SAP can do everything
From this January the “KazPhosphate” LLP has moved to the new integrated information accounting system SAP ERP 2005. The modern bundled software is its main advantage. It ensures the growth in non-material assets of the company, allows to automate complex business processes and to improve the corporate management in accordance with the international quality standard requirements.
The huge production facilities of “KazPhosphate” with its seven high-capacity branches engaged in geologic exploration, production and processing of phosphorites and producing over twenty types of products (from phosphoric raw materials – crushed and fine-grained, dolomite and lump limestone, to ammophos, superphosphate and yellow phosphorus, destined mainly for the markets of Europe and the CIS, were desperate for a single information system. Capability to receive information on activities of any branches in the real time mode ensures even better progress of the phosphorous industry and its access to the international markets with high quality, competitive products.
But the old system did not allow for obtaining the real time information: accounting was done separately in individual branches and only then forwarded to the headquarters. And only accountants were engaged in this, duplicating transactions in different sections. This caused numerous mistakes in reports. This system also did not comply with the security requirements. The company’s leadership started search for the new system. The decision was made in favour of SAP ERP, which complied with the international standards of accounting and had a high technology kernel platform allowing for the compatibility with various operation systems and databases of external manufacturers. Besides, SAP is the best application for scalability that allows using it for the work with the biggest world companies. Highly qualified consultants of the «ERP-Service «KazTransCom» LLP, who have an extensive experience of the SAP introduction at the largest industrial facilities of Kazakhstan, have been designing and adjusting the system for two years. The modern fault-tolerant equipment was purchased, technical requirements were prepared in accordance with the world standards of the operation quality, a single corporate network was set up which has united seven branches and two offices located in different regions of the Republic, about 210 personal computers, printers and communications equipment were purchased, a class room was equipped… A contract has been signed with “SAP Kazakhstan” LLP to purchase the right to use the SAP software (200 licences) and the maintenance services. And on 5 January this year we have started the productive operation of the system.
Today we already can evaluate the effectiveness of this innovation. It is revolutionary in many ways: it’s for the first time that a single directory of counterparts has been compiled and the transparency of financial flows has been reached. Application of SAP solutions to finance management allowed for obtaining consolidated accounts for all branches of the company. Single classifiers of main funds and assets have been developed, and now managers purchasing equipment can get accurate information on availability of these or those items in warehouses at nay time. And this is a considerable saving of time and reduction in costs. Business processes are unified, information duplication is excluded. Thanks to the on-line entry and large quantity of reports it is now easy to analyse and forecast the sales revenues. Now we can get information on availability of products for sale in the on-line mode. It is easy to monitor the quality, quantity and destination of goods, as well as related costs. A single database of contracts has been set up: the new system allows for keeping the track of their execution and status.
There are also turns for the better in the accountant’s office: transactions became standard, unified, accounting became more detailed, that allows for monitoring balances and flows practically on all balance sheet accounts. Besides, now we can get analytical data by branches and subdivisions, debtors and creditors, commodity stocks and supplies.
And one more plus: reliable telecommunication links have been established between all branches of the company in Almaty, Taraz, Zhanatas, Karatau, Shymkent and Stepnogorsk, and the senior managers of “KazPhosphate” are able to get any reports on all aspects of the enterprise performance within several minutes.
But the best advantage of the SAP is that it can be used not only by accountants but also by technologists, and power engineers, and procurement agents, and lawyers – i.e. anyone who has an access and the right to enter the system.
Nurziya LESBEKOVA,
Deputy General Director for Finance
“KazPhosphate” LLP
Taraz
The link was taken from the “Kazakhstanskaya Pravda” Republican newspaper: http://www.kazpravda.kz/index.php?uin=1151984397&chapter=1251229215&act=archive_date&day=26&month=08&year=2009
SAP can do everything
