News Column

Posta to Install Kshs 260 Million ERP System to Enhance Efficiency

May 1, 2014

Lilian Mutegi

Postal Corporation of Kenya (PCK) has engaged TechnoBrain and Reason Solution Consortium to implement an Enterprise Resource Planning (ERP) system at a cost of US $ 3 million (Ksh 260 million).

PCK Postmaster General Dr Enock Kinara said the system was part of the corporation's efforts to automate front and back office functions in a bid to ramp up efficiency in "end-to-end business operations."

He said the ERP system would lead to generation of higher revenues and reduced cost of business processes.

"We want to gradually ratchet up our revenues from Ksh 3.57 billion (2012/2013) to Ksh 4.5 billion (2013/2014); from Ksh 4.5 billion to Ksh 6.5 billion (2014/2015) and from Ksh 6.5 billion to Ksh 9 billion (2015/2016) in years one, two and three respectively to hit a cumulative target of Ksh20 billion in three years," said Dr. Kinara. He said there is need to realign the corporation's operations and strengthen its profit margins by improving its ICT infrastructure and prioritizing ICT in budgeting, if Posta is to realize its revenue targets of 20 billion in three years.

"This why we Invested US$1 million in a Posta Pesa payment solution (switch) in 2013 to enable us transact several operations electronically such as agency banking, mobile money transfers, e-commerce and e-payment of utility bills among others," said Kinara, adding that the PCK has already integrated five banks among them, Kenya Commercial Bank (KCB), National Bank and Co-operative Bank.

The consortium won the contract in a competitive bidding process, which kicked off in October last year and the implementation of the system, will take an estimated period of about one year with effect from April 2014.

"This will not only lead to readily available business intelligence, but also harness the uses of ICT for service delivery at all levels. We have already earmarked various departments for automation such as finance, accounts, human resources, procurement and retail chain processes," said Kinara.

PCK currently uses a myriad of stand-alone business applications for various functionalities which are independent of each other and therefore have no centralized source of data for management information systems.

The ERP system is part of re-engineering of Posta operations to compete in dynamic business ecosystem where disruptive technologies are consistently necessitating continued business innovation. With the acquisition of the ERP, PCK will be able to improve its effectiveness and efficiency in all processes of business operations and hence reduce wastage without any loss of jobs for the current workforce.

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Source: AllAfrica

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