Deloitte finds winning recipe with Sage ERP X3 in the mining sector
Labour issues recently made headlines as one of the major challenges facing the South African mining landscape. “Rising labour costs as well as increasing electricity costs are just some of the obstacles facing the sector,” says Johan Theron, a Director at Deloitte Consulting.
“Many operators in the industry are currently focusing their efforts internally to stabilise the business, with a very strong emphasis on cost. Effective cost management can however create opportunities for growth when armed with tried and tested business processes and a business software solution such as Sage ERP X3,” says Theron.
As one of South Africa’s leading professional services firms, Deloitte provides audit, tax, consulting and financial advisory services through nearly 3 600 people in all the major cities in South Africa and Southern Africa.
During 2011 Deloitte embarked on a partnership with Sage ERP X3 that was aimed at the delivery of a cost efficient Enterprise Resource Planning (ERP) solution to its Mining Shared Services Division. Sage ERP X3 effectively forms part of a Deloitte service delivery model that allows mining companies to co-source and/or outsource transactional and knowledge processes and take advantage of the cost benefits offered by consolidating and streamlining back office processes. Deloitte’s mining industry expertise coupled with Sage ERP X3’s sector specific software capabilities are the two core ingredients to a winning recipe.
Organisations within the mining sector utilise ERP solutions for a diverse number of reasons. “Smaller companies may only utilise an ERP solution to manage its finance and purchasing, whereas bigger operators need to structure their business solutions around a more complex collection of needs. A scalable ERP solution is therefore essential to adapt to the business’ needs however they may expand or change,” explains Theron.
“Sage ERP X3 was designed with the mid-to-upper end business in mind, which makes it a great match for the mining industry, among others,” says Keith Fenner, Senior Vice President of Sales for Africa at Softline Accpac, part of the Sage Group plc. The ERP solution excels at streamlining all operating and processing aspects of single or multiple business operations.
“The product is essentially a complete web-based integrated management suite, covering all operational needs in terms of production management, distribution, logistics, asset maintenance, finance and human resources,” says Fenner. “It is a multi-legislative, multi-lingual and multi-currency solution that can be seamlessly integrated on both a national and international level.”
One of Deloitte’s first major clients recently went live on Sage ERP X3 with a further three mines showing satisfactory results. “We are very comfortable with the product,” says Theron. “Sage ERP X3 does not come with the hefty price tag that some of its bigger counterparts presents, which makes it the ideal solution in a tough economy.”
Cost of ownership is a focal point and with that in mind Deloitte introduced a software finance plan option, to stagger the initial implementation cost. “The return on investment makes the implementation of a Deloitte Mining Shared Services offering well worth it,” explains Theron. The package comprises of an ERP solution, financial co-and outsourcing services in addition to information technology outsourcing services.
The ability of Deloitte’s Mining Shared Services Division to drive the back office productivity levels of its clients, delivers tangible results. “It is not just a system, but a comprehensive solution that leverages the industry expertise provided by Deloitte and the robust applications delivered through Sage ERP X3,” concludes Theron.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's approximately 170,000 professionals are committed to becoming the standard of excellence.
About Softline Accpac
Softline Accpac is a provider of business management solutions including financial, distribution, service management, retail, warehouse management, manufacturing and CRM to the mid-range market. Accpac solutions are delivered to 130 countries exclusively through a global network of solution providers, including over 150 throughout Africa. Softline Accpac's product line includes: Accpac ERP, Accpac CRM, Accpac RMS, Service Manager and Accpac Insight. Softline Accpac also distributes Sage SalesLogix, Sage Geode and Sage ERP X3, a full-service enterprise management software system for mid-to-large businesses. With a choice of languages, currencies, enterprises, locations and legislations, Sage ERP X3 offers an efficient, multi-company solution.
Softline is a leading provider of accounting, payroll, CRM and ERP software solutions to small, medium and large sized companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia. Focused on the development of accounting, payroll, CRM and ERP software solutions, Softline has a 20 year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline’s leading brands include Softline Accpac, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group’s product offerings provide Softline customers with comprehensive, well-branded accounting, payroll, CRM and ERP software solutions. In November 2003, Softline was acquired by the Sage Group plc, a FTSE 100 company. The software group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large sized business community. Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll, CRM and ERP software solutions that improve the efficiencies of businesses around the world.
About The Sage Group plc
The Sage Group plc is a leading global supplier of business management software and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has 6.3 million customers and 13,400 employees worldwide. We operate in over 24 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information please visit www.sage.com.