Kessel Electronics Implements AS/400-Based ERP Solution with Y2K Readiness to Enhance Regional Operations in Greater China Region

Kessel Electronics has signed a contract with IBM, JD Edwards and System-Pro Solutions to deploy an AS/400-based Enterprise Resource Planning (ERP) solution to empower its operations in Greater China and Europe.

Valued HK$5 million, the new Y2K-ready ERP solution is Kessel Electronics commitment to its European and US business partners and customers to aggressively improve productivity and workflow between its Hong Kong headquarters, China manufacturing plant, and German-based sales team.

"This enhanced operation amongst Kessel Electronics regional offices will involve the provision of a reliable planning system connecting all the operating units together for resource planning, manufacturing control and sales and marketing management" said Pirie Siu, Executive Director of Kessel Group. "It will improve our existing Manufacturing Resource Planning (MRP) system which is limited to materials planning and disconnects the manufacturing process from the sales and marketing operations. Managing the China manufacturing plant and responding to the German-based sales team are currently complicated tasks for the Hong Kong staff. The existing system is also non Y2K compliant. All these issues will be resolved with the implementation of the new solution." Siu further explained.

The new solution involves the integration of the text-based legacy system and a new web-enabled ERP application, which will then be linked to the common back-office system. This solution will synchronize the workflow of the operating units in Hong Kong, China and Germany simultaneously through the Internet.

"By linking many of the operating processes, the new ERP system allows a more rapid and accurate daily workflow via the Internet -- from issuing purchase orders, to planning materials consumption, to controlling the manufacturing process, to the scheduling of sales and marketing operations." explained Siu. "Management staff can also utilize the new system to make real-time management forecast to maximize productivity."

Kessel Electronics selected System-Pro Solutions for systems integration as well as their professional service and support. With the combined strengths of three IT veterans, the customized ERP solution is based on the industry's leading JD Edwards World and One-World enterprise software, which operates seamlessly with IBM AS/400e to provide users the flexibility to adapt business processes without re-engineering the existing information flow. The application also enables users to capitalize the latest functionality and lower the costs of operations.

The application will run on AS/400e 9406720 server. IBM AS/400 is the world's most popular business system with the largest number of ERP applications. Embracing world-class enterprise resource planning, powerful business intelligence, comprehensive group-ware and quick-to-deploy Internet / Intranet solutions, IBM's AS/400e family demonstrates proven reliability and scalability in supporting business organizations worldwide.

"We are glad to see Kessel Electronics to take steps to translate advanced technology into practical business solution," said Tony Tai, general manager of IBM Hong Kong. "As the industry's leading solution provider, IBM is dedicated to joining forces with such partners as JD Edwards and System-Pro Solutions to provide full-fledged ERP solution to help local entrepreneurs to increase their competitiveness in the ever changing business world.

"As a foremost end-to-end ERP solution provider, JD Edwards is committed to providing local enterprises with a reliable solution that is ready for the next millennium" said Eric Lo, managing director of JD Edwards (HK) Ltd. "The partnership with System-Pro Solutions and IBM will ensure small and medium businesses to keep pace with the changing environments"

"With a strong portfolio of systems integration, implementation and customization services for the local manufacturing industry, System-Pro Solutions shares the vision with IBM and JD Edwards in offering a full shelf of world-class technologies customized for Hong Kong companies" said Derek Lee, general manager of ERP Solutions Division, System-Pro Solutions Ltd. "Our professional staff has been working closely with IBM and JD Edwards to deliver local enterprises the true ERP promise, and we believe that Kessel will benefit from this first-class ERP solution."

"The implementation of the new ERP solution will enable a cost effective sharing of business intelligence among our regional offices. As a result, our sales office will be able to offer comprehensive services that address each of our customers' unique requirements." concluded Siu.

The first phase of the new AS/400 based ERP solution will be completed by the end of October 1999 and two additional phases will be conducted in second half 1999 and 2000.