corporate review

Other key group functions

Information management continues to evolve  Group Information Management’s mandate to develop and maintain a world-class, Group-wide information technology (IT) platform continues to progress. Sasol’s strategic expenditure on IT increased significantly during the year. Further expenditure on IT will be made in the year ahead. This commitment is part of a strategic thrust to keep all Sasol businesses at the forefront of efficient and effective information management and communication systems.

The Group is well advanced in implementing cutting-edge online procurement systems and optimisation of its SAP enterprise business systems. Sasol’s Internet portal has been redesigned and improved to ensure improved communication and collaboration between business units, customers, suppliers and other stakeholders.

Substantial procurement cost savings  Through Group Procurement and Supply Management, Sasol launched the NetGain Materials Management system in the 1999 financial year. NetGain provides better tools and systems, such as the total-cost-of-ownership approach, to identify and capture financial opportunities in the commodity supply chain across business division borders. In another valuable programme, initiated in the 2000 financial year, the Group is successfully applying the Commerce One BuySite™ online procurement system.

The NetGain system, now bedded down across all South African businesses, enables the Group to save tens of millions of rands on its annual procurement costs. The system enabled Sasol to achieve annual procurement cost savings of more than R100 million in the 2000 financial year. The Group stands to achieve future annual savings of R500 million on the baseline procurement costs reported for the 1998 financial year. Net Gain is being implemented across the Group’s international subsidiary companies.