Case Study: SAP Implementation in Poultry (Hatcheries) Industry
Live Stock industries that deal with the poultry breeding and feed manufacturing processes. Poultry segment is involved in the production of day old commercial layer and broiler chicks, rearing of commercial broilers, and trading of poultry and poultry related products.
Poultry breeding process includes parents farming of broilers and layers to produce the “day-old-chick (DOC)” and growing them in turn produce the broilers. Breeding Broiler/Layer chicks involves three unique production stages namely, Brooding, Growing and Laying. Each stage is notable specific to time frame say brooding is for 8 ...view middle of the document...
Once the broiler flock has attained an optimum weight it is sent to the processing plants (slaughterhouse) where culling takes place.
Feed Manufacturing- Constitutes the production of variety of feed (starter, pellet, crumble feed etc ;) for the chicks and birds. Utmost care is taken to check the ingredient quality. The formula of the finished feed is changed in accordance with the discretion of the veterinary doctor’s at Breeder farms
Brooding Process- Parent chicks are procured and placed into the brooding sheds. During this the chicks are fed with starter feed, medicines, vaccines etc. The mortality of birds is recorded. The time span of 7- 8 weeks comprise this stage
Growing Process- The birds are transferred to this stage during the 9th week and continue till 24th week. During this the birds are fed with starter feed, medicines, vaccines etc. The mortality of birds is recorded and culls are also noted. In the final phase of this stage birds also give pullets.
Laying Process- The birds get productive during this stage and lay hatch able eggs. The duration of this stage is from 25th week to 68th week. During this the birds are fed with starter feed, medicines, vaccines etc. The mortality of birds is recorded and culls are also noted.
Hatchery Process- The hatch able eggs are transferred from laying farms are subjected to 100% manual inspection. Hatch able eggs are placed in setters for 18 days and rejects are recorded during candling process. Subsequently, on 18th day these eggs are transferred to Hatchers and on 21st day DOC (Day Old Chick) are collected and sold to the farmers
Commercial Farm Process- DOC’s are transferred to the Broiler farms and are monitored for about 6-7 weeks till the birds attain a significant weight. These birds are called as ‘Live birds’. These live birds are then transferred to stock points and slaughters
The customer lacked overall visibility to and reconciliation of inventory management. Material inventories were common for more than one legal entity within the company, making reconciliation of material consumption per entity a huge undertaking at the end of each quarter. There were few controls over intra-company material transactions, making it difficult to follow inventory or materials from one entity to another.
Demand planning and forecasting was also an area lacking integration and enterprise-wide visibility. Unlike Layer chickens, where commitment from the farmers is registered at the beginning of the year and few changes are made, the Broiler market is entirely supply driven. There are no advance commitments from the farmers, who themselves respond to the market.
Customer set out to remedy these problems with the ultimate goal of increasing its operating margin and market share for broiler chicks in the region. To do this it needed a seamless integration of business processes within the organization. It also needed to improve information flow...