We are announcing a tender for the implementation of an Enterprise Resource Planning (ERP) system.

Procurement and sales, production, HR, investments, legal and land management, planning and budgeting, accounting and taxation, document flow — absolutely all enterprise processes will be unified, digitized, and integrated into a single management system.

Why is this important?

SFE “Forests of Ukraine” includes more than 1,500 forestry units, 9 regional branches, and 22,000 employees. The company manages nearly 7 million hectares of forest fund lands and operates 250,000 fixed assets, including machinery, equipment, and other production tools.

Over 15 million documents are generated annually across the enterprise!

At the same time, the forest enterprises that became part of “Forests of Ukraine” have never had a unified system for data accounting, exchange, and standardization.

The largest Ukrainian state-owned companies (“Ukrposhta”, “Ukrnafta”, and “Ukrzaliznytsia”) are already using ERP systems. In the forestry sector, such a system is being developed for the first time.

Expected economic effect

The system is extremely large-scale (over 5,000 users and dozens of business processes) and requires significant investment in its development.

However, experience shows that in the very first year of operation, an ERP system optimizes company expenses by 2–5% of turnover. In the case of SFE “Forests of Ukraine”, this amounts to at least UAH 500 million!

The funds invested in development and implementation will pay off within the first year of operation. In the future, the company will only continue to save.

ERP and company development

The implementation of an ERP system is recommended by the Accounting Chamber. Among other benefits, the automated system will support the company’s transition to International Financial Reporting Standards (IFRS).

ERP is also key to implementing investment projects — such as mechanized harvesting, the production of seedlings with a closed root system, and more.

Benefits for the state and society

All internal processes within the company will become more transparent. It will be significantly easier for oversight bodies to conduct audits and identify violations of the law. Hiding any misconduct will be virtually impossible.

Benefits for consumers

Through a personal online account, market participants will be able to track the execution of timber supply contracts and access any other relevant information. Data collected by the system regarding the origin of timber will ensure compliance with the requirements of the EU Deforestation Regulation (EUDR).

Implementation Timeline

The project is planned for a three-year period. The contractor will be required to develop a system concept that meets all the requirements of SFE “Forests of Ukraine,” model business processes, deliver and implement the system, and provide its support and updates throughout the duration of the contract. In addition, the contractor must conduct staff training and pilot testing in several branches, followed by scaling the system across the company’s other units.