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26 An inside look | Section III<br />

An inside look:<br />

Making IT fit procurement’s needs at High Liner Foods<br />

One way to improve<br />

the effectiveness of<br />

procurement IT is to make<br />

it fit the needs of the<br />

company, rather than have<br />

the business adapt to the<br />

strengths of the technology.<br />

High Liner Foods, one of North America’s<br />

largest seafood providers, was forced to<br />

go global in its search for raw materials<br />

(seafood) after the collapse of the Grand<br />

Banks fisheries and the subsequent sale<br />

of the company’s fleet in the 1990s. It<br />

soon found that worldwide sourcing was<br />

generating excessive paperwork, and<br />

challenges in both tracking shipments<br />

and informing suppliers of requirements.<br />

The solution was an add­on to the firm’s<br />

ERP system, which lets everyone in the<br />

supply chain, including suppliers,<br />

shippers, customs brokers, and the<br />

company have transparent, real­time<br />

access to the information they need to<br />

do their jobs. They can also update the<br />

data directly on the system. The webbased<br />

technology has become essential<br />

to how the company does business.<br />

Says Paul Snow, Vice President,<br />

Procurement, High Liner Foods “we<br />

don’t know how we could operate<br />

without it. It has become a tool we<br />

need to use.”<br />

How the technology was created and<br />

introduced is as important as the<br />

underlying software:<br />

• Snow believes that “the primary<br />

reason it has been successful is that<br />

we have an IT group in our company<br />

that is interested and dedicated to<br />

developing these kinds of solutions.”<br />

The model was developed internally,<br />

although it has also had extensive<br />

attention from a third­party<br />

software company.<br />

• The software dealt with High Liner’s<br />

most pressing requirement. “The<br />

main part of what this is about is<br />

really involving people involved in the<br />

transaction, and letting them go in and<br />

perform their various functions. The<br />

information is visible to everybody, and<br />

saves a lot of communications, paper<br />

work, and emails.”<br />

• It did not try to do everything at once<br />

but left room for development. For<br />

example, it does not do supplier<br />

performance rating. “That’s really the<br />

next step for us”, says Snow.<br />

• It did not reinvent the wheel. By<br />

building on its existing ERP platform<br />

and working with a long­term software<br />

partner, the project minimized the<br />

need for new training and accelerated<br />

development of the solution.<br />

© 2008 KPMG International. KPMG International is a Swiss cooperative. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member<br />

firm has any authority to obligate or bind KPMG International or any other member firm vis­à­vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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