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“With DB2 Content Manager, we have transformed incoming invoice archival from an offline, after-the-fact activity into an integral part of the accounting process.” Sven-Erik Iwersen, Systems Analyst, Kraft Foods Deutschland IBM Customer Success Retail Foods Industry Every day, at the Lörrach, Germany factory of Kraft Foods Deutschland GmbH & Co KG, several million bars of Milka chocolate are carefully enveloped in their legendary lavender wrappers. Milka, which recently celebrated its 100 th year in production, is enjoyed throughout Europe, as are Kraft Foods’ other brands, including Kaffee Hag, Jacobs Coffee, Philadelphia Cream Cheese, Miracolí and Kraft Ketchup. The company distributes its products primarily to retailers, but also serves bulk consumers and the restaurant industry. Kraft Foods Deutschland satisfies archival appetite with IBM. With headquarters in Bremen, Germany, Kraft Foods Deutschland is a subsidiary of Illinois-based Kraft Foods, Inc., the world’s second-largest producer of food products . Application Electronic archival system for 6.5 million business documents and photos Business Benefits Greatly increased archival capacity; faster and easier access to documents from any location; reliable, long-term preservation of valuable document assets; greater efficiency through business process integration Software IBM DB2 ® Content Manager; ® ® IBM DB2 Universal Database ; IBM DB2 Content Manager CommonStore for SAP; IBM Tivoli ® Storage Manager Hardware IBM ^xSeries ® 350; ® ® IBM 3995 Optical Library Business Partner Voss Softwareberatung GmbH Overview
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Kraft Foods Deutschland satisfies archival appetite with IBM. · Kraft Foods Deutschland IBM Customer Success Retail Foods Industry Every day, at the Lörrach, ... and Kraft Ketchup.

May 01, 2018

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Page 1: Kraft Foods Deutschland satisfies archival appetite with IBM. · Kraft Foods Deutschland IBM Customer Success Retail Foods Industry Every day, at the Lörrach, ... and Kraft Ketchup.

“With DB2 Content Manager, we have transformed incoming invoice archival from an offline, after-the-fact activity into an integral part of the accounting process.”

–Sven-Erik Iwersen, Systems Analyst, Kraft Foods Deutschland

IBM Customer Success

Retail Foods Industry

Every day, at the Lörrach, Germany

factory of Kraft Foods Deutschland

GmbH & Co KG, several million

bars of Milka chocolate are carefully

enveloped in their legendary lavender

wrappers. Milka, which recently

celebrated its 100th year in production,

is enjoyed throughout Europe,

as are Kraft Foods’ other brands,

including Kaffee Hag, Jacobs Coffee,

Philadelphia Cream Cheese, Miracolí

and Kraft Ketchup. The company

distributes its products primarily

to retailers, but also serves bulk

consumers and the restaurant industry.

Kraft Foods Deutschland satisfies archival appetite with IBM.

With headquarters in Bremen, Germany, Kraft Foods Deutschland is a subsidiary of Illinois-based Kraft Foods, Inc., the world’s second-largest producer of food products.

Application

Electronic archival system for

6.5 million business documents

and photos

Business Benefits

Greatly increased archival capacity;

faster and easier access to

documents from any location;

reliable, long-term preservation

of valuable document assets;

greater efficiency through business

process integration

Software

IBM DB2 ® Content Manager; ® Content Manager; ®

IBM DB2 Universal Database™;

IBM DB2 Content Manager

CommonStore for SAP; IBM

Tivoli ®Storage Manager

Hardware

IBM ̂ xSeries® 350; ® 350; ®

IBM 3995 Optical Library

Business Partner

Voss Softwareberatung GmbH

Overview

Page 2: Kraft Foods Deutschland satisfies archival appetite with IBM. · Kraft Foods Deutschland IBM Customer Success Retail Foods Industry Every day, at the Lörrach, ... and Kraft Ketchup.

Retail Foods Industry

Achieving all-you-can-store capability

In 1993, Kraft Foods performed a

market analysis of available archive

solutions, ultimately deciding on a

shortlist which included SER, FILENET

and IBM. Kraft Foods preferred the

solution based on DB2 information

management software from IBM

because of its superior price/

performance ratio. And because its

archived documents must be avail-

able for decades, the company

wanted an archive solution provider

with long-term viability. In IBM, Kraft

Foods assumes it will always have a

competent solution partner.

The core of the electronic archival

system (EAS) is IBM DB2 Content

Manager, which provides a complete

solution for entering, storing and

allocating data, including multimedia

formats. Other components include

IBM DB2 Universal Database, IBM

Tivoli Storage Manager for storage

management and data backup, IBM

DB2 Content Manager CommonStore

for SAP for seamless integration of

Kraft Food’s SAP R/3 enterprise resource

management system, and Kofax

Ascent Capture for scanning incoming

documents such as vendor invoices.

With such a wide-ranging distribution

chain, however, comes equally

extensive information management

challenges. Many of these challenges

stem from the financial side of the

company’s operations. In 2001, for

example, Kraft Foods Deutschland

issued some 1.2 million invoices to

supermarket chains, small retailers,

restaurants and wholesalers—a 20

percent increase in invoices over the

previous year. The invoices, as well as

the company’s goods receipts and

balance lists, must all be archived in

accordance with the law.

Not surprisingly, Kraft Foods

Deutschland has grown increasingly

short on archival space for its paper

documents. The company stored

paper documents in filing cabinets

throughout various departments and

a central archive. In fact, the finance

department began feeling the pinch

as far back as the early 1990s. “We

needed an electronic archive to

preserve these records,” recalls Kraft

Systems Analyst Sven-Erik Iwersen.

“We are still using just 60 percent of the capacity of this powerful document management system. When we find the archive system approaching 100 percent capacity, we know that the DB2 Content Manager solution will readily scale to provide more space.”

–Sven-Erik Iwersen

Using IBM software, Kraft Foods Deutschland manages financial information for some of the world’s strongest brands.

Page 3: Kraft Foods Deutschland satisfies archival appetite with IBM. · Kraft Foods Deutschland IBM Customer Success Retail Foods Industry Every day, at the Lörrach, ... and Kraft Ketchup.

enables communication between

SAP R/3 and DB2 Content Manager

and for processing queries to DB2

Content Manager from Web browser-

based clients. Kraft Foods uses IBM

DB2 Content Manager CommonStore

for SAP to view original documents

through the SAP interface.

Kraft Foods worked with IBM Business

Partner Voss Softwareberatung (VSB)

to set up and customize the EAS. VSB

developed the Web client software for

querying DB2 Content Manager. It also

built an invoice-indexing program on

top of the open application program-

ming interface (API) structure of DB2

Content Manager. “The APIs of the

IBM solution are of great importance,”

Iwersen says. “DB2 Content Manager

is truly open thanks to its APIs, and we

were able to implement many of our

Two-thirds of the now approximately

6.5 million documents stored in the

EAS come from SAP R/3. Historical

photos of the company and its

traditional brands, such as Jacobs and

Suchard, have also been added. “We

handle a minimum of 20 megabytes of

data daily, but at the end of the month

or year, we might archive as many as

10 gigabytes,” explains Iwersen. “But

we are still using just 60 percent of the

capacity of this powerful document

management system.”

Soon, the promotional spots for

Jacobs, Milka and the other brands

will be archived as well. Even then, the

EAS will reach only 85 percent of its

current electronic archival capacity.

“When we find the archive system

approaching 100 percent capacity,”

Iwersen adds, “we know that the DB2

Content Manager solution will readily

scale to provide more space.”

Creating an open and secure system

The EAS runs on three IBM ^

xSeries 350 systems. At the heart of

the system is the library server, which

administers access rights and indexes

data for the stored objects. DB2

Universal Database stores the index

data as well as information about the

objects’ storage location. The objects

themselves reside on an IBM 3995

Optical Library Model C68, which

Kraft Foods administers with Tivoli

Storage Manager. An additional server

required functions without workarounds.”

In addition to e-mail archiving, for

example, Kraft and VSB used the APIs

to create an automatic import program

for Microsoft Office files.

Iwersen also worked with VSB to

develop special control programs

that help ensure the smooth

execution of EAS processes. These

programs include a three-step

disaster protection procedure, which

compresses and backs up the data

prior to archiving, imports it to the

library server and then transfers the

backed-up data as well as a copy

of the object server’s optical disks to

external off-site storage.

The EAS, powered by DB2 Content Manager, archives a variety of business documents including invoices and other business-critical financial documents.

Page 4: Kraft Foods Deutschland satisfies archival appetite with IBM. · Kraft Foods Deutschland IBM Customer Success Retail Foods Industry Every day, at the Lörrach, ... and Kraft Ketchup.

For more information

Please contact your IBM marketing

representative, IBM Business Partner

or IBM Direct at: 1 800 IBM-CALL.

Visit our Web site at

ibm.com/software/data

For information about

Kraft Foods Deutschland, visit:

www.kraftfoods.de

Transforming and integrating

business processes

Kraft Foods Deutschland is gradually

extending the EAS with customized

applications and functions. In-house

invoices—based on Microsoft

Access—have been archived in DB2

Content Manager since November

2001. The invoices, which now come

in through e-mail rather than by fax

or the postal system, are indexed and

archived in a batch run. Thus, if the

Berlin site assists the Paris branch

office with a coffee shipment, this

so-called intercompany invoice can

be archived by the bookkeeping staff

as soon as it is created.

Taking advantage of the fact that

invoices are entered into the EAS

early in the accounting process, Kraft

Foods used SAP’s workflow capabilities

to add a downstream workflow for

account auditing. “With DB2 Content

Manager, we have transformed incoming

invoice archival from an offline, after-

the-fact activity into an integral part

of the accounting process,” Iwersen

says. A similar transformation has

occurred in the sales department,

where Kraft Foods has activated a

workflow for refunds.

Currently, approximately 300 Kraft

Foods employees use the EAS,

accessing it over the Internet from six

different sites. According to Iwersen,

as the system is extended with

workflows for the various departments

within the organization, and all the

workflows are tied to the central docu-

ment archive, the EAS is effectively

helping to integrate the organization

and its business processes.

Moreover, as the electronic archive

grows, users will increasingly rely

on it as a permanent source of the

company’s document assets. “While

the law requires that invoices be kept

for 10 years, or until a tax office audit

is completed, historical documents

such as promotional spots and photos

should be preserved for generations

to come,” Iwersen explains. “Investment

security was, therefore, a fundamental

reason why we chose the DB2 infor-

mation management solution. If you

archive something for decades, you

can run into problems if your archival

provider goes out of business,” he

says. “With IBM, we can assume that

we will always have a competent

solution partner.”

®

© Copyright IBM Corporation 2003

IBM CorporationSilicon Valley Laboratory555 Bailey AvenueSan Jose, CA 95141U.S.A.

Produced in the United States of America07-03All Rights Reserved

DB2, DB2 Universal Database, ̂ , IBM, the IBM logo, Tivoli and xSeries are trademarks of International Business Machines Corporation in the United States, other countries or both.

Other company, product or service names may be trademarks or service marks of others.

This case study is an example of how one customer and Business Partner use IBM products. There is no guarantee of comparable results.

References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.