Nampak, Africa`s largest packaging manufacturer, has ordered the full suite of ERP, Supply Chain Management and CRM software from JD Edwards South Africa (JDE).
The project, a multimillion-rand deal, includes a three-year maintenance contract and is the largest single order for enterprise software in Southern Africa in recent years. Deloitte & Touche Active Era (DTAE) has been chosen as the primary implementation partner. The deal forms part of Nampak`s strategy to standardise its global IT architecture.
Nampak is Africa`s largest packaging manufacturer and the second largest packaging group in the Southern Hemisphere. It has annual global sales of over R10.5 billion (+/-$1 billion). Its manufacturing expertise extends to metal, glass, plastic and paper products for a broad spectrum of applications.
The company operates manufacturing facilities in SA as well as in eight other African countries and has a significant presence in the rigid plastic packaging market in Europe and the UK. It exports packaging products to 56 countries worldwide. Nampak embraces a culture of world-class manufacturing and service, designed to deliver superior packaging solutions and products to customers and to provide sustainable returns to shareholders.
Says Mike Evans, managing director of JD Edwards South Africa: "The Nampak order is highly appreciated as it is the largest deal for us in terms of its value as well as its size. It will be the biggest single commercial site for our product in Africa, ultimately serving more than 3 500 users across the Nampak enterprise. The order includes every module in the OneWorld software suite.
Nampak`s decision to standardise its software and hardware platform was made late last year when the company decided to implement a standard ERP solution that would not only replace its existing systems, but also allow it to follow its strategy of growth and expansion.
Says Paddy Slattery, group IT manager at Nampak: "Cost containment, a controllable total cost of ownership and business leverage were among the major issues driving our need for standardisation and the move to a complete and flexible ERP system will facilitate this. We began looking at ERP systems about two years ago and short-listed a number of products. In that time we have seen the JD Edwards product suite mature to the point where we believe that it is the most appropriate system for our requirements.
"The project is divided into four stages," he added, "with the first stage involving a basic JDE roll-out, after the establishment of a program office, the design of the system for Nampak and the pilot project. This will be followed by a second stage, which concerns itself with optimisation of the system and obtaining business benefits. The final two stages focus on further added value and continuous improvement. Design will take place during most of 2002 and first site go live is expected during the first half of 2003."
DTAE has been appointed to partner with Nampak and JDE for the implementation of the solution. Gert de Beer, CEO of DTAE, stated: "DTAE has in recent times been able to expand its business beyond the traditional implementation of the JDE software. Nampak will use our JDE Solution Centre, along with skills from our program partner Deloitte Consulting, for the design and system configuration stages of the project. Beyond the initial implementation, Nampak will leverage DTAE`s ability to support the JDE solutions."
The ERP system will operate on Microsoft`s Windows 2000 platform running on Compaq ProLiant 4-way and 8-way industry standard servers. NamITech, which is 90% owned by Nampak, will handle the roll-out out of all the hardware and operating software.
Adds Evans: "The Nampak project is a further vote of confidence for JDE`s success in Southern Africa which has seen extensive deployment by major corporates. These organisations have recognised the need for real-time access to information at every point in the supply chain and know that ERP systems will continue to serve a critical purpose in the enterprise."
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