Eastern Software Systems Enabled Nzoia Sugars Company Ltd to Achieve Better Production and Quality Control

Written by adminerp|Apr 06,2016

Company Profile

Sugar Bowl of KenyaNzoia sugar company Ltd (NSC) is a major player in the sugar Industry in Kenya. The Company serves approximately 70,000 farmers in the larger Bungoma, Kakamega, Lugari and Malava in Kenya. Apart from its central business of sugar manufacturing, company also produces molasses, animal feeds as bi-products and generates electricity also for its own use, which adds significantly to company’s profitability.

History of Nzoia Sugar Company Ltd (NSC) – NSC was established in August 1975. The Government of Kenya is the majority stakeholder.

Anticipating Changes for Business Expansion and Growth

NSC produces sugar and supports cane production through the provision of extension services to farmers with an extensive Company Nucleus Cane Estate covering 3,600 ha and an out grower zone spanning more than 23,500 ha under cane.

At the beginning of the business Nzoia Sugars had an initial milling capacity of 2000 tonnes of cane per day (TCD). With growth in its business, this capacity was expanded to 3000 TCD in 1989.

The company further intends to augment the factory capacity to 7000 TCD and 735 tonnes of sugar per day during the current strategic plan period.

Challenges Faced

Other than the most basic need of automation in Agriculture & Farmer Accounting department, special attention was required to be given to the following business operations.

  • Automation of weighbridge system with farmer payment system.
  • Regularizing of Farmer Contracts.
  • Syncing between cane ageing and cane transportation to factory.
  • Online invoicing to farmer basis the service or supply offered by the organization.
  • Automation of Nucleus Estate Process.
  • Automatic interest calculation on loans & services given to Out Growers.
  • Quick Analysis of Nucleus Estate profitability at any stage of Cane Development.
  • Daily and easy capturing of agronomy information and historical data analysis.
  • Better production (cane) crashing planning; based on Cane Age, Cane Stage & Field Location.
  • Automation of transporter payments with online weighbridge system.
  • Analyses of Laboratory report for Cane Development.
  • Organised Transport planning.
  • Automation of Cane Cutters & Casual Workers Payment.
  • Easy capturing of Field Survey Information for analysis.
  • Audit Trail on any modification in the system.

Pre ebizframe Scenario

Nzoia Sugar was using manual and isolated systems across organization. Their legacy system could not provide information on time to other departments hence Planning was done in a limited manner.

Prior to ebizframe implementation Nzoia Sugar Company Ltd was using a system from another vendor “SERA”. This system was not scalable and could not accommodate the needs of the Cane Agriculture and Farmer’s Information Processing in time. Management was using excel and hand written MIS reports. Planning of cane lifting and organizing transportation was not possible in legacy system. Weighbridge system was not linked to the legacy system, thus there was no control over manipulation/theft at weighbridge point. Farmer payments were getting delayed because of isolated and manual system. In absence of integrated system even multiple payments were done to farmers.

This earlier system was not able to manage NSC’s expanding business, thus to control its expanding business needs and eliminate errors, NSC decided to go for a cutting edge and comprehensive ERP to enforce controls and improve business processes across the organization.

Why ebizframe?

Selecting a good solution which fits an organization’s requirements perfectly is a challenging task. NSC released a Public Tender for Agriculture Management System and finally chose ebizframe, an ERP solution from Eastern Software Systems Private Limited.
ebizframe was a preferred solution by NSC because of its state-of-the-art technology, good track record, expertise in Sugar Industries, low entry & implementation cost and a clear implementation methodology and transparent costing system.
ebizframe has been s embraced by NSC with some customizations and has been running successfully for nearly a decade. What was more relevant was a major re-engineering of their processes that was necessary as the organization moved from a decentralized system to an on-line integrated system in a controlled operations environment.

ESS Solution

In its quest to achieve its goal and eliminate all the challenges it was facing, NSC decided to implement a modern and comprehensive Enterprise Resource Management Solution which can act as the main solution for Agriculture Management. The main objective behind this ERP initiative was to improve its production, remove duplication of efforts and enhance quality to satisfy customer better.
The ebizframe ERP team was very committed to the project and took all the necessary steps to ensure that they had a complete understanding of NSC’s needs and requirements. They were technically very strong and had a great understanding of the product and how to incorporate Customer’s requirements into ebizframe.

ebizframe ERP Benefits

  • Company achieved a superior control over its cane development and production processes.
  • NSC experienced Enhanced Quality Control post ebizframe was implemented.
  • With the data being available online after a comprehensive ERP solution like ebizframe was implemented, it brought better cane development monitoring in NSC.
  • Analyses of Agronomy Data also became achievable.
  • Post Implementation of ebizframe the company is experiencing a lower turn around for Production and Production Planning.
  • ebizframe made reporting easy. MIS reports are available at the click of a button now.
  • Decision making was with much due diligence, enabling easy planning and forecasting.
  • ebizframe processes payment of more than 150,000 farmers every month. In the duration of a week, every day more than 4000 payments are processed. Prior to ebizframe implementation, it was taking many weeks to process this many payments.
  • No manual reconciliation, ebizframe has brought complete automation in accounting.
  • No multiple data entries thus completely eliminating any duplication of efforts.
  • NSC has achieved specialised ability to manage supply chain in its organization.
  • NSC has witnessed tremendous improvement in production efficiency and fuel efficiency in particular.
  • NSC Management is very satisfied with comprehensive visibility of data and the flexibility ebizframe has offered.
  • Icing on the cake is ebizframe’s ability to easily customize and integrate with other systems.

NSC is using ebizframe ERP and reaping huge benefits from ebizframe ERP. Here is what Mr. Louis Shitandi of Nzoia Sugar said about their experience of ebizframe “ebizframe has enabled us to improve on production efficiency, on fuel operations specifically. We are benefiting from easy reporting and decision making, since all the data is available and data storage is robust. We are able to get data through reports and this provides us an avenue for easy planning and forecasting. Overall ebizframe has been a benefit to the Nzoia Sugar Company and we are glad to have acquired ebizframe”
Watch Mr. Louis Shitandi of Nzoia Sugar explain how ebizframe ERP has benefited their enterprise on YouTube – https://youtu.be/UWT15MjwZ2o
For more details about Eastern Software Systems and ebizframe, please visit: www.ebizframe.com. You may also write to: marketing@ebizframe.com