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Customer Background
Pely-Auto air-con parts supplier set up operations in 1976.
Previously awarded the TOP 50 SME by iDA, it is today one of the
largest auto air-con parts and components distributor in the region
and is dependent on technology to serve both domestic markets and
OEMs overseas. The company has two warehouses and a retail shop
for walk-in customers in Singapore.
Business Need
Prior to deploying technology, the company relied on manual
processes that were paper intensive and resulted in lengthy lead
times for delivery of air-con parts to customers. In addition, the
traditional systems did not allow for the integration of Pely-Auto's
inventories to the administration and financial departments resulting
in the duplication of paper work that was counter-productive and
a strain on their financial resources.
The Solution
As Pely-Auto's air-con parts supply business grew rapidly,
they needed to integrate air-con parts inventories in the two warehouses
with their retail business and shipments to overseas customers and
OEMs. With the help of eC-LINK's software offerings the company
consolidated their workload and integrated their IT systems on IBM
iSeries.
Pely-Auto invested in IBM's technology to enhance its inventory
business to a highly sophisticated logistics and distributions network.
IBM's iSeries (AS/400) with its scalability coupled with investment
protection and growth capability was ideal for Pely-Auto's growth
strategy. iSeries plays a crucial role in Pely-Auto's ability to
service its island-wide network of logistics and distribution of
air-con parts within Singapore and the Asia Pacific region.
eC-LINK, a software developer also played a crucial role in providing
flexible and customised ERP solutions. The end-result, no duplication
of paperwork, it cut down billing process from four to one document
and manpower resources were deployed to value-added work, delivering
higher productivity gains. Delivery of parts was accelerated from
two days to immediate delivery, resulting in greater customer satisfaction.
The integration was done in a record time of three months. The
implementation resulted in tremendous cost savings for the company
as its operations were maximised on technology to monitor the movements
of physical stocks. eC-LINK's ERP solution indicates the supply
situation on a daily basis. It highlights the stocks that are high
and low in demand, enabling the company to stock-up fast moving
parts and not tying-up financial resources on products that are
slow moving. Another plus point is that the solution allows the
organisation to monitor currency fluctuations, especially between
the US dollars and Japanese Yen so as to better price their products.
Another form of savings was derived from better management of accounts
receivables. The system prompted bad debts providing the management
an avenue to settle these problems with customers immediately.
IBM's Global Financing business unit provided the company with
financing aid for three years, making payment more manageable for
the company.
Vendor Quotes
Pely-Auto's
"We decided to upgrade our system because we wanted to improve
customer service and internal efficiency. IBM and eC-LINK provided
us with a solution that enables us to maintain timely and updated
inventory and processes, which means we can respond to customers
faster than before," said Mr Richard Yeo, managing director
of Pely-Auto. "With the integrated back-end solution, greater
control, efficiency and cost effectiveness are achieved. The distribution
and logistics market is a highly competitive industry, the solutions
from IBM and eC-LINK assist us in staying ahead of our competition.
We are also thankful to Azure who introduced us to IBM's eServer
iSeries.
"The iSeries 270 that was purchased by Pely-Auto is reliable
and able to meet the demands of a complex multi-workload environment.
Whether you run core business applications, new e-business applications
or a mix of both, the IBM iSeries Model 270 offers industry-leading
technology, new tools for today's mixed workloads and the flexibility
to accommodate individual business needs," said Ho Lai Mun,
country manager for iSeries at IBM Singapore Ptd Ltd. "Through
our partnership with Azure, our distribution partner, we were able
to meet the customers requirements very quickly."
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