You are on page 1of 14

1.

0) INTRODUCTION TO ERP

Enterprise Resource Planning (ERP) is an evolution from some older technology that

originated with a lot of manufacturing organizations. This software was called Material

Resource Planning (MRP) and MRP II. The origin of MRP came to be when a lot of larger

manufacturing organizations were finding that they were struggling with managing their

entire manufacturing operations. It was started in 1960 when the form of an inventory control

system. In 1964, a engineer Joseph Orlicky was developed material requirements planning

(MRP). Furthermore, MRP evolved to manufacturing resource planning in 1980s that called

MRPII. In 1990’s, Gartner group chipped in the term ERP. Now on the 21st century ERP is

continue evolved.

Enterprise Resource Planning (ERP) is a system that organizations use to manage the key

part of operation in business processes and functions. This management is done by using a

suite of application software that is called ERP software. A typical ERP system will use

multiple components of computer hardware and software to achieve the integration. There

are hundreds of ERP applications a company can choose from, and most can be customized

based on organization’s preference. However, an ERP system can be ineffective if an

organization doesn't implement it carefully.

The function of ERP system is to integrates the data via software from all the departments

such as accounting, manufacturing, supply chain management, sales, marketing, and

human resources (HR) in an organization into a central database or it also known as single

source of truth that makes the business process are smoother and faster. Thus, it is

streamlining the business processes and making data sharing easier between all business

functions within the boundaries of the organization’s connection with its outside

stakeholders.
I as an Operations Executive at Icekool was responsible to do implementation of the

Enterprise Resource Planning (ERP) system in this company. Icekool is an ice cream chain

that has 12 flavors and that are in square shape or in Malaysia is well known as “aiskrim

potong”. Icekool is a bumiputra company that supplies sliced Ice cream to icekool agents

throughout Malaysia. Icekool has 1 stockiest and 150 agents throughout Malaysia. This

business is categorized into food industry manufacturing and the size market is small and

medium business. Icekool was established in 2017 and still operates until now in Kok Lanas,

Kelantan. In today’s business environment, Icekool wants to pursue more efficient

operations and cost savings. After several troublesome years, top management noticed that

by Icekool business moving along, seeing some growth, and still relevant in getting orders.

Hence, we want to find the best solution to implement ERP system in our organization. This

is because investing in ERP software can help Icekool bring together disparate activities

under a single integrated application, thereby streamlining processes and increasing agility.
2.0) BENEFITS OF ERP TO ICEKOOL

There are many benefits of implement ERP system in organizations including Icekool’s

company. ERP system benefits range from optimizing processes to helping each other in

different departments for better collaborate to improving the relationship between a business

and its customers. The benefits of ERP systems in an organization make day to day

operations in company and long-term planning more efficient.

The most valuable benefit of ERP system is increasing productivity and efficiency. This is

because ERP allows Icekool to automate manual and routine functions. With connected

business applications sharing real-time data in the background, the need for duplicate data

entry is eliminated. Additionally, the likelihood of human error is significantly decreased when

software handles the labour-intensive aspects of routine works. This is because ERP

systems can streamline formerly time-consuming tasks such as invoicing, sales order,

inventory cycle counts, processing, customer service notifications, and more. Hence,

workers will have more time to work on value-generating jobs since repetitive tasks will be

automated by ERP, this can make them free from tedious manual operations. At the same

time, the increased efficiency leads to reduced production bottlenecks, shorter lead times,

improved demand forecasting, and be more responsive supply chain. In other hand,

enabling teams to collaborate using accurate information enhances the success of

company’s projects and ultimately brings about greater customer service that give positive

impact on business growth.

Besides, product traceability has been a vital aspect of the food and beverage industry when

implement this software. Automating this operation using food ERP, it can enable to track

every single production movement, right from the raw material procurement to delivery and

automatically it can ensure the efficiency of supply chain and assurance product quality. For
instance, in case of any defect or contamination happen, it also helps to accelerate the

process of identifying the exact batch out of the delivered ones and known as speeding up

the recall action.

Another benefit when implement ERP system is can help reduce operational costs and

automatically increase profitability across all departments in organization from manufacturing

to finance. ERP systems can allow cutting costs on administrative needs since it reduced

paperwork and optimization of daily routines and most of these activities are able to

decrease of repetitive tasks. For example, manual data entry or processes that require long

paper trails that were often eliminated with this ERP software. Besides, resource planning

solutions greatly speed up business operations that involve various information requests and

approvals, such as stock, logistics, supply management, and others. Therefore, the

improvements to planning that an ERP system enables should prevent over-production or

over-ordering, prevent rush orders, all of which can drive up costs.

Moreover, ERP system can manage inventory of Icekool production. Ice cream

manufacturing requires a wide range of ingredients. Apart from the chief ingredients such as

cream and sugar, milk, emulsifiers, stabilizers, multiple flavours, and sweeteners are added

to the Ice-cream mix. Hence, by doing inefficient management of inventory it could shut up

the production until give an impact to the required demand. An ERP efficiently manages the

incoming raw ingredients and storage of temperature-sensitive materials which can resulting

in outstanding waste reduction. It also keeps the optimal inventory level to avoid

interruptions during production.

Furthermore, product variations can be managed by an ERP system. Along with producing a

variety of delicious flavours, the growing desire for healthier ice creams such as sugar-free

alternatives, dairy-free, gluten-free, and many more has made manufacturers like Icekool

work more precisely. Incorporating ice cream manufacturing software enables swift research
and development without the laborious calculations and it also accurately manages the

different formulas as well as records the modification made in any of them. Also, this is to

meet the compliance management, which is to ensure the safety of manufactured Ice-cream,

following the HACCP (Hazard Analysis and Critical Control Points), GMP (Good

Manufacturing Practices), and FSSAI (Food Safety and Standards Authority) guidelines is

one of the crucial tasks for the manufacture. Therefore, an ERP software are vital in

efficiently performs critical operations like freezing, pasteurization, others, and helps to stay

compliant with the regulatory standards to meet the requirement of the standard operating

procedures (SOPs).
3.0) COMPANIES THAT PROVIDE ERP SYSTEMS FOR SME IN MALAYSIA

I as project coordinator was found the three local vendor companies that were provides

Enterprise Resource Planning (ERP) system in Malaysia. Here is the background and

comparison of these companies before we make decision to choose the best vendor that

suitable for us to implement the ERP system in our manufacturing organization.

3.1) Agile Dynamics Solutions Sdn Bhd (ADS)

Agile Dynamics Solutions is the most dynamic, effective and trusted Microsoft Dynamics

local vendors in the market that located at Petaling Jaya, Selangor. ADS is the leading

Microsoft Partner in Malaysia with a team of local experts. ADS have implemented 1,000s of

projects across the region for small to large size businesses across numerous industries with

over 30+ years of experience, and 300+ customers (largest in the region).

3.2) Stelar Dynamic Solutions Sdn Bhd (SDS)

Stelar Dynamic Solutions Sdn Bhd is one of the vendors that specializes in the

implementation and integration of ERP based software that located at Petaling Jaya,

Selangor. In August 2014, SDS was founded by a group of IT techno-preneurs. SDS are

formed as a corporate entity to 100% focus on providing Business Solutions for SME/SMI

and large enterprise including MNCs and target mainly on manufacturing sector. SDS are

concentrating in providing solutions and services to lead clients to generate higher growth

and profitability rates by extension and acquire the capacity to create value in short, medium,

and long term in manufacturing industries. In other hand, ADS had served 20,000 happy

customers worldwide with 10 years experiences in ERP exposure in 30 weeks delivery time.

3.3) Phitomas

Phitomas is one of the leading solution providers of consulting, digital transformation and

technology services that located at Petaling Jaya, Selangor. Phitomas is at the forefront of

innovation to address the entire breadth of clients’ needs in the evolving world of cloud,
digital platforms and automation since they are partners with some the world’s leading

technology providers. Phitomas help clients to create more connected operations, drive

greater operational efficiency and reduce costs. They will work together with clients by

delivering solutions and services required for more resilient business operations.  Phitomas

is dedicated to help manufacturers become market leaders that provides customized, smart

products and solutions, memorable customer experiences; and aftermarket outcome-based

services.

4.0) COMPANY PRODUCT AND SERVICES (ERP)

4.1) Agile Dynamics Solutions Sdn Bhd (ADS) - Microsoft Dynamics 365 Business

Central

ADS provides ERP software that called Microsoft Dynamics 365 Business Central (formerly

Dynamics NAV). This software is one of the ERP products in the Dynamics family. Dynamics

365 Business Central is an all-in-one enterprise resource management system for Small-

Medium Size Businesses. Centralize, simplify and automate the business processes across

many modules such as finance, supply chain, sales, customer service, manufacturing,

projects management, human resource and service order management. This product is the

best-selling Microsoft ERP platform and is often used by companies in the manufacturing

and distribution verticals. Meanwhile, for the services that offers by ADS is the leading

Microsoft Partner providing wide-range of services for Dynamics 365 such as consulting and

training, licensing, migration and upgrade, implementation, integration, customization, also

support and maintenance for the ERP system once clients implement it in their organization.

4.2) Stelar Dynamic Solutions Sdn Bhd (SDS) - Epicor Kinetic

SDS provides solution ERP software that called Epicor Kinetic. Epicor Kinetic or ERP

software is a manufacturing tool that connects various workflows and departments within a

business. The implementation ERP modules includes quoting and sales, pre-production
materials, planning, inventory control, scheduling manufacturing, manufacturing execution,

human resources and accounting. It has a cloud-based deployment option and contains a

full range of supply chain management capabilities that focused on streamlining processes,

reducing costs, and improving customer responsiveness across the enterprise. Epicor offers

a comprehensive solution for mixed mode, make to order, engineer to order, make to stock,

and configure to order manufacturers including light assembly features for distribution

business. This software is ready to help organizations take advantage of the changing

economic tide with its latest Enterprise Resource Planning (ERP) suite.

4.3) Phitomas - Infor CloudSuite (Syteline)

Phitomas provides ERP software that called Infor CloudSuite (Syteline) solution is suitable

for enterprise and small and midsize business manufacturing companies. Infor CloudSuite

software is a Microsoft-based ERP solution focused on inventory and materials management

with either on-premises or cloud deployment. Users of this software can monitor the entire

manufacturing process, including order entry, financials, after-market service, and analytics.

The modules and features of ERP in this product include planning, scheduling, production,

product configuration, materials and inventory management, customer relationship

management, role-based dashboards and analytics are all supported by this software Infor

CloudSuite Industrial.
5.0) COMPARISON OF THE ERP SYSTEM

Company Agile Dynamics Solutions Stelar Dynamic Solutions Sdn Phitomas

Name Sdn Bhd Bhd (SDS)

ERP types Dynamic 365 Business Epicor Kinetic Infor CloudSuite Industrial

Central Premium (SyteLine)

Founded  Founded 1975, Founded 1972, Austin, Texas Founded 1986, United States

Albuquerque

Market Size  Small  Small  Small

 Medium  Medium  Medium

 Large

 Finance  Quoting and sales  Planning

 Supply Chain  Pre-production materials  Scheduling

Implementatio  Sales  Planning  Production


n Scope
 Customer Service  Inventory control  Inventory
(features)
 Manufacturing  Scheduling  System Administration

 Projects manufacturing  Purchasing

management  Manufacturing execution  Sales

 Human resource  Human resources  Engineering

 Service order  Accounting


management

 Interoperability with  Make to order  End-to-end planning

other Microsoft  Mixed mode system for specific

Function products  Make to stock manufacturing

 Customization and  Engineer to order industries

integration  Engineer-to-order
 Light assembly features
 Scalability and for distribution business  Mixed mode

flexibility manufacturers.
 Quality Performance

Management (QPM)  Make-to-stock

 Job management  Make-to-order

 Enhanced quality

Assurance

 Lean manufacturing

 Cloud, Software as  Software as a Service  Software as a Service

a Service (SaaS), (SaaS), Cloud, or Web- (SaaS), Cloud, Web-

Web-Based Based. Based.

System  Desktop – Mac,  Desktop - Windows,  Desktop – Windows ,

Specification Windows, Linux, Mac, Chromebook Linux, Mac,

 On-Premise –  On-Premise – Windows, Chromebook

Windows, Linux Linux  On Premise -

 Mobile – Android.  Mobile – Android, Windows, Linux

iPhone, iPad iPhone, iPad  Mobile – Android,

 English language  English language iPhone, iPad

 English language

Deployment  Cloud  Cloud  Cloud

 On Premise  On Premise  On Premise

Cost $100 usd monthly/ user $125 usd monthly/ user $150 usd monthly/ user
 Consultant  Consultant  Training

 Training  Training - Video, webinar

 Implementation  Implementation  Certification


Support
 Data migration  Data migration  User adoption
Service
 Apps development platform

and customization  Managed services

 System upgrade  Implementation

 Consultant

 Email, Phone, Chat

 Centralized Data  Exhibit Supply Chain  Offer a Unique

 Forecasting Visibility Product and

Key  Simple Integration  Use Simple MES Data Experience.

differentiators Exchanges  Optimize the Supply


 Collaboration
& advantages  Access In-depth Chain
 Security
Business Analytics  Reduce Operations

 Utilize AI Capabilities Complexity

 Deliver Centralized  Expand Service

Client Management Revenues

 Support Digital

Transformation

 Easy to Learn: 53%  Interface/  User Interface:

of users say the Implementation: With almost a 60%

system has a simple Approximately 52% of satisfaction rate

User Rating implementation users say this solution amongst reviewers,

Pros process and helpful has a flexible, user- Infor SyteLine boasts

friendly UI and easy a user-friendly


training materials. navigation. experience.

 Extensive  Customizable: About  Functionality:

Features: 79% of 100% of users said According to 90% of

users says has Kinetic is easy to reviewers, Infor

many features configure and has great SyteLine provides

includes BOM customization options. robust functionality

management,  Modern user interface that can manage and

reporting, search  Modules: 60% of the tailor to most business

filters, accounting users who discussed processes.

and other modules. features said this system

offers a wide range of

practical tools.
× User Experience: × Support: About 66% of × Support: 70% users

46% of the users users agree that the complaints relating to

who discussed support team is bad training

about the interface. ineffective and has poor documentation and

They said it was not quality. unresolved issues

Cons intuitive and the × Overall Performance: yielded negative

layout is old- Roughly 48% of users feedback.

fashioned. indicated that the × Navigation: 63% of

× Glitchy system is buggy, reviewers said that

Performance: cumbersome and has a navigation can feel

Approximately 67% clunky UI. disjointed and non-

of users said the × Cost: About 83% of intuitive, sometimes

program's overall users say this system is requiring multiple

performance is slow costly. clicks to complete a

and glitchy. simple transaction.

5.0) CONCLUSION AND RECOMMENDATION OF THE BEST ERP SYSTEM

In conclusion, choosing ERP software that meet Icekool requirement is essential. It is

because the right ERP system can make bigger difference in Icekool’s productivity and

success. Based on my research on three vendors that provides ERP system in Malaysia, I

would like to choose Stelar Dynamic Solutions Sdn Bhd (SDS) that provides Epicor Kinetic

system solutions.

In my opinion, I recommend for choosing Epicor Kinetic to implement in Icekool because the

features and modules software is suitable with Icekool’s business needs and requirements.

Since I am searching for system that mainly focuses on operation in manufacturing of ice

cream, Epicor kinetic is best fit solution. It is because Epicor Kinetic offers special software
functionalities modules especially in Quality Performance Management (QPM) that others

ERP software couldn’t offer. This feature can help Icekool to improve efficiency with the

consistent taste and manage quality assurance of the ice cream in term of color, texture, and

taste. Moreover, streamline the operation process it allows to create new formula and

maintains the record of existing formulas which eases the task of maintaining the balance

between the quantities of sugar and fat. At the same time, it automatically can achieve

objective from a single source of truth.

Besides, Epicor kinetic has offered system specification that both as an on premise and

cloud. This accessibility has met our requirement. As Icekool organization, we want to go

with a cloud deployment that will be accessible to our employees anytime and anywhere as

long as an internet connection is available. Therefore, this deployment can increase the

scope of where employees can complete their duties and access pertinent information.

APPENDICES

You might also like