Workshop Program Evaluation & IT Application Situation for Hong - - PowerPoint PPT Presentation

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Workshop Program Evaluation & IT Application Situation for Hong Kong Enterprises

Hong Kong Productivity Council

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Research Objectives

• Investigate the current situation of IT and technology

applications in logistics, manufacturing and trading sectors

• Investigate how the training programs “Use of IT &

Automation Techniques in Logistics Services” held in 2006/07 help the participants to adopt IT applications for the enhancement of their operational efficiency; and

• Identify the critical factors affecting a broader adoption of

IT applications

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Research Methodology

• Random sampling on the participant list of the training

programs “Use of IT & Automation Techniques in Logistics Services”

• 20 in-depth interviews
• Discussion guide covers the following major areas:

– Workshop Evaluation and Suggestions – Current IT Application Situation – Challenges in Business – Future Plan on IT Application

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Research Findings Research Findings

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General Situation of IT Application

• Logistics industry applied quite a wide spread of IT

solution ranged from EDI / Bar Coding System to ERP / Freight Management System

• Manufacturing sector mostly used IT applications in

relative focus areas in ERP and Bar Coding System

• Logistics industry, as compared with manufacturing,

used mostly tailor-made IT solutions

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General Situation of IT Application

ERP CRM EDI WMS ACT DMS Manufacturing Trading Logistics Warehousing 5 4 1 1 2 2 1

• 1

2 3

• 2

2 3 3

• 1

2 1

• 1
• 1

BCS 3 3 2 2 FMS

• 3
• GPS
• 2
• TMS
• 3

ERP = Enterprise Resource Planning CRM = Customer Relationship Management EDI = Electronic Data Interchange ACT = Accounting & Finance WMS = Warehouse Management System DMS = Document Management System BCS = Barcode System FMS = Freight Management System GPS = Global Positioning System TMS = Truck Management System

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General Situation of IT Application

Standard Modified Tailor-Made Manufacturing Trading Logistics Warehousing 1 1 2 2 7 4 3 2 5 7 10 7

• 3

2

• Lease
• As compared with manufacturing sector, logistics and warehousing sectors seem to

prefer tailor-made solution to standard one with minor modification

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General Situation of IT Application

A v e r a g e R a n k

• n

S e l e c t i

• n

C r i t e r i a 1 . 7 3 . 1 4 . 9 3 . 4 5 . 5 7 . 1 4 . 9 5 . 6 1 2 3 4 5 6 7 8 A B C D E F G H

A = Functions & Features B = Reliability C = Technical Capability D = Price E = After-Sales Services F = Value-added Services G = Flexibility H = Brand

• Function and reliability are two most important selection criteria when local

enterprises select I.T. solution.

• Value-added services and brand are not too concerned as per respondent’s

comments.

Note : Rank 1 is the most important and 8 is the least.

Selection Criteria on I.T. Solution and/or Solution Provider Selection Criteria on I.T. Solution and/or Solution Provider

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Business Challenges

• Short lead time
• Supply chain transparency
• Demand on VMI vs Inventory Turn
• Trend on EDI / System Integration
• High product variety but small
• rder quantity
• Supply chain integration
• Short lead time
• Supply chain transparency
• Quick response to customer and

market

• Trend on EDI / System Integration
• High product variety but small order

quantity

• Comprehensive QC
• Pressure on cost reduction
• Supply chain transparency
• Supply chain security
• Quick response to logistics

requirements

• Trend on EDI / System Integration
• Integrated supply chain services such

as VMI

• Dilemma on technology application
• Growth of SKUs & repacking

requirements

• Supply chain transparency
• Quick response to logistics

requirements

• Inefficient data capturing method
• Trend on EDI / system integration
• VMI, JIT requirements

Manufacturing Manufacturing Trading Trading Logistics Logistics Warehousing Warehousing

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Trend on System Integration and Data Interchange

• Logistics service providers used ERP in their warehousing
• perations in order to establish a better external system integration

with their manufacturing customers and support some value-added service activities such as VMI

• EDI application for order and shipment instruction processing was
• n demand, but less DTTN application because of:

– Price issue – Insufficient business partners with DTTN applications – Overseas clients not using DTTN

• Internal system integration was also popular and the most common

system integrations were accounting and business operating systems

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Difficulties and Concerns on IT Application

• Difficult to know what kind of technologies they needed

and which IT service provider was the most appropriate

• ne for their business operations
• High risk to apply IT solution
• Product brand was not the most important selection

criteria but functions and features. The next in priority were reliability and price.

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Future Plan on IT Application

• Empower WMS functions
• Strengthen data capturing capability

for stock in/out

• Strengthen MIS function with their

ERP system

• Strengthen EDI capability
• Market intelligence
• Strengthen EDI capability and consider

DTTN

• Explore Net-Meeting solution
• Strengthen WMS solution for an

effective SKU management

• Explore Knowledge Management

solution for merchandising

• Explore integrated solution for WMS /

FMS / TMS

• Apply ERP for WMS / VMI purposes
• Automate data capturing process for

stock in/out

• Strengthen EDI capability
• Strengthen data capturing capability

for stock in/out

• Strengthen WMS functions
• Enable information accessibility for

customers

• Explore TMS and optimal routes

determination solution for fleet management

Manufacturing Manufacturing Trading Trading Logistics Logistics Warehousing Warehousing

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Workshop Evaluation and Suggestions

• Helpful in keeping participants abreast with the new

technology development trend;

• Good in knowledge and experience sharing;
• Helpful in strengthening confidence in using new IT

solutions and sharing of the IT market information with

• thers

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Impact of Workshops on Participants

• 55% of samples studied were reported to initiate new IT

solution implementation after joining the workshop

• program. Respondents were to:

– Consider DTTN connectivity with ERP solutions; – Consider DTTN applications for EDI; – Consider On-Board Trucking Information System (OBTIS) applications for fleet management; – Plan to conduct feasibility studies on RFID application and replace the existing bar coding system; – Strengthen their confidence to apply WMS in the coming year; – Help to select a new ERP solution and fit for participant’s business operations.

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Recommendations

• Areas of improvement for workshops if this program was

to be conducted again in future:

– Segmentation of participants – A specific topic for a specific industry sector – Analytic elements in workshop – More experience sharing sessions – Experiences on IT applications for China market development

• Develop an Logistics IT solution directory on fact-based

information about the various logistics IT solutions in

• rder to reduce IT application risks and encourage more

companies to adopt IT solutions.

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Recommendations

• An Industry-wide User Requirement Study be carried out

to determine actual user requirements for dissemination so that all solution providers could design their IT products best fit for most end-user’s operation needs.

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Thank You Thank You