Tnuva Food Industries Ltd. is replacing its enterprise resource planning (ERP) system with a system from Oracle Corporation (Nasdaq: ORCL) in a NIS 75 million deal. The system will be installed over the next three years to replace current SAP and other best-of-breed systems.
Tnuva has expanded from its original dairy business into many sectors of the food industry, and expanded its marketing, logistics, and sales chain to 8,000 points of sales handling 3.4 million products a day.
Several months ago, Tnuva's management, under CEO Arik Schor, decided to abandon its best-of-breed approach for separate software systems for finances, logistics, production, and human resources, and switch to a single system with advanced functions supplied by one vendor.
SAP AG (NYSE: SAP; XETRA: SAPG) dominates the Israeli ERP market for large enterprises, and Tnuva has SAP systems for human resources management, and sources believed that it would continue to work with the company. Instead, sources inform ''Globes'' that Tnuva has decided to switch to SAP's rival Oracle.
Tnuva, founded in 1926, is Israel's largest food company. Apax Partners owns 56% of the company, and Apax Israel general manager Zehavit Cohen is Tnuva's chairwoman. Sales reached NIS 7.1 billion in 2008, and it has 6,000 employees.
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2009
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