4-page Case Study
Posted: 11/2/2009
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Able Enterprise

Malaysian Distributor Boosts Decision-Making with New Accounting System

Able Enterprise is based in Kuala Lumpur, Malaysia, and is a distributor of gift items and household goods. The company had been using a DOS-based accounting system since it was founded in the early 1990s. However the company had grown rapidly in recent years and the accounting system had not been able to keep up. Able Enterprise found that month- and year-end accounting procedures were negatively impacting the business, and decided to find an alternative solution. After reviewing several options, Able Enterprise decided to deploy Microsoft Dynamics® GP due to its extensive functionality and in-depth reporting capabilities. With Microsoft Dynamics GP, Able Enterprise has benefited from greater visibility of company operations which helps to improve decision-making. The company’s financial data is more accurate and the number of manual processes has reduced along with the risk of errors.

Situation

Based in Kuala Lumpur, Malaysia Able Enterprise (M) Sdn Bhd is a distributor of consumer and premium gift products. Founded in the early 1990s, it began with the distribution of gift items before expanding its product range in later years to consumer products including household items, electrical and information technology (IT) products.

Able Enterprise also supplies personal computers and motorcycles to military personnel through a tie-up with armed forces personnel co-operative. The company generates about 20 million Ringgit (US$5.84 million) in revenue annually and has about 20 employees.

Since its inception, the company had been using a DOS-based accounting system. However the system could not keep pace with the company’s rapid growth over the years and staff began to face serious challenges which caused significant disruption to the business.

Josephine Siew, General Manager, Able Enterprise, explains: “This included relying on an application where the accuracy of information was sometimes in doubt, using manual and inefficient work processes, and having limited functionalities and reporting capabilities.”

One of the major impediments of the old system was the interruption to business caused whenever the accounts department had to close the monthly accounts or when completing the annual stock check. “During the closing of monthly accounts, we had to halt transactions such as issuing of delivery orders (DOs) and invoices, and generating reports, for several days. While during the annual closing of accounts and stock check, transactions were halted for up to a week,” explains Siew.

“This meant that no deliveries were made as we could not print DOs and invoices. This certainly disrupted the flow of our business,” she adds.

Nelson Yong, Deputy Managing Director at Able Enterprise says: “After the annual closing of financial accounts and stock take, Able Enterprise had to wait for the systems integrator to come in to perform a reconfiguration of the accounting system for the new financial year.” The service delivered by the solution’s service provider also did not meet Able Enterprise’s requirements.

After 15 years, the previous system had outlived its usefulness and we decided we had to upgrade to a more efficient and accurate system Josephine Siew, General Manager, Able Enterprise

“After 15 years, the previous system had outlived its usefulness and we decided we had to upgrade to a more efficient and accurate system,” adds Siew.

Solution

Able Enterprise’s management undertook an extensive evaluation of various solutions. “We didn’t want to be restricted by a solution which forces us to stop work whenever we close our accounts. We wanted a new system which provides more up-to-date reports, reminders and alerts, and performs in-depth analysis,” says Siew.

The solutions Able Enterprise looked at included locally developed offerings, an updated Windows version of its previous system and Microsoft Dynamics® GP.

As they were impressed with the extensive range of functionalities, in-depth reporting capabilities and reliability, Able Enterprise’s management team decided to deploy Microsoft Dynamics GP. Yong adds that the ready availability of technical support from the large eco-system of partners and the stability and world-class branding of Microsoft convinced the company Microsoft Dynamics GP was the right platform for Able Enterprise.

Having the right systems integrator was also a key consideration, as Yong explains: “Once you engage a systems integrator, you are virtually married to them for the long term.” The company appointed ML IT Partners Sdn Bhd, a Microsoft Certified Partner, to implement the solution.

ML IT played a crucial role in helping Able Enterprise build the comprehensive chart of accounts in conjunction with the Microsoft Dynamics GP system. “This was a very important undertaking and took several months. Building a good structure or foundation enables us to easily cater to our future growth, especially when adding new product lines. ML IT did a great job in helping us with this,” affirms Yong.

The solution runs on Windows Server® 2003 and Microsoft® SQL Server® 2005 Standard Edition and interfaces with Microsoft® Office 2003. The modules deployed were accounting, accounts receivables, accounts payable, general ledger, supply chain management and distribution.

Benefits

Supports Decision Making

Using Microsoft Dynamics GP, Able Enterprise can efficiently process financial data and generate financial reports on a timely basis. Under the previous solution, the accounts department could be delayed by up to three or four months when closing the monthly financial accounts.

“With Microsoft Dynamics GP, we have eliminated that backlog and are now current in our closing of financial statements. The system effectively provides real-time information and we can immediately close our accounts at month-end, and within two to three days we are able to finalize the financial reports,” says Siew.

This provides the management team with current information on the financial health of the company, allowing the team to make timely and strategic business decisions. “The financial reports are very important to the company, and now with Microsoft Dynamics GP, we have up-to-date and accurate information,” Siew says.

Provides Visibility

Not only does Microsoft Dynamics GP provide Able Enterprise with a real-time overview of the financial health of the company, it also gives in-depth visibility into virtually every area of the company’s operations.

“With Microsoft Dynamics GP, we now have powerful drill-down capabilities. For example, we can drill down through an invoice, down to the individual products, and even to see the margins of each product with just a few clicks of the mouse.

“This drill-down functionality is very detailed and powerful as it unveils the source of the transaction. So if I feel that something is wrong with my gross margins, I can look at every single transaction and can identify a questionable transaction, or the source of the problem,” says Yong. Previously, the company could only get such detailed information by analyzing a mountain of paperwork.

In addition, Microsoft Dynamics GP also allows management to easily determine the profit margins of individual departments as well as sales people. “It really helps the sales manager to monitor what his department is actually selling. And when we do our budgeting now, we have detailed information on which to base our decisions. It certainly helps the management to plan better and make better decisions,” says Yong.

Ensures Accurate Data 

One of the major problems the company faced with the previous solution was data corruption and this severely affected the management’s confidence in the accuracy of the system. “Data corruption would happen two to three times a year. We used to ask ‘Can we trust the figures?’ That was difficult because our management could have not full confidence in the system,” says Yong.

However, information derived from Microsoft Dynamics GP has consistently proven to be accurate and reliable. Able Enterprise how has confidence that the accounting department can support the group’s business initiatives and growth.

Reduces Manual Processes

With Microsoft Dynamics GP, our existing accounting resources remain the same but we can do much more. We don’t need to employ new accounting staff whenever we set up a new subsidiary, and so this is actually providing cost savings Nelson Yong,               Deputy Managing Director,                       Able Enterprise

“Under the previous solution, there was much double entry of data. This meant a lot of wasted man-hours because of the inefficient and manual processes. Not so with Microsoft Dynamics GP. By eliminating the need for double entry, it helps reduce errors which arise from re-keying information,” says Yong.

Given the rapid growth of Able Enterprise in recent years, the company would have had to increase headcount to cope with the business expansion under the old accounting system. “With Microsoft Dynamics GP, our existing accounting resources remain the same but we can do much more. We don’t need to employ new accounting staff whenever we set up a new subsidiary, and so this is actually providing cost savings,” adds Yong.

Improves Accountability

The audit trail feature in Microsoft Dynamics GP means the company can easily keep track of transactions and identify mistakes or possible fraudulent activities.

Previously when a shortfall was discovered during a stock check, it would be difficult to identify which department the issue originated in. “But with Microsoft Dynamics GP, we can see what went wrong and determine which party was at fault. Previously, we had to go through a lot of paperwork, document by document. Now, with the audit trail capability in Microsoft Dynamics GP, this task is a breeze,” he adds.

Yong and Siew say that Microsoft Dynamics GP was the right choice and has positioned the group for greater expansion in the coming years. The group has already rolled out Microsoft Dynamics GP to several of its subsidiaries, and intends to deploy it to at least three to four new subsidiaries later in 2009.

Microsoft Dynamics

Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systems that your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.

For more information about Microsoft Dynamics, go to: www.microsoft.com/dynamics

For More Information

For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com

For more information about ML IT Partners products and services, call +603 9058 8843 or visit the Web site at: www.mlit.com.my

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

Document published November 2009