SAP and IZAZI Solutions enable MGC to increase size and variety of loans to members
Victoria, Australia — Murray Goulburn Co-operative Co. Limited (MGC), Australia’s largest dairy company, wholly owned by dairy farmers, has transformed its loan management systems following the implementation of an SAP financial industry solution. The implementation of SAP ERP Consumer and Mortgage Loans software has increased data clarity, accuracy and transparency, enabling MGC to increase the opportunities to offer finance to Australian dairy farmers.
The implementation was completed in 3 months with the support of SAP special expertise partner, IZAZI Solutions Pty Ltd. The software went live in June this year.
“MGC has very close relationships with its members. We are in a unique position to support them with short term funding,” said Robert Poole, Manager, Industry and Government Affairs, Murray Goulburn Co-operative Limited. “MGC offers its members low interest and flexible loan options. Loans are re-paid by the proceeds from the member’s future milk production. The new software from SAP and IZAZI has improved reporting capabilities and audit processes, and increased the funding opportunities that we can offer to members.”
Previously, MGC was using tools that had been developed in-house, databases and spread sheets for loans management. The new software supports a more rigorous and rigid approval process for loans, in line with current regulatory requirements.
The organisation plans to roll out an electronic loan application form for farmers in Victoria before the end of this year. This Web based loan form will increase the accuracy of data capture from new applicants. Approximately 30 regional field officers will be utilising the Web-based application form, servicing about 2,600 farmers.
“The implementation was very quick. IZAZI had a good team and were very productive – they demonstrated to us that they were up to the task. This has been a wise investment for us, especially given the recent economic situation. International prices for dairy products such as milk powders, cheese and butters fell dramatically as a result of the GFC. Consequently, farmgate returns fell sharply. These factors combined with the recent dry seasons in some parts of Australia resulted in increased demand from suppliers for short-term finance and it was important that the software tools were in place to support the increased demand,” said Poole.
MGC is currently using SAP Financials, Procurement, Sales & Distribution, Production Planning, Plant Maintenance and HR/ Payroll modules of SAP ERP 6.0. MGC is looking to implement SAP Business Intelligence software in the near future.
MGC is an Australian dairy farmer owned company. It is the largest dairy company in Australia, processing about 35 per cent of the nation’s milk. MGC is the lifeblood of many rural centres and employs about 2,500 people. As the largest containerised exporter from the Port of Melbourne and the largest exporter of processed food in the country, MGC is a vital part of Australia’s economy. Annual revenue for the 2008 financial year was $2.63 billion with more than 50 per cent of revenue derived from export trade.
About IZAZI Solutions
IZAZI Solutions is a premier provider of technology enabled business solutions with a key focus on the financial services industry. IZAZI has a successful track record as a provider of customised, innovative and efficient solutions for clients, enabling them to realise tangible “bottom line” results from their technology investments.
This vision is supported by the company’s ability to combine strong domain, integration, business analysis and tech¬nical expertise. Since incorporation, IZAZI has experienced rapid growth and developed one of the largest consulting footprints in the South African banking industry that now also extends into Australia, USA and India.
IZAZI’s vast experience covers a number of sectors within the banking industry including wholesale banking, treasury, private banking, developmental finance, retail banking, micro lending, agri-banking, insurance and bank assurance.