ERP SYSTEMS FOR SMALL AND MID-SIZED WINERIES

This Session Sponsored By:

ERP SYSTEMS FOR SMALL AND MID-SIZED WINERIES Moderator: Karen Diepholz, CFO, Vintage Wine Estates Speakers: Mark Vernon, President & Chief Operating Officer – Ridge Vineyards Tyler Scheid, Technology Coordinator – Scheid Vineyards Inc Omar Percich, CFO – Foley Family Wines

Mid Tier ERPs – Developing Trends  Niche solutions  Lower cost alternatives  Cloud-based systems More options are becoming available

Mid Tier ERPs – Options & Choices Single ERP vs. Best of breed On-premise vs. SaaS or cloud based Application—partner provider

Mid Tier ERPs – Getting Started Answer these questions first: What business problems are you trying to solve? What solutions are out there? What are you willing to invest? Consult experts and learn from others… meet your panel

MARK VERNON President & COO, Ridge Vineyards

RIDGE ERP Approach Fully integrated ERP solutions too big and expensive for our size – 85,000 case/year Conformia sells to Oracle in 2009 – discontinues winery ERP solution Decision to pursue tight integration of legacy systems with new CRM system.

RIDGE ERP Approach Selection of Salesforce for CRM tool Tight integration with Orion, Ship Compliant, and Wordpress environments Use of Salesforce for management level ERP dashboards and reports Support for handheld devices

RIDGE Systems Overview CRM Wholesale DTC 2013 SALES Wholesale Clubs &Tasting 1989 WEB STORE 2015 Salesforce Orion Wordpress Ship Compliant Compliance 2009 Vineyard Mgt Winery Mgt Finance Accounting 1989 AgCode Winemaker DB Microsoft Dynamics

Challenges Vendor Co-ordination can be difficult Managing updates and versions Different systems have different user interfaces – more training time needed

Benefits Preserve investment in legacy systems Can use “best in class” applications that are suited to different business area needs Not as locked-in to one vendor Step at a time implementation

TYLER SCHEID Project Manager, Scheid Vineyards

Scheid ERP Journey Realization: Home grown software + Bolt-ons + Excel will only get us so far! Hired an IT strategic planning consultant Spring 2014 – Review IT Team, infrastructure, and applications relative to business strategy and objectives. – What does our ‘Future State’ IT landscape look like? Here’s what they told us………..

Direct to Consumer CRM Integrated ERP/Accounting System (foundation) Winery Systems Vineyard Systems Bottling Systems FG Sales Planning Systems Depletion Data Sales Forecast Current State (2014) Future State (8/2016) Business Intelligence Platform

Direct to Consumer CRM Integrated ERP/Accounting System (foundation) Winery Systems Vineyard Systems Bottling Systems FG Sales Planning Systems Depletion Data Sales Forecast In Reality………… Business Intelligence Platform

Lessons learned in ERP journey so far….. IT Consultant role can be critical in platform selection – Remove emotion, cold hard development and analysis of requirements. – Ins and outs of negotiating on software licenses. – Facilitates consensus and decision process. – Good documentation of requirements pays dividends when memories fade……. Software is the easy part. – Donald Rumsfeld: “There are known unknowns, and unknown unknowns” – Company Initiative, not another “IT Project” Preparing ‘Mater Data’ is a challenge not to be underestimated – Product Groups, Sales Regions, Customers, Vineyard Blocks, Inventories, GL Accounts etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. – Make sure line of business users are involved from more than one department.

OMAR PERCICH CFO, Foley Family Wines

Foley Family Wines ERP  Brief History – Disconnected and growing fast  Search for a comprehensive solution for today and for the future  Analyze what segments of the business can be included and what we should keep separate

Why Microsoft NAV?  Better vertical providers than other platforms  How to choose a NAV partner?  How much time will it take? Stagger or do all at once?  Offers flexibility and lots of customization (FTP, AP, AR, Logistics)  Don’t forget about reporting!

Looking ahead and final thoughts  Using NAV in conjunction with other niche providers (Concur, banks, e-commerce, wine club)  Business intelligence tools can help bridge gaps for detached systems  Detail your wants and don’t bend on your needs  Make sure you go LIVE!

KAREN DIEPHOLZ CFO, Vintage Wine Estates

Keys to Project Success Right tool and right partner for goals Management buy in Employee engagement Choose & Manage customizations carefully User Acceptance Testing

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