ILT is a Zimbabwean tobacco company that buys packed crude tobacco and processes it into packed leaves or stems (as a by-product), for sale on the international market.

Lack of visibility in tobacco life cycle hampered costing

Matteo Scudeletti, ILT’s strategic financial adviser, says costing in the tobacco industry is a complex process made significantly more difficult and inaccurate without an ERP solution.

“It is necessary to track direct, burden and excise costs through the life cycle of tobacco – from when stock is received from farms to the point of processing and/or sale. ILT had been using manual processes and a small accounting package, which meant tobacco industry-specific information and terms were difficult to overlay because they did not easily fit standard system terminology.”

Scudeletti was given the responsibility of assisting the business to select an ERP system and implementation partner. “ILT needed reliable data that could be used to manage the business more effectively, but which could also be tailored to match the unique requirements of the industry. Month-end periods were challenging, and it took a long time to close and reconcile accounts,” he says.