Haigh’s Chocolates is Australia’s premium chocolate maker and the oldest family-owned business of its kind. The company is run by the fourth generation of the Haigh’s family and employs over 500 people throughout their factory, administration and retail stores located across Australia.
In business since 1915, Haigh’s uses only the very best and freshest ingredients. They pride themselves on being chocolate ‘bean to bar’ specialists, buying cocoa beans in season, roasting them, developing their own unique blends of both milk and dark chocolate and delivering artisan chocolates to their retail and online store rapidly. The factory teams use meticulous skills and techniques combined with cutting-edge technology systems to create chocolates that look and most importantly taste delicious. Many of their chocolates continue to be hand-made with a choice of over 200 varieties.
Haigh’s key strategy is delivering the best possible product and customer service. They have 14 retail stores, six in Adelaide, six in Melbourne and two in Sydney plus a growing online business.
“The strategic and competitive advantage of our
‘bean to bar’ model is that we control the process from the beginning through to the finished product and then to the customer,” comments Simon Haigh, Joint Managing Director. “It allows us to keep exacting quality and get customer feedback for developing new products. We have a very strong brand that we continue to invest in.”
The Challenge:
Historically Haigh’s greatest growth has come from their retail stores but future expansion will also be through their online channel. Currently Haigh’s supplies Australia online and they expect to go worldwide in the future, with a possible expansion into Asia and beyond.
“Our greatest challenge is our ability to accommodate growth — increasing volume while being responsive to customer demand and staying true to our traditional methods of chocolate making and small kitchen mindset. Technology therefore is the enabler. It allows us to be more responsive, agile and adaptable rather than succumbing to just making larger batches and losing our artisan skills, tradition and lowering the quality of products,“ notes Peter Millard, Supply Chain Manager.
Technology is essential for both Haigh’s retail and manufacturing business components. Retail is critical; the right technology at point of sale not only allows Haigh’s to service their customers quickly but also provide a wealth of information to the manufacturing teams. “One of our challenges being a manufacturer and a retailer is getting our goods to the stores, when we need them, when we want them — right time, right place,” says Haigh. “We can only do that when the shop floor can get accurate, real-time information from retail.”
But Haigh’s Chocolates also needs to balance technology with tradition. “Our commitment to tradition is really in our recipes and our methods. Outside of that, we’re committed to being innovative. We want to embrace technology, embrace new thinking, and embrace new processes,” adds Millard. “Our commitment is to traditional methods and traditional skills, but modern thinking.”
Simon Haigh, Joint Managing Director, Haigh’s Chocolates
The Solution:
“When we were evaluating ERP systems, QAD was the system which most closely matched our requirements. QAD is based on manufacturing best practices, is flexible, and hasn’t required customization, even though customization is possible. It fits our needs,” says Haigh.
Millard adds, “I certainly am an advocate of QAD. The software is scalable and adaptable, accommodating necessary changes in business processes whenever they arise.”
“QAD made it easy to move from an on premise ERP solution to a cloud-based ERP. The transition to the cloud was a collaborative effort with QAD and our team,” comments Haigh. “We were an early adopter of QAD ERP in the cloud in Australia and it’s proven to be a very strategic move for us. No longer having to maintain an on premise ERP system has allowed us to focus on more business critical strategies. I highly recommend QAD ERP in the cloud to anyone.”
Easter and Christmas are Haigh’s Chocolates most challenging seasons and having access to real-time sales and inventory information has allowed Haigh’s to take more calculated risks. Lowering inventory while experiencing stronger sell-through is no simple task, but QAD ERP in the cloud has made that possible by allowing Haigh’s staff to focus on their core business, not maintaining their ERP system.
The Benefits:
“We’ve never looked back. Moving to the cloud is one of the best things we’ve done. It’s freed up a lot of resources, which can now be focused on our core competency of making and selling chocolate. The system is humming,” remarks Haigh.
“Haigh’s and QAD have always had a collaborative approach. We came to the table without a lot of skills in this area and we’ve relied heavily on QAD’s ability to support us,” continues Millard. “We’ve worked together and found QAD’s willingness to be alongside us in the trenches and work on our challenges is a critical component of our success.”
Technology is enabling Haigh’s Chocolates to deliver their products in new and different ways. They are expanding beyond storefronts, and with the cloud are now well positioned to greatly expand their online sales and handle additional demand on the manufacturing side.
“Technology is about enabling us to deliver exactly what our customers are looking for no matter where they are. QAD ERP in the cloud has allowed us to focus on responding to our customers’ needs,” states Millard. “Moving to the cloud has transformed us from having to worry all the time — ‘will the technology work?’ to ‘how to make the best chocolate.’”
Moving to the cloud has proved to be a strategic choice that enabled Haigh’s Chocolates to grow without having to expand their infrastructure, and without the burden of technology challenges.
“QAD ERP in the cloud has been very successful for us. The system is reliable, and we really appreciate not having to think about the critical technology that provides the foundation for our manufacturing,” states Millard.
Simon Haigh, Joint Managing Director, Haigh’s Chocolates
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