THE convergence of information and communications technology (ICT) has influenced the productivity, management, quality and efficiency of the local textile and fashion industry.

ISS Consulting Indonesia’s integrated software solutions country manager Sanjay Nair says the globalisation of the marketplace has brought a new set of challenges to the textile and fashion industry worldwide.
The challenges, he adds, include mass customisation, resource optimisation, data warehousing, trade methodology and communication infrastructure to maintain competitive advantage.

“Competitive advantage is becoming increasingly dependent on knowledge and intangible asset management both within and between companies,” he says.

According to Sanjay, in terms of ICT awareness, the textile and fashion industry is still fairly elementary. “Mostly it is influenced by the size and financial achievement of the companies,” he says.
Sanjay points out that the primary applications of ICT usage in the textile and fashion industry are still confined to the standard data processing and administrative areas.

“It has not yet found widespread use in the areas of design, manufacturing, online control, integrated production control and management, and management information systems,” he says.

ISS Consulting (M) Sdn Bhd’s managing director Harald Weinbrecht says those having strong textile trade interests hold the view that the process of transition to a globalised textile trade will set off intense market pressure on all. “To cope with this, it is necessary that the textile economies collectively build an orderly and predictable competitive market,” he adds.

Weinbrecht says a recent study cited that garment buyers, middlemen and suppliers are just beginning to come to grips with the changes that will take place in the quota-free world of post-2005.
“It was suggested that retailers must change to ensure they get the lowest costs. Garment import and export agents must define a new role for themselves,” he says.

Supply chain. These changes, he adds, will inevitably bring retailers and the suppliers closer together, where only two will eventually exist in the supply chain.

“There will be no agent, importer and distribution costs, thus resulting in considerable cost savings to the consumer.”

Hence, the most urgent need with respect to ICT solutions in the textile and fashion industry is to achieve consistency among all the economic actors involved (suppliers, customers, etc) so as to have a coherent information system.

Weinbrecht says the introduction of ICT into the manufacturing process industry has become imperative in the present day to achieve the goals of high quality, efficiency and productivity needed to stay abreast and compete in today’s borderless economy.

“ICT has, at present, emerged as a base for global competitiveness. The adoption of an ICT structure that integrates the internal systems of an organisation with those of partners, suppliers and customers will become a prerequisite for survival in a fiercely competitive and ever-changing global marketplace.”

Weinbrecht says with electronic commerce (e-commerce) and effective knowledge management, many opportunities await the textile and fashion community.

For example, e-commerce enables a reduction in purchasing expenses (it has been estimated that it could reduce buying costs by as much as 20 per cent). E-commerce will also provide improvements in logistics and stock management, he adds.

“It also brings mass customisation and the possibility of being able to interact directly with consumers and create garments that accurately meet their personal requirements,” he says.

Finally, it increases flexibility and speed in the establishment of industrial partnerships, networks and innovation.

Overall, Weinbrecht expects ICT to play a key role in reshaping the textile and fashion industry and its markets.

“It will continue to evolve, becoming more and more powerful and less expensive, enabling higher quality, productivity and cost savings,” he says.

In view of the rising global competition, textile and fashion companies will have to embrace the new competitiveness criteria – speed, flexibility and innovation.

Megachem Pte Ltd began its operations in 1988 as a specialty chemical trader. The company is an exclusive distributor of several chemical products produced by key manufacturers such as Ajay Fine Iodine Industry, FMC, Lyondell Chemical, Polyurethane and Tosoh Corporation in Asia. Megachem distributes over 2000 types or grades of industrial specialty products.

Its product range covers diverse industries including: Paints/Coating/Inks; Photographic; Electronic; Polymerisation; Rubber/Plastic Compounding; Construction; Food and Beverage; Pharmaceutical; Industrial Cleaning; and Water Treatment. Singapore is the head office serving the region. Megachem has operations in Asia, the Middle East and Europe.

To ensure quick and on time delivery, the company has invested in a 46,000sq.ft warehouse to hold its stock. In addition, the regional offices also carry stock and possess similar logistic personnel and warehousing facilities to serve their own customers.

The company has a total staff strength of 90 and its group turnover is S$57 million.

Megachem maintains its competitive edge by investing substantially in the various processes which include research and development, manufacturing and logistics. For example the company uses an automated racking system which helps to reduce the delivery lead time.

To enhance the quality of its products, the company continuously engages in R&D. Its laboratories are equipped with the latest instruments.

In recognition of its exacting standards, the company has received several awards. One of this is the ISO9002 Certification which it received in 1999.


Foray into IT
Megachem made its first investment in IT in 1996. To date the company has invested about S$2 million in its IT system. It opted for IBM AS/400 and FAMAS software to establish a company-wide integrated computer system.

According to Lim Chin Kai, General Manager of Megachem Pte Ltd, the company decided to upgrade to SAP ERP system in 1998. Installation began in 1998 and went live in January 1999.

Lim explained the reasons for selecting the SAP system, "The greatest advantage of the SAP solution is the tight integration of the different modules and its rich functionality. The enterprise system can yield information which can be shared among all departments in real time. We also find the software very user friendly."


SAP R/3 system
Incorporating the Accelerated SAP methodology, the project was completed "much faster than expected," said Tee Khee Joo, IT Analyst (SAP R/3). The system was rolled out in the head office within 15 weeks and according to the budget and time frame allocated. The system was implemented in five phases by a team comprising external consultants and staff of Megachem. According to Tee, the company selected sales and distribution, material management, controlling and financial accounting modules.

The sales and distribution module facilitates daily sales and customers support as well as provides key functionalities such as pricing, prompt for order processing, on-time delivery, interactive variant configuration and direct interface to profitability analysis.

The material management module optimises purchasing processes with workflow driven processing functions. Tee explained, "It enables us to have automated supplier evaluation, lowers procurement and warehousing costs with accurate inventory and warehouse management, and integrates invoice verification."

The controlling module offers a complete array of compatible planning and control instruments with uniform reporting system for coordinating the contents and procedures of the company's internal processes.

With the financial accounting module, the accounting staff can gather the data required easily as it provides complete documentation and comprehensive information.

Lim explained that with a common platform, they could reduce redundancy, increase productivity and enhance their competitive edge. The company also depends on its internal staff to maintain the system.


Overseas implementation
Eight months after the successful roll out in Singapore, the system was implemented in Malaysia.

Tee added, "We have also successfully rolled out the same project in one of our subsidiaries in China last year. We are preparing to roll out the project to Indonesia this year and subsequently to other subsidiaries the following year. We work closely with our telco to establish a reliable and cost-effective network solution to link up all our subsidiaries electronically. We are also looking into new technologies and infrastructures in the current market which can offer us more value and commitment in long term goals and operation."

Besides implementing the system in their overseas subsidiaries, Lim explained that the company is in the process of implementing B2B transaction which is targeted to go live in the third quarter of this year.

FOR IMMEDIATE RELEASE

Jakarta, 10 July 2002-Trisula Corporation, a leading Indonesian garment manufacturer for the national, regional and international textile and fashion market, together with PT ISS Consulting Indonesia, a premier provider of mySAP implementation services, announced the successful stage II expansion of Trisula's SAP R/3 capabilities to its subsidiary, Trisula International (TI).

'Trisula Corporation recognises the potential of IT as a catalyst to provide the strategic innovation and advantage we needed to excel in the textile and fashion industry', highlighted Herman Widjaja, Marketing Director. 

Therefore as Trisula International confronts an increasingly competitive market environment, they have expanded their e-business capabilities to include the following critical core SAP R/3 business applications: Financial Accounting (FI), Controlling (CO), Material Management (MM) and Sales & Distribution (SD)-further enhancing Trisula's e-business capabilties.

'This is another example of Trisula's strategic vision - dubbed Global Vision 21 -- to become a fully integrated enterprise, covering every upstream and downstream activity from spinning to apparel retail' added Herman Widjaja. 

Mr. Ludi Florijanto, Project Manager, credits the success of the project to key team members from within Trisula's SAP Project Team codenamed 'P777-Ph2' as well as their implementation partner ISS consulting, 'ISS Consulting has certainly exceeded our expectations by successfully facilitating the entire project end-to-end from account management to project delivery'.

'ISS Consulting is committed to providing our clients with the 'perfect experience' during their SAP implementation by ensuring not only the successful adoption of standard SAP functionality but also ensuring knowledge transfer and creative business improvements during the entire implementation process' added Sanjay Nair, Country Manager PT ISS Consulting Indonesia.

Harald Weinbrecht, CEO of ISS Consulting added, " the successful Trisula implementation is another example of ISS Consulting's unwavering committment to growing our practice by building partnerships with our customers and working jointly with them to improve their business environments"

There is sure to be more innovation to come in the near future as Trisula Corporation and ISS Consulting continue to discuss additional ways to deploy other New Dimension Applications (NDA's) within mySAP to ensure that Trisula expands its e-business technology advantage over its competitors. 

About Trisula Corporation
The Trisula Corporation is a privately held textile company that was founded by Tirta Suherlan in Bandung in 1968. Since its inception, the group has grown from a 10-employee company into 16 textile, garment and apparel companies with an international presence that employs more than 6,000 people. Trisula Corporation has manufactured products for markets in every major regions of the world. Trisula's corporate mission in the 21st century is to continue to provide Quality, Care and Committment to its customers. For more information, please see: www.trisula.com


About ISS Consulting
ISS Consulting is a management and technology consulting firm specialising in the implementation of SAP and SAP-related products including E-commerce. ISS Consulting was founded in Asia Pacific in September 1997, by a group of highly experienced SAP Consultants, with a combined effort of 29 years design, development, implementation and support of SAP products. ISS Consulting has more than 100 SAP Consultants who have completed over 50 implementations in 11 countries in the Asia Pacific region. ISS Consulting currently has offices in Malaysia, Singapore, Thailand and Indonesia. Visit us at www.iss-consulting.com


About SAP 
SAP is the world's leading provider of e-business software solutions. Through the mySAP.com® e-business platform, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains. Today, more than 17,000 companies in over 120 countries run more than 44,500 installations of SAP® software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP." (Additional information at www.sap.com

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