Toyo Packaging - ERP Case Study

EfroTechwww.efrotech.com EfroERP - Helping Toyo Packaging to be a Leader in the Packaging IndustryefroERPENTERPRISE RESOURCE OPTIMIZATION SYSTEM http://www.erp.net.pk/ PACKAGING

EfroERP - Helping Toyo Packaging to be a Leader in the Packaging Industry PACKAGINGToyo Packaging was established in 1989 and has emerged as one of the leading companiesin the Packaging Field of Pakistan. It specializes in production of all kinds of FlexiblePackaging Materials and Thermoforming Products.They offer a full range of specially formulated films to meet your packaging, printing and EfroERP -technical applications needs. And the expertise to guide you to the right film for your Helping Toyoproduct. Packaging to be aChallenges & Needs Leader in the PackagingToyo Packaging is a company that now relies a great deal on technology, they desperately Industrywanted to replace their legacy systems for technical gains and for business reasons that isimproving operational performance and efficiency, one of the many technical reasonsexisted including the replacement of disparate systems into a single integrated system andstrategically reengineering of business. In competition Toyo Packaging, unlike others, haslargely remained very unorganized and with rigid processes, as well as lacking qualitystandards and growth rate to establish itself as a leader in the packaging industry. efroERP ENTERPRISE RESOURCE OPTIMIZATION SYSTEMThe systems that the Toyo Packaging used were either manual or semi automated, somewheresubstandard softwares were also used, like they were using spreadsheets and packagedsoftware for accounting. They faced all kinds of issues, such as the lack of data integration,data duplication, uncontrollable work force, lack of department and employee-wiseperformance indicators etc, all of which are necessary to take timely decisions while runninga business. Managing stake holders, vendors, managing appropriate inventory positions,controlled manufacturing, were all becoming difficult. Taking on competitors and its ownexpansion was also emerging as a concern. The company thus felt the need to migrate all its manual processes to computerizedsystems in order to achieve better operational coherence and transparency.Solution: EfroERP, It’s all about EfficiencyThey came across various vendors and explored many customized packages, but nothingseemed to suit their requirements. After considering several mid-range ERP VendorsEfroERP seemed attractive compared to other available options, mainly because it is abusiness-process driven solution, suitable for a small and midsized business. They felt that 02 EfroTech www.efrotech.com EfroERP - Helping Toyo Packaging to be a Leader in the Packaging Industry

it could be very well configured and customized to meet their specific requirements relatedto packaging manufacturing. Also, since it bundles additional management-related modulesor functionalities like Production Operations & Control Module, human resource management PACKAGING(HRM) etc, it seemed like a perfect solution offering the flexibility for expansion requiredto scale up in the future. The cost was also comparatively attractive.Why EfroERP EfroERP - Helping ToyoWhile a number of vendors proposed implementation services to Toyo Packaging, EfroTech Packaging to be aServices clearly differentiated itself. The EfroTech approach included preparation for the Leader in thebusiness itself, for the regulatory and compliance elements of the solution, and for theunderlying technology infrastructure. Packaging IndustryBesides track record in the industry the other reasons were:* Mature package of industry-standard best practices for the diversified industries* Comprehensive solution appropriate to requirements and size of company* Strong integration capabilities** Prior experience with interfaces and process automation Built-in support and proven best practices for business processes efroERP ENTERPRISE RESOURCE OPTIMIZATION SYSTEM* Smooth integration with existing functionality* Strong references from other users, including other firmsEfroTech’s team assessed and validated their existing business processes and first & foremosthelped Toyo Packaging setting a roadmap possessed some key objectives to make thisinvestment pretty result oriented. These objectives were:Objectives* Implement a complete enterprise resource planning (ERP) system ASAP* Automate business processes according to industr y best practices* Remove bottlenecks in legacy system* Eliminate manual processing* Incorporate best practices in accounting, material requirements planning, purchasing, inventor y, sales, financial repor ting across the entire functions 03 EfroTech www.efrotech.com EfroERP - Helping Toyo Packaging to be a Leader in the Packaging Industry

The pre-implementation phaseOnce the EfroERP was selected, Toyo Packaging started making pre- implementation PACKAGINGpreparations. EfroTech’s team helped a great deal in this phase, the team suggested thatthey should opted for a modular implementation approach so that the financial implicationsalso get spread out, module-wise, the implementation started with the HR module. Whenone module was successfully implemented, more modules were added. This helped theemployees to easily get accustomed to the change. The implementation happened smoothly, EfroERP -due to the cooperation extended by Toyo Packaging. Adoption of industry’s best practices Helping Toyoand clear mapping of business requirements, in consultation with the EfroTech’s team, Packaging to be aenabled them to configure the ERP system appropriately. Leader in the As part of the implementation process, all the legacy data was imported into the newERP system, so that end-to-end integration and automation could take place. Packaging IndustrySummary of Implemented Modules:* TimeTr ax B iometric Atte ndance, Payroll Hardware & S oftware* EfroFinancials Financial Accounting System including GL, AP, AR, Fixed Assets & Project Costing* EfroHRMS Human Resource Management System** apeXell Sales & Distribution Management System EfroICVS Inventory Control & Valuation System efroERP ENTERPRISE RESOURCE OPTIMIZATION SYSTEM* EfroERP Manufacturing Planning & Control Suite* EfroPro – Production Planning module* EfroQA – Quality Assurance module* EfroPOC – Production Operations & Control ModuleAccelerating processes and reportingToyo Packaging has seen a whole lot of changes after implementing the EfroERP system,handling suppliers and streamlining inventory was a huge task earlier, which has becomesmooth now. There is also a best control on the work force. From finance through tomaterials requirements planning (MRPII), relying on a single store of shared data. Thesolution enables better use of existing resources with reduced manpower, and reducedtechnology management costs.MRPII is a key area for Toyo Packaging, which automates the ordering and scheduling ofingredients using bill of materials, inventory and master production data to forecast whichmaterials are required, when, and in what quantity.The sales and Distribution system enables them to have command on over all sales and 04 EfroTech www.efrotech.com EfroERP - Helping Toyo Packaging to be a Leader in the Packaging Industry

distribution activities including customer/distributor management, discount and bonuspolicies, creating forecasts and Sales orders, Dispatches, Invoice processing, Recovery,Advances, sales returns, Debit note/Credit notes, real time finished goods stock position PACKAGING& different types of reports & sales analyses for monitoring Sales & Distribution.Efro-ERP offers a comprehensive Quality Assurance module that allows Toyo Packagingto ensure that the quality requirements are being met within the manufacturing process asper the applicable Quality Management System and that the results are being recorded and EfroERP -processed. The Quality Assurance module incorporates company defined quality standard Helping Toyorequirements for incoming materials as well as processing of different products, tolerance Packaging to be alimits, allows for entry of quality inspection reports, compilation and generation of inspection Leader in theresults and reports, statistical quality analysis etc. PackagingThe Production Operations & Control (POC) module allows for detailed and real-time Industrytracking of a particular batch through every step of the manufacturing process and providescomprehensive functionalities for such departments as Granulation, Drying, Compression,Coating, Filling, Packaging, Labeling etc. The module also allows for the visibility acrossproduction operations to determine the level of resource optimization, tracking of progress,actual costs incurred, quality reports, WIP and material status etc.The integrated nature of the EfroERP has been a great problem solver for Toyo Packaging. efroERP ENTERPRISE RESOURCE OPTIMIZATION SYSTEMEarlier they used to spend so much time to collect data and little time left to analyze it.With EfroERP, all data is already in a consistent format, ready for analysis, and the EfroERPis capable enough of delivering reports with no interruption thus the result is lower businesscosts, improved information, and better business planning.Strategy enabled through technologyEfroERP solution allows Toyo Packaging to achieve true business process automation –streamlining many of the important day-to-day tasks across business, and freeing up staffto focus their efforts on more complex initiatives that require more personalized attention.This is not only boosting productivity and workers output, it is also dramatically reducingoperating and overhead expenses.EfroERP solution makes it easier for Toyo Packaging employees at all levels – from frontline staff members and team supervisors to senior managers and executives – to assesscompany performance and understand their impact on it.EfroERP solution enables effective objective setting, allows everyone to monitor progresstowards that goal. This makes Toyo Packaging far more agile by helping them quickly 05 EfroTech www.efrotech.com EfroERP - Helping Toyo Packaging to be a Leader in the Packaging Industry

identify problems in the business, and take immediate corrective action. EfroERP solutionis also empowering Toyo Packaging to be more responsive to shifts in the marketplace,quickly changing strategies to address new customer needs as they emerge. PACKAGINGBenefITs* Automated and integrated business processes, including human resources, supply chain, financial management etc. to achieve greater operational efficiency and EfroERP - effectiveness Helping Toyo* Productivity increase of at least 20% Packaging to be a* Decreased maintenance costs Leader in the* More reliable and accurate information enabling faster decision making* Better handling of compliance standards Packaging* Improved service levels with customers and suppliers Industry* Enterprise-wide visibility of operational information* Elimination of physical quarantine of raw materials and products* Improved planning and reduced planning headcount.* Reduced manufacturing inventory by 20 percent.* Increased competitiveness in pricing.* Provision of a modern and flexible platform to support business growth efroERP ENTERPRISE RESOURCE OPTIMIZATION SYSTEMFew Snapshots of EfroERP 06 EfroTech www.efrotech.com EfroERP - Helping Toyo Packaging to be a Leader in the Packaging Industry

PACKAGING EfroERP - Helping Toyo Packaging to be a Leader in the Packaging Industry efroERP ENTERPRISE RESOURCE OPTIMIZATION SYSTEM 07EfroTechwww.efrotech.com EfroERP - Helping Toyo Packaging to be a Leader in the Packaging Industry

EfroERP OverviewEfroERP, following the optimization framework ARROW by EfroTech is a fully integrated businesssolution that gives firms in various industries complete control over the planning and management PACKAGINGof all facets of their operations, including accounting, manufacturing and distribution.Contact UsHead OfficeAddress Suite # 301, Progressive Center, PECHS, Shara-e-Faisal, Karachi. EfroERP -Phone +92-21-34389620-2 Helping Toyo +92-21-32043020-1Fax +92-21-34389623 Packaging to be aEmail info@efrotech.com Leader in the PackagingLahore OfficeAddress 523-A, Faisal Town, Opp. Jinnah Hospital, Lahore. IndustryPhone +92-42-36115220Fax +92-21-34389623, +92-42-35164696Email lhr@efrotech.com efroERP ENTERPRISE RESOURCE OPTIMIZATION SYSTEM 08 EfroTech www.efrotech.com EfroERP - Helping Toyo Packaging to be a Leader in the Packaging Industry

Toyo Packaging - ERP Case Study

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