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ERP systems for greenhouse horticulture
Cor Verdouw
Sr. Scientist, Information Technology Group, Wageningen University
Expert Business Innovation, Mprise Agriware
Wageningen, 13 juni 2018, AHDB Greenhouse Technologies,
Automation and Robotics Study Tour
Agenda
Why ERP?
What is ERP?
ERP in the Dutch horticulture
Trends
Conclusions
Global challenges
Health and nutrition
Food safety
Biobased Economy
Bio diversity
Climate change
Agri-Food
system
Increasing company size
greenhouse horticulture in The Netherlands
4
Increasing room for investment (but not for all…)
greenhouse horticulture in The Netherlands
5
smart analysis
& planning
smart
control
smart
sensing &
monitoring
(integrated) data
management
Smart production
7
Structuur presentatie
Why ERP?
What is ERP?
ERP in the Dutch horticulture
Trends
Conclusions
Problem: island automation
• No real-time integrated management information
• Manual data entering
• High risk of errors
• Lack of inter-enterprise integration
• Insufficient link with information systems of other
supply chain actors
10
Enterprise Resource Planning (ERP)
ERP = Integrated
business software
Main benefits
● Real-time integrated management information
● Data is entered once at the source (less errors, time, ...)
● Enabler of supply chain integration
11
Important features ERP
Multi-functional
● Supports ‘all’ business processes
● Sales, order management, procurement, distribution,
production, warehouse management, finance, etc.
Integrated: data shared in the complete system
directly after data entry
Business critical: leading in the execution of
business processes
Standard software: functionality is fit to specific
companies by setting specific parameters
ERP trends
Island
automation
ERP
‘old style’
ERP II
‘new style’
13
ERP and ERP II - Differences
ERP ERP II
Role Enterprise + Supply Chain Integration
Domain Manufacturing and
Distribution
All segments / sectors
Function Manufacturing, sales,
distribution, finance
+ specific industry
processes
Process Intra enterprise Beyond enterprise
boundary
Architec
ture
Monolithic and closed Webbased, interoperable,
modular
Data Data
generated/consumed
witin the enterprise
Information available
across supply chain to
authorized participants
Based on Gartner 2000 and Møller 2005
14
Gartner Magic Quadrant for
Product-Centric ERP (2015):
■ Manufacturing Companies
■ Distribution Companies
However, there are many more!
A good selection
is half the work!
Some big ERP vendors
Implementation of crucial importance!
15
Success factors Failure factors:
Good
collaboration
supplier
Efficient
decision
making
Successfull business
process
improvements
No good planning /
project
management
Insufficient
testing before
going live
Underestimate
impact business
processes
Broad user
commitment
Too much
software
customization
Reserve enough
resources
2011, NL,
horticulture
n=13,
Open access paper
16
https://doi.org/10.1
016/j.compag.2015.
04.002
Agenda
Why ERP?
What is ERP?
ERP in the Dutch horticulture
Trends
Conclusions
Perceived / expected benefits
18
Source: Wageningen Economic Research, 2016
Robbemond, Robbert ; Ge, Lan ; Puister, Linda ; Verdouw, Cor (2016), Nut van ICT-gebruik voor
tuinbouwondernemers, Wageningen Economic Research, report 2016-051, 98 p.
2016, NL,
n=83,
plants/flowers/
vegs
Maturity office automation still limited
19
ERP
Source: Wageningen Economic Research, 2016
Robbemond, Robbert ; Ge, Lan ; Puister, Linda ; Verdouw, Cor (2016), Nut van ICT-gebruik voor
tuinbouwondernemers, Wageningen Economic Research, report 2016-051, 98 p.
2016, NL, n=83,
plants/flowers/vegs
Supply chain framework (Lee 2002)
20
Demand Uncertainty
Low High
Low
Efficient supply
chains
Responsive
supply chains
High
Risk-hedging
supply chains
Agile supply
chains
SupplyUncertainty
ICT should match!
ERP II  better match with horticulture
21
Source: Lee 2002
Demand Uncertainty
Low High
Low Efficient Responsive
High Risk-hedging Agile
SupplyUncertainty
Horti-
culture
ERP II
Traditional
ERP
Some ERP providers Dutch horticulture
22
Software Manual Floricode:
http://www.floricode.com/en-
us/distribution/softwaremanuals.aspx
Solution Providers Frugicom:
https://frugicom.nl/nl-nl/Over-ons/Solution-Providers
More info?
Example
References
24
+ 90 international implementations
Example
25
Crop Production
• Production planning
• Yield forecasting
• Planned VS Actual costing
Activity Management
• Labor and material planning
• Workorder allocation and
registration
• Inspections and observations
• Crop treatments monitoring
Area management
• Long & Short term planning
• Space capacity insight
Agriware Production
Planning & Execution
Sales Purchase
Forecast
App: Workorder
App: Observation
App: Inspection
App: Treatment
CRM: Complain
Invoice
Inventory Financials
Shipment
Example– basic concept
26
The production job
A cultivation plan to
manage:
- Space (area/rooms)
- Materials
- Resources
- Output (Yield)
Planned in time…
Register actuals…
Job
Cultivation of a crop (lot)
Phase1
YP
greenhouse
Planting
Phase2
Growing
Indoor 1
Phase3
Growing
indoor 2
Phase4
Delivery
Q.Check
Expension
Harvest
Calculation & Usage
Consumption of Material + Resources
Inspection
Q.Check
Potting
Pinching
Process
Input
Young Plant /
Seed / Root
stock / Cutting
Output
Blooming Plant /
Young Plant /
Seed / Plant parts
Activity scheme
Labor, machines, material
Production scheme
Phases & area
27
Job card – Production Scheme
Job card – Activity Scheme
28
Location planning long term – per genus
Location planning long term – per phase
Location planning short term - Locations
Agenda
Why ERP?
What is ERP?
ERP in the Dutch horticulture
Trends
Conclusions
New technologies, new opportunities!
Producer
Associations /
Cooperatives
Traders
Greenhouses
/ Farms
Carriers
Retail
Customs
Banks
Insurances
Authorities
Consumers
Trends Augmented
RealityInternet of Things Wireless
Predictive AnalyticsSaaS
Cloud Computing Big Data
Blockchain
Wearables
3D printing
AI
gamification
Bioinformatics
Downstream Supply
Chain Systems
Trade
Sales
Service supplier
Accountant
Service supplier
Trade
Trade
Sales
Systems regulatory authorities
Compliance
info
Supply chain
info
Upstream
Supply Chain
Systems
Seed Supplier
Packaging
supplier
Crop Protection
Supplier
Systems and devices in farm primary production/cultivation
Greenhouse ERP system
Connected Greenhouse
Supply chain
info
Work
info
Customs Certification Food safely
authorities
Plant health
authorities
Downstream Supply
Chain Systems
Trade
Sales
Service supplier
Accountant
Service supplier
Trade
Trade
Sales
Systems regulatory authorities
Compliance
info
Supply chain
info
Upstream
Supply Chain
Systems
Seed Supplier
Packaging
supplier
Crop Protection
Supplier
Systems and devices in farm primary production/cultivation
Greenhouse ERP system
Connected ERP
Supply chain
info
Work
info
Customs Certification Food safely
authorities
Plant health
authorities
Mobile ERP
/ IoT
integration
MES
Integration
eBusiness
Supply Chain
Integration
Business
Intelligence
Cloud
ERP
Example Mobile ERP: Fieldbook Agriware
Agriware Production
Planning & Execution
Sales Purchase
Forecast
App: Workorder
App:
Observation
App: Inspection
App: Treatment
CRM: Complain
Invoice
Inventory Financials
Shipment
Example Mobile: Fieldbook Agriware
Example MES integration
38
Logistics &
Camera &
Robotics
Agriware NAV MES
Agriware
Connectors
Agriware Production
Planning & Execution
Sales Purchase
Forecast
Inventory Financials
Other connected vendors include:
Mobile
connec-
tors
Webshop
connec-
tors
Logistic
connec-
tors
Based on the
Plantform
ISA95 standard!
Example MES integration
39
Plant
Order
System
(Sorting &
Delivery)
Agriware NAV
Agriware
Connectors
Agriware Production
Planning & Execution
SalesPurchase
Forecast
Inven-
tory
Financial
s
Logistic
connec-
tors
Internal
Logistic
System
Agriware
Production
Planning &
Execution
Sales
Pur-
chase
Finan-
cials
• Job data incl. production schemes
• Sorting data from camera systems
• Stock locations and container movements
• Master data incl. article codes and features
• Sales order data for delivery systems
• Sorting data from camera systems
Example Virtual Market Place
40
Agriware NAV
Agriware Production
Planning & Execution
SalesPurchase
Forecast
Inven-
tory
Financial
s
Business
Software
Customer A
Agriware
Production
Planning &
Execution
Sales
Pur-
chase
Finan-
cials
• Actual and planned
availabilty
• VMP order lines
Virtual
Inventory
Trade Systems Clients
eBusiness
Platform
Customer B
Business
Software
Customer C
Business
Software
Customer D
• Availablity
VMP items
• VMP purchase
orders
Example Virtual Market Place
Agenda
Why ERP?
What is ERP?
ERP in the Dutch horticulture
Trends
Conclusions
Take home messages
 Integrated business software is a must for professional
management of (large-scale) greenhouse production
 Modern ERP solutions can be suitable for horticulture
 However, proper orientation, selection and
implementation key for success!
 Some recommendations:
● Invest in the selection
● Manage human change process
● Stick to your scope
● Reserve enough resources (time!)
● Test intensively
43
Discussion!
Contact: Cor.Verdouw@wur.nl

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ERP systems for greenhouse horticulture

  • 1. ERP systems for greenhouse horticulture Cor Verdouw Sr. Scientist, Information Technology Group, Wageningen University Expert Business Innovation, Mprise Agriware Wageningen, 13 juni 2018, AHDB Greenhouse Technologies, Automation and Robotics Study Tour
  • 2. Agenda Why ERP? What is ERP? ERP in the Dutch horticulture Trends Conclusions
  • 3. Global challenges Health and nutrition Food safety Biobased Economy Bio diversity Climate change Agri-Food system
  • 4. Increasing company size greenhouse horticulture in The Netherlands 4
  • 5. Increasing room for investment (but not for all…) greenhouse horticulture in The Netherlands 5
  • 6. smart analysis & planning smart control smart sensing & monitoring (integrated) data management Smart production
  • 7. 7
  • 8. Structuur presentatie Why ERP? What is ERP? ERP in the Dutch horticulture Trends Conclusions
  • 9. Problem: island automation • No real-time integrated management information • Manual data entering • High risk of errors • Lack of inter-enterprise integration • Insufficient link with information systems of other supply chain actors
  • 10. 10 Enterprise Resource Planning (ERP) ERP = Integrated business software Main benefits ● Real-time integrated management information ● Data is entered once at the source (less errors, time, ...) ● Enabler of supply chain integration
  • 11. 11 Important features ERP Multi-functional ● Supports ‘all’ business processes ● Sales, order management, procurement, distribution, production, warehouse management, finance, etc. Integrated: data shared in the complete system directly after data entry Business critical: leading in the execution of business processes Standard software: functionality is fit to specific companies by setting specific parameters
  • 13. 13 ERP and ERP II - Differences ERP ERP II Role Enterprise + Supply Chain Integration Domain Manufacturing and Distribution All segments / sectors Function Manufacturing, sales, distribution, finance + specific industry processes Process Intra enterprise Beyond enterprise boundary Architec ture Monolithic and closed Webbased, interoperable, modular Data Data generated/consumed witin the enterprise Information available across supply chain to authorized participants Based on Gartner 2000 and Møller 2005
  • 14. 14 Gartner Magic Quadrant for Product-Centric ERP (2015): ■ Manufacturing Companies ■ Distribution Companies However, there are many more! A good selection is half the work! Some big ERP vendors
  • 15. Implementation of crucial importance! 15 Success factors Failure factors: Good collaboration supplier Efficient decision making Successfull business process improvements No good planning / project management Insufficient testing before going live Underestimate impact business processes Broad user commitment Too much software customization Reserve enough resources 2011, NL, horticulture n=13,
  • 17. Agenda Why ERP? What is ERP? ERP in the Dutch horticulture Trends Conclusions
  • 18. Perceived / expected benefits 18 Source: Wageningen Economic Research, 2016 Robbemond, Robbert ; Ge, Lan ; Puister, Linda ; Verdouw, Cor (2016), Nut van ICT-gebruik voor tuinbouwondernemers, Wageningen Economic Research, report 2016-051, 98 p. 2016, NL, n=83, plants/flowers/ vegs
  • 19. Maturity office automation still limited 19 ERP Source: Wageningen Economic Research, 2016 Robbemond, Robbert ; Ge, Lan ; Puister, Linda ; Verdouw, Cor (2016), Nut van ICT-gebruik voor tuinbouwondernemers, Wageningen Economic Research, report 2016-051, 98 p. 2016, NL, n=83, plants/flowers/vegs
  • 20. Supply chain framework (Lee 2002) 20 Demand Uncertainty Low High Low Efficient supply chains Responsive supply chains High Risk-hedging supply chains Agile supply chains SupplyUncertainty ICT should match!
  • 21. ERP II  better match with horticulture 21 Source: Lee 2002 Demand Uncertainty Low High Low Efficient Responsive High Risk-hedging Agile SupplyUncertainty Horti- culture ERP II Traditional ERP
  • 22. Some ERP providers Dutch horticulture 22 Software Manual Floricode: http://www.floricode.com/en- us/distribution/softwaremanuals.aspx Solution Providers Frugicom: https://frugicom.nl/nl-nl/Over-ons/Solution-Providers More info?
  • 25. Example 25 Crop Production • Production planning • Yield forecasting • Planned VS Actual costing Activity Management • Labor and material planning • Workorder allocation and registration • Inspections and observations • Crop treatments monitoring Area management • Long & Short term planning • Space capacity insight Agriware Production Planning & Execution Sales Purchase Forecast App: Workorder App: Observation App: Inspection App: Treatment CRM: Complain Invoice Inventory Financials Shipment
  • 26. Example– basic concept 26 The production job A cultivation plan to manage: - Space (area/rooms) - Materials - Resources - Output (Yield) Planned in time… Register actuals… Job Cultivation of a crop (lot) Phase1 YP greenhouse Planting Phase2 Growing Indoor 1 Phase3 Growing indoor 2 Phase4 Delivery Q.Check Expension Harvest Calculation & Usage Consumption of Material + Resources Inspection Q.Check Potting Pinching Process Input Young Plant / Seed / Root stock / Cutting Output Blooming Plant / Young Plant / Seed / Plant parts Activity scheme Labor, machines, material Production scheme Phases & area
  • 27. 27 Job card – Production Scheme
  • 28. Job card – Activity Scheme 28
  • 29. Location planning long term – per genus
  • 30. Location planning long term – per phase
  • 31. Location planning short term - Locations
  • 32. Agenda Why ERP? What is ERP? ERP in the Dutch horticulture Trends Conclusions
  • 33. New technologies, new opportunities! Producer Associations / Cooperatives Traders Greenhouses / Farms Carriers Retail Customs Banks Insurances Authorities Consumers Trends Augmented RealityInternet of Things Wireless Predictive AnalyticsSaaS Cloud Computing Big Data Blockchain Wearables 3D printing AI gamification Bioinformatics
  • 34. Downstream Supply Chain Systems Trade Sales Service supplier Accountant Service supplier Trade Trade Sales Systems regulatory authorities Compliance info Supply chain info Upstream Supply Chain Systems Seed Supplier Packaging supplier Crop Protection Supplier Systems and devices in farm primary production/cultivation Greenhouse ERP system Connected Greenhouse Supply chain info Work info Customs Certification Food safely authorities Plant health authorities
  • 35. Downstream Supply Chain Systems Trade Sales Service supplier Accountant Service supplier Trade Trade Sales Systems regulatory authorities Compliance info Supply chain info Upstream Supply Chain Systems Seed Supplier Packaging supplier Crop Protection Supplier Systems and devices in farm primary production/cultivation Greenhouse ERP system Connected ERP Supply chain info Work info Customs Certification Food safely authorities Plant health authorities Mobile ERP / IoT integration MES Integration eBusiness Supply Chain Integration Business Intelligence Cloud ERP
  • 36. Example Mobile ERP: Fieldbook Agriware Agriware Production Planning & Execution Sales Purchase Forecast App: Workorder App: Observation App: Inspection App: Treatment CRM: Complain Invoice Inventory Financials Shipment
  • 38. Example MES integration 38 Logistics & Camera & Robotics Agriware NAV MES Agriware Connectors Agriware Production Planning & Execution Sales Purchase Forecast Inventory Financials Other connected vendors include: Mobile connec- tors Webshop connec- tors Logistic connec- tors Based on the Plantform ISA95 standard!
  • 39. Example MES integration 39 Plant Order System (Sorting & Delivery) Agriware NAV Agriware Connectors Agriware Production Planning & Execution SalesPurchase Forecast Inven- tory Financial s Logistic connec- tors Internal Logistic System Agriware Production Planning & Execution Sales Pur- chase Finan- cials • Job data incl. production schemes • Sorting data from camera systems • Stock locations and container movements • Master data incl. article codes and features • Sales order data for delivery systems • Sorting data from camera systems
  • 40. Example Virtual Market Place 40 Agriware NAV Agriware Production Planning & Execution SalesPurchase Forecast Inven- tory Financial s Business Software Customer A Agriware Production Planning & Execution Sales Pur- chase Finan- cials • Actual and planned availabilty • VMP order lines Virtual Inventory Trade Systems Clients eBusiness Platform Customer B Business Software Customer C Business Software Customer D • Availablity VMP items • VMP purchase orders
  • 42. Agenda Why ERP? What is ERP? ERP in the Dutch horticulture Trends Conclusions
  • 43. Take home messages  Integrated business software is a must for professional management of (large-scale) greenhouse production  Modern ERP solutions can be suitable for horticulture  However, proper orientation, selection and implementation key for success!  Some recommendations: ● Invest in the selection ● Manage human change process ● Stick to your scope ● Reserve enough resources (time!) ● Test intensively 43

Editor's Notes

  1. 9
  2. 12
  3. Standard ERP based solutions: emphasis on trade, greenhouse production ERP solutions are rare Many sector-specific solutions, not ERP, dedicated but basic But most often used: Exel!
  4. Example bedding young plants
  5. Long term planning, find planning bottlenecks on a locations or specific section (department) Do I use my location area’s wisely? Where are the space capacity bottlenecks? What products are standing in a specific section? DEMO NAV2015 De “NAV” applicatie: Rolcentrum Pagina’s Rapporten Rolgebaseerd: Functie profielen, wijzigbaar per gebruiker Clients: Windows / Web / Tablet / Phone ---------------------------------------------------- Gebruik ik mijn ruimte optimaal? Nu kunnen we antwoord geven op de vragen:
  6. Differnet ways to look at the same data with the color scheme Do I use my location area’s wisely? Where are the space capacity bottlenecks? What products are standing in a specific section? DEMO NAV2015 De “NAV” applicatie: Rolcentrum Pagina’s Rapporten Rolgebaseerd: Functie profielen, wijzigbaar per gebruiker Clients: Windows / Web / Tablet / Phone ---------------------------------------------------- Gebruik ik mijn ruimte optimaal? Nu kunnen we antwoord geven op de vragen:
  7. See all production location and their available capacity/occupation percentage. Do I use my location area’s wisely? Where are the space capacity bottlenecks? What products are standing in a specific section?
  8. Voorheen maakte Bejo gebruik van verschillende systemen om inspecties te kunnen registreren (Excel, Word, Frontpage). Op zich konden gebruikers hier wel mee uit de voeten, maar door gebruik te maken van verschillende systemen was er louter sprake van ongestructureerde data. Hierdoor was het vastleggen van de inspecties puur registratief en was het feitelijk onmogelijk om hier bijvoorbeeld over de verschillende productielanden en teelten rapportages over te draaien. En dat terwijl juist deze inspectiegegevens goed inzicht kunnen geven in de kwaliteit van de teelten…. door deze gegevens te combineren met gepland/gerealiseerde opbrengsten kan men tevens het teeltproces continu verbeteren. Het fieldbook geeft de gebruiker de mogelijkheid gegevens in een vaste structuur vast te leggen, waarbij het aspect gebruikersvriendelijkheid uiteraard niet is vergeten. Momenteel gebruikt Bejo het fieldbook om…. • Partijgegevens in te zien zoals gegevens over de ouderlijnen, zaaidata en geplande activiteiten/teeltduur • Werkorders te registreren voor de verschillende geplande en ad hoc teelactiviteiten (zaaien, planten, oogsten, inspecties, gewasbehandelingen) • Vastleggen van verschillende inspectiesoorten (opkweek, teelt, ziektes, opbrengstinschatting) waarbij tevens inzicht wordt gegeven in voorgaande inspectiewaarden • Vastleggen van gewasbehandelingen • Foto’s toevoegen aan een inspectie en/of teelt • Vastleggen van todo’s • Inzicht in locatiegegevens, leveranciersinformatie, toegekende lotnummers, geplande teeltactiviteiten Verandering is altijd moeilijk… in het begin was het gebruik van het fieldbook best lastig voor de gebruikers, een kladblok functie is nu eenmaal eenvoudiger in te vullen dan een lijst met voor gedefinieerde velden. De gebruikers zagen echter al heel snel in dat het gestructureerd vastleggen van data voor een ieder binnen Bejo vele voordelen biedt. Na het uitvoeren van een inspectie is in de backoffice direct inzichtelijk of de geplande opbrengst nog steeds kan worden gehaald of dat extra acties nodig zijn. Stel dat een teelt het veel beter doet in land A dan in land B kan men direct de inspectiegegevens, uitgevoerde gewasbehandelingen en teelactiviteiten met elkaar vergelijken om een mogelijke oorzaak boven tafel te krijgen. De techniek staat niet stil, momenteel wordt hard gewerkt aan een nieuwe versie van het fieldbook. Door gebruik te maken van modernere technieken zijn we ervan overtuigd dat we de gebruikersvriendelijkheid en functionaliteit naar een nog hoger niveau kunnen tillen.