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LEADING e-Fulfilment Business Process Outsourcing (BPO) solution provider in Asia, SnT Global Sdn Bhd has been appointed to provide innovative outsourcing services in logistics management to CNI Holdings Bhd, a major multilevel marketing company in the country.
Under the agreement, CNI has invested approximately RM3.5mil on the Enterprise Resource Planning (ERP) and Logistics Outsourcing.
The ERP is an integrated business system that provides real-time information flow between companies within the CNI Group.
The system involves the enhancement of CNI's financial and management accounting system, treasury system, materials management, sales and distribution processes, production planning, plant maintenance as well as quality management processes.
The ERP project was awarded to an MSC-status company, ISS Consulting Group, a management and technology consulting firm specialising in the implementation of SAP and SAP-related products including E-commerce.
SnT Global chief operating officer Aaron Lim said the company would also provide comprehensive logistics services to CNI, which include warehousing, pick-pack, merging, reporting and distribution supervision.
"Our outsourcing services will be managed by CNI via KPIs and service level agreement,'' he said.
Lim said in taking the bold step, CNI would benefit from distribution savings, greater control of the business, customer service and satisfaction improvement, financial leverage, free-up management, best practices and improved business process and reduced cost and advanced technology.
He said it was important for Malaysian industrial players to be supplied with continuous solutions and empowered by new technology to face globalisation and market liberalisation challenges.
Lim said many of SnT's core BPO services concentrated on three key areas of managing the whole supply chain, namely the contact service centres, lead logistics management and after market management services.
He said SnT had developed a unique BPO delivery model for CNI to enhance its supply chain resulting in greater customers' experience and positive financial benefits.
The service provisioning is enabled by in-house developed logistics management solution appropriately named, Hosted e-Logistics Platform (HeLP).
This solution provides systematic distribution planning & optimisation, warehouse storage planning, execution, freight management, order management and reporting functionalities necessary to meet the challenging demand of today's logistics industry.
CNI executive director Sam Cheong said the project would replace CNI's core operational IT systems with the ERP for the entire group.
"This advanced management information system integrates and automates many of the business processes associated with the group's operations, production and distribution aspects via a cross functional and enterprise wide system.
"It combines all separate departmental systems together into a single, integrated software programme that runs off a single database so that the various departments can easily share information and communicate with each other,'' he said, adding that SnT was chosen because their logistics service offerings were well matched with CNI's operational needs.
Cheong said that the availability of real time information in the daily business was crucial to the company's performance, adding that this would enable CNI to manage all aspects of its operations in line with its growth targets.
He also said that the group initiated the System in year 2005, it is expected to be fully implemented in the 3rd quarter of this year.
"The outsourcing of our warehouse and distribution activities permits CNI to minimise any unnecessary capital investment, freeing up cash to invest in developing our core processes,'' he said.
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