Home Business Kenya Posta to Install a KSh260 Million ERP System

Kenya Posta to Install a KSh260 Million ERP System

by Sam Wakoba
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postakenyaIn a move to automate front and back office functions at Kenya Posta and ramp up efficiency in its “end-to-end business operations,”  the firm has acquired an ERP system from TechnoBrain and Reason solution Consortium at Ksh 260 million.

The two firms will implement an Enterprise Resource Planning (ERP) System that would lead to generation of higher revenues and reduced cost of business processes.

“We want to gradually ratchet up our revenues from Ksh3.57 billion (2012/2013) to Ksh4.5 billion (2013/2014); from Ksh4.5 billion to Ksh6.5 billion (2014/2015) and from Ksh6.5 billion to Ksh9 billion (2015/2016) in years one, two and three respectively to hit a cumulative target of Ksh20 billion in three years,” said Dr. Enock Kinara.

According to the firm, the ERP will realign its operations and strengthen its profit centres through improving our ICT infrastructure and prioritizing ICT in budgeting, if Posta is to realize its revenue targets of 20 billion in three years. The ERP is also expected to lead to readily available business intelligence, harness the uses of ICT for service delivery and automate departments such as finance, accounts, human resources, procurement and retail chain processes.

The Corporation currently uses a myriad of stand-alone business applications for various functionalities which are independent of each other and therefore have no centralized source of data for management information systems. The ERP system is part of re-engineering of Posta operations to compete in dynamic business ecosystem where disruptive technologies are consistently necessitating continued business innovation.

With the acquisition of the ERP system, said Dr. Kinara, the Corporation will be able to improve its effectiveness and efficiency in all processes of business operations and hence reduce wastage without any loss of jobs for the current workforce.

Last year, Posta invested $1 million in a money payment solution (switch) Posta Pesa to enable them run agency banking, mobile money transfers, e-commerce and e-payment of utility bills among others. The service has now been integrated to five local banks such as Kenya Commercial Bank, National Bank and Co-operative Bank.

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