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Supply Chain Solution For Canpac International

MEDIACOM-RELEASE-CANPAC

Supply Chain Solution For Complex Canpac International

CANPAC International has laid the foundation for the successful $160 million merger of NZ Dairy Packers and Dairy Containers with the implementation of leading edge supply chain business solutions from Motherwell Information Systems.

When the two Hamilton-based companies' merger went live after an intensive ten-week implementation project on June 1, as the newly formed CANPAC International, they did so with the very latest in supply chain business solutions.

CANPAC International, now 100 percent owned by the NZ Dairy Board, employs a $700,000 manufacturing process system designed and implemented by Motherwell Information Systems Ltd, Auckland. The new system, built around Renaissance CS core modules, streamlines the manufacture, packaging and delivery of CANPAC's extensive range of dairy products and specialised nutritional products. The logistics of CANPAC's operations are complex with many different packaging sizes, formats, labelling information and language requirements.

CANPAC has over 500 product lines and fifty brands of products are packed into cans - printed in 12 different languages - destined for export markets. Milk powders, blended products, infant formulae, nutritional and nutraceutical products are all packed using the most sophisticated integrated production systems to ensure the final product is delivered on time, in full and in specification. A CANPAC account manager is now able to handle all aspects of any customer requirement, from order to artwork, despatch, inventory status, scheduled production times, shipping options and availability of materials.

"We've taken a huge leap forward into information technology, putting us at the leading edge of the global marketplace," says CANPAC International General Manager Gordon Lewis. "From being previously perceived as five years behind, we are now right up in front with business solution and supply chain systems."

"We selected Motherwell to implement our new process following their performance on our initial ERP implementation/integration project, which came in on time and on budget. They demonstrated their reliability and integrity through their ability to fit in with our people and they truly understood our business needs," says Mr Lewis.

The benefits of Motherwell's manufacturing supply chain IT solution include a reduced planning cycle for CANPAC International- from days to hours - access to quality planning information and improved responsiveness to change. Computerised shop floor integration allows CANPAC to track (through bar coding systems) the arrival on a truck of the raw product, through processing to the filling of cans and the despatch and delivery of product.

The new system allows forecasting up to 16 months ahead - a big bonus when one of the thorny issues for Dairy Packers in the past has been the ability to place orders with sufficient lead time to meet export delivery dates,( especially for tinplate to make the steel cans and milk powder that is produced seasonally).The manufacturing process includes printing of labels in over 12 languages, forming and welding can bodies, and manufacturing the variety of ends demanded by customers. The scale of the production and export markets is illustrated by the fact that CANPAC even has its own pre-press department for the film work and label applications.

"The new information technology employed by CANPAC is having a huge impact on the quality of financial, management and operational information available to the staff", says Mr Lewis.

The Information Services Team of four is lead by Kevin Wilson who has managed the whole transition from a custom built solution to a fully integrated suite including RF bar coding and shop floor synchronisation.

"We now receive information directly and can adapt our manufacturing and packing lines accordingly. Our MRP - - manufacturing resource planning - system captures planning, and scheduling information and conveys that to operating staff in a live environment, "says Mr. Wilson.

Motherwell consultants, led by project manager Michael Diver, are currently part of CANPAC's IT team which is also now in the pilot stage of an e-business project. Stage one involves using a CANPAC customer as a guinea pig for six months. Instead of relying on faxes and time distorted telephone calls, the customer is able to e- mail orders via an extranet, check updates have been enacted and see the whereabouts of their order in the production schedule.

It is envisaged the e-business system will allow for product tracking, inventory replenishment and interactive pricing.

CANPAC INTERNATIONAL FACTS * CANPAC has four milk powder packaging lines operating 24 hours a day five days a week.Each line can pack more than one size of can giving CANPAC the ability to handle changes in mix without compromising delivery times. * All can filling takes place in a strictly regulated and environmentally controlled critical hygiene area. * Over 50,000 tonnes of premium products are packed each year for distribution to over 60 countries around the globe. * CANPAC has New Zealand's largest, most sophisticated, blender of dry ingredients.

Ends

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