16 February 2007
Hosted ERP tested as competitiveness improvement tool
Building on the successes achieved through the Motor Industry Supply Chain
Competitiveness Improvement Programme (MISCCIP) as an industry collaboration
project, the Automotive Industry Development Centre is investigating a low cost, hosted
ERP model.
The aim is to provide a standard solution to the automotive industry in order to cater for
lower costs and quicker rollout times, says Hannelie Viljoen, AIDC project manager
responsible for the pilot project.
ERP systems are a pivotal tool in the improvement of competitiveness, yet the costs of
the systems are often prohibitive for many smaller companies.
The hosted ERP model replicates the way the MISCCIP is accessed – through a web portal – and is likely
to involve a transactional fee per user for the standard ERP application. Once the ERP pilot project has
proven the feasibility of the Hosted ERP System concept, the option to add additional functionalities to
the standard ERP System will be provided to the suppliers.
The system will be hosted by the off-site service provider; Collaborative Xchange (CX).
The software Mfour, referred to as the Hosted ERP System, will be provided by Virtual Supply Chain
(VSc), a London-based company owned by the Super Group in South Africa. The Mfour solution is
deployed within Super Group as well as across a number of external customers. Through CX, the
software will be aligned with local needs and individual company requirements.
To determine the feasibility of the concept the AIDC will implement the Hosted ERP system (HERP) as a
supply-chain execution solution with an electronic interface between myxchange™ and the HERP at two
supplier sites for a period of seven months. One month is required to implement the system and the
remaining six months will be used to monitor the performance of the system. The two supplier sites are
Baires Plastics (Pty) Ltd and Clomark (Pty) Ltd.
The objective is to assess the suitability and the functionality for small suppliers in the automotive OEM
supply chain. By testing the application within an intensive pilot with a small number of suppliers, it is
intended to define the implementation requirements of the larger community of suppliers to OEMs and
identify any changes that may be needed to meet the requirements of the automotive supply chain.
For more information, contact Hannelie Viljoen at johanna.Viljoen@partner.bmw.co.za
ABOUT
THE
AIDC
The Automotive Industry Development Centre (AIDC) has been established to assist in increasing the
global competitiveness of the South African automotive industry to world-class levels. The AIDC works
in partnership with business, government departments and other organisations to invigorate economic
development within the automotive industry. Its focus areas are Skills Development and Training,
Supplier Development and Supply Chain Development.
Find out more about the AIDC by visiting our website at www.aidc.co.za,
phoning us at +27 (0)12 564-5300 (Pretoria) - +27 (0)41 363-0761 (Port Elizabeth)
or email us at aidc@aidc.co.za.
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