Information System at Lakson Tobacco

Topics: SAP AG, Tobacco, SAP ERP Pages: 61 (19918 words) Published: September 16, 2011

The Lakson Tobacco Company Limited, a public listed corporation, is a market leader in the area of tobacco products and also the largest tobacco exporter in Pakistan. Lakson Tobacco’s head office is located in Karachi and its four cigarette manufacturing units are situated in different parts of the country. Lakson Tobacco’s leaf division is situated in Mardan, the capital of the tobacco growing areas of Pakistan’s North West Frontier province. Lakson Tobacco provides employment to approximately 4000 individuals of whom approximately 1500 work at its leaf division during the leaf buying and processing season. Lakson Tobacco is Pakistan’s second largest tobacco company, with an estimated cigarette volume of 29.8 billion units in fiscal year, ending 30 June, 2006, generating net revenues of approximately USD 160.5 million. Its EBITDA was USD 46.1 million in 2006 and the Company held an estimated 47% share of the growing 63 billion-unit Pakistan cigarette market. Morven Gold is the leading brand in the market with an estimated 37% market share, complemented by Diplomat and Royals. Additionally, Lakson Tobacco is the licensed manufacturer of Philip Morris International (PMI)’s Marlboro and Red & White brands in Pakistan. On 19 January 2007 Philip Morris International (PMI) entered into an agreement to acquire a 50.21% stake in Lakson Tobacco Company Limited. Lakson Tobacco has also been awarded the award for the top 25 companies in 1997, 1998, 1999, 2003, 2004 and 2005. Lakson Tobacco has the following functional areas or departments: * Human Resource

* Production
* Marketing/ sales
* Legal
* Finance
* Central Procurement
* Information Services
* Internal Control/ Audit

Lakson Tobacco Company Limited, incorporated in 1969, represents a story of sustained growth. It generates an unmatchable record of progress and performance spread through a time span of over 36 years. Commencing the business of manufacturing and marketing of cigarettes as the 3rd largest tobacco company in Pakistan at the start of 1970’s. The company’s hallmarks have included a tight focus on brand building which is based on consumer behavior and trends, supported by world-class marketing programs, quality initiative and new products. It has re-invested in its business and brands and has met the changing demands of its valued consumers through innovation and new product development. A few examples of Lakson’s pioneering efforts include:

* Pioneered tobacco crop development program in the mid 1980’s, resulting in higher yields, balanced leaf chemistry, better returns to the farmers and ultimately benefiting the industry. * Exported tobacco of substantial value for the first time from Pakistan. * First Tobacco Company in south East Asia to get ISO 9000 and ISO 14,000 certifications for its term key divisions. * The first company to introduce things-lid (hard top) pack in cigarettes. * The first company to introduce the luxury length (100mn) cigarettes. * The first company to launch packing in Pakistan.

* The first company to market American blended cigarettes in the country.

The company’s management at all levels fully understands the importance of continuously introducing and upgrading technology in all spheres of work. All management strategies eventually rely on state of the art technology leading to faster and more informed decision making. In view of rapidly changing business environment and to integrate all business operations the company undertook the bold initiative of implementing the world’s most powerful Enterprise Resource Planning (ERP) platform, SAP. It has been successfully implemented with in 8 months and is smoothly operational at the company since April 2005....
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