Conlog, a subsidiary of the JSE-listed Log-Tek Holdings, and Africa`s largest manufacturer of electronic components used in automotive security systems, pre-payment electricity, water and solar dispensers, is reaping a number of benefits from its R3.5 million SAP R/3 implementation, says Paul Hastie, Conlog`s managing director.
`Conlog is reaping a number of benefits from our recently completed SAP R/3 implementation. The new system will mean that we are now fully Year 2000 compliant in every area of our business and that we are well positioned to develop e-commerce initiatives with suppliers and customers,` says Hastie.
Conlog upgraded its existing implementation to provide SAP functionality in financials, costing, profitability analysis, materials management, production planning, sales & distribution and quality management.
The fully integrated nature of SAP has allowed Conlog to streamline and optimise its supply chain management and stock management. This has, in turn, enabled it to improve profitability analyses at all product and customer levels.
`We have been able to improve customer service and lower operating costs through better planning and streamlining of tasks that were being duplicated before, and are currently working on an electronic document management system,` says Hastie.
`The financials module is enabling us to make better business decisions as it converts data from all areas of our business into meaningful management information. The system is sufficiently flexible to accommodate future changes to our business and provides a strong infrastructure on which to grow the business.`
The entire system was implemented in 10 months by Ernst & Young and CSI, a joint venture between Ernst & Young and CSIPER Consulting. There were a number of factors that ensured this quick and successful implementation: the detailed scoping and in-depth briefing documents provided by Conlog, the strong commitment from Conlog management and team members, and the merging of Ernst & Young`s Fusion Methodology with SAP`s ASAP methodology.
In conjunction with the SAP implementation, a R1 million contract was awarded to DNS Networking to upgrade the IT infrastructure. A further R500,000 was spent on desktop PC upgrades to support the extended user base.
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Conlog
Conlog is a wholly-owned subsidiary of the JSE-listed Log-Tek Holdings Limited, and one of the major South African manufacturers of electronic components used in pre-payment electricity, water and solar dispensers, and a contract manufacturer for specialist electronic systems.