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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

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