Published on August 18th, 2020 📆 | 4715 Views ⚑
0How technology is helping Chobani conquer the dairy case
Chobani has enjoyed a steady growth trajectory ever since its first container of yogurt hit store shelves in 2007. Its product line has expanded beyond the flagship Greek yogurt, and the company, based in Norwich, New York, has earned raves for its innovative, progressive approach. But in 2017, Parag Agrawal, Chobaniās chief information officer, knew the business had to confront a looming impediment to further growth: its outdated technology systems.
Chobaniās tech infrastructureāincluding its enterprise resource planning (ERP) software, which helped the company administer critical operations such as supply chain management, finance, HR, and customer relationshipāwas a patchwork of different platforms and subsystems. As the companyās operational needs grew, new software and hardware components were tacked on to the existing systems. The technology helped support Chobaniās growth, but at an increasing cost. āIt was becoming a painful procedure for us to even maintain those systems,ā Agrawal says.
Agrawal and other leaders at the company knew it was time to consider a major overhaul. Like any big change initiative, that process would pose challenges that Agrawal and his team would have to overcome. But those challenges were largely outweighed by the benefits. āWe knew that if we wanted to scale up, go into different markets and diversify our products, we needed a new system,ā Agrawal says.
A DIGITAL WISH LIST
They found a match in SAPās high-end ERP system, S/4HANA. One key selling point was the ability to scale that system to meet Chobaniās ever-changing needs. Unlike the old patchwork arrangement, SAPās solutions are designed to interact seamlessly with one another, allowing Agrawal to take a more modular approach. For instance, if Chobani decides to move into a new market, Agrawal could easily configure the SAP system to meet those needs. āThings move fast at Chobani,ā he says. āWe wanted to make sure that if the business goes in a particular direction, the technology will be able to support that.ā
MAKING DATA WORK
Chobaniās S/4HANA ERP system went live in July 2019. That represented the first of a multiphase plan to replace the companyās legacy systems. Agrawal expects it will take a few years for Chobani to complete the transition. Since debuting the ERP system, Chobani has added other SAP platforms, including SAP Analytics Cloud, a powerful business-intelligence tool that Agrawal says will allow the company to quickly make sense of huge volumes of operational data. āWe have a lot of visions around these data capabilities,ā he says. āWeāre very excited about it.ā
Quickly slicing and dicing massive amounts of data can help provide valuable insights across different process, allowing Chobani to better track its key performance indicators. And thatās just scratching the surface. Agrawal expects that a few years from now, Chobani will be able to take advantage of predictive analytics to provide more accurate sales forecasts and maximize manufacturing productivity. For instance, the company may be able to use historical maintenance data to pinpoint when a machine on the factory floor is about to break. āInstead of doing reactive maintenance, you start doing proactive maintenance that keeps the machine running,ā he says.
Chobaniās success clearly lies in the products it puts on store shelves. But as the company has matured, it has needed to rely more on efficiency and smart management to continue growing. Agrawal says the old technology systems may have continued to support Chobaniās progress, but more than likely they would have been a limiting factor. āAs a young and growing company, we didnāt always have the standardized processes in place,ā he says. āBut once you get to the size where Chobani is today, you need those standard processes and best practices. And SAP is helping us put those into place.ā
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