SAP cuts down work charts, improving company’s effectiveness and efficiency, doubling crops performance.
To be successful in managing ten thousands of hectares of palm oil plantations and other plants farm is certainly not an easy job. Yet, with hard work and commitment to improve work system and governance, all is possible. HPI-Agro proved it.
HPI-Agro is an integrated plantation company, part of Djarum group business unit. Established in 2008 and beginning its commercial operation since 2009, the company is committed to build a plantation business that meets all the regulation, environmentally friendly, and create added value and benefit to nearby community.
In the hands of HPI-Agro, tens of thousands hectares of land in Pontianak, West Kalimantan, is built into palm oil estates based on Good Agricultural Practices principles. For land clearing process, for example, HPI-Agro applied Zero Burning Policy. Thus, the land clearing is done only with heavy machineries.
HPI-Agro also creates water management system and conducting environment conservation along the watershed. Moreover, HPI-Agro grows Leguminous Cover Crop to coat the open soil and reduce weeds, improve soil good organism, maintaining humidity and prevent erosion.
Aside than that, fertilizer is given with the right type, the right dose, the right way and the right time to assure that the plants get enough nutrient that will lead to a better crop. All the efforts have manage to keep the company’s refinery occupied, producing 60 tons of CPO each hour.
Working with SMILE
Iwan Suhardjo currently leads HPI Agro. Since he sits down as the company CEO in January 2013, Iwan has a great responsibility. “One of the duty handed to me is how to make HPI-Agro as an ideal plantation company,” Iwan says on an interview at his office in Slipi, West Jakarta.
The duty was then translated by applying Green, Sustainable, and Modern (GSM) principles. The three principals have led to many positive changes to the company.
The company’s vision and mission is the first that changed. HPI-Agro vision is to become the leading agribusiness company in Indonesia with sustainable value creation based. HPI-Agro vision is to become one of the best agribusiness companies in the country with good governance striving to deliver high quality product, creating growth and innovation through sustainable corporate social responsibility, operational excellence with close relationship between its competent and motivated employees.
In short, HPI-Agro wants to be the best in terms of agronomics, engineering, administration and people development. All, consistently have to move forward in parallel.
Iwan also implement core values to realize the vision and mission. The values that are called SMILE, an acronym for Synergy (close collaboration), Mastery (being the best), Integrity (honesty and responsibility), Leadership (improving human resources quality), and Efficient.
“So we should always smile while working, don’t be sluggish,” says Iwan. Starting next year, the word “heart” will be added to the values, making it “heart SMILE” (smiling from the heart).
Modernizing the company with SAP
Iwan and his team are moving fast to modernize the company’s operation system to improve productivity and enable real time decision-making. To get there, in 2013, HPI-Agro starts to adopt the SAP Business All in One (www.sap.com) to replace the company’s manual system based on data processing application and various forms. SAP has a long reputation as a reliable solution system for company, including agribusiness company.
To pick the right system, Iwan invited several partner plantation companies nearby to ask their suggestion. “I asked 35 companies that came about what system they use. Turns out 75% was using SAP,” Iwan explains.
The company also did a survey involving key user. The result directed them to use SAP. Iwan became more confident to use SAP for HPI-Agro after knowing that Djarum also use the same system.
HPI-Agro then invited several IT consultants to handle the project. From the selection process, PT SOLTIUS Indonesia (SOLTIUS)—a subsidiary of Metrodata Group was chosen as SAP system implementer, with the help of seven IT staffs from the company.
The project was named JAGUAR, a reflection of HPI-Agro nature as a fast moving, strong, and courageous company. The implementation project took six months, from March to September 2013. “Before we use the system for the company overall, we did a pilot project in one of the departments,” says Iwan.
HPI-Agro uses almost all modules, with a relatively short and smooth implementation process. Some of the modules includes SAP-Financial & Controlling, SAP-Material Management, SAP-Sales and Distribution, SAP-Production Planning, SAP-Plant Maintenance, SAP-Project System, SAP-Human Capital Management, SAP-Organizational Change Management and 1 Estate Management Solution.
Go live was achieved in September 2, 2013 at Peniti Sungai Purun real, Pontianak, West Kalimantan with the tagline "SAP. You Can Do It!" or "SAP. Yes, You Can!". During the event, Iwan was the first who sent Purchase Order trough the SAP system.
The Challenge: Teaching How to Use Computer
The success of the implementation is contributed by active participation of HPI-Agro’s top management and employees. This active involvement is extremely important since from a total of 10,000 non-staff employees (including daily paid employees and monthly permanent employees (and 500 staff employees, around 100 employees will involve in using the SAP, and most of them work at the plantation.
“For us, the challenge us not about changing their habit in making reports, but even more basic on how to operate the computer,” says Iwan.
Thus, computer training were given to employees, starting from the very basic on how to use the mouse, type the keyboard, to how to enter the SAP system. This is because most of them were used to making manually written report.
To make the adaptation easier, HPI-Agro Communication Management Team and SOLTIUS involved in disseminating information and how to operate the SAP through leaflet. So everyone could understand the leaflet is made in English and Bahasa Indonesia. The leaflet has two pages and large fonts.
To attract readers, the leaflet also contains quiz with interesting gifts for winners, like jacket, soccer ball, or even cigarette. “We also look at the readers segment, which is mostly male employees and gave suitable prizes,” Iwan says.
The effort was successful. The employees who did not understand how to use computer at the beginning, can use the SAP when it’s Go Live. Evaluation was continuously. Employees were given awareness to input the data’s on time and mostly do so. Late submission only occurred mostly in the first one or two months.
After one and a half year using the SAP, the management conducted a test to see how far their knowledge are about the system, which is done mostly for the finance and accounting department. Two of the best employees who passed the test were given promotion and salary increase. They also become a role model for others to improve their working performance and better use the SAP.
Moreover, HPI-Agro management feels the real benefit of using the SAP. Reporting are faster than before, only 10 days from previously one and a half month. The improvement made managers to create faster decision to improve productivity.
“We don’t have more employees, but the revenue of our company doubles last year’s,” says Iwan.
SOLTIUS’s Fast Response
Aside from the internal team contribution, HPI-Agro gives its salute to the capability and dedication of SOLTIUS’s team. “One of the things that made SOLTIUS successful was because it sent a technical team who really understand well about agribusiness,” Iwan says.
That’s not all, HPI-Agro sees SOLTIUS consultants to be more down to earth. This is seen in the consultant’s responsiveness in hearing and taking input from HPI-Agro team. Moreover, SOLTIUS consultant is willing to come to the plantation site where the project is implemented