Lay Hong Berhad Implements SAP’s Solution for Small and Midsize Businesses

December 18, 2003 by SAP News 0

Leading Poultry Farming Company Chooses mySAP All-in-One’s ChemXPress Solution for Fast Results and Future Growth

Kuala Lumpur, MalaysiaSAP Malaysia today announced that Lay Hong Berhad (LHB), a leading integrated poultry farming group in Malaysia has implemented ChemXPress™, a qualified mySAP All-in-One solution to keep up with expansions, enhance competitiveness and improve real-time visibility. ISS Consulting’s ChemXPress™ Solution will enable LHB to keep track of the inventory, sales, purchasing and financial postings of its fully automated chicken rearing, egg harvesting and processing processes.

ISS Consulting was able to customize ChemXPressä to match LHB’s automation needs during the production of chicken feed, which involves similar processes to the manufacturing done in the chemical industry. The system also improves the efficiency of LHB’s sales order, delivery order and billing cycle and the Enterprise Resource Planning (ERP) process that determines the optimum amount of goods to procure.

Through this innovative SAP solution for Small and Midsize Businesses (SMBs), LHB will enjoy SAP’s industry “best practices” that will see higher internal efficiencies with integration between the production planning, financial controlling to monitoring of the logistic business processes, while realizing quick returns on investment. With mySAP All-in-One solutions, which are supported by SAP’s more than 30 years of business experience, SMBs gain the power of the world’s most successful business suite — right out of the box. There’s no need to piece together hard-to-integrate solutions or customize rigid applications. The solution comes packaged with all the hardware, software, services and financing options needed. Critical business processes can be quickly automated with prepackaged solutions tailored to unique business needs, such as those of LHB. LHB first commenced poultry farming operations in the 1960s. Over the years, it has achieved commendable growth and established itself firmly as the leading producer of fresh farm eggs under the Nutriplus brand, in Malaysia with farms located in Selangor, Melaka and Sabah. The LHB Group currently operates 3 hatchery and 4 breeder farms, 1 egg tray plant, 1 poultry processing plant, 6 layer farms, which produces 440 million eggs per annum; 13 broiler farms, which produces 7 million broilers per annum; 2 feed mills, which produces 120,000 metric tons of poultry feed per annum; 1 liquid egg processing plant, which produces 1,600 metric tons of liquid eggs per annum and 3 organic fertilizer processing plant, which produces 12,000 metric tons of organic fertilizer per annum from plants located in Selangor, Melaka and Sabah.

In line with the group’s expansion plans, LHB required a solution to streamline its various businesses; to be able to keep track of its customer databases; to keep track of supplies and to improve real-time visibility in order to make better and coordinated decisions. With ISS Consulting’s ChemXPress™ solution, LHB will be able to do all this and more. “The ChemXPress™ solution enables us to improve on efficiency, integrate business activities and information, and be in a proactive position to anticipate trends,” said Mr. Yap Hoong Chai, Managing Director of LHB Group.

Upon implementing the ChemXPress™ solution, LHB will be better equipped to expand either geographically or in terms of new product or service lines without having to worry about information backbone limitations. In addition, the group also achieves a readymade platform to graduate to more sophisticated information strategies like e-commerce, collaboration and business intelligence.

Complementing this solution is a large number of management reports available from SAP to assist in business analysis. ISS Consulting’s ChemXPress™ solution will be able to provide sales, marketing, planning, and management departments with decision-support from a market-oriented viewpoint. This will give LHB the ability to be proactive instead of reactive in business management and decision-making, as the solution is designed to generate better reports and analysis for all activities and departments.

LHB decided on ChemXPress™ because they wanted a solution that they could expand into as they grew. According to Mr. Yap, they wanted a committed partner like ISS Consulting and not just a vendor with the best solution for their business. “We chose ISS Consulting’s ChemXPress™ for all that and because together with SAP and ISS Consulting, we saw a clear roadmap for our strategy, moving forward”.

ChemXPress™, jointly developed by SAP and ISS Consulting (M) Sdn Bhd, is part of the mySAP All-in-One Solution, intended for companies with as few as ten users that require a high degree of industry-specific functionality yet also require cost-effective, quick-to-implement solutions. According to Mr. Harald Weinbrecht, Chief Executive Officer of ISS Consulting, with ChemXPress™ it is like having “an SAP system that is tailor-made to meet the specific needs of the chemical industry and the individual requirements of LHB”. The ChemXPress™ solution implementation in LHB will take approximately five months and is due for completion early April 2004.

The ChemXPress™ solution runs on HP servers powered by the Intel® Xeon™ Processor. “We are pleased to jointly collaborate with SAP and ISS Consulting in offering our server platform, based on HP Proliant Servers to LHB. We believe HP’s industry-leading, highly available, scalable Proliant servers are able to deliver an efficient, reliable and cost-effective solution to support the day-to-day operations of LHB,” said Raymond Yap, Country Business Manager, Industry Standard Servers, Enterprise Systems Group, HP Malaysia.

Offering more than just hardware solution, customers can get more value from mySAP All-in One solution through HP Financial Services’ (HPFS) offerings. HPFS’s attractive financing options help to finance customer’s total initial investment, which include HP hardware, SAP software license and consulting services. “Our attractive financing options allow LHB to choose the right payment model for their company. This is a testament to our commitment to helping SAP customers get the most out of their IT investment,” added Raymond.

In August this year, SAP Malaysia pledged its commitment to meet the needs of small and midsize businesses in Malaysia with its local vertical partners and global technology partners with the intention of being the number one SMB player by 2005. “We strongly believe that we will be able to deliver a unique value proposition because our solutions are developed in Malaysia for Malaysian SMBs, combining SAP’s solution and industry-specific best practices, with the domain knowledge and localization from our local business partners,” said Khatijah Shah, Managing Director of SAP Malaysia.

ISS Consulting (M) Sdn Bhd is one of SAP’s first wave of local SMB partner and delivers integrated technology solution such as production planning, financial controlling and monitoring of logistic business processes to SMBs in the chemical sector in Malaysia. This business partner, is now part of SAP’s vertical solution reseller partner network and has participated in extensive SAP training programs and commit to quality of service agreements to guarantee that customers receive the same standard of service set by SAP.

Under the SMB initiative, approximately US$1 million was invested with support from SAP’s Executive Board and Technology Partners, in knowledge transfer, solution development, go-to-market support, and training in Malaysian SMB business partners in the first two years of start-up. The business partners, like ISS Consulting, are carefully selected based on their vision in sharing SAP’s commitment to SMBs and offer vertical industry expertise in order to deliver long-term value by growing with the customer. SAP Solutions for SMB combines the robustness, scalability and best practices of SAP solution with the local expertise of the business partners. With the partnership with the business partner, SAP will be able to provide industry-focused, easy to implement, and affordable solutions that will provide a quick ROI for SMBs.

About Lay Hong Berhad
Lay Hong Berhad (LHB) was incorporated in Malaysia as a private limited company in 1983 and was listed on the Second Board of the KLSE in 1994. The Group first commended poultry farming operations in the 1960s. Over the years, it has established itself firmly as the leading producer of fresh farm eggs under the Nutriplus brand, in Malaysia. Lay Hong has also expanded into the broiler and layer farming operations, where it is involved in everything, from the production of poultry feed, breeding and hatching of day old chicks, production of egg trays to the processing of chicken manure into organic fertilizer and the processing of fresh eggs into pasteurized liquid eggs.

The LHB Group currently operates 3 hatchery and 4 breeder farms, 1 egg tray plant, 1 poultry processing plant, 6 layer farms, which produces 440 million eggs per annum; 13 broiler farms, which produces 7 million broilers per annum; 2 feed mills, which produces 120,000 metric tons of poultry feed per annum; 1 liquid egg processing plant, which produces 1,600 metric tons of liquid eggs per annum and 3 organic fertilizer processing plant, which produces 12,000 metric tons of organic fertilizer per annum from plants located in Selangor, Melaka and Sabah.

About HP
HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the fiscal year ending on Oct. 31, 2003, HP revenue totaled $73.1 billion. More information about HP is available at www.hp.com.

About ISS Consulting (M) Sdn Bhd
ISS Consulting is a management and technology consulting firm specializing in the implementation of SAP and SAP-related products including E-commerce. ISS Consulting was founded in Asia Pacific in September 1997, by a group of highly experienced SAP Consultants, with a combined effort of 29 years design, development, implementation and support of SAP products. ISS Consulting has more than 100 SAP Consultants who have completed over 50 implementations in 11 countries in the Asia Pacific region. ISS Consulting currently has offices in Malaysia, Singapore, Thailand and Indonesia. (Additional information at www.iss-consulting.com)