Since the deployment of enterprise software SAP to manage business operations and customer relations in 1995, Kenya Power and Lighting Company has announced the successful deployment of the latest deployment of the latest SAP Business Suite.
The new solution will allow the utility firm to create universal functions across all its departments. Its initiatives are all geared towards enhancing people, processes and technology. The SAP system will allow Kenya Power to better manage suppliers through a vast improvement of Kenya Power’s inventory management, which will reduce the stock level Kenya Power has to carry on an ongoing basis.
In addition, the solution will enable an online and more transparent method of working with suppliers via a Supplier Relationship Management platform. The result is that Kenya Power will be able to evaluate the performance of its suppliers, allow them to respond faster to suppliers, and also enable suppliers perform self-service for invoices and purchase orders.
A key goal for this system is to increase procurement from local suppliers. Kenya Power currently spends most of its procurement budget on foreign sourced supplies, but now aims to support local industry by promoting local suppliers of key materials. The system is thus set up in accordance with government guidelines that 40 percent of the budgets of all state corporations and ministries must be used for local sourcing.
Additionally, the SAP system has been set up to support a Kenyan government rule, which stipulates that each entity must set aside 30 percent of procurement supplies for disadvantaged groups comprising women, youth and people with disabilities.
Kenya power will be in a position to;
- leverage underlying Enterprise Resource Planning data for faster reconciliation
- manage budgets as they are being utilized
- check how far the budget utilization is in relation to the overall plan
- The firm is able to manage its growth and gain better visibility of the financial supply chain
- Do more in financial reporting, thus better managing different parts of the business.
Big data analytics will help Kenya Power project future uptake of electricity, thus advising policy in term of how much power the country will need to invest in and when the investment needs to be done.
Power through technology
This major transformation is being effected in a particularly tough environment: the connection charges in Kenya have remained unchanged since 2004 to encourage uptake. Kenya Power has long embraced technology as a way to reduce efficiencies and manage projects.
“Kenya Power is one of SAP’s pioneering customers in Africa and a relationship that we are very privileged to participate in,” said Andrew Waititu, Managing Director, SAP East Africa. “The goal here is no less than to transform electricity in Kenya and, as a result, transform the country’s people and secure its future. It may sound lofty, but there is little you can’t accomplish with the right vision, people and a right partner.”