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US-based Flour-milling Enterprise Achieves 30 Percent Cost Savings through IT Simplification

TCS partnered with a prominent US-based flour milling conglomerate in the creation of a simplified IT architecture, eliminating redundant structure and activities, and establishment of a future-ready technology platform which aligned with the company’s business vision. This helped the enterprise achieves 30 percent cost savings through IT simplification.

The Customer
The client is a joint venture between two of the world’s largest agricultural, commodity and packaged food organizations with operations in the US, Canada and Puerto Rico. The organization also offers culinary services and technical solutions to other food businesses. 

Business Scenario
The client wanted to emerge as the world’s leading agro business and felt it could achieve this only by combining the assets, capabilities, and experience of the two parent companies and introducing innovative flour and grain products, services, and solutions to the marketplace.

The client decided to partner with TCS to establish a simplified IT architecture and enhance the responsiveness of the business to dynamic market conditions.

TCS’ Solution
TCS implemented a simplified IT architecture which consolidated the diverse IT systems of the parent enterprises. This refurbished IT structure was aligned to the business model of the client, offering the right-sized approach for optimized performance. By simplifying the IT structure, unnecessary costs and overheads were reduced and legacy structures and ineffective activities replaced. The technology platform set in place served as the backbone for the reimagined corporate IT vision. The solution was driven by the principles of digitization and automation, with the flexibility and agility to keep pace with changing business conditions.

TCS used an iterative and incremental approach to establish unified business processes with a supportive computing environment. It identified and implemented the plant-level application set which manages the operations of the flour mills. With the use of simple processes and structures, TCS offered the grounding for a mature and flexible IT department. Effective governance and operating models also helped the client engage in disciplined investment and portfolio management.

Key Benefits
This engagement helped the organization save up to 30 percent of the operating baseline costs with the implementation of a simplified IT structure. The cycle time was reduced, with the implementation schedule of the lighter enterprise resource planning (ERP) system taking only 12–18 months as compared to 30–36 months taken by the tier 1 (heavier) systems earlier. Once the proposed ERP system achieves steady-state production it will drive an ongoing annual cost reduction of 10 percent. Overall, the lighter system, as formulated by TCS, will lead to improved productivity.

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