Why Chiquita Chose SaaS Apps from Upstart Workday

08.04.2009
It seems like a straightforward and simple question that your typical HR application and corporate ERP system should be able to answer: How many employees are working for our company today?

At Chiquita Brands, the Fortune 500 company best known for its blue-stickered bananas, "We couldn't answer that question," recalls Manjit Singh, Chiquita's CIO since September 2006. "It would take us a couple of weeks to get the answer pulled together and by that time, of course, it was all incorrect."

Chiquita boasts a global workforce of 23,000 employees in 70 countries on six continents, though most of the workers are predominantly in Central America. Up until 2008, the Cincinnati-based food manufacturer had employed a hodgepodge of legacy HR systems that were inadequate at managing the complex demands of its decentralized workforce.

Manual, inefficient workarounds (Excel spreadsheets and paper-based processes) were frequently used. When Chiquita hired a new employee, for instance, the HR paper-trail process could contain 20 to 30 steps, Singh notes.

"At any point, if that paper gets lost, things are going to fall through the cracks," he says. "Many times new employees have shown up and haven't had an office, a PC or a phone. Obviously that causes pain to the employee, it doesn't make the employer look good, and you've lost productivity from the moment the employee walks through the door."

Chiquita needed an IT system overhaul and big business-process change. But just how much would that cost Chiquita, which had been battling to improve its profitability? Chiquita's 2008 results, for instance, missed analyst expectations--and its stock price tumbled after the company announced its earnings. While revenue reached US$3.6 billion for 2008, Chiquita reported a net income loss from continuing operations of $325 million.