EBIZFRAME ERP SEAMLESSLY AUTOMATES KENYA’S LEADING DISTRIBUTOR
The client started operations in 1994 as a wholesaler of white goods in Kenya and had a base in Nairobi, Kenya. Today, the client is the leading importer, exporter, distributor and wholesaler of white (FMCG) goods across the entire East African Region. They have tremendous expertise in importing white goods from various countries across the world including India, USA, Italy, China, France, etc. and then distributing them in the East Africa markets. As one of the leading importers and exporters in the East African Region the client also maintains a large inventory of white goods to fulfill urgent requirements whenever needed.
The client had a turnover of KSh (Kenyan Shilling) 170 Million in 2003 which has now exceeded KSh 2 Billion in 2011. The client has a presence in every region of Kenya and has now ventured into export sales as well. The highpoint of the client’s philosophy behind its phenomenal success story is that they employ a very skeletal staff to manage its operations but accord tremendous focus in striving for and achieving exponential growth in every area of business that they operate in.
OBJECTIVES OF ERP IMPLEMENTATION
The client was earlier using a primitive home-grown database system which was neither scalable nor could it cater to the demands and challenges of a growing business environment or the diverse needs of a rapidly changing and evolving economy. The client realized that in order to streamline their current business processes and ramp up their scale of operations they had to deploy a web-enabled Enterprise Resource Planning (ERP) Suite which would enforce controls and streamline processes across various departments whilst providing enterprise-wide information to the Senior Management in real-time. This would enable them to manage their operations more effectively, cut resource wastages and enhance their competiveness in an increasingly competitive and challenging business environment.
To start with, the client wanted the seamless automation of its Sales, Purchase, Inventory and Finance functions with a special emphasis to be given to the following areas.
- Close monitoring of Issues/Returns and margins.
- Daily monitoring of inventory as imports was a high lead-time activity.
- Month Cover is one of the critical tools used for monitoring inventory.
- Frequent Supplier Performance Analysis.
- Designing and Printing of Price List.
- Monitoring cash-flows from the procurement perspective.
- Conducting market surveys of competing brands.
- Regular inventory reconciliation and valuations report generation.
- Effective management of its Service Centre Operations.
- Conducting internal surveys for existing customers and existing/new products.
- Conduct comprehensive Variance Analysis.
- Monitor Product Ranking on the basis of % contribution.
- Managing and controlling overheads by constant monitoring of department-wise budgetary allocations and spending.
The company evaluated several ERP Solutions, and after careful consideration finally chose ebizframe ERP, an ERP solution from Eastern Software Systems Pvt. Ltd. ebizframe ERP was preferred because of its state-of-the-art technology, good track record, low entry and implementation cost, a clear implementation methodology and a transparent costing system. All the above operations at the client’s site are automated usingebizframe ERP.
Only a few of the focus areas (as detailed above) were implemented in the legacy system in isolation and the integration aspect was however completely missing. Expectedly, this resulted in a lot of manual data reconciliation to be done on a monthly basis for which substantial manpower and time resources had to be allocated. This also resulted in a lot of duplication of manual labor and the accuracy of data was always in question. The client wanted seamless enterprise-wide automation whilst ensuring that all the special focus areas were definitely covered in the implementation process.
After careful evaluation of available ERP Solutions the client decided to go ahead and implement ebizframe ERP in August, 2002 and it was successfully customized, implemented and rolled out in January, 2003. ebizframe ERP was adopted with some customization and with a major re-engineering of their business processes that was necessary as the organization moved from a decentralized system to an on-line integrated system in a controlled operations environment. Purchase, Sales, Inventory, HR & Payroll and Finance Modules of ebizframe ERP were successfully implemented by Eastern Software Systems (ESS) for the client.
The most important benefit of ebizframe ERP implementation for the client was that now he could monitor and manage inventory movement and valuation in real-time. Additionally, the ERP implementation has ensured lower turn-around time for both domestic and overseas customers thereby increasing customer satisfaction. There is now better Quality Control (QC) and Vendor Performance Monitoring is also possible as all the data is available online. The powerful and versatile Finance Module with various features like consolidation options give a much better control and flexibility over Financial Reporting. Many MIS Reports are available now at the click of a button. ebizframe ERP ensures better monitoring of the entire operations. Manual data reconciliation has stopped completely resulting in minimizing multiple entries for the same transaction.
The client after automating its business operations is now very rapidly expanding its customer base beyond Kenya in other countries in the Central & East African Region and is very eager to implement ebizframe Portal which will enable them to control their workforce in a very effective manner. They are planning to incorporate E-statement for their debtors & creditors. They have also decided to develop a feature in the Portal which will give their customers a facility to place online orders by looking at the stock availability. The client is closely looking at the enhancements in ebizframe ERP functionalities as its business grows and new products and services are added to its portfolio.