ERP application success case analysis of the hotte

Analysis of successful cases of ERP application in Scud company

it took less than half a year from the fire in Scud company to the determination of compensation amount. The reason why the compensation amount can be determined so quickly is attributed to the information system

on May 31, 2007, the Scud Industrial Park in Mawei District, Fuzhou, suffered an accidental fire, and most of its inventory and production raw materials were destroyed, but most of its production lines were not affected

it took less than half a year from the fire in the Scud company to the determination of the compensation amount, which made guoquanzeng, the president of the Scud company, very happy: "the information system contributed to the determination of the compensation amount so quickly."

it is estimated that the Scud company lost 220million Yuan due to the fire, such as dentures, braces, splints, etc. (below). After the fire, the insurer Pacific Property Insurance Fujian branch and Scud jointly entrusted the loppence insurance adjustment company to investigate and adjust the accident losses. Through the joint efforts of the three parties, the compensation amount of 52.208 million yuan was determined at the end of September 2007. This is also the claim settlement case with the largest amount of single accident compensation in the insurance market in Fujian Province

according to guoquanzeng, because the company's information system is very standardized in the management of inventory, when the loppence insurance adjustment company carried out the survey and adjustment of accident losses, the company's corresponding losses were clear, which is also an important reason why the claim amount can be determined so quickly

Scud can't run fast

informatization benefits Scud companies in the settlement of claims after the fire, showing the standardization of Scud management. However, in the past, the development of Scud company was not always as fast and good as its name described

Scud company was founded in 1996, and the company really ushered in rapid development after 2000. At that time, the domestic market was booming day by day, and the market demand for batteries brought a leap forward development to Scud

most people contact Scud Electronics Co., Ltd. from a battery. Many people will be given a Scud battery when they buy it. If you look carefully at some famous brand original batteries, the words made by Scud are also printed on them

at first, the organization of Scud company was a pyramid like functional hierarchy, which was bloated and equipped with more managers, which seriously affected the efficiency of work

Scud Electronics Co., Ltd. is also troubled by the shortcomings of business processes. "Around October 2002, workshop materials were piled up, warehouse materials were blocked, and sales, planning, procurement, and finance were not very smooth." Chen Yaoshu, manager of the information management department, said. To this end, Scud company has set up a management accounting department with financial management as the center, but each business department is still an independent operation mode, and the business process is not thoroughly sorted out

"whoever controls the cost controls the whole industry". Due to the non-standard business process, Scud companies also have problems in cost control. Such is the internal management of the company, not to mention the management of marketing

at that time, the company was based on the process platform based on Excel, word and financial software, which was already overburdened, and the need to import ERP system became urgent

from qualitative management to quantitative management

as a high-tech private enterprise in the domestic battery industry, Scud has its own brand products in addition to OEM (OEM) of well-known manufacturers

for different product lines, the management mode of Scud company was not unified at first. The management methods used by different product departments are also different. From planning to production, managing according to unified specifications has become a problem that Scud must solve

"however, this is only the basic level of information management. More importantly, through information means, we have made a big step from qualitative management to quantitative management." Guoquanzeng said. For example, the number of products in the company's inventory and the approximate number of raw materials can be found in the system at any time

take the fire in May, 2007 as an example, it is precisely because the inventory data in ERP has a high accuracy that the third-party evaluation organization can determine the loss so quickly. In the past, the claim amount that took one to two years to determine at the end of the experiment in the insurance industry was determined in less than half a year. With this experience, guoquanzeng strengthened his determination to implement the information system

informatization can achieve today's results, which Chen Yaoshu didn't expect. In 2002, Scud plans to launch ERP project. Although the company has launched the financial system as early as 1999, it is the first time for Scud to carry out information construction on such a large scale. Chen Yaoshu recalled, "at that time, Scud was still a relatively small enterprise, and the annual sales of the company was less than 400million. Because it was the first time to contact the management software, the company leaders were not sure. They also wanted to have a try to introduce it. If they could really solve the problems of the enterprise and reinvest."

7 printers incident

although they just wanted to have a try, Scud leaders did not relax their requirements. Nevertheless, Scud also encountered many difficulties in the process of implementing the ERP project, and the ERP project almost ran aground. The incident of seven printers is one of the episodes

the company carried out training for more than two months before the launch of the ERP system of Yifei in August 2003. "At that time, I organized them to hold a meeting once a week to discuss and solve the difficulties one by one, and the members of the project implementation team were also busy in each department at the same time." Guoquanzeng said. For example, there was no product number before, but now it is necessary to establish a product number, which is equivalent to reorganizing the warehouse management, and the basic workload is very large

the greater difficulty is still ahead. One month after the ERP system was launched, the system failed. Scud company invited consultants to conduct an inventory of the data running in the ERP system. It was found that the reason was that the operators could not abandon their manual work habits and did not pay attention to maintaining the system data. Therefore, the system could not produce true and accurate data

it is understood that at that time, the board of directors of Scud company held a meeting to discuss and intended to suspend the continuous implementation of the entire ERP project. Insist or give up? The ERP project manager is faced with a difficult choice. Finally, he chose to advance and retreat with ERP. On September 1st, 2003, ERP was officially launched for the second time after retouching the data

in order to ensure the success of the second launch and the finalization of the new production base in Nanzhuang in 2011, the ERP project team decided to abandon the previous "one order system" (that is, the personnel of each department fill in the audit or inspection opinions on the same purchase order and keep accounts), increase the responsibility of the quality control department (not only inspect the quality, but also count the quantity), and require the printing of written documents for each step of the process

in order to meet the needs of printing, Scud company also specially invested funds to purchase 7 needle printers in relevant links for printing written documents, with a cost of more than 30000 yuan before and after. Later, this experience was also jokingly called the "7 printers event" by the ERP project team

after this incident, the management and employees began to truly realize the determination of the company's top management to implement ERP. At the end of 2003, the company has completely abandoned manual work, and the operation of ERP system has gradually stabilized

data growth brings new challenges

in 2004, Scud made strategic adjustments and invested a lot of money to realize the transformation of the company's products from OEM to independent brand, which requires metrological personnel to be familiar with the types of metrological instruments used

in 2006, the sales volume of the company has increased from 300 million to 400 million in 2002 to more than 1 billion, and the number of materials has increased from more than 8000 when ERP was just launched to more than 210000. And there are new products every month. To keep up with the pace of the market, Scud has to constantly launch new batteries and chargers. "As a result, the system that used to work smoothly began to slow down." A staff member of the information management department said

in this year, Scud also plans to be listed in Hong Kong. The original system has begun to fail to meet the rapid growth of the company, and the problem of system upgrading has become increasingly prominent. Chen Yaoshu believes that at present, in the domestic ERP industry, the update of software functions often cannot keep up with the rapid development of enterprises

therefore, Scud began to seek new software solutions. In October, 2006, the ERP system of Scud company was upgraded. The new system not only solves the challenges brought by data growth, but also because the code of the new system is open to enterprises. In Scud company, as long as the production management department puts forward some personalized needs to the information management department, the information management department can carry out customized development according to the needs

from 2003 to 2008, Scud ERP system has been applied for more than four years, and enterprises have also accumulated strong data. How to use these data to analyze the early operation of the whole enterprise and make a prediction for the later enterprise development has become a new problem to be solved by Scud ERP. Therefore, Scud has begun to turn to the application of Bi (Business Intelligence), hoping to use historical data as the basis for Scud to make group decisions. (end)