Profitability Case Study
Business benefits of Keelings Knowledge
- Flexible ERP built specifically for the fresh produce industry
- Increased visibility of costs, for improved negotiations with suppliers
- Increased control over the business, leading to better decision making
- HQ: Waddinxveen, the Netherlands
- 130 employees (approx)
In 2014, leading Dutch fresh produce company Roveg decided to change its strategy for exporting fruit and vegetables, discontinuing certain markets in favour of focusing retail customers and other overseas countries. At the same time, the company’s older ERP system was showing its age – full of workarounds, and with difficulty in accessing information about product costs. Staff often relied on paper-based processes which were time consuming and prone to error. The older system held the company back from focusing on what was needed to grow the business.
Roveg’s commission purchasing model required a more sophisticated ERP software that would give easier visibility of costs. Roveg frequently buys consignments without an agreed price and then carries out production before selling to a customer. After that process, it needs to make a statement to that supplier detailing the value-added work and the final selling price, using printed documents and reconciling figures. An additional challenge the limited shelf life for fresh produce. An ERP package needs specific functionality to do this, recording QA checks during the time a product is in the company’s warehouse. John Onderwater, project manager at Roveg, described the old system as an environment which was not able to supply the commercial and financial data needed.
Roveg chose Keelings Knowledge over competing generic ERP vendors because Keelings Knowledge developers had a background in fresh produce and knew the challenges in the industry. “That has definitely been a benefit. They understood the difficulties we would have and they showed an understanding of the decisions we would make,” John Onderwater, Project Manager, Roveg
Keelings Knowledge provides Roveg with:
- Ability to register actual production that needs to be done, the kind of production carried out, and track all costs against that
- Ability to see the profit on every consignment without having to consult paper files and run the risk of a miscalculation that made certain deals unprofitable
- Improved visibility of information leads to better decisions about which product categories are most profitable and best suited for growth
- Superior traceability of products and their destination to end customers
- Eliminated manual labour in a key process for settling prices on commission sales, while also improving accuracy and reducing the possibility of human error
Keelings Knowledge has allowed Roveg to take a more strategic approach to growing its business in the retail sector, even while it was changing in many markets because the functionality in the software is suited towards handling many different customer types.
“Where Keelings Knowledge is helping us is to follow our products into the production lines. We are in that change stage; consolidating our turnover, making decisions about which product categories to grow, where we want to specialise, some backwards integration and more involvement with the growers to secure our supplies. Now we save time that used to be spent on printing pieces of paper, putting them together and making a manual decision on what to settle with the supplier. Now we have all that information available at the touch of a button.”
Director, Roveg BV, The Netherlands
The fresh produce industry has complexities that are uniquely different to other industries so we have created an ERP solution to address these challenges across key sectors.
- Jaguar TFC, The Netherlands
“We are very satisfied with the Keelings Knowledge teams professionalism, high efficiency and meticulous working attitude. We truly believe it will drive on Chongming company’s development by learning Keelings fresh produce systematic thinking and management approach”
- Chongming Agri. Company, China
“We’re in a change stage, consolidating our turnover, making decisions about which product categories to grow, where we want to specialise, some backwards integration, more involvement with the growers to secure our supplies. Now we have all that information available at the push of a button”
- Roveg BV, The Netherlands
“It’s a big project, it’s complicated, with a fixed deadline and so for me it was very important that we shouldn’t affect the business, specifically that stock control and invoicing to clients should always be possible. Keelings Knowledge delivered on their promise”
- International Trader, France
“Other ERP systems are built by IT people and developers who don’t understand the industry. KK ERP is built on the knowledge of the people who have worked in the industry for 20 years”
- Keelings Retail, Ireland
“If you’re using KBS ERP in the right way, you can use it to drive profitability in your business rather than just to report. It has put finance on the front foot in the conversations with the business. It gives us visibility and transparency on what’s happening – and we can be sure that it’s the accurate information all the time.”
- Financial Director, UK