Port Nelson gets the big picture
Mason Robinson explains the way Port Nelson’s finances were managed before 1988: “Management tools weren’t at all a priority or a necessity. They just identified their capital expenditures and expenditure requirements and rated for any shortfalls.”...
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He should know. Robinson is the accountant for Port Nelson, and an integral part of the Port’s recent upgrade to a combination of Microsoft Dynamic NAV accounting software, Jade Harbour management system and the PayGlobal payroll system. As Robinson points out, before 1988 all ports were owned by Harbour Boards and simply levied rates to fund their operations. Since commercialisation, financial management systems were installed in the late 80s and early 90s, many of which were still used until last year. But a changing market presents shifting challenges. Robinson says, “A lot of the management decisions and drivers that led to decision making were no longer being identified through the financial management reporting systems.” The DOS-based applications could deliver some information, but only after a lot of what Robinson calls heartache, and at the cost of many staff hours. Chief Commercial Officer Parke Pittar led the drive for change, not only to meet current needs but also to futureproof the business. Through Wellington consultant Barry Carruth, the Port put out a request for interest to technology providers. “We got about 45 responses,” says Robinson. “In a relatively small city like Nelson, we didn’t want to head towards the likes of Oracle databases where you need specialised staff.” Instead, the Port chose to go with SQL databases, harnessing the talents of their own IT guru Hugh Stark. The next step was to find a suitable solution that worked with SQL databases. “As we narrowed down to five vendors we focussed on a solution that used SQL databases, with a reporting services able to extract financial and non-financial fields from any of those databases.” Essentially the Port needed a program that would combine the information from accounting, payroll and harbour management software, creating an overall picture of the Port’s current state. On Christmas Eve 2004, Port Nelson finalised the deal with Intergen to implement the Microsoft Dynamic NAV accounting application, and throughout January 2005, both Dynamic NAV and PayGlobal were put through their paces in scoping exercises. The clock was ticking, as the project’s aim was to have the new combined system in use by the end of the Port’s financial year, June 30. PayGlobal went live in February 2005, followed by Dynamic NAV in May. “We traded one month with the June transactions in there, and then we were able to be audited with a set of financials out of Dynamic NAV by Audit New Zealand,” says Robinson. “It’s about now, our tenth month of reporting, that we’re really starting to see the gains come through and process changes happening.” The integrated solution gives the Port management a real time understanding of key business performance metrics, for example reporting profit and loss by voyage turnaround. Operational efficiencies include the ability to invoice as soon as a ship departs. The software features delegated purchasing, which not only saves time but also prevents budget overruns. Purchase orders, previously created by hand, are now entered into the system and each individual has an accrued authority limit. Dimensional analysis in Dynamic NAV works in a similar way to pivot tables in Excel, but with more depth. “In the old days once the financial transactions were posted, that's it, you couldn't analyse it,” says Robinson. “Now if you set it up right, you've got a whole magnitude of analytical information, that, if managers do require that information, can be actually extracted pretty quickly and painlessly.” Port Nelson’s board meets every month, and information from the previous month is given to them on the 20th. The new setup allows that same information to be available on the 12th, and Robinson says the aim is to bring that date back to the fifth of every month. Electronic purchase orders have sped up the delivery of information, because instead of waiting for invoices from suppliers, staff can generate an electronic purchase order out of Microsoft Dynamic NAV. The overall aim of the project, spearheaded by Chief Commercial Officer Parke Pittar, was to have a dashboard-type concept, where, says Robinson, “divisional managers are able to see all the KPIs sitting in front of them, and if something doesn’t look right, they can quickly find out why.” For more information contact Business Solutions Enquiries: |
November 2006
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