PL provider, where one of the cost components is determined by how picking is done, whether in full or partial pallets. Costs are reduced when partial pallets are avoided. The Advanced Warehousing module was able to achieve that, by prioritising picking in full pallets over partial pallets (provided the quantity ordered permitted this). Because Advanced Warehousing is fully integrated with the other distribution modules, it also ensures that the “minimum shelf life days” requirement is enforced while picking lots with the lowest expiry dates.
A Single Source Of Truth
With all operations now moved to JDE, Select Harvests now have a single source of truth, with processes streamlined and consistent across the business, without the need for the internal IT team to support users across two different systems. Effective dates allow the setup of price and / or discount changes in the future, ahead of time, something the customer was not able to do with the old system.
As users became more familiar with the system, they were able to appreciate the way it works and gradually move on to have any information that could help them improve the level of service. It also provides the perfect foundation to build on for any reporting needs.
For Further Information about this project, or Oracle’s Advanced Pricing please contact us.