How Mining in Africa survives the up and downswing of commodity pricing
Solution providers and business automation specialists focus a lot on driving sales and marketing and positioning solutions to provide visibility, tracking and management of sales leads and opportunities. The solution providers who really understand cost management are few and far between. There are a few vertical solutions focusing on mining like Epicor, for example. The problem for mining companies in Africa is that these solutions are implemented from Europe or the United States and local offices and resources are hard to come by for the industry specific solutions. Turnaround time and logistics becomes a nightmare in Africa since direct flights and internet connectivity is rare.
At AccTech we have shaped our standard Sage solutions by creating vertical solutions within the Sage product lines to serve the mining solutions with a-close-to 100% fit. Learning from industries like Government, Parastatals and Tobacco industries, we have shaped our solutions to focus on:
- Shaping Stock and inventory solutions to minimise stock holding for mining. This is achieved with providing processes within the ERP to cater for:
- Contract management with vendors supplying mission critical stock,
- Providing unique approval processes for emergency purchases (allowing the transaction to flow, but approval afterwards)
- Back to back ordering for stock items with high value and low minimum stock levels (So these items are automatically procured when minimum stock levels are reached)
- Streamlining the procurement cycle and dividing stock and procurement departments into logical disciplines with knowledge on different inventory categories.
- Creating cost centres logical to the mining processes with agility and adaptability to the rapid changing mining environment in Africa.
- These cost centres are configured so logical approval of internal costs are simplified and people responsible are involved in the cycle,
- Budgeting on cost centre level (which might be different to the ledger reporting structure and dimensions)
- Commitment accounting in procurement, cost accounting and management accounting
- Visibility of pre-commitments (procurement orders still to be authorized)
- Visibility on commitments (purchase orders committed to suppliers)
- “Procure to pay” and managing suppliers
- Managing suppliers closely on performance, making sure they can be trusted for mission critical supplies
- Providing functionality to manage Tax, BEE and other statutory requirements of suppliers in the African environment
- Management of withholding taxes. This is most relevant in Africa and AccTech has developed configurations to manage this laborious process with ease
- Integrating Payroll and HR within your ERP
- More and more mining companies want a centralized view of Human Capital
- “Ex-Pat” payrolls and complexities around USD based salaries in the African mining environment has been solved with integrated Sage People solutions.
Mining managers, engineers, cost accountants and executives want quick access to relevant information in any process they are engaging in, thus enabling quick decision making, fast turnaround and cost management. Apart from readily providing this information in real-time via business intelligence tools, our solutions also give you the much needed actual and budget figures on documents routed for electronic approval.