Sowing the Seeds of Development

Feature Article | November 2, 2005 by admin

According to Mr. Huang Chengjin, President of Beijing Jinpin High Sci-Tech Development Co., Ltd, the successful introduction of SAP Business One into live operations is only the beginning of the company’s expansion. Mr. Huang is even considering future system upgrades to SAP All-in-One and mySAP ERP.

Increased information requirements

In the past year, the scale of Jinpin’s operations has doubled and the company’s annual sales figures have topped the 50million Yuan mark. The workforce has grown rapidly too. “Previously, I could deal with everything on my own because there were few employees. However, as the size of our business and our departments has increased, managing the company has become a problem.” Because of the difficulty of posting data on time and his lack of direct control over operations, Mr. Huang now feels that he can no longer run the business alone.
It is obvious that the management techniques, enterprise culture, team construction, and growth values in place at Jinpin cannot keep pace with development in such a dynamic market, especially in the cut-throat IT distribution line. Each layer of management has to be developed gradually. This is the only way to ensure that the company can maintain its edge over the competition, and it is evident that market forces will drive out those companies that stick to outdated rules. “In such a competitive environment, it is a tough enough ask to survive, never mind develop. So it is absolutely vital to introduce a systematic form of information management.”
Jinpin was introduced to SAP Business One by Beijing Young Soft Information Technology Co., Ltd. At the time, it was also investigating other domestic products, such as Hang Kang, which is manufactured in Taiwan. After two months of extensive research, Mr. Huang opted for SAP Business One, on account of its user-friendly interface. He was impressed by the close integration of its functions, which reminded him of a highly interactive chessboard. “The separate functions of other products did not meet our requirements,” he says. In addition to its functionality, he gave careful consideration to its scope for upgrading. “At present, our sales revenue is less than 100 million, but we can upgrade to SAP All-in-One, or even mySAP ERP, if we reach 10 billion in the future.” One of the advantages of using SAP is the high return on investment. As soon as Mr. Huang recognised this, he had no hesitation in choosing SAP Business One. “The price of the product is within our budget, and given the scope for upgrade and extension, we feel that SAP – as the world’s biggest supplier of management solutions – fully addresses the needs of our customers.”

Putting new knowledge into practice

The project of implementing SAP Business One officially began at the close of the Chinese New Year, under the supervision of Beijing Yong Soft Information Technology Co., Ltd. Its accounting, procurement, sales, storage and CRM functions are closely aligned with the overall structure of Jinpin’s management operations, a structure which is based on Intel Platform.
SAP Business One system went live in mid March, after six weeks of intense implementation efforts. Now, the system has been up and running at Jinpin for three months. According to Mr. Huang, the company’s business processes now run much more smoothly.
Generally speaking, the main concern of managers is that their company data is mapped fully in SAP Business One. For Mr. Huang, however, there are added dimensions. He welcomes less tangible benefits of the product such as its introduction of foreign management concepts and even SAP’s own business culture. Thanks to the software technicians from Beijing Young Soft Information Technology Co., Ltd, who upgraded the software, these new management concepts and aspects of corporate culture will be transmitted to customers, and for Jinpin’s management, these less tangible benefits represent significant added value.
Before the introduction of the new solution, each department at Jinpin handled problems relating to company coordination separately. This was a major drawback, because it is crucial that departments interact. Never before has it been as important to foster a good team spirit as in today’s increasingly competitive society. Now, as a result of implementing SAP Business One, Jinpin has not only improved handling of its main business process, but also linked each department by taking advantage of the system function for sending messages. For example, sales orders are processed by the sales department, and delivery by the warehouse. Messages from the sales department are sent using the short message function of SAP Business One.
Mr. Huang was delighted with the speedy posting of profit-related data. Take the example of sales statistics. Before implementation of the solution, accountants posted the previous week’s figures every Saturday evening. Now, Mr. Huang can call up the latest figures at any time. He can also access the accounting period and details of accounts receivable immediately. “In the past, we lost substantial revenue from overdue accounts receivable, but now all of the accounts receivable can be processed in time.”
As for warehouse management, the system enables the provision of goods reference data for Jinpin’s procurement plan. “Previously, the warehouse was stocked high with many products that did not sell well. Now we can easily identify turnover and revenue data for each product, and thus arrange our warehouse more systematically. It was hard to solve these problems in the past, and when we did it was always too late.”
Although he only signed up for 10 users initially, Mr. Huang has decided to add more in the coming upgrade. He can see clear potential for expanding usage of the system, but the crucial factor is how to harness this potential fully, especially in the area of analysis. For instance, the company has not yet utilized the analysis functions of Sales Opportunity in CRM. “At present, we probably only take advantage of about 50 percent of its functions, and we do not have the expertise to fully utilize many of the larger functions. We do hope that SAP will provide us with training that will enable us to use the system in greater depth.”
Mr. Huang Chengjin also intends to map the company’s human resources and after-sales service data in full, in order to strengthen control over these areas. He was delighted to learn that SAP Business One 7.1, which was launched at the end of June, will cater for both of these areas.

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