- Committed to transformation and breaking away from conventional industrial enterprise.
Mengfa Sports Technology (Huizhou) Co., Ltd., is located in Ma'an Town, Huicheng District, Huizhou City, Guangdong Province, China. The company's primary products include seat posts, bottom brackets, and head tubes. With over 40 years of dedicated experience in the bicycle industry, it holds a significant position in the Asian market.
In late March 2016, Mengfa Sports Technology decided to adopt iTEC as the core system for internal inventory, business, and production management. The reason for choosing iTEC as a valuable tool for operations was due to the inadequacy of the existing internal systems. The company sought to address these deficiencies by implementing iTEC to enhance management efficiency. Considering the current state of internal operations and the number of employees, iTEC emerged as the primary choice for internal digital management, effectively improving company management and inventory applications.
Before the implementation of iTEC, internal operations at Mengfa were primarily based on Excel and paper-based processes, lacking a unified database and inventory monitoring mechanism. This resulted in operational redundancies and wasted resources. With strong support from the executives, the initial implementation of iTEC was carried out in parallel with the old system. This approach not only allowed employees to familiarize themselves with the new system but also facilitated repeated verification of data accuracy. Mengfa Sports Technology simultaneously introduced several modules, including Inventory Management, Procurement and Sales, Production Management, Accounts Receivable and Payable, and Quality Control. Relying on the unwavering support from the executives, the consultants' experience and methodologies were effectively implemented throughout the organization, and the consultants' control over the system's implementation progress ensured a smooth and successful rollout of the system.
Issues before ERP implementation
- ❌Inability to accurately track inventory.
- ❌Difficulty in obtaining real-time information about order production status.
- ❌Lack of visibility into production status.
- ❌Inadequate collection of sales orders.
- ❌Ineffective implementation of quality control.
Improvements after ERP implementation
- ✅ Instant access to current inventory through "Inventory Inquiry and Inventory Reports".
- ✅ Real-time monitoring of orders using the "Nine Circles" feature to ensure on-time delivery.
- ✅ "Tracking of order production progress" to view the current status of work orders.
- ✅ "Quality control system" generates inspection records during procurement entry to ensure thorough documentation.
- ✅ "Customizable reports program" can be designed to meet customer format requirements, eliminating manual report creation.
- ✅ Utilizing the ERP system's "Change Order Process" to effectively record the number and process of order changes.
- ✅ "Product Coding System" redefines the rules for product coding, making product numbers more meaningful.
- ✅【Statistical Analysis】Effectively analyzes relevant data.
- Enhance internal efficiency and management monitoring.
The spirit of digitalization is to assist businesses in making their operations and processes more efficient, rather than simply computerizing or digitizing tasks that were previously done on paper. The iTEC system comprises a variety of powerful tools designed for general resource planning and management for small and medium-sized enterprises. Through the ERP system, the management team at Mengfa Sports Technology can efficiently analyze the company's business strategy based on inventory levels and order sales status. This enables them to quickly formulate appropriate strategies. Digitization has improved the operational workflow, allowing direct access to the required information through the system. Gone are the days of relying on verbal communication or paper-based methods, resulting in significant time and cost savings. Through the system implementation, Mengfa Sports Technology has gradually achieved its digitization goals, such as:
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Shortening the time of making documents allows for responses to customers about the order delivery date efficiently.
Moving away from traditional paper-based management, the company has progressively transitioned towards a paperless environment. It can now rapidly generate documents such as quotations, sales orders, and purchase orders. These documents are efficiently sent to customers and suppliers via email, saving on manpower costs. With real-time inventory updates, the company can respond to customers more directly and effectively.
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Implementing departmental authority and responsibility management helps to address the issue of inaccurate information.
In the era of paper-based operations, information was recorded on paper, leading to the problem of information silos where data couldn't be easily shared. As a result, only person A who received an order knew about it, causing a lack of accurate information visibility. However, with the implementation of iTEC, resources can be instantly shared, and through permission management, access to each order can be controlled for each user, ensuring information security.
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Tightly control inventory and easily generate reports.
Inventory control is crucial, especially for warehouse management. Before the system implementation, Mengfa Sports used an open warehouse system with free on-site requisitioning, leading to difficulties in tracking inventory levels and occasional material shortages. This resulted in work stoppages on-site. Through the system implementation, warehouse management was reorganized, and on-site personnel is now required to follow a documented procedure, with material requisition only possible with the relevant documents. The system allows for quick and real-time inventory checks, ensuring faster response times for delivery dates.
- Keeping pace with the times to enhance competitiveness.
After implementing the iTEC ERP system, Mengfa Sports Technology can swiftly grasp the status of orders, understand inventory levels, and align procurement with production start dates, resulting in an improvement in on-site material shortage issues. With systematic order delivery dates, the company can better control and analyze operations while using subsequent statistical analysis to determine market trends. In a highly competitive industry, businesses need to establish advantages and competitiveness by responding quickly to the ever-changing market environment. Therefore, utilizing a system that meets the company's needs has become a crucial factor in the company's ability to remain competitive in the market. Continuously optimizing management processes and generating more profits is the true value of an ERP system.