SAP

1. SAP Proposal For VVF Indonesia
 MS GP vs SAP Costs
 Savings Scenario
 Current Processes in VVF Indonesia
 Why SAP for VVF Indonesia?
 High level Project Plan
 Shared Services
 Tentative Travel cost
1

2. 2
Proposed spending on SAP ( INR Lakhs)
Cost
Nature of
Cost
Total
Actual
Cost
Remark
SAP License
Cost
One Time 18 0
18L for 18
license to be
sourced
internally
Travel & Stay * One Time 11.1 11.1 Refer Chart
External
Support for
existing
operation
One Time 4 4
For hiring
manpower to
support
existing
operations
during project
33.1 15.1
Cost
Nature of
Cost
Total
Actual
Cost
Remark
SAP License
AMC
Recurring 3.96 0
3.9 Lakhs
yearly AMC
VVF IT -SAP
Support Cost
Recurring 22 0
VVF IT Support
cost
26 0
Current Spending on Microsoft GP (INR Lakhs)
Cost
Nature of
Cost
Total Remark
Server
Replacement
Onetime 10.31
Server is 10
years old. OS
expires next
year.
10.31
Cost
Nature of
Cost
Total Remark
Microsoft GP
Enhancement
pack
Recurring 2.67
IDR
50170000 for
a year
Server AMC Recurring 0
Servers are
not in AMC
GP partner cost Incidental ?
Artha is paid
per call basis
Total
Recurring
2.67
Assumption : VVF Indonesia being a
subsidiary company license cost, SAP AMC
and IT support cost will be absorbed by VVF

3. Savings Scenario
Cost Heads ~ Cost (INR)
+ Implementation Cost (One Time) 11 Lakhs
+
Manpower for VVF IT in India for support in projects
(One Time)
4 Lakhs
-
Microsoft GP License AMC and partner Support
(Annually)
(2.67) Lakhs
-
Server Replacement as server is 10 years old and
OS will be out of support in early 2023 (One Time)
(10.31) Lakhs
2.02 Lakhs
3
Year 1 Year 2 Year 3
Expense 2.02 (2.67) (2.67)

4. Current Processes in VVF Indonesia
4
Department Activity
Recording of
Transaction
Is it Available in SAP ?
Security Incoming materials
Excel/ Gate
entry
Yes
Weighbridge
Measure bulk incoming (Raw materials,
engineering stores) and outgoing (Finished
products , scrap, rejection returns)
Excel
No ( Weigh Bridge
Software used)
Tank Farm
Receipt of Oil and issue of oil to production
, transfer between storage locations
Excel Yes
Engineering Stores Goods receipt ,Goods issues, stocks GP Yes
Quality control Raw material , Finished Product analysis Excel Yes
Engineering Purchase Creation of Purchase orders GP Yes
Oil Purchase Creation of Purchase orders GP Yes
Production planning Production scheduling Excel Yes
Material Requirement
Planning
Procurement planning Excel
Yes, but not used since not
suitable for the Oleo
business
Production All production related entries & reports Excel Yes
Inventory
Consumption of Raw materials, utilities,
stock transfers based on Excel report
submitted daily by Utilities and Tank farm
GP Yes
FG Warehoue GP Yes

5. 5
Department Activity
Recording of
Transaction
Is it Available in
SAP ?
Sales Sales contract
Manual / Word
Document
Yes
Sales invoice GP Yes
Packing list Manual / Excel Yes
Customs Export documentation Manual / Excel No
Finance Payables GP Yes
Receivable GP Yes
Tax reports VAT -manual inputs from invoice
Soft ware from Tax
authorities
Yes
Financial statements GP + Manual Yes
Asset management module GP Yes
Budgetary control Excel Yes
Cash flow planning and tracking Excel Yes
Petty cash GP Yes
Bank Statement GP Yes
Costing Product costing / Cost of goods sold Excel Yes
HR Attendance + payroll standalone not integrated to GP
Standalone program
not integrated to GP
No
Plant
Maintenance
Electric, Instrumentation and Mechanical maintenance
schedule, execution and Budget control
Manual
Yes ( No internal
Resource)
Current Processes in VVF Indonesia

6. 6
Saving
from SAP
for VVF
Indonesia
Fraud
Controls
Purchase
Controls
like release
strategies
Budget
Controls to
avoid over-
spending
Incoming
and
outgoing
Quality
Control
Real time
Inventory
Control
MIS &
Product
Costing
Savings from SAP for VVF Indonesia

7. Why SAP for VVF Indonesia?
Many processes in MS GP are either manual or excel based which can be implemented in SAP for
better control and reporting...
Key modules like Manufacturing and Quality Modules are not implemented which are critical for
the Oleo business. Quality module is not available in MS GP.
As VVF India employees are using SAP since 2004, SAP in Indonesia creates a better case for the
shared services model.
An Oleo template exists in the form of Taloja operations within VVF India that is successfully running.
Can be used as reference.
VVF IT already has the SAP server and only a company code needs to be opened. There is no extra
cost of infrastructure / hardware.
VVF IT can make the licenses available for VVF Indonesia as it is a subsidiary company. There is no
extra cost to be incurred by VVF Indonesia.
VVF IT has a centralized SAP team that supports all SAP installations globally.
VVF IT has successfully transitioned Green Planet Industries from MS GP to SAP in 2018.
SAP materials masters (RM/PM/FG), Chart of Accounts, Vendor master, Customer master will be
extended to VVF Indonesia there by maintaining the same nomenclature which will make reporting
easy in the future.
7
Why SAP for VVF Indonesia

8. 8
Why SAP for VVF Indonesia?
MS GP is running on a single server environment. In the event of a crash, the downtime will be equal to
the time required for arranging another server. VVF SAP runs on a server redundancy model with an
offshore disaster recovery setup
MS GP is up for a hardware refresh as the servers are more than 10 years old. This is the perfect time
to avoid that investment.
SAP is suitable for Large Multinational corporates. Single system, multi legislation. SAP releases
Service notes for change in legislation in all countries E.g. Poland PLVAT. GST in India etc.
Microsoft uses SAP. GP is suitable for Small & Medium Businesses. Solutions are released by partners
in local counties.
MS GP platform nearing end of life (2025) The next product Microsoft Business Central (BC) requires
different licensing. SAP ECC will be supported till 2028 and till 2030 with an additional fee.
In MS GP, Manufacturing is available as an add on which VVF Indonesia has not implemented. No
Quality Control Module, No Budgeting, No WMS Module, No native connectivity to integrate other
software's. To get these functionalities third party modules must be bought or developed and the
integration is not seamless. Case in point GPI
Every aspect of business is covered in SAP. No Third-party tools need to be bought. All tools are
available within SAP. Some are free and some are licensed*.
Why SAP for VVF Indonesia

9. Project Activities From Date To Date Location
Process Discovery
- Core Team finalization
- Process Owner finalization
- Project Champion finalization
- Master Data Cleanup champion
1st Jun 7th Jun Onsite
Business Blueprinting (BBP)
- AS-IS documentation and Sign off
- TO-BE documentation and Sign off
8th Jun 8th Jul From India
Configuration and Realization 9th Jul 9th Aug From India
Unit Testing 10th Aug 20th Aug From India
Core Team Training & UAT 21st Aug 29th Aug Onsite
Master data and Balance uploads 30th Aug 31st Aug Onsite
Go Live 1st Sept Onsite
Post Go Live Support (1 person) 2nd Sept 3rd Oct Onsite
9
High level Project Plan

10. Shared Services
 IT can support a Shared Model where SAP is implemented
 Trial Project with GPI Finance (Abhay) for Accounts Payable
 Identify finance resource in VVF India
 Provide GPI SAP access over VPN
 Invoices in GPI are scanned and attached in SAP
 VVF India resource passes the bill
 Which processes to include (Bill entry, Payment responding to vendors
etc.) can be discussed between the two finance departments.
10

11. 11
* People Stay Travel Stay cost Travel Cost Total
Trip 1 Discovery 2 7 1 70000 120000 190000
Trip 2 Implementation 7 14 1 140000 420000 560000
Trip 3 Support 1 30 0 300000 60000 360000
1110000
Assumption: 60K flight + 7k per day + 3k Misc
Tentative Travel Cost