Theo HK Company Limited was established in 2012, specifies in trading of hair care appliances to the Europe market. THEO’s products are mainly produced by China factory under ODM and OBM models. In recent years, THEO builds up strategic partnership with factory in China for R&D of new products which aims to provide a comprehensive supply chain services to their customers.
ERP System Creating Unique Advantages
Over the years, PRC factory adopted simple tools like Excel and Word to assist daily operation. However mistakes always occur due to loose and inconsistent production information. Edmund, General Manger of THEO said, “With the strategic collaboration with PRC factory, the accuracy, consistency and transparency of information is crucial in strengthening the cooperation and communication between us and the introduction of ERP systems just make up the missing pieces”
Edmund continued, “Now, customers can find similar products easily on internet, so in addition to product design and quality, we must have unique advantages in this competitive market. We want to win the customers with our value added services instead of lower price.” ERP system provides immediate, accurate information that enable us to faster response to the market. As a result, the quality of service improves.
Experience is Critical in Choosing ERP Vendor
Few years ago, THEO failed to implement ERP systems in their factory. The system was introduced through a distributor, who offered basic training only. Edmund explained the consequence of such failure, "Due to this unpleasant experience, our employees feel worried when we decide to implement an ERP system again. However, we must step forward considering the long term development of company. To avoid the same failure, service and industrial experience are the most critical criteria in choosing the ERP vendor.”
THEO knows Techland through their network partner, CPCNet. “The first impression of TecE ERP is flexible and user friendly. Techland’s consultant has rich experience in systems implementation. They can fully understand our industry characteristics and problems encountered.” Edmund said. Furthermore, TecE ERP can fulfill our extra requirement to import BOM from Excel. This provides high convenience for our engineers in daily operation.
Benefit from ERP System Live Run
THEO has just completed the first phase of implementation, including purchase, inventory and BOM modules. “TecE ERP live run for one month and we already see the benefits. The most obvious improvement is that TecE ERP provides the latest inventory turnover analysis, supporting us to solve the problem of dead stocks with high value. Besides, with the centralized and transparent information, e.g. procurement, shipment and delivery schedule, we can handle customer request efficiently and avoid human errors. Now, Hong Kong management can monitor the operation of PRC factory remotely.” Edmund said. With the gradual implementation of the production module, we believe that the productivity and scrap management will be further improved and achieve the goals of costs control and enhancing the overall efficiency.
Strategic Project Management is the Key of Success
According to experience, human factor may be more critical than the system function in the ERP project implementation process as system will make some extend of change on the workflow and working habits of employees. In order to help users adopting TecE ERP smoothly, Techland put a lot of effort in the project management. "The project manager of Techland understands the cultural differences between HK & PRC. He helps to solve the user problems effectively during implementation process."
Recently, THEO was busy in renovation of new production plant in Jiang Man. By adopting recommendations from Techland, THEO has set up an “information collection centre” for centralize data input resources. This helps to speed up the data input tasks and reduce the burden for other employees.
Edmund summarized that "With the rich experience of Techland, as well as strategic project management technique, the implementation progress are greatly promoted and the returns on investment will be soon achieved.”