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Mthembu saves costs, boosts inventory management with SYSPRO

Tighten controls, increase accuracy and enhance efficiencies

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Mthembu saves costs, boosts inventory management with SYSPRO

Mthembu Tissue Converting manufactures a broad range of tissue products, including toilet paper, tissues, paper towels, paper wipes and serviettes. The company converts around 1500 tons of pulp a month and supplies the retail, general trade and away-from-home markets.

Their Business Challenge

Mthembu’s existing system, which incorporated multiple manual processes, was no longer meeting its needs in vital areas of the business such as inventory management, production scheduling, Work-in-Progress and finished goods. The company realized that it needed a fully integrated ERP solution to tighten controls, increase accuracy and enhance efficiencies.

SYSPRO Solution

After a thorough market evaluation, Mthembu Tissue Converting selected SYSPRO 8 for its powerful features and user friendliness as well as its ability to both meet the company’s specific business requirements and provide an end-to-end solution.

The Outcome

With the implementation of SYSPRO 8, Mthembu has significantly improved its inventory management, production scheduling and forward planning. The company is now able to ensure that it neither overstocks nor runs out of material needed for production.

“SYSPRO is fundamental to the productivity and efficiency of our business. Compared to the benefits we’ve already achieved with SYSPRO, the initial investment and ongoing license fee are negligible costs.”
– Sanele Shabane, Finance Manager – Mthembu Tissue Converting.

Moving from manual to digital
Mthembu Tissue Converting is structured into two parts: a mill and a converting plant. The mill produces jumbo rolls of paper, weighing almost 800kg each, at a rate of one every 20-30 minutes. These are then transported to the converting side of the business where they are cut and packaged into the designated end product.

Sanele Shabane, Finance Manager of Mthembu Tissue Converting, says: “Previously, many of our processes were manual. For example, someone had to sit at a laptop and move stock into finished goods and then assess how much stock had been consumed and bring in the stock to replenish the inventory. Inevitably, this process was vulnerable to human error.

“That has all changed. SYSPRO helps us track costing, production and inventory management. We know exactly how much stock we have in the warehouse and how much we need to produce, as well as the quantity and type of raw material we need to bring in so that we don’t tie our cash into inventory unnecessarily.”

A smooth transition
Shabane and his team worked closely with Ruben Nayagar, CEO of SYSPRO Elite Solutions Partner RN Software, to implement SYSPRO 8. The system was deployed in the converting plant in 2019, followed by the mill in 2020.

“Our greatest challenge with the first implementation was that some of the staff were reluctant to change,” Shabane says. “However, Ruben ensured the transition was easy and that the process was smooth. Once our people got to know SYSPRO they realized how easy it was to use and how it could make their working lives simpler and more productive.”

Another factor contributing to the success of the implementation was buy-in from the top down as well as Shabane’s commitment, enthusiasm and positive approach. The lessons learnt from the first implementation laid the groundwork for the mill as it was simple to follow the same processes.

A powerful system to meet complex requirements

Mthembu Tissue Converting is a high-volume manufacturing environment with multi-layered packaging and multiple stock codes. The mill ships approximately 600 tons of jumbo rolls per month to the converting plant, with a further 900 tons delivered to external customers. Mthembu supplies some of South Africa’s largest retailers as well as general trade and the away from home market.

Both plants have reaped the benefits of a fully integrated system from the time of implementation. SYSPRO is used across the business from procurement to forecasting, inventory management and material requirements planning. SYSPRO’s Lot Traceability module keeps track of product at the mill, which also makes use of a scanning solution.

Mthembu operates two tissue machines: one for virgin pulp and one for recycled material.

Every jumbo roll produced at the mill has a unique number based on the tissue machine which produces it. The Lot Traceability module helps Mthembu to track all jumbo rolls coming out of production, making it easy to detect any discrepancies between the dispatch note and the weighbridge report, preventing losses and saving costs.

“With automated scanning, job posting happens directly on SYSPRO,” says Nayagar. “At day-end the recorded sheets are captured on SYSPRO and stocktake is done on the frontend. We have also developed an integrated system for one of the larger retailers which ensures orders come directly into the system.”

Enhancing productivity in real time

With one jumbo roll being produced every 20-30 minutes, productivity is critical, as each one requires labelling, printing and scanning.

“SYSPRO is fundamental to the productivity and efficiency of our business, and has dramatically increased our productivity by enabling these processes to be done in real time,” Shabane says.

“With a manual system, bottlenecks are created and there is a high risk of errors and inaccuracies. For example, labels are now printed as soon as the papermaker identifies the product that comes off the machine. That’s a huge plus, because if the thickness of the paper is not measured correctly, the product has to be brought back into the lab – the difference between 19 and 21 GSM paper cannot be seen with the naked eye.”

Additional benefits include improved procurement through the Material Requirements Planning module, which uses specific calculations to manage the Just in Time aspect of purchases. The ability to balance the tonnage of product going into the mill with what is actually produced has also substantially improved controls.

Achieve business success with SYSPRO ERP

SYSPRO is a leading, global Enterprise Resource Planning (ERP) software provider, specializing in key manufacturing and distribution industries. SYSPRO’s ERP solution empowers customers to take the next step – whether it is expanding into new territories, adding new product lines, transforming business processes, or driving innovation.

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