Airline taps ERP for business smarts

Air New Zealand is injecting new life into its finance, logistics and supply chain business analysis through a $33.8 million ($NZ37 million) ERP implementation.

The Auckland-based airliner's ERP program -- Connect -- is aimed at improving user access to key business performance information and also "monitoring and controlling expenditure" better, Air New Zealand chief executive Ralph Norris said.

The airline will install several solutions from PeopleSoft's version 8 ERP suite, such as financials, human resources, payroll, supplier relationship management and enterprise performance management.

Those products will manage the company's core business systems, enabling real-time reporting on finance, procurement, facilities and property management, project accounting, human capital management and payroll activities.

The company expects to generate millions of dollars in direct cost savings by decommissioning its old systems and allocating resources more efficiently as a result of the PeopleSoft rollout.

The ERP solution is based on PeopleSoft's pure Internet architecture which, the vendor said, cuts out the "need for a major hardware upgrade and delivers a low cost infrastructure".

PeopleSoft officials said the "flexibility of the financials solution will allow system changes in line with any future changes at Air New Zealand".

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