TROPOS Scores Scotch Hat-trick

A third major Scotch whisky producer is deploying SSI’s TROPOS ERP suite to increase efficiency and improve management of its expanding business.

Ian Macleod and Company, has ordered a 50-user TROPOS system with Coda financials for its integrated distilling, blending, bottling and sales operations. The new system, due to go live during the summer and autumn of 2004, will replace an elderly bespoke system supported by various spreadsheets.

Whisky Workbench

At the heart of the solution is the TROPOS Whisky Workbench – an industry-specific module that tracks individual “parcels” of whisky of various ages and strengths maturing at distilleries and other locations throughout Scotland. TROPOS calculates the increasing value of each parcel and enables the blender to draw from Macleod’s own or other stocks to ensure economical use of resources and maintain a balance between quality and cost in each blend.

The Whisky Industry

SSI managing director Trevor Lewis says: “The Macleod contract complements our earlier successes at Morrison Bowmore and Burn Stewart, and establishes SSI as a significant supplier to the whisky industry. These wins highlight the versatility of TROPOS and our ability to meet the sometimes complex requirements of specific industries.”

Location

Ian Macleod is based at Broxburn, near Edinburgh. Its head office adjoins its blending and bottling plant, Broxburn Bottlers, owned jointly with J & G Grant owner of GlenFarclas Distillery. As part of its strategy to become a fully integrated distiller, blender and bottler, Ian Macleod recently acquired the Glengoyne Distillery and the Glengoyne single malt and Langs blended whisky brands.

Customer Comment

Mike Younger, financial director of Ian Macleod, says: “An integrated solution will enable us to achieve more accurate and predictable margins and, therefore, better business control. In addition, better visibility of the supply chain will allow us to manage customer expectations more effectively.

“In the bottling operations we expect to see improvements in cost control, production forecasting and materials management. We also expect significant administrative cost savings from the ability to automate Customs & Excise documents and improved communication.

“We should end up with quicker and more accurate management accounts, which will provide a better platform for forecasting our profits and cash flows.”

Phased Implementation

The TROPOS/Coda solution is being implemented in three phases, starting with financials and case goods. The second phase covers manufacturing, with bulk whisky stocks in the final phases.

SSI Expertise

Mike Younger says: “We were impressed by SSI’s recent experience in and their understanding of the intricacies of the whisky industry. We look forward to a close and mutually beneficial relationship with SSI.”