Sage ERP X3 integrates and consolidates Village Main Reefs mining assets

Village Main Reef was in need of an ERP solution that could seamlessly integrate into and support the company’s business model and financial processes.

April 17, 2013

Village Main Reef (Village) a South African-based, mining and development company listed on the Johannesburg Stock Exchange, was in need of an Enterprise Resource Planning (ERP) solution that could seamlessly integrate into and support the company’s business model and financial processes. The solution came in the form of Sage ERP X3, which Village adopted with the aid of, Deloitte Consulting, a business partner to the Sage ERP Africa Group.

The Company’s assets include Lesego Platinum, Cons Murch Mine, Buffelsfontein Gold Mines (which consists of Tau Lekoa Mine, Buffels Gold Mine and the South Gold Plant) and Blyvooruitzicht Gold Mining Company (Blyvoor Gold Mine).

The Company’s strategy is to invest in and develop self-sustaining, socially-responsible mining entities. This is achieved by identifying and acquiring assets that represent value and unlocking opportunities from these assets in a way which realises their potential value. The company has some 9,349 employees, including contractors and operates out of its corporate office in Houghton, Johannesburg.

Villiage Main Reef has acquired a number of mining assets around the country since 2010 and needs to consolidate these assets into one organisation with a centralised financial and shared services facility. Each mining operation was operating on a different ERP platform. The organisation was looking for a single reliable and scalable ERP platform that could integrate and consolidate the multiple companies with a single chart of accounts. A single ERP system was a strategic component of the client’s goal in establishing a shared services environment to provide back office services to all group assets in order to drive efficiency and cost savings.

Village Main Reef chose Deloitte Consulting to implement Sage ERP X3. Deloitte has a track record of applying deep industry knowledge in mining to secure ERP and IT solutions across all disciplines. Deloitte Consulting is also known to be able to deliver quality solutions on complex assignments. Sage ERP X3 is a recognised mid-tier product with a proven track record in the mining industry.
One of the key requirements of the ERP design was to maintain standard Sage ERP X3 functionality which ensures a more efficient roll-out of the solution to new group companies as the group continues to grow.

“We are very comfortable with the product,” says Johan Theron, Director at Deloitte Consulting. “Sage ERP X3 does not come with the hefty price tag that some of its bigger counterparts presents, which makes it the ideal solution in a tough economy. Cost of ownership is a focal point and with that in mind Deloitte introduced a software finance plan option, to stagger the initial implementation cost, as an option for our clients should they require this The return on investment makes the implementation of a Deloitte Mining Shared Services offering well worth it. The package comprises of an ERP solution, financial co-and outsourcing services in addition to information technology outsourcing services.”

The implementation went live at Village Main Reef in July 2012. Village Main Reef now has a single ERP platform with a single chart of accounts and consistent business processes across all of its companies and assets. This common platform is now the backbone of the back-office processes provided to the Village Main Reef group of companies by its newly established Shared Services Centre.

“The Sage ERP X3 system has standardised the processes and controls across all our systems. Having one system provides a platform for potential future cost savings. Since its implementation in July all our transactions have been going through the one ERP platform and this has helped to consolidate our operations within the group. We also look forward to the value added benefits that will be realised as we go forward due to Sage ERP X3’s reporting functionality which will significantly benefit our ability to report on our operations,” Sandeep Gandhi, Chief Financial Officer, Village Main Reef.

“Innovation remains at the forefront of the entire Sage Group’s identity. Sage ERP X3 offers the option of a decentralised approach to further improve our products for the mining industry, including the ability to use the software in offline mode. Connectivity, especially in some areas in Africa where mines are situated, can be both expensive and inconsistent, which is why we have integrated an option to work offline with our Sage ERP X3 product,” says Keith Fenner, senior vice-president for sales at Sage ERP.