Client Success Story: Minn-Dak Farmers Cooperative (MDFC) Implements Cloud Based Equity and Patronage System

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Identifying a Path Forward

Minn-Dak Farmers Cooperative, a sugar beet processing company established in 1972, sought to modernize its equity and patronage system, which was previously managed on an outdated IBM platform. This case study explores the cooperative’s journey to implement a new solution in collaboration with Stoneridge Software, focusing on the key challenges, solutions, and outcomes.

Approximately 15-20 years ago, Minn-Dak began searching for a comprehensive solution to manage shareholder accounting, equity, patronage, and payments for sugar beet deliveries. Initially, the market offered limited and outdated options that did not meet their modern needs. Throughout this time, Minn-Dak explored potential options but each time neither the technology nor the timing worked out.

Existing Business Challenges

• Aging accounting system for shareholders
• Reliance on IT Director for shareholder system maintenance
• Disparate systems with manual processes
• Lack of self-service capabilities for shareholders
• Error correcting/data handling
• Information can be difficult to access
• Lack of real-time data availability

Engaging the Right Partner

Minn-Dak’s long-term partner, Stoneridge Software, connected them with their subsidiary Levridge, who emerged as a viable option for developing a tailored solution. Unlike purchasing an off-the-shelf product, Minn-Dak and Levridge embarked on a joint development journey, allowing them to customize the software to their specific processes and requirements. This collaborative approach, while time intensive, promised a robust and a lasting solution for decades to come.

Levridge Equity & Patronage Solution

The implementation was designed to be cloud-based, ensuring continuous updates and real-time accuracy. The project involved extensive testing, including running dual systems to verify the new software’s accuracy against the existing IBM system. Over nearly a year of testing, the team ensured that all processes, from equity management to sugar payments, were accurate and reliable. Key steps in the implementation included:

• Joint development and customization
• Extensive testing and validation through dual systems
• Transitioning all equity and patronage data to the new system
• Ensuring cloud-based hosting for real-time updates and accessibility

Improving and Modernizing

• System Modernization: The IBM system was functional but outdated, with green screens and limited user support. The new cloud-based system offered a modern interface and ongoing support, addressing user fatigue and technical obsolescence.
  
•  Data Management: Managing and migrating extensive data, especially for 1099 patronage forms, was complex due to varying data sources and changing regulations. The new system streamlined data categorization and compliance, facilitating easier access and self-service for members in the future.
  
• Team Capacity: The implementation team faced significant pressure due to the dual responsibilities of maintaining the old system and developing the new one. Continuous meetings and incremental progress were essential in managing workloads and ensuring project success.

Maximizing the Benefits

The implementation of the Levridge solution has led to several positive outcomes:

• Customized Solution: The cooperative now has a tailored system that meets all specific requirements and will be supported for decades.
• Real-time Processing: The cloud-based system ensures real-time data processing and updates, enhancing operational efficiency.
• User Satisfaction: The modern interface and reliable support have improved user satisfaction and reduced operational stress.
• Future-readiness: The system is designed to adapt to future changes, ensuring long-term viability and compliance.

The Minn-Dak Farmers Cooperative implementation demonstrates the benefits of a collaborative development approach in implementing a modern software solution. By partnering with Levridge,  Minn-Dak has successfully transitioned from an outdated Equity and Patronage system to a modern, efficient, and user-friendly platform, setting a strong foundation for future growth and adaptability for decades to come.

We now have a product hosted in the cloud, always refreshed, and will be supported for decades. – John Wieser, IT Director, MDFC