Phitomas x Engtek

• The Challenge: Rapid regional expansion requiring a single ERP solution to manage workflows and improve productivity
• The Solution: Integrate Infor’s CloudSuite Industrial ERP system across Engtek’s operations
• The Results: A 600% improvement in efficiency (one operator to six machines); a 40% reduction in cash conversion cycle; ability to plan production and track sales and inventory in real time
  

With Infor CloudSuite Industrial , the components currently in production and their status are always known to us. We saw a major improvement in our cash conversion cycle, which was substantially shortened by forty percent.

SEAN SOO KAH WAI
CFO

Operating in America, Europe and Asia, Engtek is a world-class supplier of key industrial components for multinational corporations, achieving international recognition for excellence, innovation and quality in their products and services.

With an absolute commitment to total customer satisfaction, Engtek leverages state-of-the-art machinery, Industry 4.0 technology, and business process initiatives to deliver world class, cost-effective, quality solutions.

Rapid expansion across multiple continents requires world-class solutions

Amid surging orders from America, Europe, and Asia, and the need to manage workflows across multiple plants in Southeast Asia, Engtek needed a new ERP system to handle more complex operations. To support this growth phase, Infor CloudSuite Industrial was deployed by Phitomas in 2011 to simplify and automate its manufacturing processes.

Previously, one operator would manage one machine; post-implementation, that same operator can handle at least five to six machines a day. With Engtek operating hundreds of machines across multiple manufacturing plants in South East Asia, this represents a quantum leap in productivity and efficiency.

“We had so many difficulties tracking the flow of parts across the shop floor in the past. With Infor CloudSuite Industrial , the components currently in production and their status are always known to us,” observed Sean Soo Kah Wai, Engtek CFO.

Beyond progress on the production floor, inventory status became instantly available, and the accuracy of stock data significantly improved. Greater visibility on relevant information provided the platform for proper analysis and subsequent decision making to further improve production output.

Phitomas Sdn Bhd (Infor’s channel partner in Malaysia) deployed the Infor CloudSuite Industrial implementation at every location and were instrumental in making the ERP integration seamless at every stage.

Improved cash conversion cycle following Phitomas’ integration

Thanks to Infor CloudSuite Industrial’s operational capabilities, Engtek also recorded a 40% reduction in their cash conversion cycle, down to 70 days from the historical average of 120 days. 

Automating certain processes improved job traceability and subsequently shortened the time required to complete orders. Integrating invoicing and financial modules removed the need to manually verify work-in-progress (WIP); instead, sales invoices flowed straight to the Finance department for quick verification and processing. 

The bulk of Engtek’s expenditure revolved around purchasing raw materials under cash terms. Thus, the shorter cash conversion cycle gave Engtek greater business flexibility and kept borrowing to a minimum. Indeed, with their improved cash position, Engtek could fully pay off the bank loan taken for privatisation in just five years – three years ahead of schedule.

Phitomas and Infor CloudSuite Industrial ensures greater accuracy and transparency

“Apart from financial data, we can review the real-time production output and machine utilisation with a simple bar code scan of the job order. There is total transparency at every level of our organisation for greater production efficiency,” said Sean.

Engtek’s customers also benefited from Infor CloudSuite Industrial ’s automations, with timely and accurate quotations. Individual orders are still vetted individually, and erroneous quotes are minimised – no small matter given Engtek’s large order volume.

“A good ERP such as Infor CloudSuite Industrial is vital for our organisation. If we were still using an older-generation ERP system, I don’t think we’d be able to manage the current volume, drive our profitability, and shorten our cash conversion cycle,” summed up Sean.