Shuaiba consults Sage for ERP aid

A Kuwaiti paper company has been forced to replace its enterprise resource planning (ERP) system after just 18 months because it repeatedly generated incorrect sales figures.

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By  Diana Milne Published  April 30, 2006

A Kuwaiti paper company has been forced to replace its enterprise resource planning (ERP) system after just 18 months because it repeatedly generated incorrect sales figures. Shuaiba Paper Products Company — part of the Al-Ahlia Investment Group — has now deployed Sage ERP software from Sage Accpac after experiencing major problems with the previous system. Shuaiba Paper was previously using an ERP solution developed by a local company, which went bankrupt soon after installing the software, according to Waleed Al Ghunaiman, executive vice president of Shuaiba Paper. “We were forced to look for a change because the system did not have manufacturing functionality, the inventory and financial numbers never tallied and support was extremely poor,” he told IT Weekly. “Also, the company was not developing new product functionality,” he added. Al Ghunaiman said the old system would generate incorrect sales figures on a regular basis and that only 80% of the solution was functioning correctly. “For any company, even a small establishment it’s very important to have the right figures. At the end of the day you need to know if you are making money or losing it,” he said. “They installed the whole system and 80% of it was okay but 20% was giving us the wrong figures,” he went on to add. “That 20% was big enough for us not to accept the whole system,” he added. The company’s decision to switch its ERP solution was announced following the release of a survey that said that GCC firms are facing problems with ERP implementations. According to a survey released last month — and sponsored by Sage Accpac — almost three quarters of senior business managers in the GCC are not satisfied with their ERP implementations (see IT Weekly 1 – 7 April 2006). Shuaiba Paper is currently in the process of implementing the Sage ERP solution, and will use a number of its modules, including General Ledger, Cash Management; Sales Order Processing, Inventory Control and Works Order Processing. Once completed, which should be done in around two mon- ths, the system will help support its expansion plans as well as streamlining its operations and will enable employees on the move to access company data remotely via the internet through the Sage Web Client feature. “Shuaiba Paper is the market leader in the region and is growing rapidly with new capacity being added in Saudi Arabia, UAE and Pakistan. We will have a central ERP server at our head office in Kuwait and remote login for users from other countries,” said Al Ghunaiman. “The reasons for our selection of Sage ERP are it met all our critical business requirements, offered us good value for money and will help streamline our operations and improve efficiency,” he continued. Shuaiba Paper Products Company manufacturers paper bags for industrial and consumer packaging which it sells across the GCC, Europe and Asia. It has a factory in Kuwait and joint venture plans nearing completion in Saudi Arabia and Pakistan. Other expansion plans including setting up a factory in Dubai and diversifying into flexible packaging material. Al Ghunaiman explained that the nature of the firm’s business requires it to have a highly efficient system in place to process orders and locate raw materials. “Our major raw material is paper rolls. These rolls differ from each other in thickness, length, width, country of origin and so on,” he revealed. “It is important for each production order, that paper rolls are selected so as to reduce wastage. We also have a huge warehouse and the ability to quickly locate rolls picked for an order is important,” Al Ghunaiman went on to say.

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