LANCASTER COLONY PRESIDENT ISSUES LETTER TO CUSTOMERS, SUPPLIERS AND PARTNERS ON THE STATUS OF ERP INITIATIVE

Rhea-AI Summary

Lancaster Colony Corporation (NASDAQ: LANC) announced a significant milestone in its Project Ascent ERP initiative, with the Wave 1 implementation completed as of July 1, 2022. The new SAP S/4 HANA system is operational across two manufacturing plants, a distribution center, and third-party warehouses, enabling efficient order processing and fulfillment. The company anticipates ongoing improvements as it addresses minor issues typical of such large-scale projects, with future waves scheduled over the next 12 to 18 months to include additional facilities.

Positive

• Successful completion of Wave 1 of Project Ascent, indicating progress in the ERP initiative.
• Operational efficiency maintained with the new SAP S/4 HANA system, supporting order processing and shipping.

Negative

• Minor issues are expected, which may indicate risks during the transition phase.

WESTERVILLE, Ohio, July 27, 2022 /PRNewswire/ -- David A. Ciesinski, President and CEO of Lancaster Colony Corporation (NASDAQ: LANC), issued the following letter today as an update on the company's Enterprise Resource Planning (ERP) initiative, Project Ascent.

Dear Lancaster Colony Corporation / T. Marzetti Company Customers, Suppliers and Partners,

I am pleased to share that we are nearing completion of the Wave 1 implementation phase of our ERP initiative, Project Ascent. On July 1, we went live on our new SAP^® S/4 HANA ERP system and the cutover was implemented efficiently and in-line with our expectations. I am glad to report that we are receiving orders, producing product, shipping orders and have maintained our fulfillment levels throughout. We continue to work through minor issues, which are to be expected with a project of this scale, and we remain confident in our ability to resolve them. 

Wave 1 is the most complex wave of Project Ascent, encompassing all financial transactions and all customer- and supplier-facing business processes including order-to-cash, trade promotions, procure-to-pay, and an EDI re-platform. Two of our manufacturing plants, a large distribution center, and all of our third-party warehouses are also now up and running on our new ERP system. We will be adding our remaining facilities and distribution centers to the new ERP system with future waves that are planned over the next 12 to 18 months.   

In closing, I extend my sincere thanks to you for your support of our business as we complete this important milestone for Project Ascent and look forward to the opportunities to grow with and serve you that lie ahead. 

Sincerely,

David A. Ciesinski
President & CEO
Lancaster Colony Corporation / T. Marzetti Company

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SOURCE T.marzetti Company

FAQ

What is the status of Lancaster Colony's Project Ascent ERP initiative?

Lancaster Colony has successfully completed Wave 1 of its Project Ascent ERP initiative as of July 1, 2022.

What system did Lancaster Colony implement for its ERP initiative?

Lancaster Colony implemented the SAP S/4 HANA system for its ERP initiative.

When was the Project Ascent ERP system launched?

The Project Ascent ERP system launched on July 1, 2022.

What facilities are currently operational under Lancaster Colony's new ERP system?

Two manufacturing plants, one large distribution center, and all third-party warehouses are operational under the new ERP system.

What are the next steps planned for Lancaster Colony's ERP initiative?

Future waves of the ERP initiative are planned over the next 12 to 18 months to include additional facilities and distribution centers.