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Siber Hegner Limited

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					                                     Success story

R/3® System                          Siber Hegner Limited
Trading




Established in 1865, Siber
Hegner has developed into a
worldwide marketing organisa-
tion covering the raw & indus-
trial materials, technology and
consumer goods. From its
establishment, Siber Hegner has
operated successfully in the Asia
Pacific region.
To build on its unparalleled track
record, especially in the Greater
China region, senior manage-         Spearheading the market                                    colour codes to access the right product, as data input
ment recognised the value of         Prior to the adoption of SAP’s R/3, Siber Hegner’s         was limited. This made it extremely difficult to
                                     information system environment was highly                  monitor products such as hosiery, which had various
investing in integrated software     fragmented. There were two concurrent systems in           product codes for colour, style, size and material. To
providing market intelligence        place, IBM S36 hardware, running two separate              produce efficient order processing, it was clearly
                                     software packages within the organisation. A big           necessary to upgrade our software technology to
information for decision-making.     difficulty was a lack of in-house expertise to manage      create greater viewing flexibility and allow us to
                                     the two systems. The dissemination of financial            access the latest information such as inventory and
Today’s top brands marketed by
                                     reports used for business analysis and query purposes      delivery status of each product. Our goal is to provide
Siber Hegner include Ebel, Lindt,    was also a constant headache for the company.              total customer satisfaction, that is why we chose SAP’s
                                     Reports generated from branch offices could not be         R/3,” said Mr Thomas Lee, Chief Financial Officer,
Ricola, Trumpf and Malvern           transferred electronically to Head Office. Instead, hard   Siber Hegner Limited.
Instruments. Last year in Hong       copies were sent and staff would be assigned to input
                                     the data again. This was very time-consuming and           “Undoubtedly, SAP’s R/3 system is
Kong, its 250 employees gener-       therefore a waste of resources. R/3 was designed to        the key to the success of our
ated sales worth HK$550              overcome the limitations of organisational or              organisation. It has enabled us to
                                     geographical boundaries. All business processes are all
million.                                                                                        maintain our competitive lead in the
                                     integrated together. Employees could access the right
                                                                                                market place through a combination
                                     information and documents on a real-time basis at
                                     their desktops. Today, financial reports can be created
                                                                                                of innovative technology and a
                                     and viewed real-time throughout Siber Hegner’s             skilled workforce to take us
                                     regional network.                                          forward.”
                                                                                                 Mr Thomas Lee, Chief Financial
                                     “Our old system did not allow staff to type in style/      Officer, Siber Hegner Limited
To maintain leadership in the market, Siber Hegner                       was clear that SAP R/3 technology combined with our                      processes as the corporate standard. A team of three
relies heavily on identifying the best brands and then                   skilled workforce would meet our objective.”                             managed the implementation and the project took
marketing them to the best of its ability. Through a                                                                                              only 6 months to complete. SAP consultants were on
combination of human intelligence coupled with the                       “R/3 system is an open software which could run                          hand to provide support when required. Thanks to top
latest software technology, the company’s mission is                     relational databases without being tied to any                           management support, a strong and specialised Siber
to serve customers better. Siber Hegner attributes its                   proprietary host system. R/3 works seamlessly with a                     Hegner implementation team, and the close attention
business success to investments based on SAP’s R/3                       variety of systems and applications. It helps to                         of SAP project consultants, the project went smoothly
system. With the solution, Siber Hegner can link its                     enhance our competitiveness and speed-up time to                         and met the deadline on time and on budget.
sales operation and finance department together. The                     market. R/3 satisfied that need and was also easy-to-
major benefits stem from R/3’s integration.                              use,” said Mr. Lee.                                                      Return on Investment
Integration allows a much improved information flow                                                                                               For a company, which is focused on personnel
throughout the company, and customer requirements                        “The decision to go with SAP was easy, they have a                       productivity, Siber Hegner is delighted with the results
are identified and met quickly.                                          worldwide reputation, innovative technology and,                         of SAP’s R/3. The greatest benefit has been the
                                                                         provide excellent support services. Our staff were                       reduction of the cash-receivable cycle by approximately
                                                                         concerned that they would not be able to use the                         10 days. “The technology has given us a real
                                                                         package, but with comprehensive training provided by                     competitive advantage. We are achieving faster order
                                                                         SAP, and easy-to-follow instructions on screen, the                      processing, speedier delivery and quicker customer
                                                                         transition to R/3 became seamless and was quickly                        response. We are now meeting the 24-hour customer
                                                                         accepted by our staff.” he continued.                                    delivery target and can also access the latest inventory
                                                                                                                                                  status in real-time unlike the earlier system which only
                                                                         Ease of Implementation                                                   offered a batch process update,” said Mr Lee.
                                                                         The software system was implemented in August
                                                                         1996 for consumer goods division with four modules                       Identifying and marketing niche product groups is a
                                                                         adopted Financial (FI), Controlling (CO), Sales and                      continuing challenge for Siber Hegner. And it was
                                                                         Distribution (SD) and Materials Management (MM).                         SAP’s R/3 system that was chosen to fulfil Siber
                                                                         SAP R/3 system has over 100 ready-made business                          Hegner’s demanding business analysis requirements.
                                                                         scenarios and 1000 business processes from a host of
Business simplification with R/3                                         industries. R/3 allows Siber Hegner to profit directly                   The successful local implementation of R/3 has
Having thoroughly evaluated a number of software                         from business know-how and the best business                             prompted Siber Hegner to consider extending it to the
systems, Siber Hegner regards R/3 as one of the                          practices of leading companies. Since the SAP model                      PRC, Taiwan and Singapore. It has set its sights on
most comprehensive business software packages in                         was compatible with Siber Hegner’s existing                              standardisation of operations throughout Asia so that
the market. R/3 supports and simplifies company-                         operations, the organisation adopted the SAP business                    information can be shared - a strategic tool for
wide business processes through real-time integration                                                                                             business success!
and yields significant benefits. The availability of real-
time data allows management to make fast decisions                                                                                                Technical Specifications R/3 system
and, to capture new market potential. With this                                                                                                          R/3 Modules
strategic tool, Siber Hegner is able to achieve higher                                                                                                       FI      Financial
growth rates with confidence.                                                                                                                                CO Controlling
                                                                                                                                                             SD      Sales & Distribution
Said Mr. Thomas Lee, “We searched the market for a                                                                                                           MM Materials Management
solution that best suited our needs. One that would
deliver ‘business simplification.’ Our goal was to                                                                                                       Hardware : 2 IBM RISC/6000 Servers
                                                                                                                                                                                                                        (9806/11) SAP and R/3 are registered trademarks of SAP AG




streamline our business processes to ensure a more                                                                                                       Operating System : AIX Version 4.1.5
timely response and efficient order processing time. It                                                                                                  Database Administration : Oracle Version 7.1.6



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