|KTDA Holdings Ltd is a wholly owned farmers company which has invested in various subsidiary companies along the tea value chain in Kenya. Through the KTDA Management Services company, the operations on 71 factories are seamlessly managed and SAP has come in handy in enhancing operational efficiencies with the aim of increasing transparency and profitability in the businesses.
The Agency has seven subsidiaries and a Foundation providing specialised services across the tea value chain, including factory management, engineering, insurance, tea trading and warehousing, credit provision and power production.
In late 2021, KTDA revised its monthly green leaf payment timelines to the first week of the following month. Payments for deliveries had previously been made on the third week of the following month. The change, aided by efficient payment processing through SAP, translated to faster access of farmers’ cash to meet their daily needs and align the payment to farmers’ monthly obligations.
The system also allows the Agency to easily incorporate other items like loans and inputs (like fertilizer) issued to the payment process allowing for easy and seamless recoveries.
Martin Mwarangu, Group General Manager for ICT Services at KTDA, says: “We worked with experienced SAP partner, OneConnect Technologies, to implement SAP ERP Central Component and Business Intelligence, covering end-to-end processes across KDTA’s operations.”
System unlocks benefits across value chain
Besides payment processing, different modules of SAP have delivered multiple benefits including production planning and management and a full visibility of tea sales.
“SAP has digitally transformed the KTDA business and made it technologically ready to adopt any future solutions that would further enhance business efficiencies. The wealth of data generated is important in decision making and forecasting,” says KTDA Management Services Managing Director Julius Onguso.