Hamilton-based stainless steel fabricator NDA Group has adopted SAP’s All-in-One mid-market ERP suite, one of ten recent SAP projects claimed by SAP partner Soltius among medium-sized enterprises.
NDA is replacing its legacy Timms, Baan and Sybiz systems currently running at its seven Australasian sites, with a go-live planned for November.
CFO Sean McCormack says the legacy systems were 20 years old. It was inefficient running several different systems. Having one system will make business management easier, especially as the company grows.
SAP All-in-One will be used for project management, inventory, warehousing, job course management, plus financials.
McCormack says selection of the system began in January, via an RFP process, with the company making its final decision in May after which three shortlisted vendors had to present real-life case studies to NDA.
SAP won on functionality and its underlying technical architecture.
“Given the breadth and depth of SAP, we know we will be able to scale in the future,” he says.
All-in-One also performed on cost and a number of other Waikato businesses were known to be using it.
“One of the things that attracted us to Soltius was the number of SAP implementations they have done in the Hamilton area. That gave us confidence,” McCormack continues.
NDA reports no implementation challenges to date, stressing it’s early days, but recommends potential SAP users to have a rigorous evaluation process, and bring their project teams in as early as possible to help achieve buy-in.
“Don’t impose the system. Get them to select a system,” McCormack says.
Jim Brodie, director of Soltius New Zealand, says NDA will be his fourth SAP implementation in Hamilton in the last 2-3 years, and Soltius’s tenth implementation in the mid-market.
The rural supplies industry, including the dairy sector, continues to perform very well, Brodie says.
Other recent customers for SAP systems include Livestock Improvement and Rakon.
The NDA roll-out will help the company’s international growth, which includes operations in the US and China.
“They felt SAP was large and expensive and complicated but they were pleasantly surprised. Our competitors say SAP is not for the mid-market but we are getting much penetration there,” Brodie says.
And, while companies are reviewing capital expenditure in the current economic slowdown, he adds this is not yet impacting on Soltius as organisations still need to automate and reduce their costs.