Hong Kong Computer Society - enterpriseinnovation.net
Hong Kong Computer Society - enterpriseinnovation.net
Hong Kong Computer Society - enterpriseinnovation.net
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CASESTUDY<br />
ERP helps standardize workflow at Jackel<br />
Jackel is now deploying a new ERP system in phases for real-time data and workflow integration<br />
The lack of workflow integration<br />
and system silos were problems<br />
facing <strong>Hong</strong> <strong>Kong</strong>-based Jackel<br />
Group.<br />
Jackel Group provides firms in the beauty<br />
industry with offerings in components,<br />
packaging, and filling as well as services<br />
from product design and engineering all<br />
the way to manufacturing, filling, packaging,<br />
assembly, quality assurance, trade<br />
financing, warehousing, distribution, marketing,<br />
and after-sales services.<br />
The company used a trading system for<br />
handling order processing and managing<br />
finance process, according to Alvin Wong,<br />
IT manager at Jackel Group. However, the<br />
system wasn’t capable of coping with Jackel’s<br />
growth, said Wong.<br />
As business volume<br />
kept growing, Jackel felt<br />
a strong need for an easyto-customize<br />
ERP system<br />
silos<br />
that can help integrate<br />
workflows and manage<br />
the resources of product<br />
lifecycles from design,<br />
manufacturing to delivery<br />
to the buyers’ doorsteps,<br />
supply chain<br />
Wong noted. The firm<br />
picked Microsoft Dynamics<br />
AX because of its higher flexibility<br />
when it comes to customization, said<br />
Wong, adding that this would minimize<br />
workflow changes within the firm.<br />
Three-phase implementation<br />
Starting in August 2007, the first phase<br />
implementation of the ERP modules—including<br />
order processing, logistics, inventory<br />
management, and finance—was completed<br />
in January this year, said Wong,<br />
adding that more than 50 employees have<br />
Challenge: Lack of<br />
workflow integration; system<br />
By Teresa Leung<br />
used these modules since then.<br />
The company is now in secondphase<br />
implementation. When completed<br />
in January 2010, the system<br />
will allow 50 additional staffers<br />
to use modules including project<br />
management and management of<br />
sub-contracting quality control,<br />
said Wong.<br />
In October 2010 when the third<br />
phase is expected to complete, another 100<br />
employees will become users of the new<br />
production management module, he said.<br />
ERP-driven cultural changes<br />
Despite the minimal workflow changes<br />
involved, the new ERP system will bring<br />
changes to Jackel’s<br />
work culture, said veteran<br />
ERP consultant<br />
Kidd Wong, who is<br />
providing consultancy<br />
services during the<br />
ERP implementation.<br />
“One major change<br />
is that users now have<br />
to keep updating data<br />
so that real-time data<br />
will be available to all<br />
different departments,”<br />
said Kidd Wong. “Besides, users must follow<br />
guidelines and steps [when updating<br />
the data] to achieve data and workflow<br />
standardization.”<br />
Tech: Microsoft Dynamics AX<br />
Benefit: Efficient cost<br />
control, decision making,<br />
and management of projects,<br />
operations, logistics, and<br />
Centralized data<br />
As the real-time data is now stored centrally<br />
in one place rather than in different<br />
departments’ systems, project tracking<br />
and management are much easier and effective,<br />
said Kidd Wong.<br />
Centralized real-time data also means<br />
Left: Kidd Wong; Right: Alvin Wong<br />
more efficient month-end closing that has<br />
been shortened to 10 days compared with<br />
two months before, Kidd Wong added.<br />
When it comes to logistics, staffers are<br />
able to respond to changes immediately<br />
and ensure on-time delivery of products to<br />
customers, he noted.<br />
The new ERP system also allows more<br />
effective cost control. “The availability of<br />
real-time data and integrated workflows<br />
enable managers to know the purchase<br />
costs of materials or goods,” said Kidd<br />
Wong. “This allows them to take actions<br />
before purchases are confirmed if they<br />
aren’t justifiable.”<br />
In addition, the deployment also increases<br />
the visibility of the company’s<br />
supply chain. “All purchase orders can be<br />
viewed on the system, which alerts managers<br />
when materials aren’t delivered on<br />
time,” said Alvin Wong.<br />
The new ERP system’s reporting tools<br />
allow users to easily generate different<br />
kinds of reports for executives to speed up<br />
their decision-making process.<br />
Although Jackel expects more implementation<br />
challenges at phase three because<br />
of the higher number of users involved<br />
and the greater gap between users<br />
in terms of computer skills, the firm believes<br />
it will continue to benefit from the<br />
deployment, Wong concluded. 3<br />
46 <strong>Computer</strong>world <strong>Hong</strong> <strong>Kong</strong> Nov 2009 www.cw.com.hk