Procurement News Notice |
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| PNN | 10553 |
| Work Detail | The 21st Century business world demands better corporate culture, corporate governance, standard reporting, strong internal control, efficiency, KPI-based performance, quality, growth and expansion etc. Business automation through enterprise resource planning (ERP) acts as synergy to fulfill these objectives and helps to adapt to the current business world. ERP integrates internal and external management information across an entire organisation, embracing finance, accounting, manufacturing, sales and service, customer relationship management, etc. Among many ERP solutions the world's largest vendor is SAP (systems, applications, product). SAP ERP consists of several modules including: utilities for marketing and sales, field service, product design and development, production and inventory control, human resources, finance and accounting. It collects and combines data from separate modules to provide the company or organisation with enterprise resource planning. ERP is a business process management software that allows an organisation to use a system of integrated applications to manage the business and automate many back-office functions related to technology, services and human resources. SAP is one of the best ERP. SAP stands for Systeme (Systems), Anwendugen (Applications), Produkte (Product) for data processing in German language. SAP SE is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. It was set up in Walldorf, Baden-Württemberg, Germany in 1972 by five ex-IBM employees as a small software company with one customer. SAP now helps companies of all sizes and industries run better. From back-office to boardroom, warehouse to storefront, desktop to mobile device, SAP helps people and organisations work together efficiently and use business insight effectively to stay ahead of the competition. It helps the world run better. The company has over 282,000 customers in 190 countries. Eighty per cent of the Fortune 500 companies of the world use SAP. SAP IN BANGLADESH: More than 50 companies have already implemented SAP in Bangladesh. As the target is to help build a Digital Bangladesh, the number of SAP implemented-companies are increasing at significant rate. Now most of the companies choose SAP for business automation as its benefit is significantly higher than cost of implementing it. A short list of Bangladeshi companies with implementing partners is as follows: Viyellatex Attune Consulting, Meghna Group of Industries, PricewaterhouseCoopers Pvt. Limited (PWC), LG Butterfly PricewaterhouseCoopers Pvt. Limited (PWC), Uttara Motors Ltd, PricewaterhouseCoopers Pvt. Limited, Bashundhara Group Exzatech Solutions Bangladesh, Super Star Group (SSG), PricewaterhouseCoopers Pvt. Limited, Shanta Group Ltd Attune Sri Lanka, Berger Paints Spectrum Systems LLC, and Madina Group Exzatech Solutions Bangladesh. SAP IN SSG: Super Star Group (SSG) is currently the leading manufacturer, importer, exporter and marketer of electrical equipment and accessories in Bangladesh. The company started its journey in 1991 and in just two decades became the leading manufacturer in the market with its quality products which includes CFL, incandescent lamp, LED, tube light , switches and sockets, fan, tube light fixture, PVC tape, electronic ballast etc. With a continuous development of products and ensuring highest quality to consumers, the company has been on a double-digit growth platform in the last five years. As a part of continuous development, the company has pioneered a high-tech lab facility in Bangladesh which is a state-of-the-art resource for research and development of products to provide improved products which is a strategic focus for the company. The company currently has 6 manufacturing facilities and employs 2,600 people. As a part of social commitment, the company is very strongly committed to well-designed CSR activities. Being an industrialist of the 21st Century, the management of SSG realised that the basic tool for attaining global standard management efficiency is harnessing the power of IT. With rapid and first growth of the company, the management felt the necessity of more powerful enterprise resource planning (ERP) solution for stimulating all activities of the organisation. Hence, initiatives were taken to implement the world's most widely-used robust business automation ERP solution SAP. The following are SAP benefits: --Establishing strong internal control system, --Setting a centralised enterprise management system, --Introducing fully integrated business applications, --Meeting scalable and flexibility to meet demanding and varied business requirements, --Ensuring immediate access to information. -- Functioning on-line / real-time. --Providing visibility of information across functions, --Making data entry once, at source. --Increasing brand value in corporate world and --Facilitating solid and robust MIS system. The following master data are used in SAP: i. Cost element ii. Profit centre iii. Cost centre iv. Internal order i. Cost Element: Cost Element Accounting classifies the costs and revenues that are posted to CO, and provides the capability for reconciliation of costs in CO with the Financial Accounting (FI) module ii. Profit Centre: Profit Centre Accounting provides visibility of an organisation's profit and losses by profit centre. Profit Centres can be set up to identify product lines, divisions, geographical regions, offices, production sites or by functions. Profit Centres are used for internal control purposes enabling management the ability to review areas of responsibility within their organisation. The difference between a Cost Centre and a Profit Centre is that the former represents individual costs incurred during a given period and the latter contains the balances of costs and revenues. iii. Cost Centre: The Cost Centre Accounting component tracks where costs occur in the organisation. It is an organisational unit in a controlling area. Cost Centres can be defined according to several different design approaches. A typical approach could be for an enterprise to define a Cost Centre for each low-level organisational unit that has responsibility for managing costs. As costs are incurred, they are assigned or posted to the appropriate Cost Centre. These costs could include payroll costs, rent and utility costs, or any other costs assignable to a given cost centre. iv. Internal Order: An Internal Order is an extremely flexible CO tool that can be used for a wide variety of purposes to track costs and in some cases revenues within a controlling area. Internal Orders provide capabilities for planning, monitoring, and allocation of costs. Time-frame for SAP implementation: Work steps estimated time 1 Project Planning 1 month 2 Business Blueprint 2 months 3 Realisation, transformation and implementation 3 months 4 Dry run 1 month 5 Going live and continuous improvement Total 7 months to 1 year Estimated cost for SAP implementation: Area Approximate cost Taka (in million) 1 SAP license cost 6 to 15 2 SAP implementation cost 20 to 40 3 Hardware and IT infrastructure 10 to 15 4 Support cost (food and loading) 1 to 2 5 SAP office cost 1 to 2 6 Core team members cCost 5 to 8 7 Other costs 5 to 8 Total cost 48 to 90 * * The above figure is not exact figure. It is just an estimation. Total cost depends on number of users, number of sister concerns for a group company, implementation partners, and hardware and IT infrastructure etc. The implementation of SAP is always a massive operation that brings a lot of changes in the organisation. Virtually every person in the organisation is involved, whether he is part of the SAP technical support or the actual end-users of the SAP software. The resulting changes that the implementation of SAP generates are intended to reach high-level goals, such as improved communication and increased return on information (as people will work with the same information). It is, therefore, very important that the implementation process is planned and executed with the usage of a solid method. Now lots of companies in Bangladesh are interested to implement SAP and some are in confusion of taking SAP as it is not plug-and- play; it's all about business re-engineering. However, implementing SAP as business automation is indeed a great achievement towards Digital Bangladesh. SSG has taken significant milestone decision through implementing SAP. |
| Country | Bangladesh , Southern Asia |
| Industry | Information Technology |
| Entry Date | 15 Oct 2016 |
| Source | http://www.thefinancialexpress-bd.com/2016/09/09/45315/SAP-software-now-a-leap-forward-for-Digital-Bangladesh |
