Socfin Indonesia Builds Operational Excellence with mySAP ERP

November 20, 2006 by SAP News 0

Socfin, Indonesia’s leading Palm Oil and Rubber company, improves Internal Efficiencies and Customer Value with mySAP ERP for Plantation Industry

Jakarta, Indonesia– SAP today announced the successful implementation of mySAP ERP at PT. Socfin Indonesia (Socfin). mySAP ERP application is world-class, integrated enterprise resource planning (ERP) software that addresses the core business software requirements of the most demanding midsize and large organizations in all industries and sectors covering four individual solutions that support key functional areas including Human Capital Management, Financials, Operations and corporate services. The implementation which took six months was done for 50 users and included the following modules: Finance, Control, Sales & Distribution, Materials Management, Production Planning, Human Capital Management. ISS Consulting was the appointed implementer for this project.

Socfin Indonesia is a plantation company that produces Palm Oil and Rubber Products with some 12 thousand employees. The revenue of the company is around US$ 100 million in recent years. In order to complete their vision and mission to be an industry leader in setting cultivation , processing and environmental standards and to be a socially and environmentally responsible low cost producer of palm oil and rubber products , Socfin felt that they needed to have better control of their business and implemented mySAP ERP. The solution streamlines Socfin’s business processes to increase operational efficiencies, gain better visibility of the business and drive better decision-making among executives.

“Before implementing SAP, our custom built COBOL accounting system could no longer cope with our rapid growth” said Mong Ke Sim, IT Head of Socfin. “Our previous systems that served us for over 25 years were not integrated. As a result, it required a lot of effort and cost to reconcile the General Ledger and its sub ledgers. This prevented visibility, effective data consolidation and decision making.”

In order to further fuel their growth, Socfin immediately set out to find a solution that can empower the users without compromising necessary controls; a solution that provides timely, consistent and accurate information. Socfin evaluated a number of solutions. After a very thorough evaluation process that took three months , Socfin chose mySAP ERP and selected ISS Consulting as the project implementer . “SAP was the overall winner from our selection exercise” said Sim . “It had a clear superiority in functionality compared to the other vendors evaluated. The initial cost and ongoing maintenance costs were competitive and the track record of successful projects by ISS Consulting was also impressive. And of course, SAP is a very strong and reliable brand.”

The decision proved worthwhile. The solution has enabled Socfin to transform its business operation management from time consuming and inflexible to real-time and adaptable. Various business functions such as stores and purchase ledger, purchase ledger and accounts payable, sales ledger and accounts receivable are all reconciled.

The company now has access to data not available before. “I am impressed by how rich and detailed the functions of mySAP ERP are combined with ISS Consulting’s in-depth knowledge and expertise in the plantation indutstry.” said Sim. “Now we gain timely, accurate and consistent management and financial information. We are a more transparent company; our users are empowered through well managed users access authorizations. Furthermore, the company can reduce the number of clerical staff.”

MySAP ERP proves invaluable for the company. “Being empowered with real time information means that we can identify inefficiencies, avoid loss, increase productivity . This competitive advantage is enabling us to deliver the best value to our customers. In the near future, we look forward to exploit SAP’s analystics capability in providing reliable executive information for even better decision making” concluded Sim.

About Socfin Indonesia

Socfin Indonesia is a plantation company that produces Oil Palm and Rubber products with revenue of around USD 100 million in recent years. It has around 12 thousand employees.
Socfin Indonesia has been a bench mark company for others in the industry in consistantly maintaining high standards in agricultural practices. Our vision is to be an industry leader in setting cultivation, processing and environmental standards. Our mission is to be a socially and environmentally responsible low cost producer of Oil Palm and Rubber products.

About ISS Consulting

ISS Consulting is a SAP Service Partner as well as a Channel Partner of SAP Singapore, Malaysia ad Indonesia and a member of SAP’s Partner Advisory Board. As one of the leading IT solutions provider in the SAP environment in South-East Asia, and a public listing on MESDAQ, ISS Consulting is represented by over 150 highly qualified employees in 4 countries (Malaysia, Singapore, Indonesia, and Thailand). As a SAP Business and Channel Partner, ISS Consulting implements complex projects in the SAP environment for more than 100 customers in Asia. With its extensive range of services – covering implementation, sales of in-house developed SAP based industry specific products, as well as outsourcing and continuous support – the company not only supports many leading multinational corporations, but also small and medium-sized businesses in Asia. SAP, mySAP, and other SAP Products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. More information can be found at www.iss-consulting.com