Tyson Foods saves millions of dollars by streamlining their warranty process using Liquid UI

Source: Building the Business Case: Tyson Foods Success Story


Background

Headquartered in Springdale, Arkansas, Tyson Foods is the world´s largest processor and marketer of chicken, beef and pork products. The company is the second largest publicly traded food company in the Fortune 500 and employs 107,000 people at more than 300 facilities and offices worldwide.


Challenge

  • Improve operational efficiency
    • Cause: The vehicle mechanics were not computer savvy and found that creating repair work orders in SAP to be confusing and time-consuming.
    • Effect: This resulted in poor data quality, excessive software training for vehicle repairs and delayed to shipments/customers service.
  • Lack of transparency and visibility across the fleet maintenance process
    • Cause: Tyson needed an easier way to ensure that equipment was receiving proper maintenance at the right time.
    • Effect: This resulted in frequent equipment breakdowns and vehicles running fewer miles.
  • Complex screens and data entry process
    • Cause: Shop manager took a long time to understand complex SAP screens and keying process. Also, lack of role-based views was an issue.
    • Effect: There were drops in employee productivity and performance.
  • Cumbersome process of tracking vehicles warranty and claims
    • Cause: Tyson´s warranty process involves bumper-to-bumper to aftermarket parts warranties and lengthy claims taking months until the money is returned from the vendor.
    • Effect: The process can become a significant expense if replacement parts or if reimbursements are not tracked properly.


Solution

"As long as the wheels are turning, the Fleets are making money for us," says Marcus Mullins, Tyson, "GuiXT (Liquid UI) and SAP ensured we were getting the proper maintenance on the proper equipment at the proper time which far exceeds any hard dollar savings we gained."

  • Liquid UI for SAP GUI customized and streamlined their SAP by including critical tasks like the ability to enter notifications, work orders, assurance of parts, odometer readings, and time confirmation all on the same screen.
  • Also, Liquid UI added warranty alerts so that the parts could be replaced prior to expiration.
  • With Liquid UI, Tyson now has a system to do proper inspections and maintenance on vehicles resulting in fewer breakdowns and running more miles with less equipment.
  • Liquid UI added Preventive Maintenance functionality through which trucks can pull into any of the 42 shops, and when the odometer reading is entered, the system will indicate if the truck is in need of an oil change, a Department of Transportation inspection or other preventive maintenance procedures.
  • Liquid UI simplifies their aggressive warranty process from parts managers getting alerts to creating claims tickets and warranty clerks submitting a claim to updating claim status to the very end adding credit based on claim approval.
  • Using Liquid UI, Tyson has improved the return of claim money, as well as tracking the replacement of parts and the associated cost savings.


Results

  • The warranty process alone has returned $4.3 million over the last 6 years.
  • Over $75,000 savings in decommissioning the Vehicle Legacy System.
  • Once the benefits were proven in the 42 shops for Fleet Maintenance, Liquid UI (GuiXT) was then deployed to other departments for Plant Maintenance and Material Management. These were much larger endeavors with 130 plants using PM, and 20 hatcheries, 20 feed mills, and 8,000 users now use Liquid UI (GuiXT) successfully.

Tyson staffs one person to do all the Liquid UI (GuiXT) work. This person has an IT background and is usually fresh out of college who starts out working with Liquid UI (GuiXT), then grows into other parts of the business.

Next Steps

Liquid UI enables you to customize business processes, eliminate fields, consolidate screens, tabs, and transactions to achieve a holistic solution while preserving transaction richness. It does this without having to rebuild the whole transaction.

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