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Co-Op Islami signs up SAP

Co-Op Islami, the regional food production company has signed an agreement with SAP Arabia to implement complete modules of SAP’s mySAP Enterprise Resource Planning (ERP) solution.

Co-Op Islami, the regional food production company has signed an agreement with SAP Arabia to implement complete modules of SAP’s Enterprise Resource Planning (ERP) solution.

The new agreement is a result of Co-Op Islami’s efforts to develop its technical infrastructure to accomodate current and future growth. Establishing in the early seventies by the Dubai Cooperative Society, in 1981 Cooperative Society established Co-Op Islami for making Halal food available for consumers through legal Islamic supervision on all meat products imported from outside UAE.

Co-Islami will deploy mySAP ERP business suite, which provides functionality and solutions for self-services; financial accounting; controlling; asset management; project systems; plant maintenance; human resources; production management; sales and distribution and quality management.

“We recognise the importance of investing in IT to establish a robust technical infrastructure. This programme will reengineer existing business processes, strengthen core competencies through correct dissemination of data, integrate real time information across the supply chain, offer improved visibility and information of true product margins, facilitate production and procurement, and enhance inventory and allow for better planning, ” says Hussein Saeed Lootah, Board Member of Co-Op Islami.

MySAP ERP will cover various operational aspects including accountancy, human resource management, and strategic planning. The ERP suite also includes risk management through its ability to calculate risk and provide different potential scenarios. In addition, the business suite provides access for high-level management in retrieving real time information through different administrative operations.

Saleh Abdulla Lootah, Assistant General Manager of Co-Op Islami Operations, says: “Our main challenge is to improve business processes by reducing inefficiencies, optimising our supply chain, and improving our logistics and distribution network. This allows us to improve productivity and customer satisfaction and reach out to regional markets, especially the Gulf markets where we started five years ago.”

The new technologies are expected to increase Co-Op Islami’s profit levels by 20 to 40% and cover the investment within a short period of time, according to a return on investment study conducted by Co-Op Islami.

The ERP system will connect the company’s branches to the factory, five distribution centres, and export markets in the GCC countries, through an advanced technical system that provides accurate data to the employees.

Implementation will commence at the beginning of February next year and will take four to six months to be completed, with the system expected to go live by June 2005. The first stage is expected to link 30 users to the system with the number set to increase to 100 users within a period of two years.

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