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Tuesday, 06 October 2009 09:18

SAP takes the cream with contract win

Australia’s largest dairy company, Murray Goulburn Co-operative (MGC), has implemented a SAP ERP solution to transform its loan management systems, which MGC says has increased data clarity, accuracy and transparency, and allowed it to increase the opportunities to offer finance to Australian dairy farmers.

SAP says the implementation was completed in three months with the support of its special expertise partner, IZAZI Solutions.
MGC’s manager industry and government affairs, Robert Poole, said today the company has very close relationships with its members, and was in a unique position to support them with short term funding.

Poole said that the company offers its members low interest and flexible loan options, with loans repaid by the proceeds from the member’s future milk production, and that the new software from SAP and IZAZI had “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, and Poole said the new software supports a more rigorous and rigid approval process for loans, in line with current regulatory requirements.

According to Poole, MGC plans to roll out an electronic loan application form for farmers in Victoria before the end of this year, and he added, “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.” 

Poole said 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.”

MGC is currently using SAP financials, procurement, sales & distribution, production planning, plant maintenance and HR/ payroll modules of SAP ERP 6.0, and is looking to implement SAP business intelligence software in the near future.

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