IDF Technological Directorate commissions NIS 100m SAP ERP system

The system replaces ten systems used previously. All IDF systems will be computerized.

Sources inform “Globes” that the IDF Technological and Logistics Directorate, which is responsible for managing combat support resources, recently put into operation a SAP (NYSE; LSE:SAP; XETRA:SAPG) ERP (enterprise resources planning) system for 1,200 users. This is one of the largest logistics projects in Israel, costing an estimated NIS 100 million, including hardware, software, and civilian personnel who not included in the IDF manpower budget.

The new system includes eight modules, including inventories, personnel, procurements, storage, production, and budgets. The system was put into operation simultaneously at the directorates' four centers: equipment and combat center; the medical services center; the equipment center; and the fuel center. It replaces ten systems used previously. The system will be extended to nine more centers over the next two and a half years, at a cost estimated at several hundred million shekels. In the second stage of the project, the Technological Directorate will focus on the current flow of organizational processes. The IDF Technological and Logistics Directorate chief is Maj.-Gen Udi Adam.

IBM (NYSE:IBM) supplied the hardware and was the main integrator for the project. IBM Israel general manager Meir Nissensohn and Ness Technologies president and CEO Raviv Zoller are closely supervising the project. Ness Technologies is the Israeli distributor for SAP.

Project director Lt.-Co. Yossi Sofer said the IDF ERP project would later computerize all IDF systems, providing the IDF with an integrated perspective and advanced technological capability. "We launched the project in order to unify procedures and eliminate computer islands, to create a single all-inclusive computer continent," he said. "We will now be able to speak with a single organizational language, which is very important for us."

Published by Globes [online] - www.globes.co.il - on May 20, 2004

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