Company was set up to manufacture power alcohol from sugar cane molasses for mixing with petrol to produce various blends of gasohol. This was as a result of escalating fuel prices in the world market during the years 1978-1982. However with the stabilization of petroleum prices in the world markets, the company had to redefine its business policies. The company started manufacturing various types of spirits (Alcohol content 95% v/v minimum).
Company is a semi-government organization in Kenya. It is a manufacturer and supplier of spirits and baking yeast. It’s one of the prominent names in the agro based industry in Kenya. It uses molasses as its raw material. The factory is set up in the western part of Kenya
Objectives of ERP Implementation
In order to control the complex business, the company decided to go for a secured and robust ERP to enforce controls and processes laid down by the Board of Directors. Apart from this the goal was to acquire a commercial off-the shelf product that could be configured to provide the full range of business functionality required by the company
Some challenges before ERP were
- Record keeping procedure was manual. The only way to check the organizational financial position is to see the standard report generated by accounting system
- No control on inventory, Fixed Asset etc
- Process for raising purchase order was completely manual which was allowing lot of scope for manipulation
Management wished to use proven state-of-the-art technology that will provide the ability to plan, control and account for company‘s activities and resources. The company after screening various world class ERP finalized Ebizframe from Eastern Software Systems Pvt. Ltd. Ebizframe was preferred because of its robust technology, past experience, versatility and low entry & implementation cost and well tested implementation methodology and transparent costing system.
Pre ERP Scenario
Company was using some locally developed accounting packaging. Departments like Store, Procurement, Sales and HR & Payroll was manual. Any activities used to take lot of time. Management never had a clear picture of the various operations. There were lots of malpractices going on in the organization and management was helpless for the same. Organization efficiency was much below then expected. Entire organization was running in chaos environment.
Implementation of Ebizframe started by January 2003 and by the end of November, ERP was live with modules like Sales, Purchase, Inventory, Finance and HR & Payroll. Ebizframe was adopted with some customization which was required to meet Kenya government statutory requirement and major re-engineering of their business processes that was necessary as the organization moved from an independent/ manual system to an on-line centralized system in a controlled operations environment.
Benefits Derived After Implementation of Ebizframe
- Company can now have clear understanding of financial position at any point of time
- Better quality control and vendor monitoring is possible as all the data is available online
- Finance with its features like drill- down, cash flow, bank reconciliation, multi-currency etc. options gives it a better control and flexibility over financial reporting
- Many MIS reports are available on click of button
- There is better monitoring of operations
- Due to the centralized stock ageing report, “dead stocks” have become nearly minimal
- Departments like Procurement are online with store and Finance, so whenever Purchase Order is raised, store can accept the goods based on the Purchase order
- Store & Finance will be affected only when goods are finally updated in the main store after quality approval