MMC, Ramco to drive digital transformation across 5 ports

By HARIZAH KAMEL

MMC Corp Bhd’s wholly-owned subsidiary, MMC Port Holdings Sdn Bhd, has inked a partnership with global software solutions leader Ramco Systems Ltd to help undertake a major digital transformation of five ports.

The digital transformation will consolidate and standardise processes of MMC’s ports, namely Pelabuhan Tanjung Pelepas Sdn Bhd (PTP), Johor Port Bhd, Northport (M) Bhd, Penang Port Sdn Bhd and Tanjung Bruas Port Sdn Bhd.

The group-wide transformation was based on the successful implementation of Ramco integrated Enterprise Resource Planning (ERP) system at one of Malaysia’s most advanced container terminals, PTP.

MMC group MD Datuk Seri Che Khalib Mohamad Noh said the ERP digital transformation will provide much-needed efficiency across MMC’s port operations.

“At the moment, MMC has multiple systems and platforms at all our ports. With this ERP system, we can now have one single solution and platform that will give us better visibility, as well as reducing cost by having one data centre instead of multiple data centres.

“We will have a much-reduced IT team that should be able to take care of all of the systems for the whole group. More importantly, our customers and stakeholders will be able to connect to us in a much easier and more standardised system,” he told reporters after the virtual signing ceremony yesterday.

He added that MMC can save around 20% of its cost in terms of consolidating the software by having one solution for all its ports.

Currently, MMC is using about 79 systems in its ports. The group plans to reduce the systems by 70% to less than 30 systems.

Ramco group chairman PR Venketrama Raja said the partnership will optimise operational efficiency at MMC Group, thereby translating into faster turnarounds at Malaysian ports and impacting Malaysian trade.

Building on an earlier implementation by Ramco of an ERP system for PTP where about 90% of the system has achieved Go-Live in phases over the past 10 months, the enhanced rollout will digitalise processes, while providing real-time business information.

MMC will also be able to consolidate various business support functions namely finance, human resource, enterprise asset management, supply chain management, and logistics across ports into a single integrated ERP system.

For the programme to be fully rolled out, Che Khalib informed that it will take about three years.

“North Port will be fully rolled out by the end of 2022 and then gradually we will have Penang Port and Johor Port. Everything will be completed by the year 2023,” he said. When asked if the recent Suez Canal blockage had impacted MMC, Che Khalib said the group has been getting positive outcomes from it, particularly for PTP.

“Due to the blockage, the cargoes passing through the canal had to find a temporary area to be placed and PTP was able to accommodate the request. We have good results and we are expecting some spike over the next couple of weeks due to the blockage,” he said.