Nampak Plastics is the UK’s leading manufacturer of HDPE with nine sites across the UK and Northern Ireland producing over two billion bottles per annum for the food and drink industry, particularly the UK milk bottle industry. The company sits at the forefront of innovation where it has created a paradigm shift in the industry by introducing a lightweight bottle and up to 30% recycled HDPE into its plastic bottles. As such, the organisation runs a highly complex asset depreciation system that required automation in order to help keep Nampak Plastics’ financial operations as agile and flexible as its business. We spoke to Adam Ludlam, Financial Controller at Nampak Plastics, about why the company chose RAM to help with this financial reporting.
With such a high volume of assets being managed manually on our spreadsheets it became quite clear that we needed to move to an automated system. We needed something that was simple, easy to use and flexible. And we wanted a financial system that would support our business strategy of being innovative, sustainable and transparent.
We have to adhere to complex rules when it comes to the depreciation of our assets because we reassess asset lives on a regular basis. This means that it changes the life expectancy of the assets, resulting in a change in the depreciation. This exercise is time consuming and prone to human error when done manually, which resulted in us needing an automated system to effectively manage this.
Flexibility was key to us because of these calculations and the system we had in place was heavily dependent on one person doing those calculations. We needed a system that could not only help us manage our asset base, but also help us process the calculations automatically. This is where RAM was really able to offer a solution that could fit our needs.
On top of this we also purchased Track4000 and Lease4000 from RAM. Track4000 will enable us to track assets in real time and make notes against an automated system that not only informs where the assets are but also what condition they are in. Lease4000 will help us to comply with new regulations that require us to include all leased equipment on our balance sheet.
In addition, RAM will also integrate with our finance system, JD Edwards, meaning we won’t have to manually replicate any of this data; it will all automatically synchronise across. This will be a huge help when it comes to accurate financial reporting.
I am very excited about implementing the RAM system as I know it will provide us with more visibility and flexibility, especially around the complex rules of depreciation. We will also be able to gain more functionality through the additional modules that we have also purchased within the Series4000 suite.