Fodelia invests in real-time data-driven management and production efficiency.

Lean System was implemented in Fodelia Oyj’s Feelia and Fodelia Retail as an ERP solution between 2021-2023. Fodelia Group's accelerating growth rate and the resulting need to develop and automate operational processes were the background factors for the acquisition of the new system. The key benefits of Lean System have been: the ability to manage with real-time information, improved production planning and warehouse management, effortless traceability and the ability to manage increased order volumes through automation. In addition, the solution ensures accurate and timely monthly reporting.

Fodelia Group's Feelia previously used a mainly warehouse-optimised system for production planning. As a result of strong growth, it was clear that the system and operating model in place were no longer sufficient to support the business. The new solution was designed to improve real-time data-driven management by ensuring that Fodelia's management had a comprehensive view of the units' operations and profitability. The aim was to find an efficient approach to managing production in the units and to introduce efficient and systematized processes in all units with production.

The project was launched when Roima, Feelia and Real Snacks started the project in December 2020. The enterprise resource planning and production planning solution Lean System and its reporting tool Roima Reporting were implemented in stages in different factories of Fodelia. The first implementation took place in December 2021 for Real Snacks, followed by Feelia in April 2022 and finally Perniön Liha and Pita Factory in March 2023. 

Feelia has been able to use Lean System to improve the efficiency of its production and as a result, the profitability of its products. Successful production planning has also minimized typical production downtime due to product changes in the food sector. This is reflected in a reduction in staff rush and more efficient use of time.

Feelia's Factory Manager Tapio Lohi recalls how, after the launch, production and warehouse workers asked him if sales had dropped because of the less hectic workload. After looking at the figures from Roima Reporting, Tapio said the month had been the second-best month in history for sales. In this way, improved performance has allowed staff to take accrued time off, which had previously been a challenge due to the company's strong growth. 

The system has made sales more efficient and freed up time for customer-facing staff, even as order volumes have skyrocketed. Most sales orders enter the system fully automatically and this information is also available in real time, for example for production planning.

Overall, Lean System has been perceived as a very liked solution from individual users to company management. The unanimous view from the most significant highlight of the system is the data-driven management enabled by quality data, which generates vast benefits in both the short and longer term. Tapio has already received comments from staff that they do not want to go back to the old system. The new system "has it all", as one production manager commented.

Tapio says that picking errors have been significantly reduced since the implementation of Lean System. Warehouse management is now more efficient, as users can see directly from the system where each product is located. In addition, real-time balances make it easy to see the quantities of finished products and materials in stock. Things are no longer just in the memory of the workers, who can focus on more important things than the exact location or approximate quantities of individual products. 

A more spacious warehouse is easier to work in and the solution has successfully created more space for material storage. This is a result of forecast-based purchasing proposals being now reliable. In the food industry, where delivery times can be long, there is no longer a need to overstock because factories now know the exact quantity and timing of the next order. In addition, the FIFO method is made easy because the system clearly indicates the oldest product, making it easy to pick from oldest to newest.

Lean System has brought significant improvements to traceability for the factories. This is critical in the food industry which is bound by precise and time-bound requirements. Fortunately, implementing traceability has proven to be a very fast process with Lean System and Tapio has already successfully used the feature during an audit. This is a great help in the traceability situations specific to the food industry.

Fodelia is growing Finnish food companies into thriving success stories, to provide consumers with clean, locally, and responsibly produced food that is known for its provenance. Fodelia Group’s business areas are Fodelia Retail, which focuses on retail and consumer e-commerce, and Feelia, which focuses on the Foodservice market customers. Fodelia's portfolio also includes the juice producer subsidiary Marjavasu, and the food service outsourcing solutions joint venture Fodbar. The companies owned by Fodelia are pioneers in the food industry, focusing on innovative products, value-added customer concepts and advanced manufacturing processes.