Case Study: United States Sugar Corporation
Extending BPM to Operations
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In order for our BPM solution to succeed enterprisewide, we had to address what came to be one of our biggest pain points -- definitions of common terms. There were as many definitions of a term as there were departments using it. We knew it wouldn't be enough to just capture, consolidate, and distribute information from various legacy systems; it was vitally important that everyone in the organization understand the definition of terms used to view and analyze that data. We then identified and outlined the points where data differences could arise and crafted a standardized dictionary of definitions to be used in the development of all applications.
In addition to creating a dictionary of terms, we devoted substantial time to determining our expectations -- what we really wanted the new BPM solution to accomplish -- by carefully evaluating business processes across the organization. A thoughtful, measured analy-sis of how we planned to use the new solution was fundamental to the success of the implementation.
After seeing marked results within the financial group pilot, the agriculture department developed an application to automate the entire maturity curve process for U.S. Sugar's annual $100 million sugarcane crop. Traditionally, the data regarding countless varieties of sugarcane and soil types was gathered manually and keyed into spreadsheets for each of the company's nine farms in order to determine optimal sugarcane harvest and planting times. The information was vital but it yielded a static snapshot that aged quickly as environmental conditions changed. After developing the dynamic models within the BPM system, a farm manager (who is just an average user) can now select his farm, look at his maturity curves -- in total, by certain varieties, and by soil types -- and determine his harvest and subsequent planting schedules.
This system has yielded both savings in terms of time spent on analysis and productivity gains based on better decision-making. In fact, the success of the application is measured by the fact that more of our farm managers and coordinators are requesting it. That's a huge step for a culture traditionally very distrustful of computers and software. Farmers spend every day close to the land; they're not known for relying on modeling. But with this new tool, they can now maximize the productivity of their land and create optimal conditions to increase crop yields and manage fallow acreage.
The How-To on Implementation
Working with our BPM solution provider's consultants to guide us in designing the applications and reports was a critical factor to our success. It was required that the business processes and information needs of all system users be mapped out in detail ahead of time. That allowed us to configure a comprehensive plan, ensuring that we included the right information from the start and that we had the right people on the team.
Knowledge transfer was initiated as soon as the process got under way, so our reliance on the consultants was minimized for our current applications, allowing them to focus on new applications in other areas.
User acceptance testing (UAT), inspired by our consultants, was an integral part of our implementation. At various times during the system's development, end users of the application, at various levels, were shown the product to date. This ensured we were able to maximize functionality and ease of use, while also improving user buy-in, which is critical to the success of any project.
We have begun taking our BPM solution to the next step, working to develop predictive analytic models that provide even more insight and accuracy into our forecasting and analysis of the business, promoting keener understanding of the complex cost structures surrounding land usage, equipment, time, labor, and materials. These predictive capabilities promise to reduce the amount of time spent gathering and analyzing data by creating an auto-forecasting system applicable to everything from crop yields and weather to operational requirements. Twenty years of historical agricultural data on fields, varieties, soil types, fertility, weather, and yields will be loaded in order to determine the most profitable combinations and identify potential problems. Our vision is to unlock previously hard-to-quantify information -- a farmer's inherent knowledge of his fields, the weather, and his crops -- and capture it in a form that will influence, educate, and aid current and future stewards of the land.
The same concepts are being applied to the mill side of the business, where manual processes in place since the 1930s are in the midst of a long-overdue update. Our mills will be able to look at sucrose levels and other quality characteristics from the sugarcane grind, as well as consumable materials, labor, and equipment, to help establish where operations are running smoothly, where bottlenecks are, and where there is potential for cost savings. These financial and operational processes are also being used to more effectively manage our environmental concerns -- activities such as fertilization, irrigation, and cultivation. Considering the proximity of U.S. Sugar's land assets to the Florida Everglades, we have already pioneered integrated pest management to minimize the environmental impact of pesticides. Using these new data collection and analysis tools allows us to optimize fertilization and cultivation rates in an effort to further minimize their environmental impact.
The Final Analysis
U.S. Sugar's BPM initiatives remain a work-in-progress, but the organization has clearly benefited from the changes this initiative has already brought. It goes without saying that we learned the value of business processes that support data collection. That being said, organizations should not hesitate to reengineer their business processes to achieve better results. An effective BPM solution will not only utilize all the information available within the organization in order to make better, more timely decisions, but also will identify where business processes need to be improved or changed. As our results at U.S. Sugar prove, an organization's willingness to change, to learn from past experiences, and to clearly set expectations for improved business management processes will dictate the level of results achieved.
About United States Sugar Corporation
- U.S. Sugar is one of America's largest diversified, privately held agribusiness firms. While the company is best known for its sugar and citrus, it also owns a short-line railroad, South Central Florida Express.
- U.S. Sugar owns 194,000 acres of some of the most productive farmland in the United States in a fertile crescent from the southern shore of Florida's Lake Okeechobee and extending into Glades, Hendry, and Palm Beach counties in South Central Florida.
- U.S. Sugar's primary business is growing sugarcane and producing sugar -- some 800,000 tons each year. The addition of a sugar refinery in 1998 allows the company to refine the raw sugar that it produces -- sugar that previously was shipped to out-of-state refineries for processing.
- Citrus is the company's other main business. At Southern Gardens Citrus, 120 million gallons of orange juice are produced annually. U.S. Sugar is the largest supplier of private-label, not-from-concentrate orange juice in the United States.
- U.S. Sugar is partly owned by its employees through an ESOP and members of the Mott family and related foundations and trusts. Its estimated annual revenue currently is approximately $500 million, and it employs 2,500 people.
BPM Implementation/Administration Timeline
- January 2002 -- Software is loaded.
- April 2002 -- Budget application development and rollout begin simultaneously.
- May 2002 -- April financial statements are prepared and published using OutlookSoft; time is cut from 10 days to five days, later to be reduced to two days.
- September 2002 -- The 2003 budget package is finalized for presentation to the board.
- June 2003 -- Capital budget and reporting application are started.
- June 2003 -- The 2004 budget process is started.
- September 2003 -- The 2004 budget is available for board review (a reduction of seven weeks).
- December 2003 -- User acceptance testing for capital application is held.
- December 2003 -- Devel- opment of agriculture services labor application begins.
- February 2004 -- Expected rollout of capital application.
- February 2004 -- Expected rollout of agriculture services labor application.
- August 2004 -- Expected start of 2005 budget process.
- September 2004 -- Expected completion of 2005 budget for board review.
Tangible Business Benefits from U.S. Sugar's BPM System Implementation |
||
| Approach | Result | |
| COST |
$660,000 $360,000 in implementation and consulting $300,000 in software |
Minimal cost impact |
| YEARLY BUDGETING CYCLE | Budgeting cycle reduced nearly 50 percent (from 20 weeks to 11 weeks) | Better business reaction time; finance now focused on analysis and impact (not process mechanics) |
| FORECASTING CYCLE (2 TIMES/YEAR) | Forecasting time reduced 75 percent | Reduced direct cost; more accurate forecasts; high degree of employee ownership |
| REPORT AND ANALYSIS |
Self-generated reports and analysis (unlimited) User-defined reports in addition to systemwide reports Clearly defined and agreed-to terms and definitions |
Employee empowerment; higher degree of ownership More informed user decisions; faster decision time; shorter market reaction time Consistency in interdepartmental reports; higher confidence in decisions; faster decision-making |
| IMPLEMENTATION PROCESS |
Democratic approach (all departments) Participatory design and implementation In-depth evaluation of user needs and processes |
Enterprisewide buy-in and support Better skills for ownership; self-management; continued improvement High user acceptance across the organization; solution capabilities aligned with department needs; more productive work environment; employee sense of empowerment |
Ellen Simms has served as corporate controller at U.S. Sugar since 1996 and has been with the company for more than 20 years.

