International Solution      Local Investment

Background 
 
Shenzhen Shinning Electronics Co., Ltd. is a Hi-Tech joint venture invested & held by Shenzhen Shinning Industrial Co., Ltd, possessing more than 900 employees and factories covering 23000 sq.m. Shinning is chiefly engaged in the development, manufacture, sale and service of electronic connector, cable assembly. With advanced devices for production, automotive assembly and testing, Shinning is capable of providing total services from initial design to ultimate production. Shinning has achieved the certification of ISO 9001 and ISO14001. According to the ISO9001:2000, Shinning has established a complete set of standard system of product design, technical process and production operation to insure its continuous satisfaction to the present capricious market.
 
     Situation
 
1. Management lag behind the fast-growing business
2. Current Kingdee K3 can’t meet the need of controlling the production
3. Order status can’t be supervised efficiently, so in time delivery is not secured.
4. Purchasing price is made by personal experience, without the reasonable price suggestion based on the abundant trade agreements and business record.
5. Much slow-moving inventory and dead inventory
6. Manual record of material batch number when delivering materials.
7. No forecasted purchasing collection date; material plan influence the accuracy of the plans.
8. Production plans mostly depends on manual work.
9. Multiple materials are connected to different BOM, which causes management confusion.
10. Complete corporate basic data and advanced management.
11. Business covers development, manufacturing, processing and trade.
12. Branches and resellers in Hong Kong, Guangzhou, Shanghai, Beijing, Wuhan, Xihan, Chongqing and Chengdu.
13. Parent company handles a variety of complicated businesses.

Solution
 
Early in 2004, Shinning started using a domestic ERP system to management their business. With the prompt development of the business, the original system fails to adapt to the new management requirement. So Shinning need a new powerful and more flexible system to improve the situation. 
Firstly, Shinning carefully analyzed their requirement. Based on the requirement, they approached all the software and finally decided to choose overseas software. After full research and comparison, they shrank their choices to SAP and Microsoft and finally, Shinning decided to choose ERP/ASP provided by Equilibrium. The decision is made based on the following consideration:
1. As a giant in the software industry, Microsoft pays much attention to product development. FY04 Financial Report shows that Microsoft investment in ERP development overwhelmed the total investment of HP, BEA, Siebel, ORACLE, SAP and IBM. With the strong technical investment, Microsoft Axapta not only added international management ideas into the software, but also perfectly adapted well to meet all the requirement of Chinese enterprises.
2. ASP provides application service by Internet. Shinning’s business data such as production, purchasing, sales and financial can be shared in the company by Internet. In addition, in ASP model, Equilibrium provides all-in-one services including system update, equipment maintenance, data management and even administrator training, so Shinning can shake of the troubles of IT management and meanwhile decrease IT costs.
3. Equilibrium’s mature implementation methodology and professional consultant team can guarantee the application success. Rich experience in ERP/ASP allows Equilibrium to provide professional after-service. Advanced facilities and management is the basis of data safety.

Conclusion
 
The ERP/ASP project of Shinning is most representative:
1. With application experience of ERP, Shinning can find out the key problems in their needs and so have clear criteria and demand.
2. Shinning expects to introduce international management theory by applying overseas ERP system to solve the pains in each business stage. Meanwhile, they are also afraid of the high risks in applying overseas software.
It means that the company has clear objective, but failed to find a feasible solution to meet their function requirement and cost standard.
Undoubtedly, for most enterprises in China, the ERP/ASP is a brand-new solution. With the increasing understanding to the ERP/ASP, and with the support from government, ERP/ASP application will surely lead a new informationization surge.