Mizkan America modernizes with RSM and D365

How this vinegar and sauce manufacturer unified operations

November 18, 2024

Key takeaways

Focusing on food and beverage with verified processes speeds up time to value for transformation projects.

A single source of data truth streamlines operations and better informs decision making.

Full cloud-based digital transformation extends far beyond ERP into critical integrations.

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Dynamics 365
Food & beverage Microsoft Technology consulting Business applications

Ninth generation-owned Japanese company Mizkan has been in business for 220 years, and its American arm manufactures and distributes several flavorful brands in the United States. Never content to rest in status quo mode, Mizkan America came to RSM US LLP for a full enterprise resource planning system transformation.

Headquartered in Mount Prospect, Illinois, and running 15 plants/warehouses in the United States, Mizkan America makes and sells quality vinegar, pasta sauces, cooking wines and authentic Asian sauces. Targeting consumers and food service, its U.S. brands include MIZKAN®, RAGÚ®, BERTOLLI®, HOLLAND HOUSE®, NAKANO®, FOUR MONKS® and CUCINA MODERNA®. 

RSM’s project methodology, highly skilled resources and customer partnership is the strongest I have seen in my 20-plus years as an IT leader.
Patty Ward, CIO and VP, Mizkan

In the past, Mizkan ran its flavor enhancer/vinegar line of business (LOB) on Microsoft Dynamics AX 2009, while its sauce/meal solution LOB was managed with SAP ECC 6. The disparate systems led to disconnected finances and reporting issues when integrating new systems and differing business processes, making it difficult to scale, grow and acquire new companies.

The company wanted to merge them into “ONE Mizkan” with Microsoft Dynamics 365, standardized business processes and accurate, unified data. With such a complex and potentially impactful transformation project, Mizkan turned to RSM for assistance.

The project details

Even with an experienced team of IT staff, undertaking this mission-critical project required a dedicated implementation and consultative advisor. “Mizkan prioritized three key qualities when seeking out their implementation partner: 1. experience in the food and beverage industry, 2. strong core values and 3. unwavering stability,” says William Wilcox, principal at RSM. “RSM possesses these qualities, which support Mizkan having a 100% dedicated team that truly embodies the ‘Power of Being Understood.’”

Mizkan's chief information officer and vice president of IT, Patty Ward, who previously worked with RSM at another company, requested an RFP.

“I was aware of their strong customer focus and knowledgeable resources,” says Ward. “Even though they were given very little time to develop their proposal, they quickly engaged and were able to gain the trust of Mizkan leadership with their professionalism and strong industry knowledge.” 

Included in Mizkan’s evaluation of RSM was an appreciation for its proven Rapid Verification Model (RVM). This model and philosophy rely on a flexible interpretation of the 80/20 rule to enable RSM to deliver consistent, repeatable industry solutions (80%) so that the RSM team can focus on the 20% that makes Mizkan unique.

The RVM foundation—which includes industry-specific setup, model, business process and data packages—is based on industry experience, extensive Microsoft experience and continuous improvement, all to help customers realize the value of their D365 investment sooner.

ERP transformation goals

  • Replace SAP ECC 6 and Microsoft Dynamics AX 2009 with Microsoft Dynamics 365 Finance & Supply Chain Management.
  • Move to become completely cloud-based.
  • Unite operations and finance under “ONE Mizkan.”
  • Bring in the same set of integrations from prior ERPs to Microsoft Dynamics 365.
  • Standardize business processes across all facilities.
  • Improve business insights and analytics via a single source of data truth.
  • Better leverage Mizkan’s scale for future growth.
     
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In addition to valuing RSM’s RVM framework, Mizkan looked to RSM for guidance on supporting scalability and overall long-term growth for Mizkan America.

A smooth implementation and LOB unification

RSM led a two-phase implementation, focusing on the Flavor Enhancer line of business (LOB) and then on Meal Solutions. Working closely with the dedicated, knowledgeable Mizkan IT team, RSM collaborated virtually and in person while navigating COVID-19 restrictions during the 2021-2023 project.

The project scope included more than 25 Microsoft Dynamics modules and 18 integrations, creating a fully connected, cloud-based operation. Integrations included:

  • Supply chain management with Blue Yonder
  • Spend management with Coupa
  • Integrated business planning and analytics with Exceedra and Anaplan
  • Data integration with Boomi
  • Transportation management with Mercury Gate

Despite pandemic-related challenges and the complexity of the transformation, the RSM and Mizkan teams grew close. They successfully hit every milestone during the two-year project, including the go-live dates.

“The RSM team was consistently dedicated to Mizkan's success throughout the engagement,” says Jason Greto, delivery engagement director at RSM. “They invested time in fostering strong working relationships with Mizkan, ultimately becoming an integral part of the Mizkan family.” The teams developed personal and professional connections, with bonds strengthened through site visits and close collaboration during testing and go-live.

ONE Mizkan with many benefits

The Mizkan and RSM teams achieved the goal of ONE Mizkan during this transformative process that saw the elimination of unwieldy, inefficient legacy technology and the implementation of cloud-based systems with seamless connectivity. 

“With the complexities of our business, we faced many challenges throughout the project, but we were able to quickly address and find solutions due to the knowledge and skills that the RSM team members provided,” says Patty Ward, CIO and VP of IT at Mizkan. “We went live on D365 F&O with minimal disruption to our business, and we attribute much of that success to RSM.”

The new system resulted in several benefits that immediately affected operations.

The measure of success

  1. Successful go-live with the ability to process all incoming and outgoing trucks on time and without issue

  2. Best practice achievement of the ability to accomplish tasks on time

  3. Ability to track inventory in real time with the ability to cross-dock using mobile devices on D365

  4. Advanced warehouse capabilities that enabled the scanning of more than 15,000 pallets of inventory in three days and improved inventory accuracy

  5. New efficiencies from the D365 Asset Management module, including the ability to easily review and confirm purchase orders and view and complete work orders on mobile devices

  6. Increased purchasing power via consolidation of purchasing across all of its warehouses within a single ERP
  1. Automation of pallet label printing and tagging, allowing Mizkan to streamline operations without needing to hire additional team members

  2. Fast, broad adoption of new business processes that require fewer steps than before and result in increased efficiency

  3. Enhanced supply chain traceability of items, raw materials and ingredients

  4. Improved regulatory compliance and customer transparency with the ability to generate Certificates of Analysis (COA) and Certificates of Compliance (COC) reports for their products

  5. Improved quality assurance with quality and nonconformance tracking and reporting, along with quality order generation points for inspections and testing, which enables Mizkan to identify and remediate the root cause of quality issues

When Mizkan sought an implementation partner for its cloud and ERP transformation, it really sought a genuine partnership with a firm fully committed to Mizkan’s long-term success. “RSM’s project methodology, highly skilled resources and customer partnership is the strongest I have seen in my 20-plus years as an IT leader,” says Ward.

RSM demonstrated this solid strategic relationship with Mizkan through its thorough discovery, implementation and testing process, which resulted in a smooth launch that included 25 D365 modules and 18 integrations. Every aspect of Mizkan’s operations is now digitalized, cloud-based and connected—fueling Mizkan’s success for years to come. 

Nov 18, 2024
0 min. read

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