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