Pan-star Wood Industries Pte Ltd
Belief in IT pays dividends.
Company Background
Pan-star Wood Industries Pte Ltd was set up in 1973 to produce simple dining sets and kitchen cabinets for the domestic market. Over the years, the company made significant expansion through organic growth, achieved with the development of sales channels and increase in product line and manufacturing capacity.
Having established itself in the local market, Pan-star started to explore and export its products to overseas markets in 1978. Within 10 years, it has developed an established base of customers in the Eastern Europe.
Pan-star also expanded its manufacturing capacity through setting up of factories in Malaysia and the use of the latest machineries to produce complementary products such as wall units, wardrobes as well as customized furniture sets for furnishing projects.
Today, Pan-star is one of the market leaders in the local furniture industry with active participation in local and overseas trade exhibitions. The company is also listed in the website of IE Singapore (International Enterprise Singapore, formerly known as TDB) as one of Singapore’s top importer/exporter.
Management Foresight
Pan-star first began computerization in 1986. Ms. Ann Kang, the General Manager of the company strongly believe that IT can bring about efficiency and has actively pushed for computerization of its operation despite objections from its staffs.
In 1998, Ms Ann Kang signed up the company as a pilot user under the Furniture IT Project initiated by Singapore Productivity and Standards Board (PSB) to implement the e-Solution Business suite as an integrated solution for companies in the furniture industry.
Business Challenge
Prior to implementing the e-Solution Business suite, Pan-star was using a DOS-based program implemented in 1994 for inventory and accounting functions. The main issue with the program was that it does not come with product assembly module to cater to Pan-star’s manufacturing activity. Pan-star ships in finished components from its factories in Malaysia and assembly them in its Singapore factory in order to reduce its freight cost. It thus requires a light-manufacturing module to cater to this part of its operation.
As a furniture retailer, Pan-star has several standard sets, e.g. dining sets and wardrobe sets for display and sales. Customers may purchase these sets or change some of their components. Pan-star needed the system to allow change of component when entering orders without changing the original set.
Just like many DOS-based program, Pan-star was unable to obtain up-to-date information until it has completed its month-end processing. Additionally, the company faced the Y2K issue, as the program wasn’t Y2K compliant.
Integrated Solution
The e-Solution Business suite allowed Pan-star to automate its item assembly function with its integrated assembly module. Pan-star no longer needs to manually adjust stock quantity to reflect consumption of raw material, reduction in component quantity and increase in finished product. The program also includes absorption of overheads in assembly process to provide more accurate product costing.
The kitting feature in e-Solution Business suite’s inventory allows Pan-star to define its standard furniture sets. According to customer’s preferences, users are able to change the components of the sets during order entry. Back-end staffs then pick and deliver the furniture based on the components shown in each order to avoid errors. For each order, the components of set furniture can be printed on the delivery orders and invoices to correctly identify them.
With e-Solution Business suite, Pan-star’s Y2K issue was dissolved. It is now able to obtain up-to-date reports on its inventory, accounts as well as sales anytime as the system is able to produce preliminary reports before the account entries are checked and posted. This has provided management with better control over the business, as they are able to closely monitor key performance areas to identify symptoms of poor performance.
Pan-Star manufactures high quality and tastefully designed furnitures.
Financing
Pan-star claimed part of the IT investment cost from the government under the Local Enterprise Assistance Scheme (LETAS) upon completing the project. This scheme is designed to help Pan-star and other qualifying companies defray the cost of their IT investments. Qualifying companies can claim up to 70% of the stipulated costs under the scheme.
For more information about Panstar Wood Industries Pte Ltd, please visit www.panstarwood.com
Pan-star Wood Industries Pte Ltd
18 Sungei Kadut Street 6
Sungei Kadut Industrial Estate
Singapore 728863
Tel: (65) 6269 2211
Fax: (65) 6368 8855
Overview
Company:
Pan-star Wood Industries Pte Ltd
Industry:
Furniture and Furnishing
Business Activities:
Manufacture, export, wholesale and retail household furniture.
Business Challenge:
1. Automate product assembly.
2. Handle definition of furniture set and allow changing of components.
3. Need for up-to-date information.
4. Y2K issue.
Solutions Implemented:
Financial Management
Distribution Management
Program Used:
e-Solution Accounting
e-Solution Distribution