Distribution company Boughey contract Chelford SAP for ERP Deployment in main warehouse sites
29 April 2010
Chelford SAP to roll out SAP software and barcode technology across two warehouse sites for UK's leading ambient grocery distributor, resulting in a full ROI within only two years
Boughey Distribution, the UK's leading ambient grocery distribution and storage specialist, has signed a contract with Chelford SAP, part of the Solarsoft group of companies and one of the top SAP value added resellers in the UK, to deploy SAP and barcode technology - with software from iQlink and Sky Technologies - throughout their main warehouse site in Wardle, Nantwich and their second site in Deeside. The deployment will have a direct positive impact on over 560 staff and will generate its own return on investment (ROI) within two years.
Boughey stores, consolidates and distributes 75,000 pallets of ambient groceries a month, with an average of 140 loads a day going out of the Cheshire facility alone. The main warehouse site in Wardle near Nantwich has space for 100,000 pallets in 700,000 sq. ft. of warehousing space, while in Deeside there is space for another 18,000 pallets. Boughey's clients include Tesco's, Sainsbury's, Princes Foods, AB World Foods which includes brands such as Pataks, Ecover and the Californian pineapple giant Dole.
The SAP deployment will replace a Microsoft AX system. In the last two years, Boughey has grown from a company with space for 63,000 pallet spaces and a turnover of £25 million, to its current size of a further 55,000 pallets and now in the region of £45-50 million turnover. As a result, the flexibility in the Microsoft AX software that allowed Boughey to write new functionality into the warehouse management system as they needed it, actually began to undermine Boughey's effectiveness.
Andrew Clarkson, Finance Director at Boughey Distribution, comments, "While the flexibility in Microsoft AX was a great advantage when we were smaller, as the business has grown we have found that we have actually been inadvertently writing inefficiencies into the software, as our additions have been implemented on an ad hoc basis rather than with a holistic view. We therefore sought out a best of breed software package that would reassure us that we had a solid infrastructure beneath us and onto which we could build our best practice for warehousing and distribution."
Clarkson continues, "The deployment of SAP and the barcode scanning tools will have a dramatic effect on our business as the improved speed and accuracy in the picking, packing and distribution of our customers' goods will provide a boosted confidence in our ability to control the warehouse. Indeed the investment will have paid for itself within two years."