A large supermarket wholesaler had over 1000 organization units within their E-Business Suite as a result of their aggressive acquisition strategy. As they started to analyze their policies, they discovered that the same customer had many different types of contracts and there were inconsistent discount policies, payment terms, and even prices across the organization. Sometimes a truck would deliver two or three times a week to the same customer from the same warehouse. Since margins in the grocery business are very low, they realized that by renegotiating and standardizing their contracts and by reorganizing their warehouse deliveries, they would save millions of dollars.
The company consolidated their org units into 20 organizations structured around customer types using eprentise Reorganization software’s MS Organization Units module. After merging the org units, they were able to coordinate all the orders for a customer, and even able to offer better discounts based on the customer’s buying patterns because all transactions were within a single organization unit. They were able to schedule deliveries on a consistent basis and offer better service to their customers.