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Kansas City Southern Gets New Business Engine: SAP |
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KANSAS CITY, Mo. - October 10, 2005 - SAP AG (NYSE: SAP) today announced that the transportation holding company, Kansas City Southern (KCS) (NYSE: KSU), has chosen mySAP™ ERP to drive business improvement across three of its North American rail holdings, collectively known as the NAFTA Railway. After doubling in size overnight with its April 2005 acquisition of the Mexican railway, TFM, S.A. de C.V. (TFM), the $1.5 billion company is targeting optimal performance and faster financial closings for its transportation network.
To replace legacy database and spreadsheet-centered systems, KCS is deploying SAP’s enterprise resource planning (ERP) solution to accelerate productivity across its holdings and lay a safe track for future growth on a unified IT platform. Through real-time data capture with mySAP ERP, the company aims to reduce times in enterprisewide transaction posting and consolidation from three weeks to a matter of days. Slated to go live in January 2006, the ERP implementation is already under way at KCS headquarters in Kansas City, Mo. SAP® solutions will later be rolled out at TFM.
KCS is tapping business intelligence practices from the SAP NetWeaver® platform to give its management more powerful, efficient and user-friendly analytical reporting across the transportation network. Empowered with the SAP platform’s Web-reporting tools, managers once charged with data-entry tasks can play a stronger role in providing decision support. KCS managers will gain analytics tools to apply real-time information from throughout the network to achieve faster procurement-to-pay processes; more cost-effective inventory management; and more efficient compliance with SEC reporting and Sarbanes Oxley requirements for internal controls.
“We turned to SAP for its expertise and best-in-class functionality to add value to the business,” said Scott Arvidson, KCS vice president and chief information officer. “SAP’s solution suite and IT platform will enable us to easily extend our IT systems and expand business capabilities as we grow.”
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