ESLSE NEWSLETTER (Special Edition)
ERP From Where to Where?
STREAMLINING THE ERP TOOLS & MAJOR BENEFITS OF THE ERP TOOLS IN ESLSE

What is ERP?    Click here to download the newsletter

Enterprise Resource Planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management, compliance and supply chain operations.


ERP systems tie together a multitude of business processes and enable the flow of data between them by collecting an organization’s shared transactional data from multiple source, ERP systems eliminate data duplication and provide data integrity with a single source of truth.


Today, ERP systems are critical for managing thousands of businesses of all sizes and in all industries. To these companies, ERP is as indispensable as the electricity that keeps the light on.


Fundamentals of ERP

ERP systems are designed around a single, defined data structure (schema) that typically has a common data base. This helps ensure that the information used across the enterprise is normalized and based on common definition and user experience. These core constructs are then interconnected with business processes driver by workflows across business departments (Finance, human resources, engineering, marketing operations), connecting systems and the people who use them. Simply put, ERP is the vehicle for integrating people, processes, and technologies across a modern enterprise.


The Ethiopian Shipping and Logistics Services Enterprise (ESLSE) have began implementing this tools of an Enterprise Resources Planning (ERP) software since October, 2019. Various functions of the enterprise using these tools have expressed its benefits since they began the implementation. Since the enterprise has integrated its existing systems with the new ERP and had began implementing the consolidated tools of effective and efficient software, a number of achievements are recorded.


Achievements of ERP Software Implementation at Various Functions

1. Benefits of ERP at Multimodal Department and Practically Implemented ERP Modules

The ERP project. Implemented at Multimodal Transport Department has rendered the following benefits for the various tasks carried out in the department. In the ERP projects in general, the following modules listed below are implemented in the department, and their benefits are point by pointe listed respectively

  • Demurrage Calculating System
  • Transport Payment System
  • Warehouse Management System
General Benefits
A. Accessibility and Integrated Services

Formerly, any information are found moving from one office to the other and searching various computers, or otherwise finding documents from manual and hard copy resources, However, the beginning of the new ERP system has enabled the department to find information in the internet services (as far as they are available everywhere) opening users account.


The ERP system has created a benefit and mutual understanding that extending the system to customers and stakeholders interfaces is possible to create efficient services accessibility either directly or indirectly according to the size and levels of the users. Moreover, the system has created a viable ground for decision making that enables information about particular case to be found from sources that are fed from one information database.


B.Cost Effectiveness

The enterprise has been investing a lot on big severs that help find very important information that cloud have been found simply.


These severs were very coasty, and as the enterprise is a big company with extended networks and need an integrated flow of wider networked services, the management of these severs by itself were challenging. But then, since a web based services has been commenced using cloud computing applications, the enterprise is able to minimize heavy ICT infrastructure procurements and administrating costs.

C. Simplified Flow of Information and Efficient Service Delivery

Since the implementation of ERP system, as it is made possible to exchange information and ordered among the branches and within of the company sections using the system and without additional support devices, information that are produced in the multi- modal operations centers are made possible to be availed at Djibouti branch office instantly. This intern has created a capacity of reducing the unnecessary time wasted due the cutting or prolonged exchange of information.


  • Operational Benefits

A. ERP Fusion Application

Among the various ERP fusion applications implementations tools, the multi- modal transport department of the enterprise is applying the order management and tools of application tools, software.


B. Order Management

Order management is an application used for opening operation, preparing invoices and providing container release. The ERP has made all these systems to be in consequential order and it has made them easy to be processed. Here we could notice that, formerly, ones an order is made and operation is opened, all the required information were given to the ICT department and it is sent to Djibouti. Even invoice was prepared manually and sent to finance department.


However, now, all freight information that pertains to opened operations in the department are instantly reported and found at Djibouti offices. Invoices as well, are automatically computed by the system and sent to finance department.


These have eliminated the wasting of time in exchanging information and preparing invoices manually.

C.Tools of ERP

Tools are systems that help produce reports of the daily operational activities and that support to follow up pending or unsettled cases due to lack of information.

D. Demurrage Calculating System

This application is a system that helps to provide information to finance take container release and claim the settlement of the money they credited to the enterprise as pre-payment.

The system deposit calculates all the demurrage prices and sends the required due payments to finance offices The system has enabled to eliminate extra wasted time that is spent in finding due information, by providing information regarding the time that full container arrived or empty container returned to dry ports.

E. Transport Payment System

Transport payment system is a system of preparing payment documents that calculate the payment as per transported amount of containers, the containers weight and destinations that is provided to transporters when there is request payment of services.


F. Warehouse Management System (WMS)

This system mainly those services that are provided on ports, and enables to identify the status of containers. The system shows the date of the arrival of containers at Djibouti port, the time of its departure off the port, its arrival at dry port and its registration day when it is declared and transferred to the importer.


If shows also the time that returning empty containers takes, at dry ports until it arrives Djibouti port. Moreover, the systems has made easy to report the status of containers at port, the outgoing loaded containers at Djibouti port, and the containers that are not yet released from the hands of customers.


  • Works Done (Modules)

The following are modules prepared for the implementation of multi-modal transport tasks using ERP systems.


A.Self-Services Payment System

This is an ERP system where by an employee is able to request the purchase of materials for the accomplishment of its tasks. This system has been implemented both at the head office and branch offices.


B.Sourcing Module

This system covers all the purchasing process from purchase requisition stage till storage of the purchased items. This system is made to feature various types of purchases procedures and steps of proforma, direct, and tender purchases. Accordingly the proforma purchase is made through ERP system at the head office, and in branch offices with the exception one branch office not yet implementing.


The tender purchasing procedure is being worked out in the system to accomplish purchases through auctions using ERP system.


C.Supply creation and qualification

Formerly, in order to accomplish any purchases, suppliers had to be registered and listed at ESLSE supplier’s registration hard copy list. However, the registration of suppliers is done through ERP system. This shows that the company is creating its suppliers entries in the system and the clarification of suppliers list is going to be done in due process.

D.Contracts

In this module all the procedures, working modalities, required conditions, formats as well as articles are uploaded in the system. Therefore when preparing contracts, one can take the forms and the contract amendment procedure lists and can use them for various types of auctions accordingly.


Moreover, to implement the system that facilitates creating and managing of contracts is being worked out in the ESLSE, ERP system.

2.ERPs Benefits Gained In Procurement Department

ERP has made possible to perform purchases with proforma invoice on time and effectively, since the systems implementation at the head and branch offices.


  • It has reduced unnecessary wastage of property and overloading of paper works,
  • The printing cost of purchase requisition forms are reduced,
  • It has enabled to hold the enterprise properties issue and accusing order with properly organized information.
  • It has enabled the reduction of cost of labors or labor works
  • It has stopped he insufficient provision of purchase requisition forms.

ERP system is able to process the tender documents and the auction procedures and make price analysis of the bidder’s offerings and identify the winner. This helps procurement managers to follow up the works of procurement officers as they post all the necessary procedural documents on the system that could be assessed easily by the manager from his place he is found whenever he wants to make the assessment or follow up.


Since all information about the purchase of an item from the point of requisition to the storage of goods could be found in the system, it keeps the security and authenticity of the purchase procedures. By so doing it prevents the loss or the damage or the fashioning of bid documents, and keeps the authentic information in the economy of space, in the system.


It has enhanced the efficiency of the processing of auctions and bid documents, and keeps the authentic information in small place in the system.


It has enhanced the efficiency of the processing of auctions and bid documents as the system enable the recording and exchange of information possible where ever there is an internet.


The system helps to follow up and control all types of purchases since it provides all information of the purchase from time of requisition to storage of purchased items.


3. Implementation Of ERP Benefits In Inland Ports Operations Co-Ordinations Department

One of the ERP modules that is being implemented since October 1,2019,at Mojo ,Kality , Semera, Dredawa ,Kombolcha , Mkele, Gelan ,dry port terminals as well as the module that Woreta branch office began to implement since February 26,2020 is the WMS, (The IRP Work management system)


The following are the advantages gained from this system in the department.


  • This system has enabled all information about accomplished tasks to be accessed accurately, timely and reliably across the branch offices.
  • Since the software system is cloud computing, it has reduced various hindrances of work፣ flows due to problems of various net- work infra- structures.
  • Since the system is cloud computing, again, all operational activities that are carried out a any where in the branch office could be seen by officers and employees, and this has made follow ups and support activities more efficient, as the system helped the ability to share information between all components of the organization easily.
  • ERP at the has enabled to prepare and retrieve the reports at any place and to implement required places easily and suitably.
  • The system helps auditing since it records and saves information about operational activities at branch offices, specifying who, by whom, or what tasks have been done.

4.Benefits of Implementations of ERP System at Property Administration and General Services Department

The enterprise has got a number of benefits better than formerly existing work processes and systems. It has started to modernize its work processes according to the state of the art of digital technology advancement, and it began to implement the ERP system at procurement administration and General Service Department.


Hence the following are the advantages that the system provided in the department:


  • It is made possible to decrease the cost of printing of pads.
  • It has reduced the congestion of document stores especially at print materials storage.
  • It is found to be time saving.
  • It has reduced repetition of tasks, and it has rendered proper work process flow order.
  • It has enabled to hold the enterprise properties issuing and accusation order with properly organized information.
  • It has enabled the reduction or cost of laborers or labor works.

5.Benefits of Implementation of ERP in Finance and Accounts Department

Among the four type of modules, the implementation of A/P and A/K modules have begun after they have been completed. The major benefits of this are at the time when payments are made and cash is collected, as the coding and posting works are completed, it is helpful to get rid of the earlier manual coding and posting tedious activities. For this reason, since it reduces the year’s long activities to close accounts and since it is free of all manual works. It has created service delivery efficiency.


It helps the work to be completed free of errors. It is expected that when the modules that are in the pipeline to be completed and begin to be practically implemented, similarly they are going to have great contribution saving time and money.


6.Benefits Gained in Unimodal Department

The system has added various benefits to the hitherto system of work processes in the department.


Accordingly, the benefits that the system rendered in the department are the following


  • It enables to get info from one source of data
  • It has reduced the time and labor wastage that entails to get information,
  • It avoid errors and unnecessary delay for it has created a coordinated system of information exchange regarding payments in the finance and accounts department.
  • It has stopped all paper works and enabled to provide information at the right time and at the right speed.

7.Challenge Encountered In Implementing ERP

Although the systems provides various benefits, the following are some of the problems seen at the system occasionally and that need particular attention.


  1. That the system needs amendment, data validation and data flow.
  2. Some of resolved problems appear again
  3. The problem of internet accessibility is not fully resolved
  4. An error corrected at some place in the system is reappearing and causing problems at other places
  5. The system does not cover fully the services provided at dry port and terminal
  6. Since the system entails big network infrastructure, sometime the system shows an interception of internet services and this has created in reduction of performance.