At Danish Crown, CIO Elo Bromer is waving the conductor’s baton to create greater harmony in digital investments. One of the goals is to save DKK 800 million a year on procurement by optimizing and centralizing processes. It will also enable better use of best practice and rapid implementation of new solutions at the group’s many factories.
Numerous digital service inspections and optimizations are currently taking place at Danish Crown’s factories in Denmark and abroad. Everything from financial processes to KPIs in sales and production is being reviewed and brought into line with best practice. So just as there is only one right way to cut a pork chop, there will also be only one right way to post an expense or order goods from a vendor.
"The goal is to save DKK 800 million a year on procurement by optimizing and standardizing all our procurement processes, which requires significantly better IT support. We’re using a digital setup with online catalogs, which provides a full overview and makes it very easy to do things the right way. At the same time, we’re working on streamlining our financial information so we get better flows for settling accounts. This means better processes, compliance and releases resources for other work," says Elo Bromer, CIO at Danish Crown.
New Chinese factory up and running in record time
The increased focus on standard solutions has paid off, among other things, in the construction of Danish Crown’s new factory in China.
Here, everything ran smoothly, so the building was ready in less than two years and under budget. In such a modern manufacturing facility, there is a very high degree of automation, all of which has to be run by Danish Crown’s factory IT. And because over time it has been standardized to a relatively high degree, the plant was up and running in record time:
"We’ve gradually standardized our factory IT to such a high degree that we can start talking about off-the-shelf products and building blocks. So now we can more or less take the different solutions we need off the shelf, scale them to the relevant task and click them together. This means we can get solutions up and running simply and quickly with fewer errors than we’ve seen before, and of course it’s also much cheaper," says Elo Bromer.
Focus on implementation
Although the standard solutions and strict control bring benefits, some parts of the organization do not have the skills to take full advantage of them. In these cases, it may be necessary to adjust our ambitions, says Elo Bromer:
"It’s important to focus on the implementation of new IT so that the people who will be using the systems can actually use and maintain them themselves. So the bottleneck can easily become the ability of the business resources to make use of our solutions. For example, we’ve developed a production system where we can record the yield relative to the quality of the raw materials and changes in the dressing percentage. It’s a difficult task that requires a lot of data, and it’s something that the small organizations can’t handle. So we have to find a less advanced solution for them."
Digital facts about Danish Crown
- Danish Crown is involved in a number of product development partnerships with suppliers and retail customers. For example, high-quality pork without antibiotics for Salling Group. This can be done by getting to grips with data and through control, documentation and traceability across the production line.
- The core of Danish Crown’s digital setup is SAP, which the online catalogs are reflected in. A large part of the future optimization process will be to focus on standardizing the configuration of SAP across the organization and ensuring that everyone is using the same harmonized master data.
- IT security is regularly discussed at Danish Crown’s board meetings, and a director with responsibility for IT security has recently been appointed.
Elo Bromer’s top tips for the agile CIO
- Be careful not to be so busy with installation that you
forget implementation. The organization and users
must be able to follow suit and use the systems.
- Automate and standardize as much as you can.
- Make sure to have a contingency plan for IT security. There must be a complete overview of responsibilities, procedures and contact information if there is a disaster.