Premier Foods is on target with a business-wide SAP rollout, its chief executive has said.

The food producer, which makes popular brands such as Oxo cubes, Mr Kipling cakes and Batchelors soup, said the “core elements” of the SAP platform were up and running in its grocery division, and added that the implementation had gone “smoothly” so far.

The ‘Orders to Cash’ module of the system went live over Easter, Premier said. This meant the grocery division was running all processes from order intake to invoicing on SAP.

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The grocery arm is the largest part of the Premier business and produces most of its product range, with the exception of flour, bread and frozen ready-made meals. The division was responsible for £1.3 billion of revenue in 2007.

Robert Schofield, chief executive, said he was pleased with the progress the company had made. He said the SAP roll out in the company’s grocery division “will deliver significant benefits in managing our production and our client relationships”.

In March, Premier entered the second half of the SAP rollout, slowing down promotional activity to concentrate on the move.

The aim of the systems overhaul is to help the company reduce costs, and have process and systems consistency, after it acquired Marlow Food Holdings in 2005, Campbell’s in 2006 and RHM last year.

Premier said it was “on track” with a target of £113 million annual cost savings from bringing the businesses together.

In 2006 it said it expected to spend up to £30 million on the SAP project until now, installing an enterprise resource planning system, including management information systems. The aim is to improve decision making and key processes, while reducing the complexity of technology in place. Recent costs of the implementation have not been disclosed.

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