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Further to the RFP, vendors were requested to submitted their requests for clarification as specified in section 4.9. Attached are our responses on the issues raised.

As mentioned earlier, the closing date of the tender has been extended to 30 th October 2012.

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How long is the bid bond security supposed to be valid for?

The bid bond should be valid for one calendar year after the closing date.

See Section 4.12 page 24

Please confirm that other requirements (besides the technical and financial spreadsheets, proposal submission form and bid bond) are not required. These include requirements such as audited accounts, etc.

The requirements mentioned will not be required at this stage. They may be requested when firms are shortlisted.

Validity of proposals: 4.12 Kindly reconfirm whether this means 360days? If it is the case, what should the validity of the Bid Security be?

The bid bond should be valid for one calendar year after the closing date. i.e 365 days from the closing date. See Section 4.12 page 24

Appendix: Are the envisaged number of users as outlined in concurrent or named users?

See the Systems & Intergrations Section in the System Requirements tabs in the Technical Response spreadsheet together with Section 3.9 page 18 of the RFP document.

In page 48 of the tender document, the following information on the ERP Implementation Plans is provided;

Expected planned date for implementation: 01 February 2013

Client expected implementation duration: 7 months

Could you please confirm if the implementation duration is fixed or can other timeframes be proposed taking into account bidder’s previous experiences in similar implementations?

The duration is not fixed. The bidder is free to specify the time frame and include in the Workplan Tab. The workplan should relate to the vendors planned methodology stated in the Methodology Tab of the same spreadsheet.

Could we participate in that tender through our representatives in your region? If yes, How we could pay participation fee?

Yes, you may participate through your representatives. Your representatives can purchase the RFP documents from our offices.

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What are the other IT / [Vendor Solution] initiatives that may impact this initiative? What are the other planned initiatives which are yet to start and may get over or will be in Work-In-Progress when the project starts ?

None, apart from provision of hardware infrastructure which is mentioned in this RFP

Please mention the total no users accessing the application?

See the Systems & Intergrations Section in the System Requirements tabs in the Technical Response spreadsheet together with Section 3.9 page 18 of the RFP document.

How many Modules are required to be demonstrated in demo - FI, CO, SD, PS, MM, PM, HR-Payroll

Please be prepared to demonstrate all modules.

For annual maintenance support, what are the expectations?

KTDA request the vendor to specify the recommended maintenance support specific to their solution

For how long is warranty for support is required?

The vendor should provide this period as it is solution specific.

See section 3.9 page 18

Which solution KTDA is planning to implement for Farmer Management? Currently [Vendor Solution] does not have a Farmers Management Solution. However, [Vendor Solution] can be interfaced with such application.

See section 3.8.6 Detailed System Requirements page 17

What are the legacy systems from which the master data needs to be migrated to [Vendor Solution]? Is there a case where master data is not in the legacy application, instead maintained in excel? How many such instances are there?

See “IT Applications currently in use” Section on page 47- 48

Which solution KTDA is planing to implement for its IT Service Solution?

See “Information Technology Services” section in System Requirements Tab of the Technical Response

What is the total number of warehouses? How many warehouses [Vendor Solution] is required to be implemented for?

There is a warehouse in every site (i.e factories, subsidiaries, and Head Office).

"Social Collaboration ( instant messaging, video chat, tele-conferencing, user defined online polls, virtual suggestion box, voting) features are not available in [Vendor Solution].

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See section 3.8.6 page 17

Which IT help desk system is currently in use at KTDA?"

See “IT Applications currently in use” Section on page 48

We are requesting an extension of proposal submission date by 2 weeks from the dated period mentioned in RFP, since scope is extensive and complex.

Due to the numerous enquiries and request for clarification on the tender more time was required to respond. Therefore, the date for submission of the tender was extended for two weeks and the closing date will be on 30th October 2012 at 9.00 am East African Time.

What is the total strength of your employees?

See page 48 sections titled No. of Employees and Approximates users per department

Which are the geographical locations that needs to be implemented? How many in number?

See page 50 “Communication links between offices”

Where would be the central location for implementation?

See Head Office Location on page 44

How is the Payroll currently run in your organization?


Are the HR processes including Payroll and Time centrally processed for all your locations?

Yes centrally processed.

What kind of reporting functionality is currently used?(e.g.static reporting, interactive, strategic, operational, tactical, exception reporting,what-ifanalyses, reporting agent, jump queries etc).

KTDA requires all types of reporting.

What is the approximate count of reports?

Unknown as they are several and dynamic as they change with requirements.

Do you currently use any workflows? If so, what purpose are you using them for? Which areas of the business are they being utilized?

Yes in all the departments.

Process maps will be disclosed to the successful vendor.

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How the Purchasing activities are organised? Single location/ Central or Distributed?

Centrally. See page 46

Approximate number of Vendors, Material codes, Customers

Unknown as they are several

Approximate number of documents per month (POs, Contracts, Agreements, sales Orders, Invoices etc)

Unknown as they are several

Do you have a separate team for Master Data Management?

Master Data Management handled by the ICT department

Do you have any Quality Modules to check the quality of incoming and outgoing materials?

Refer to page 47. See “IT Applications currently in use” Section on page 48

Do you have any Import Purchases? If so, how are the Customs related transactions being captured?

Yes, Manually.

Do you use RF Scanner and Bar coding for all warehouse transactions including Physical inventory?

Currently not in place please see “IT Applications currently in use” Section on page 47

Do you use any 3rd Party warehouses? If yes, will the same need to be integrated with [Vendor Solution]?

Yes 3rd party warehouses are used. Yes integration will be required.

How the transportation requirements are handled? Centrally or locally based on Orders?

Centrally

How are the non-stock items and service procurements handled?

Centrally with payment on deliverables.

Do you have any Documents release procedures for Purchasing?

Yes.

Approximately how many dashboards are expected to be developed?

Unknown as it is dynamic.

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Approximately how many analytical reports (with drill/slice features enabled) are expected to be developed?

Unknown as it is dynamic.

If No. which are the other systems from which data would be required to be pulled into [vendor solution]?


Are there multiple legal entities? Are you doing any consolidation? What is the current consolidation system?

Yes each Factory and subsidiary is a legal entity. Yes KTDA is doing consolidation. See “IT Applications currently in use” Section on page 47

"Do you have any automated system for Vendor payments? If Yes, what are the payment methods in use. For e.g. Bank Transfer, Cheque, etc.

Yes. Bank Transfer via RTGS and EFT.

How many banks are involved in payment to vendors?"

Your solution should accommodate several banks.

Please confirm the approximate volume of the Historical data to be migrated as part of the current scope?

Opening balances and active transactions required for the year in focus.

Since the scope of work includes quite a few [vendor solution] modules, for various other benefits, Is KTDA ok with a phased approach of Implementation?

Phased plan refer to page 48.

If manual data cleansing is required, who will be responsible for doing this? KTDA or the vendor?

Vendor

Do you have well defined Single Source of Truth for every file in the Master Data?

No.

Regarding HW sizing, is it a requirement that the vendor does the hardware sizing before and during the process of proposal preparation or will this be done after the proposal has been awarded to the respective vendor?

See Section 3.6 page 15

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How many people work in the factory, how big are the factories and are these factories divided into any categories i.e. small/medium/large

Size of factory is dependent on number of farmers delivering tea to the factory and volume of green leaf production. Processes and procedures are similar.

The RFP appears not only to deal with the supply of software from a software vendor but also the implementation thereof. The RFP does not deal with the implementation. Will the implementation be subject to a different tender or other process?

KTDA requires both the software and implementation. The vendor is required to supply and implement the solution. Please refer to Section 3.8 page 16 titled “Implementation Services”

"Over and above the proposed ERP, KTDA desires that the vendor provide the other options of cloud services and on-premise hosting services. These services should be clearly described. Further, the vendor should, given the environment in which KTDA" - where should this information be inputted as there are no available fields in the response document for describing the offering ?

See “Software Environment” Tab in the Technical Response spreadsheet under the “Deployment” section. You can always add rows to satisfy your description or create a new tab after the “System Requirements” Tab and place a reference to the new tab in the comment area of the question.

Please confirm that a) The final price is subject to changes in the exchange rate ruling at the date of tender and the extended date. b) The price can be adjusted by the changes in an acceptable CPI index between the time of tender and the extended date.

Services under this Contract will be supplied on a maximum-price basis in a freely convertible currency (preferably US Dollars), based on the Central Bank of Kenya rate of the date of invoice.

Travel Costs can only be calculated at the Implementation Phase ? How would we submit costs at this stage

See Section 4.7 page 22.

“Please note that KTDA intends to enter into a maximum price contract. Proposal must include all other services. Specifically the proposal should include travel.”

Please confirm that the contract is for the implementation only and does not include the license to use the software.

See section 3.9 page 18. The vendor must specify the license costs AND implementation costs.

Please indicate how the tenderers rights are protected in terms of the contract.

The RFP document contains a draft on the general and contractual agreements. Further details and

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discussions on the final party rights and obligations will be discussed during negotiation stage with the successful bidder.

Does Paragraph 7.2 mean that [vendor] will only have an obligation to meet its commitments only related to KTDA lawful interests;Please define the remedies available to the vendor to correct any such infringement.If KTDA is not satisfied with a particular individual, it must furnish [VENDOR] with reasons for its dissatisfaction and therefore any discretion afforded to KTDA under this sub-clause should be qualified by KTDA exercising such discretion in a reasonable manner. Please advise?Paragraph 7.4 – the second paragraph is not acceptable because it is a complete indemnity in favour of KTDA in respect of any loss, accident, damage or injury suffered by [VENDOR] or any persons or entities claiming under [VENDOR] as a result of the implementation or execution of the contract. This indemnity, and therefore this paragraph, should not apply to any loss, accident, damage or injury which is caused by or arises from any act or omission by KTDA, its personnel, agents or subcontractors, please adviseParagraph 7.7 – is an indemnity by [VENDOR] in favour of KTDA in respect of any claims and liabilities made against KTDA relating to [VENDOR]’s breach of any of its representations or warranties under the contract. Please confirm that liability for any special, indirect or consequential loss or damage or any loss of profit or business is excluded. Paragraph 7.10 – is once again an indemnity by [VENDOR] of KTDA, its officials, agents, servants and employees from any claims or liability arising out of any acts or omission of [VENDOR] or its employees, officers, agents or subcontractors in the performance of the contract. Please confirm that liability for any special, indirect or consequential loss or damage or any loss of profit or business is excluded.Paragraph 7.15 – is a confidentiality clause that only protects the confidential information of KTDA. Please conform that the final contract will have a reciprocal confidentiality clause. Will the contract provide for [VENDOR]/the implementation partner being obliged to disclose KTDA’s information in terms of any statute or court order?

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Paragraph 7.16 provides that all data compiled by [VENDOR]/the implementation partner under the agreement will be the property of KTDA. This will not apply to any documentation or manuals that [VENDOR] provides to KTDA in respect of its software as all such documentation and manuals are subject to a copyright owned by [VENDOR]. The same may be applicable to any documentation compiled by the implementation partner, please confirm ?The second paragraph to this clause prevents [VENDOR]/the implementation partner from communicating with government or authority external to KTDA without the authorisation of KTDA. This is not acceptable because in complying with applicable laws, [VENDOR]/the implementation partner may have to communicate with government or an authority external to KTDA. This paragraph should rather be made subject to [VENDOR]/the implementation partner, where possible, furnishing KTDA with prior notice of its communications with government or the authority or its obligation to do so, please confirm?Paragraph7.17.1 – provides that KTDA will be the owner of all intellectual property rights with regard to all deliverables and material which bear a direct relation to the services provided by [VENDOR]/the implementation partner.Please confirm that this does not apply to the Software where the ownership of intellectual property is never transferredPlease clarify the cancellation of the contract by either party with regards to costs already incurred where the contractor is not in breach of the contract.Will this clause be made reciprocal so that if KTDA terminates the agreement because the event of force majeure renders the Contractor permanently unable to perform its obligations, KTDA will not be entitled to recover any damages but should simply be allowed to terminate the agreement. Will KTDA be required to pay the Contractor for all services rendered and work performed up until the date of termination, please advise ?

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Paragraph 7.22 – refers to payment being effected for each deliverable and subject to KTDA’s acceptance of each such deliverable. Please describe the process to be followed in terms of the contract in the event of a dispute on the completion of the deliverables.Paragraph 7.24 – requires the Contractor to take out certain insurance in respect of all risks relating to its property and any equipment used for execution of the contract and to cover third party claims for death or bodily injury or loss of or damage to property arising from or in connection with the provision of the services under the contract. The insurance is subject to the agreement of insurers who are outside the control of the contractor. Please clarify your position where the contractor has a global policy covering multiple projects or the insurers decline to comply with KTDA’s requirements.Paragraph 7.25 – requires that all disputes be subjected to conciliation and thereafter be referred to arbitration to be conducted in accordance with the rules of arbitration of the International Chamber of Commerce. Please clarify the process with regard the location of the arbitration and the Rule of Law that will be applied.Paragraph 7.27 – provides that no modification to the contract will be valid unless signed by an authorised official of KTDA. Please confirm that no modification or change to the contract will be of any force unless signed by an authorised official of KTDA and an authorised official of the Contractor.Paragraph 8.1 – deals with the Contractor’s personnel and KTDA’s right to approve any employee, subcontractor or agent furnished by the Contractor. This clause should be subject to any discretion granted to KTDA to approve any such employee being exercised reasonably. Furthermore if KTDA refuses access to or requires replacement of any employee, subcontractor or agent of the Contractor, such decision cannot be made in the sole judgment of KTDA. KTDA should firstly be required to furnish the Contractor with notice of any issues that it has in respect of such employee, subcontractor or agent and only if

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those issues cannot be resolved within a specific time period would the Contractor then be obliged to replace such employee, subcontractor or agent, please confirm ?[VENDOR]'s team for the this project is 50% Kenyans and 50% foreign - is KTDA responsible for the application of work permits etc.Paragraph 8.4 – Please confirm that the Contractor’s compliance with KTDA’s policies and reasonable written directions, policies and procedures must be complied with such policies and procedures insofar as they give effect to any applicable laws and regulations and are directly related to the Contractor’s performance under the contract. Paragraph 8.4 – Please confirm that the Contractor’s compliance with KTDA’s policies and reasonable written directions, policies and procedures must be complied with such policies and procedures insofar as they give effect to any applicable laws and regulations and are directly related to the Contractor’s performance under the contract.Please define the meaning of error free in so far as it relates to the provision of the software

KTDA intends to acquire a solution without software malfunctions or mis-configurations.

Please define “deliverables”

See Section 2.4 page 9 titled “Deliverables”

Paragraph 8.1 – deals with the Contractor’s personnel and KTDA’s right to approve any employee, subcontractor or agent furnished by the Contractor. This clause should be subject to any discretion granted to KTDA to approve any such employee being exercised reasonably. Furthermore if KTDA refuses access to or requires replacement of any employee, subcontractor or agent of the Contractor, such decision cannot be made in the sole judgment of KTDA. KTDA should firstly be required to furnish the Contractor with notice of any issues that it has in respect of such employee, subcontractor or agent and only if those issues cannot be resolved within a specific time period would the Contractor then be obliged to replace such employee, subcontractor or agent, please confirm ?[VENDOR]'s team for the this project is 50% Kenyans and 50% foreign - is KTDA responsible for the application of work permits etc.

No. See section 8.3 “Foreign Nationals” on page 41.

Please specify what should be entered in the deliverables costs

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The vendor should state the pricing for successfully delivering the specified item e.g the price for delivering the ERP Gap Analysis Document.

In the Financial Proposal Document, - Initial Costs, - Pricing Structure - Training Costs, - Should the number depicted on appendix page 44, (671) be used to determine the training costs? Does KTDA prefer train the trainer or classroom approach

The vendor should also propose the best knowledge transfer approach for their solution.

Are implementation costs required for phase one and if so, please could you stipulate how they should be calculated without a scoping exercise that is done by the Software Implementer?

The vendor should give a proposal based on their understanding of the requirements together their experience of the environment and similar implementations.

Please clarify what deliverables 1, deliverable 2, and deliverable 3 mean?

These are the Implementation Services stated as deliverables. See section 2.4 page 9

Will the strategic meetings be held at the Head Office located at KTDA Farmers Building, Moi Avenue, Nairobi ?

Yes.

After the shortlisting would the vendors be allowed to do a site visit?

Yes.

Please could you advise on how many MSI 's (assets) are required?

Several based on the Summary of manufacturing activities carried out at each factory on page 46

Can a Cover letter be inserted in a proposal?

See section 3.0 on page 13

Are annexures allowed?

Annexures as additional tabs on the Technical Responses are allowed.

See section 3.0 on page 13.

Please can you provide more detail i.e. Are you looking for the entire application to be hosted in the cloud or only certain components etc. ..

KTDA requires the vendor to provide the best configuration for their solution and describe the advantages and disadvantages of such a deployment.

What are your key business goals, strategies, plans?

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See section 2.2 on page 7 and Appendix on page 44

What are key future strategic initiatives and planned capital investments?

See section 2.2 on page 7 and Appendix on page 44

What typical ROI do you expect from any capital investment?

KTDA expects ROI to be in line with world benchmarks for such investments and help maintain our current growth rates.

What are key strategic intent for ERP (grow revenues, reduce/optimize costs, improve productivity and hence profitability?)

See section 2.1 Background and justification on page 7

What is the planned compounded annual revenue growth for the next five years?

See “Turnover” Section in Appendix on page 44

Any plans for creation of additional SBUs or franchises to support the value chain?

See Section 1.2 About KTDA on page 4

How many employees planned for the next five years?

See Appendix on KTDA growth rate and employees page 44 and 45

What the critical process areas would you want the ERP solutions to cover? (Does it include HR, Asset Management?)

See “System Requirements” Tab Technical Requirement Spreadsheet and the “Solutions required” section in Appendix on page 45.

Which of the functions are centralized and which ones are not?

See Appendix “Nature of the Activities” on page 46

Do you have centralized procurement and finance functions or do each of the subsidiaries management their separate procurement and finance while the center consolidates?


Are each of the subsidiaries self accounting (in terms of cost accounting and revenue generation or are some simply cost centers while some are revenue generation?

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Each of the subsidiaries is self accounting.

Do you use cost allocation and transfer pricing model for the subsidiaries?

KTDA uses both models depending on the subsidiary.

Describe step by step processes, systems and documents used to execute activities and business transactions in the following areas?

Managing Input supplies to farmers

Growers (Farmers) pricing and payments

Supply and procurement management

Vendor management and contracting

Manufacturing and planning

Warehousing and inventory

Logistics

Financial management (financial accounting, AR, AP, enterprise reporting, budgeting and planning, consolidation)

Asset management

Sales Ordering process


What are the challenges, pain points and problems encountered in end to end management of these processes above.

See Section 2.1 Background and Justification page 7

What are the names of applications/software and systems presently being used for each of the business areas and form of integrations.

See “IT Applications currently in use” on page 47

How are processes and transactions handled currently? (Manual with excel and word? Custom/legacy systems?


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How is the technology environment? Siloed systems and data?


How are the existing processes integrated with other related processes?

See “IT Applications currently in use” on page 47 and

See Communication links between offices on page 50

Do you experience a higher rate of errors than what is acceptable in your business processes because of incorrect data and tools?

No

Have you experienced significant revenue loss because of erroneous or missing data (such as an invoicing process could not run)?

No.

What are the core business processes relevant to KTDA subsidiaries?

See Section 1.2 About KTDA on page 4


How are the processing inter –lapping.

See “Nature of the Activities” on page 46

Process re-design and re-engineering as part of technology implementation, how would you like this to be addressed considering it attracts fee?

See Section 1.4 “Scope of RFP “on page 6

What type of daily, monthly and quarterly analysis and reports does management want and how are these presently generated? What tools are used for reporting and analytics?



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How your processes are presently integrated and what technology tools exist that will enable customizations for process and service orchestration?



Is the procurement function centralized for all the subsidiaries of KTDA?

See “Nature of the Activities” on page 46

Describe key procurement processes/steps from requisitioning receiving supplies in each of the following circumstances:

When Tea factories issue and receive order for tea leaves from farmers

When KTDA issue and receive orders from external suppliers for other items of inventory (on behalf of any of the subsidiary companies) not produced/supplied by any of the subsidiary sister companies

When Chai Trading and KETEEPA need to issue and receive orders for processed tea from tea factories


Any contracts with external suppliers and how are these maintained?

Yes. They are maintained via manual records.

Any contracts/agreements among the members of KTDA holding for contract of supplies?

Yes there are intercompany contracts

What type of documents are issued and are these done manually or electronically using an application software?

Various documents of the procure to pay process and they are done manually.

What is the name of any existing procurement software or tool (if any)?

No current procurement software.

See IT Applications currently in use on page 47

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How many staff is in procurement department? What is the percentage of time spent on manual and administrative work?

See “Approximate users per department” on page 45

What is the total annual procurement spend for the enterprise? How much average volume discount is received on procurement from supply annually?What percentage of supplies/expenses for the group are made through ad hoc or quick buying?What is the average cycle time to process one purchase order?What is average total number of purchase orders processed daily and how many supplier invoices are processed daily?How are do you handle inbound (for purchases) and outbound (for sales) transportation among KTDA companies and with external suppliers and customers?How are produce/products transported from Farm to Tea Factories Tea Factories to KTDA packaging companies or to other external packaging customers From packaging companies to customers?Who owns the trucks/vans /lorries used for transportation and bears the costs?How are costs of transportation (maintenance/gas/insurance etc) tracked and captured?How many of these vehicles do KTDA own?How many average shipments (inbound /outbound) per day executed by the entire group?What are key challenges and issues with logistics and what are the needs?How many employees are involved in logistics and shipment across the group?How produce/products stored in the warehouse

Kindly refer to clause 3.0 “Functional Requirements” page 13 for purpose of evaluating vendors for this proposal. Vendors are requested to respond to the functionality listed in the Technical Response. The transactional details and process will be provided to the successful bidder(s).

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and what are are key warehouse procedures for receiving inventory and shipment?How is tea weighted and measured for the purpose of costing and how do you track this under the following situations?When undergoing withering?When being processed under maceration?When packed either in sachet or bulk?How do you track the changes in tea components as it undergoes various stages of manufacture?How do you calculate the yield of tea?How do you track and monitor inventory movements and positions and determine re-order levels at all the warehouses?How do you manage warehouse in terms of space, usage and resource utilization to reduce costs?How do you link demand planning to inventory planning in the warehouse to avoid over inventory or under inventory?What tools or technology is used for warehouse management and inventory management?What is average inventory turnover? What is average days purchases in inventory? For processed tea?How sales order fulfilled for customers after tea are is auctioned in the Port?How is sales order fulfilled for processed tea (from factories ) sold to tea packaging subsidiaries like Chai Trading and KETEEPA?How are sales order fulfilled for customers that buy from Chai Trading and KETEEPA?Do you schedule and plan demand of customers into the sales order fulfillment and how is this done?Do you use manual or electronic processes for sales order fulfillment?How is this process integrated with warehouse for inventory movement?What is the cycle time for order delivery from time order is raised till it is shipped?How do you track and capture all the agricultural services to farmers to manage land and crop details throughout the growing cycle …from land preparation to inputs to grow tea nurseries including cost components?Does tea preparation (withering) happen in the warehouse or production floor?

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How do you ensure continuous supply of tea leaves all year round to meet demand?How do you track and account for the credit schemes as well as other inputs such as fertilizers, crop seedlings etc extended to farmers?Do you provide agricultural insurance to farmers if yes how is that process executed and accounted for.?How do you maintain and implement contracts with farmers to ensure quality and pricing? In what form are these contracts maintained?How tea leaves supplied by farmers to the factories received, priced/costed and quality checked? how are these tracked and received into inventory?How many permanent employees are involved in managing farmers?How many casual/temporary labourers/workers are involved in managing farmers?How do you track direct time, labor and salaries of staff involved during time of tea growing?How are the tea leaves from farmers transported to factories?How are the costs of transportation including other ancillary costs during the shipment captured and accounted for? Who is responsible for shipping/transporting the tea leaves to factory?How are the farmers paid for tea leaves supplied (immediately or after a credit period) and in what form are their payments processed?How are customer (especially international) demands in terms of quality and specifications incorporated and captured during the initial growing period for tea?How do you plan and analyse your purchases (use of excel or what?)Do you have a central data repository for farmers and how is this maintained and linked through the entire process of growing, processing and packaging tea?In what form and medium do you communicate with farmers for any kind of transactions with them and what are typical contents of the communication (mobile phone notifications and alerts, emails, paper letters etc)?How do you generally monitor the performance of each farmer in terms of yield (weight, size,

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quantity) of tea leaves supplied vis a vis the input each received?How is demand for processed and packaged tea from external customers (local and international) forecasted and fed into the initial farming production to ensure there is no excess or shortages?List key issues and challenges with managing growers and well as expectations in terms of required solutionsWhat is average annual cost per head in finance department?How do you handle cost accounting for products from raw material to final goods stage?Are all the key financial processes integrated real time to General ledgerHow many manual journal entries are processed daily? And how many journal entries are system generated?How many days/weeks to close the book at the end of every month and produce management report? And how many weeks/months to generate financial report at year end?What percentage of time is spent daily by financial employees to reconcile the various subsidiary ledgers?How many employees are involved in reporting and consolidation?Do you use excel to prepare monthly report and budgets?How do you prepare planning and budgeting and how do you capture key information from various departments?How do you monitor budgets against actual (use of spread sheets or electronic?)How many staff are involved in budgeting and planningWhat accounting package does MIB Stock brokers and the Microfinance Bank use for financial transactions?How are these financial packages integrated into the group GL financial systemWhat percentage of time is spent by finance employees in manual and administrative work?How do you maintain the data and profile of all employees (manual records or electronic)?How do you gather the information and data to process payroll?

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How are payroll items posted to the financial management solution (use of manual journals or what?)?How many employees are paid overtime and how do you track overtime?What percentage of total salaries relate to overtime payments?How do you track time and labour to capture payroll costsHow do you track performance of employees? Are employee performance linked to key metrics related to the core processes they handle?How is this integrated to the HR system for performance evaluation?How are the schedules of shipments maintained, tracked and reviewed for performance in terms of delivery times?How do you track and monitor performance of each subsidiaries and can all MDs view performance position real time?If decentralized how do you perform consolidation of financials for reporting?

Is the logistics department centralized or decentralized?

Centralized. See appendix “Nature of the Activities” on page 46

How many warehouses do KTDA group own? And how are these managed?

There is a warehouse in every site (i.e factories, subsidiaries, and Head Office).

Are your finance function centralized or decentralized?

See appendix “Nature of the Activities” on page 46

Which members of the group maintained separate accounting function? And what type of accounting packages are used?

See “IT Applications currently in use” page 47

What is the existing accounting package/solutions in place today and which are the key processing it handles (AP, AR, Procurement?, Budgeting and planning? Cash Management?

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How are the financial transactions of each of the subsidiaries maintained and captured?


How do you maintain and capture the entire fixed assets in the group and is this integrated to the GL?


How is the financial solution integrated with all the relevant key financial processes across the subsidiaries (manual or electronic real time?)

Manual

How many finance department staff in the entire group?

See “Approximates users per department” on page 45

Do you monitor performance at strategic level using metrics and key performance indicators?

Yes

What are the challenges and problems encountered in processing financial management activities?


What are your wish list/needs?

See “Accounting & Financials” in System Requirement Tab of the Technical Response Spreadsheet

Is human resources managed centrally or by each subsidiary?

Centrally

Which subsidiary maintains separate HR and what software do they use if any?

KTDA Holdings Head Office


What human resource software do you use and what is this used for?


Is the software integrated with financial package (GL)?

Yes

Do you use a software to process payroll or manual processes?

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What are the key problems [in HR]?


What are your immediate HR needs and requirements?

See “Human Resources and Payroll” in System Requirement Tab of the Technical Response Spreadsheet

Which functions are presently centralized at the head office among the following:

Finance?

HR?

Procurement?

Centrallized


Do any of the subsidiaries have separate finance, HR and procurement functions and if so which ones and what are the functions?

Strategic and Administrative functions are centralized whilst operational functions are decentralized.

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