Philips Business Communications (PBC) has implemented SAP R3 for its ERP systems (Enterprise Resource Planning), becoming one of the first companies within the Philips group to go live.
According to PBC Managing Director, Derrick Laas, the process began with a complete review of all business processes of Philips Business Communications by an international team. South Africa`s processes became the core business processes for the division as the business model in South Africa was regarded as one of the best.
In April 1998 IBM teams were then contracted to implement these business processes in SAP R3. The principle followed by PBC was to develop a SAP template and thereby obtain a standard which could then be rolled out to all other countries where PBC operate.
Laas said two process mainstreams were identified, one being box moving, namely manufacture for stock and sell from stock, the other being manufacture to customer needs which means that every sale is a project.
Three countries were chosen as pilots for the PBC template. "In this case Germany, Holland and South Africa working with our headquarters and supply center were pilot sites," explained Laas. "We realigned all processes and then wrote the configurations for SAP and went live at the end of May. The conversion from the old JD Edwards system has been smooth thanks to the level of commitment of both IBM, and PBC key users."
"IBM South Africa has gained increased credibility internationally from this exercise as their team will now roll out the final template for Philips in other countries across the globe," added Laas.
The benefits to Philips of the system are the higher level of integration so information is more pertinent and is readily available on an instantaneous basis. "Previously we may have waited to month end to process information, but with SAP we have the relevant information as a sale is concluded.
Other features include the project scheduling which makes the reaslisation/implementation process more efficient.
"Essentially SAP assures customers that PBC is year 2000 compliant and that it is easy and efficient to do business with the company," concludes Laas.
Royal Philips Electronics of the Netherlands is one of the world`s biggest electronics companies, with sales of over US$39 billion in 1997. It is a global leader in colour television sets, lighting, home telephony products and electric shavers.
Its 264 700 employees in more than 60 countries are active in the areas of semiconductors and components, consumer products, professional products and systems, lighting and software and services. Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.news.philips.com.
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