Standard Foods Partners With Rimini Street to Fund AI-Powered Predictive Data Analytics Project

Rhea-AI Summary

Rimini Street, Inc. (Nasdaq: RMNI) announced that Standard Foods has selected Rimini Support™ for SAP. This partnership has enabled Standard Foods to achieve significant cost savings, improve support quality for its SAP systems, and reallocate IT resources towards projects driving profitability and growth. Jerry Lee, IT director at Standard Foods, highlighted that Rimini Street halved their annual support costs and improved SAP system performance.

The partnership allows Standard Foods to focus on data initiatives, including AI and machine learning projects for supply chain optimization. By integrating AI with real-time data, the company has enhanced decision-making across its supply chain. The flexibility provided by Rimini Street also alleviates pressure to upgrade to S/4HANA, as Standard Foods now has full control of its IT roadmap.

Positive

• Rimini Street halved Standard Foods' annual SAP support costs
• Improved quality of support for mission-critical SAP systems
• Enabled reallocation of IT resources towards strategic projects
• Reduced staff needed to support SAP modules from 5 to 3
• Facilitated investment in AI and machine learning for data analysis
• Enhanced supply chain decision-making through AI integration with real-time data
• Provided flexibility and control over IT roadmap, alleviating S/4HANA upgrade pressure

Negative

• None.

Insights

Technology Analyst

Standard Foods' partnership with Rimini Street for SAP support marks a strategic shift in IT resource allocation. By halving annual support costs and improving system performance, the company can now focus on AI-powered data analytics projects. This move enables better sales estimations and supply chain optimization, potentially boosting profitability. The decision to delay S/4HANA migration demonstrates a pragmatic approach to IT investments, prioritizing immediate business value over vendor-driven upgrades. While this strategy may yield short-term benefits in cost savings and operational efficiency, it's important to monitor long-term implications for system compatibility and future upgrade paths. The emphasis on AI and machine learning for demand forecasting could significantly reduce inventory costs and improve cash flow, making this a potentially impactful move for Standard Foods' financial performance.

Supply Chain Expert

Standard Foods' implementation of AI and machine learning in their supply chain operations is a significant development. By leveraging real-time data and AI tools to refine order recommendations and improve procurement processes, the company is addressing a critical challenge in manufacturing - accurate demand forecasting. This approach can lead to substantial improvements in inventory management, reducing both stockouts and excess inventory. The potential 50% reduction in forecasting errors cited by industry analysts could translate to significant cost savings and improved service levels. However, the success of this initiative will depend on the quality of data inputs and the sophistication of the AI models employed. The reallocation of IT resources towards these data-driven projects, facilitated by the Rimini Street partnership, positions Standard Foods to potentially outperform competitors in supply chain efficiency and responsiveness to market changes.

Rimini Support™ for SAP enables manufacturer to reallocate resources towards supply chain improvements, driving stronger profitability and operational efficiency

LAS VEGAS--(BUSINESS WIRE)-- Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support, products and services, the leading third-party support provider for Oracle and SAP software, and an AWS partner, today announced that Standard Foods Corporation has selected Rimini Support™ for SAP, enabling it to achieve significant cost savings, improve quality of support for its mission-critical SAP systems, and reallocate IT resources towards projects that will drive stronger profitability and enable growth for the leading Taiwanese food manufacturer and distributor.

Standard Foods Partners with Rimini Street to Fund AI-Powered Predictive Data Analytics Project (Graphic: Rimini Street)

Jerry Lee, director of IT at Standard Foods shared, “Rimini Street immediately halved our annual support costs and helped our SAP systems run better than ever before. Because of the efficiencies gained, my IT team can focus on using data to improve sales estimations and benefit our partners and distributors. It will be a game-changer for Standard Foods, made possible by Rimini Street.”

Better Software Support Allows for More Focus on Data Initiatives

On a search for better software support, Standard Foods received strong recommendations by multiple IT partners and peers to explore Rimini Street.

“What impressed me the most about Rimini Street was that they took the time to get to know our systems in detail, and understand our vision,” said Lee. “What sometimes took weeks to get resolved with SAP, compared to the timeliness of the support that Standard Foods gets from Rimini Street is really something else,” according to Lee. He added, “The combination of fast response and expert solutions has allowed us to increase our investment in AI and machine learning but with less staff needed to keep those systems running at full speed.”

“With Rimini Street, we only need three people to support the five SAP modules we use, and we maintain full functionality,” Lee shared. This frees up Standard Foods’ IT team to work on strategic projects such as shifting from SAP’s BI reports to Power BI and cloud-based machine learning for data analysis. By integrating AI with real-time data, Standard Foods has enhanced decision-making across its supply chain.

“Predicting how much to order is an ongoing challenge for manufacturers, and a misstep in calculations in the supply chain can impact profitability,” Lee noted. “By running various models with real-time data and AI tools, we can both refine order recommendations and improve procurement processes.”

Flexibility and Control of its IT Roadmap Alleviates S/4HANA Upgrade Pressure

As an SAP ECC shop, Standard Foods is one of the many SAP customers who will no longer receive vendor support for its ECC platform past 2027. But they are unbothered by the timeline as they are in full control of their IT roadmap since partnering with Rimini Street.

“At this moment, moving to S/4HANA is not a priority nor do we see it as a strategic move for our business. The ROI is just not there. Perhaps in the future, we may want to consider it, but for now, our efforts and focus will be on innovation, growth and profitability,” said Lee.

“One of the impactful areas for AI in the supply chain is demand forecasting. According to industry analysts, AI-based forecasting techniques that incorporate real-time and multivariate data sources can reduce forecasting errors by up to 50% compared to traditional time-series based methods,” said Tyler Munger, vice president of analytics at Rimini Street. “Many of our manufacturing clients partner with Rimini Street to direct resources towards investing in AI-fueled improvements that help with their top and bottom-line goals.”

With Rimini Street, Lee has peace of mind knowing that his team can access SAP expertise 24/7/365 with under 2-minute average response times as they continue to evolve their IT roadmap. This strategic partnership allows Standard Foods to continue its mission of promoting healthy living by using data to optimize operations.

Learn more about the business goals Standard Foods achieved by partnering with Rimini Street here.

Explore the full Rimini Street portfolio of ultra-responsive, trusted and proven support, managed services, security, integration, observability, professional services and Rimini ONE™ end-to-end outsourcing solutions for SAP and Oracle applications to support competitive advantage, profitability and growth.

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000^® Company, is a global provider of end-to-end enterprise software support, products and services, the leading third-party support provider for Oracle and SAP software and an AWS partner. The Company has operations globally and offers a comprehensive family of unified solutions to run, manage, support, customize, configure, connect, protect, monitor, and optimize enterprise application, database, and technology software, and enables clients to achieve better business outcomes, significantly reduce costs and reallocate resources for innovation. To date, over 5,600 Fortune 500, Fortune Global 100, midmarket, public sector, and other organizations from a broad range of industries have relied on Rimini Street as their trusted enterprise software solutions provider. To learn more, please visit riministreet.com, and connect with Rimini Street on X (formerly known as Twitter), Instagram, Facebook and LinkedIn. (IR-RMNI)

Forward-Looking Statements

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These statements are subject to a number of risks and uncertainties regarding Rimini Street’s business, and actual results may differ materially. These risks and uncertainties include, but are not limited to, adverse developments in and costs associated with defending pending litigation or any new litigation, including the disposition of pending motions to appeal and any new claims; additional expenses to be incurred in order to comply with injunctions against certain of our business practices and the impact on future period revenue and costs; changes in the business environment in which Rimini Street operates, including the impact of any recessionary economic trends and changes in foreign exchange rates, as well as general financial, economic, regulatory and political conditions affecting the industry in which we operate and the industries in which our clients operate; the evolution of the enterprise software management and support landscape and our ability to attract and retain clients and further penetrate our client base; significant competition in the software support services industry; customer adoption of our expanded portfolio of products and services and products and services we expect to introduce; our ability to grow our revenue, manage our cost of revenue and accurately forecast revenue; the expected impact of recent and anticipated future reductions in our workforce and associated reorganization costs; estimates of our total addressable market and expectations of client savings relative to use of other providers; variability of timing in our sales cycle; risks relating to retention rates, including our ability to accurately predict retention rates; the loss of one or more members of our management team; our ability to attract and retain additional qualified personnel, including sales personnel, and retain key personnel; our business plan, our ability to grow in the future and our ability to achieve and maintain profitability; our plans to wind down the offering of services for Oracle PeopleSoft products; our need and ability to raise equity or debt financing on favorable terms and our ability to generate cash flows from operations to help fund increased investment in our growth initiatives; risks associated with global operations; our ability to prevent unauthorized access to our information technology systems and other cybersecurity threats, protect the confidential information of our employees and clients and comply with privacy regulations; our ability to maintain an effective system of internal control over financial reporting; our ability to maintain, protect and enhance our brand and intellectual property; changes in laws and regulations, including changes in tax laws or unfavorable outcomes of tax positions we take, or a failure by us to establish adequate tax reserves; the impact of environmental, social and governance (ESG) matters; our credit facility’s ongoing debt service obligations and financial and operational covenants on our business and related interest rate risk, including uncertainty from the transition to SOFR or other interest rate benchmarks; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the amount and timing of repurchases, if any, under our stock repurchase program and our ability to enhance stockholder value through such program; uncertainty as to the long-term value of Rimini Street’s equity securities; catastrophic events that disrupt our business or that of our clients; and those discussed under the heading “Risk Factors” in Rimini Street’s Quarterly Report on Form 10-Q filed on July 31, 2024, and as updated from time to time by Rimini Street’s future Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street’s expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street’s assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street’s assessments as of any date subsequent to the date of this communication.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240925511281/en/

Janet Ravin

VP, Global Communications

Rimini Street, Inc.

+1 702 285-3532

pr@riministreet.com

Source: Rimini Street, Inc.

FAQ

How did Rimini Street's support impact Standard Foods' SAP costs?

Rimini Street immediately halved Standard Foods' annual SAP support costs, according to Jerry Lee, IT director at Standard Foods.

What strategic projects is Standard Foods focusing on with the help of Rimini Street (RMNI)?

Standard Foods is focusing on AI and machine learning projects for data analysis, shifting from SAP's BI reports to Power BI, and enhancing supply chain decision-making through AI integration with real-time data.

How has Rimini Street's support affected Standard Foods' IT team efficiency?

With Rimini Street's support, Standard Foods now only needs three people to support five SAP modules, maintaining full functionality and freeing up the IT team to work on strategic projects.

What is Standard Foods' stance on upgrading to S/4HANA after partnering with Rimini Street?

Standard Foods is not prioritizing a move to S/4HANA at the moment, as they don't see it as a strategic move with sufficient ROI. The partnership with Rimini Street gives them control over their IT roadmap and alleviates upgrade pressure.