Center NTWICK 1C completed implementing solution ": Milk plant 8" in Kirov Dairy Company LLC

June 11, 2015. The Center for Scientific and Technical Services and Consulting company reported^[1] about end to a vnedreniyaa of industry solution "1C: Milk plant 8" in Kirov Dairy Company LLC. A system helped to adjust control of all production stages and sales of dairy products. As a result work planning of production divisions improved, the regular supply of production is adjusted by raw materials and materials, equipment downtimes are reduced. Development and the statement of new compoundings became simpler, accurate observance of specifications on production is provided. The company could strengthen control of profitability of release and exclude unprofitable sales. Orders of buyers are processed more quickly, products underdeliveries are significantly reduced. The loyalty of buyers to the company increased that positively affected dynamics of sales.

Choosing a Solution

Earlier for operational and production accounting in the company spreadsheets and paper documents were used, and in an information system only aggregated data were registered. It was difficult to manage utilization of capacity and to control work of the logistic centers. The information system which would allow to increase efficiency of production planning became necessary for the enterprise, to optimize work of a warehouse, to accelerate processing of the entering orders and shipment of goods to buyers. Besides, it was required to strengthen control of settlement with suppliers and customers.

As the software product for the solution of assigned tasks the industry solution "was selected by 1C: Milk plant 8". Company TSNTWICK became the partner in implementation.

Project Progress

In only six months a system was unrolled in 50 workplaces. A system was brought into commercial operation at the same time in all key divisions of the company - on production, in service of sale, accounting, economic department, purchasing department, in a warehouse.

Key results of the project:

• Processing orders of buyers became simpler and accelerated. Requests of network clients and budget organizations can be loaded quickly into a system from spreadsheets or on the Internet according to the standard of exchange of the electronic documents EDI (ElectronicData Interchange) now. It excluded need of data entry manually, reduced quantity of errors when forming orders. Thanks to fast and exact data transmission on EDI approval of orders of buyers significantly accelerated. As a result orders are executed more precisely and quickly, products underdeliveries to buyers significantly decreased. The customer loyalty to the company raised.
• On the basis of information on the arrived orders the production service can precisely define for what release of products it is necessary to spend the arrived raw materials when and how many products it is necessary to move on a finished goods warehouse. It significantly improved quality of planning of production and helped to optimize utilization of capacity. On formation of the summary order for production three times less time leaves now.
• Using a new system the department of supply timely creates supplier orders taking into account current demands of production. The equipment downtimes connected with untimely supply of raw materials, packaging and other materials are as a result excluded.
• Operating control behind production at each stage of technology process is adjusted. Development and the statement of new compoundings became simpler, accurate observance of specifications on production is provided. Strict observance of the developed specifications is provided. There was an opportunity to estimate compliance of the actual consumption of raw materials and materials to the set standards. In case of above-standard expenses it is possible to outstrip now precisely at what production phase it occurred and to take measures for prevention of similar situations in the future. Losses from an excessive consumption of raw materials decreased.
• Accuracy and speed of cost accounting of products increased. There was an opportunity to analyze cost value under the articles and places of emergence of costs. It helps to reveal reserves for cost reduction and to control profitability of release. In case of the change in price at suppliers the manager can quickly adjust the selling price of products now and avoid unprofitable sales.
• Control of settlement with buyers is strengthened. In a system the Stop shipment mode which is specially developed for the enterprise which allows to reveal automatically the moments when arrears of the buyer exceed maximum permissible value is implemented. If the arrears share in the total amount of debt of the partner makes more than 10%, then shipment is blocked already at a stage of obtaining the request from the buyer. The stop shipments mode also automatically, at the time of a payment receipt on the checking account or in cash desk of the enterprise is turned off. As a result growth of arrears is stopped, the number of unpaid shipments of products significantly decreased that positively affected dynamics of sales.
• Formation of the management reporting accelerated. The management had an opportunity to quickly control work of the enterprise at all stages - from revenues to the plant of milk before payment of finished goods by buyers.

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