The implementation of a R1.5 million integrated SAP Business One financial and business software solution for wholesale nursery Malanseuns Pleasure Plants, north of Pretoria, by mid-market ERP solutions provider Lorge, is a "living" solution that accommodates ongoing change.
Malanseuns grows and propagates a wide range of sub-tropical and indigenous trees, roses, shrubs, herbaceous plants, climbers, groundcovers, conifers and bedding plants. Export destinations include Africa, America, Britain, Europe, Australia, New Zealand and the Far East.
Large-scale plant propagation from seed, rootstock and cuttings is affected by climatic conditions over which the business has absolutely no control. It therefore needs accurate, easily retrievable historic data to achieve accuracy in business projections.
Malanseuns Pleasure Plants general manager Ludwig Smidt says nature has the power, and the inclination, to throw plant production schedules off course, through unpredictable events such as hailstorms, black frost, excessive rain or drought.
"We need computerisation to keep track of the 2 000 different species of plants we propagate, particularly as they are grown in batches to ensure we always have stock that is in flower. The SAP software and Excel can be manipulated to provide us with information on which we are able to make far more accurate predictions for business planning purposes."
Smidt adds that determining precise profit forecasts will always be difficult because of the vagaries of nature and climate: "A sudden climatic change can result in us being on the market six months too late, or flowering could be delayed. We simply have to be able to react very quickly to achieve the predicted numbers and this is where the SAP software is of great help."
Malanseuns exports about 15% of its total plant production and receives complementary feedback on quality. One of the first wholesale nurseries to achieve full BEE compliancy, the company places strong emphasis on training and has brought through 80 qualified NQF (nursery and agriculture) employees and others in plant production and agricultural management.
"Lots of our staff are working with the SAP system and have adapted to it very quickly. They appreciate the logic behind the software and the program suits the way that we do business. Because propagation can vary from year to year, we need to have historic information at our fingertips to be able to compare factors such as average temperature, humidity, soil temperatures, moisture content and so on, and SAP accommodates this. Knowing the impact of these factors in our past experience helps us to predict the future more accurately."
The nursery also keeps records of seed sources and the results and this data is vital to maintaining or improving quality. Smidt says a constant goal is to arrive at a better plant for the consumer. "We want to make gardening a pleasure for people, and hence, for example, we grow and select roses that are resistant to many of the more common diseases that affect these plants. In this day and age, younger people don`t have much time for gardening so we also propagate plants that require minimal maintenance."
The SAP Business One solution implemented by Lorge is being tailored on an ongoing basis to suit the needs of the business. The second wholesale nursery located further north, at Bon Accord, is also incorporated into the SAP system through a wireless link that has proved highly reliable and functional.
Smidt says the SAP financial structures have enabled Malanseuns management to adopt a more hands-on approach across both of the wholesale nurseries.
"Nothing is bought without following a structured process of approval. Previously purchases were confirmed on the telephone or face-to-face and involved considerable paperwork. Now I can handle it all on my laptop from anywhere at any time. The process has been hugely streamlined.
"Reaction times to business decision-making have been reduced and this alone has had a significant impact. We can run the business from anywhere with a laptop and a cellphone, and handle the administrative chores in our own time. This frees us to spend more time focused on people and operational management, doing the paperwork when it suits us, which helps considerably by making more time available for strategic planning."
Smidt adds that the business is better managed at less cost through the SAP technology. "We now have time for hands-on interaction with operational staff, see their work, assist them and exchange ideas. It is a situation that delivers better results for the business and everyone involved."
Malanseuns owns a fleet of horse-and-trailer vehicles for product delivery and runs fully equipped parts stores and workshops for their maintenance, which are being incorporated into the SAP system. Again, Smidt says this will free up time for workshop management to focus on staff and productivity.
"The business is growing significantly. Staff members are increasing their individual outputs so we are doing more with less. Pathways for individual growth and improvement have also been created and we can monitor achievement and reward people accordingly. We view the SAP solution as an ongoing process that will take time to implement to its full potential. We are now moving to integrate our eight Plantland retail outlets, located in Pretoria and Johannesburg, with all financials coming into the central database."
Smidt said Lorge support staff ensured the customisation capabilities of SAP Business One had and will continue to be exploited for the overall betterment of the business. "The team has been committed, willing to go the extra mile and has always responded urgently to our needs."
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