Lawson Signs Contract with Lyttelton Port of Christchurch
AUCKLAND, New Zealand — 28 August 2007 – Lawson Software, a global provider of enterprise resource planning (ERP)
software applications, has signed a contract with Lyttelton Port of Christchurch (LPC) to provide Lawson M3 Enterprise
Asset Management, Finance and e-Procurement applications. Under the contract, Lawson will also provide implementation
and support services through Lawson Professional Services. The contract was signed in
Lawson’s first quarter of fiscal 2008, which ends 31 August 2007.
Based in Christchurch, New Zealand, LPC is a major South Island deep water port and hub of maritime trade activity. It
provides port facilities, marine services and cargo handling for coal and container shipments. As such, it plays a vital
role in linking New Zealand to the global transport network via worldwide shipping services.
LPC’s comprehensive and non-stop service includes the provision of tugboats and pilots to escort ships as they enter and
leave the Lyttelton Harbour. The company also assists with security and docking for ships entering the port.
According to Kathy Meads, Chief Financial Officer, LPC, the key business reason behind the decision to implement
Lawson's solutions is to drive maintenance efficiencies from both staffing and asset utilisation perspectives. "LPC is
an asset intensive business and profitability is dependent in part on the effectiveness of our maintenance strategy,"
said Meads. "In today’s competitive business environment, maintenance strategies can no longer be focused on preventing
failures – they need to take into account a multitude of challenges. These include maximising safety, increasing demand
for asset availability and reliability, optimising and extending asset life, catering for increasing customer demands,
as well as increasing legal and regulatory requirements."
The Lawson applications will help LPC address these challenges by linking financial and asset management systems, which
will help the company maximise capacity and increase asset utilisation.
"Once fully implemented, the new Lawson system will help us minimise downtime and optimise maintenance resources, which
will in turn allow us to better deliver on customer demands," added Meads. "It will also help enhance our reputation for
quality services and provide transparency across all areas of the business."
Lawson secured the LPC contract as the preferred supplier in a competitive tender against JDE/Oracle, Maximo/IBM and
Microsoft.
"There were several reasons for LPC choosing Lawson over the others," said Meads. "Initially, we were impressed with the
team of consultants who demonstrated a deep understanding and knowledge of our business and our requirements. We also
liked the fact that Lawson has a focus on enterprise asset management and asset intensive industries. The demonstration
assessment confirmed the Lawson M3 product suite as the overall preferred solution from both our finance and asset
maintenance teams because it offered ‘best of breed’ functionality within an integrated ERP application. The system also
has a good technical fit to our existing environment."
Meads anticipates seeing a number of business benefits delivered to LPC once the new Lawson system is deployed. This
includes improved customer service, better access to business information, increased cost savings and a reduction in
risk.
"On the customer service side, we’re expecting to see significant improvements in how we can maximise equipment
availability, which will help us respond better to market and customer demands," said Meads. "The new Lawson M3 Asset
Management system will also help us make sure that essential maintenance work is scheduled to minimise impact on our
operational capabilities and prevent delays to customers due to equipment failure. It will also allow us to maximise
customer service quality by ensuring that equipment operates correctly."
Meads added, "The new system will provide transparency, allowing LPC users to see right through to the base data. It
will also give us timely and accurate access to business information for decision making via a set of simplified
processes. This will allow us to enhance our planning capabilities and improve our preventive maintenance performance
goals. It will also enable us to better deliver on internal and external service level agreements. On cost savings, the
Lawson system will provide us with sharper procurement prices, led by changed behaviours in the purchasing process. It
will also help us improve labour and asset utilisation, as well as providing a way for us to better manage the extension
of asset life. As a result, we anticipate making gains in the area of minimising stock levels. We also anticipate
procurement will become more visible and seamless once the implementation project is complete."
Meads concluded, "Furthermore, we will also be able to use the new Lawson system to reduce the risk of undocumented
individual knowledge and improve internal controls. Operational risk will also be reduced because the new system will
provide us with a sound IT infrastructure base that will allow us to better meet our compliance obligations."
Stephen Moore, managing director for Lawson in ANZ said, "Our agreement with LPC is an important first step for Lawson
into the ANZ shipping transport industry. We have well-established relationships in traditional distribution sectors but
Lyttelton is the first port company to sign with Lawson in the ANZ region. LPC will also become our first e-Procurement
site in the region."
About Lyttelton Port of Christchurch
Lyttelton Port of Christchurch employs almost 400 full time staff in operational, management and administration roles.
It has approximately 1,700 shareholders with majority ownership being held by Christchurch City Holdings Limited.
Operationally, there are three distinct service line activities at Lyttelton Port of Christchurch, which include Marine
Services, Container Services and Port Services.
Marine Services
A comprehensive range of services, 24 hours a day, with a specialist berthage allocation - "a one-stop-shop booking
facility" for all ship and ship side requirements. With a single phone call, e-mail or facsimile, clients can confirm
pilots, tugs, lines, security, telephone and water requirements, and garbage disposal, prior to arrival. Dredging, dry
dock bookings and marine safety are also part of Marine Services.
Container Services
Specialised cargo handling and stevedoring services for containers, bulk cargoes and plant hire. The container trade has
grown significantly in recent years and this has resulted in a greater investment in container facilities.
Lyttelton Port of Christchurch introduced a computerised container tracking control and planning system which has
enabled the best of service to be provided to customers. Inside the terminal, containers are tracked via a radio-based
system. Straddle carrier drivers receive their instruction over mobile display terminals in their cabs.
With the introduction of an automated gate system, truck times through the terminal have been significantly reduced. The
average turn-round time is now only 11 minutes.
Further significant technological advances through EDI allow the exchange of container documentation electronically with
our customers.
Container Services also encompasses the operations at CityDepot, LPC's inland port. At CityDepot, services are provided
for washing, repairing and storing containers as well as warehousing.
Port Services
This service offers wharves, secure storage sheds, bulk discharge and other facilities for a wide range of
conventionally stevedored cargoes. The port is well equipped for bulk petroleum, fertiliser, gypsum, conventional break
bulk, imported cars, fishing and a wide variety of other cargoes.
Lyttelton is the biggest coal export port in New Zealand and a dedicated team is responsible for handling all customers'
needs. The port has developed considerable coal handling expertise with resultant internationally competitive loading
rates.
About Lawson Software
Lawson Software provides software and service solutions to 4,000 customers in manufacturing, distribution, maintenance
and service sector industries across 40 countries. Lawson’s solutions include Enterprise Performance Management, Supply
Chain Management, Enterprise Resource Planning, Customer Relationship Management, Manufacturing Resource Planning,
Enterprise Asset Management and industry-tailored applications. Lawson solutions assist customers in simplifying their
businesses or organizations by helping them streamline processes, reduce costs and enhance business or operational
performance. Lawson is headquartered in St. Paul, Minn., and has offices around the world. Visit Lawson online at www.lawson.com
Forward-Looking Statements
This press release contains forward-looking statements that contain risks and uncertainties. These forward-looking
statements contain statements of intent, belief or current expectations of Lawson Software and its management. Such
forward-looking statements are not guarantees of future results and involve risks and uncertainties that may cause
actual results to differ materially from the potential results discussed in the forward-looking statements. The company
is not obligated to update forward-looking statements based on circumstances or events that occur in the future. Risks
and uncertainties that may cause such differences include but are not limited to: uncertainties in Lawson's ability to
realize synergies and revenue opportunities anticipated from the Intentia International acquisition; uncertainties in
the software industry; uncertainties as to when and whether the conditions for the recognition of deferred revenue will
be satisfied; global military conflicts; terrorist attacks; pandemics, and any future events in response to these
developments; changes in conditions in the company's targeted industries; increased competition and other risk factors
listed in the company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. Lawson
assumes no obligation to update any forward-looking information contained in this press release.
ENDS