Nairobi, Kenya, September 27, 2022 -/African Media Agency (AMA)/- With over 50 factories operating under their own distinct systems, an organization with little to no integration, bringing consistency and How can we improve decision-making? For one of the world’s largest tea-producing organizations, the answer lies in a complete transformation of their end-to-end system.
More than 600,000 smallholder tea farmers affiliated with the Kenya Tea Development Authority (KTDA) are reaping the harvest of quiet technology deployments that streamline factory operations and make the tea industry more efficient and technology-driven.
Increase payment efficiency, analytical insights
The implementation of SAP by KTDA and its controlled factories has enabled farmers to pay for green leaves efficiently and quickly, while providing the analytical tools used to make better decisions. It also significantly improves payment processing and enhances end-to-end visibility for better control and protection.
KTDA CEO Wilson Muthaura said: “With over 600,000 farmers being paid for their green leaf supply each month and over 10,000 employees working across the organization, this was an extraordinary feat. With the success of , all farmers now receive payments through the SAP system, reducing processing time by more than 80%.”
KTDA Holdings Ltd is a wholly owned farm company that invests in various subsidiaries along the Kenyan tea value chain. Through KTDA Management Services, 71 plant operations are seamlessly managed, and SAP has helped drive operational efficiencies with the goal of increasing business transparency and profitability.
The agency has seven subsidiaries and foundations that provide professional services across the tea value chain, including factory management, engineering, insurance, tea trading and warehousing, credit provision, and electricity production.
In late 2021, KTDA has amended the monthly Green Leaf payment schedule to the first week of the following month. Payment for delivery was previously made in the 3rd week of the following month. This change was aided by efficient payment processing with SAP, giving farmers faster access to cash, allowing them to meet their daily needs and align payments with farmers’ monthly obligations.
The system also allows agents to easily incorporate loans and other items such as inputs (such as fertilizer) into the payment process for easy and seamless collection.
Martin Mwarangu, Group General Manager of ICT Services at KTDA, said:
A system that unlocks benefits across the value chain
In addition to payment processing, SAP’s various modules provided multiple benefits such as production planning and control, and full visibility of tea sales.
“SAP has digitally transformed KTDA business and is technically ready to adopt future solutions that will further increase business efficiency. The rich data generated is critical in decision-making and forecasting,” said KTDA Management. Julius Onguso, managing director of the service, said.
Plant maintenance has also been enhanced with solutions that ensure proper maintenance and increase visibility into costs associated with equipment. Additionally, all transactions are now updated to the general ledger and relevant cost/profit centers in real time, giving the finance team a complete view of the organization’s operations.
The agency has also deployed a sales and distribution module that allows all tea sales processes to be run in one system. From raising sales orders. Tea shipping and revenue management.
SAP solutions generate rich data and have embedded business analytics tools that generate reports and dashboards that are widely used by decision makers to gather insights and make better decisions for their business.
Currently, 32 factories managed by KTDA are running on SAP solutions, facilitating reporting and cross-company integration. Implementing SAP also means that there is uniformity and consistency in how each plant operates. The distributor is working to roll out the solution to all other factories for the benefit of the entire group.
Hardeep Sound, regional sales director for East Africa at SAP, added: As KTDA continues to play a vital role not only in the lives of smallholder farmers and above, but also in the broader Kenyan economy, real-time visibility across organizational processes will benefit all stakeholders. There will be significant improvements in operations that bring ”
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