Standard Foods halves SAP costs, reinvests in AI growth

Standard Foods, a prominent Taiwanese manufacturer, has announced significant cost savings and operational improvements following their switch from SAP ECC to Rimini Support for SAP. By making this transition, the company has managed to halve its annual support costs, redirecting saved resources towards advancing AI and machine learning for predictive analytics. This initiative has reportedly contributed to reduced operational expenditures and enhanced productivity levels.

Jerry Lee, Director of IT at Standard Foods, commented on the impact of the switch: "Rimini Street immediately halved our annual support costs and helped our SAP systems run better than ever before. Because of the efficiencies gained, my IT team can focus on using data to improve sales estimations and benefit our partners and distributors. It will be a game-changer for Standard Foods, made possible by Rimini Street."

The move to Rimini Support followed strong recommendations from multiple IT partners and peers. Lee was particularly impressed by Rimini Street's proactive approach to understanding their systems and vision in detail. "What impressed me the most about Rimini Street was that they took the time to get to know our systems in detail, and understand our vision," said Lee. He added, "The combination of fast response and expert solutions has allowed us to increase our investment in AI and machine learning but with less staff needed to keep those systems running at full speed."

Lee further noted that with Rimini Street support, only three IT personnel are required to maintain the five SAP modules that Standard Foods utilises, all while maintaining full functionality. This optimised support model has freed up resources, allowing Standard Foods to work on strategic projects such as transitioning from SAP BI reports to Power BI, and leveraging cloud-based machine learning for better data analysis. The integration of AI with real-time data has reportedly enhanced decision-making capabilities across the company's supply chain.

"Predicting how much to order is an ongoing challenge for manufacturers, and a misstep in calculations in the supply chain can impact profitability. By running various models with real-time data and AI tools, we can both refine order recommendations and improve procurement processes," said Lee.

This transition comes at a time when Standard Foods, like many other SAP ECC users, is facing the end of vendor support for their ECC platform post-2027. Despite this, the company remains unconcerned about the impending deadline. "At this moment, moving to S/4HANA is not a priority nor do we see it as a strategic move for our business. The ROI is just not there. Perhaps in the future, we may want to consider it, but for now, our efforts and focus will be on innovation, growth, and profitability," said Lee.

Tyler Munger, Vice President of Analytics at Rimini Street, emphasised the advantages of AI in supply chain management. "One of the impactful areas for AI in the supply chain is demand forecasting. According to industry analysts, AI-based forecasting techniques that incorporate real-time and multivariate data sources can reduce forecasting errors by up to 50% compared to traditional time-series-based methods," he stated. "Many of our manufacturing clients partner with Rimini Street to direct resources towards investing in AI-fueled improvements that help with their top and bottom-line goals."

Through their partnership with Rimini Street, Standard Foods ensures its IT team has continuous access to SAP expertise with quick response times, allowing them to focus on evolving their IT roadmap. This initiative is part of Standard Foods' broader mission to promote healthy living by optimising operational efficiencies through data utilisation.