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Case Study – Wholesales Distribution

Updated: Oct 10, 2022

Lian Wang Trading Pte Ltd is a leading provider of bricks, tiles and other construction materials to the local, regional and global market. It is established in 1992 and is one of the few distributors in Singapore who has a large yard to store supplies so as to ensure their clients constant supply.

Lian Wangs current system is aging, disparate (finance and operation systems are separate) and cannot cope with the increasing volume of business. At the same time, it has become increasingly important to look into internal controls as well as mistakes made due to rising volumes of business.

Business Challenges

  • Difficult to track project contract quantity, balance quantity and contract pricing in current system. Users may quote wrong price resulting in losses for company. Users may also continue to quote lower price (due to project) when the agreed quantity has been completely delivered resulting in lower profit margin for company.

  • Due to high order volume, some deliveries are delayed. Currently, overdue deliveries and reasons are not tracked in system. Results in customer complaints.

  • No real time visibility on stock status across various warehouse locations delays delivery process.

  • Need to duplicate data from operational system to accounting system as they are separated. This practice creates a potential problem of traceability from financials to source transactions as well as mistakes during entry.

Expectations and Objectives

  • To implement an integrated new system which will streamline financials and operational process all in one to improve productivity.

  • To track project contract quantity, pricing in new system easily.

  • To have better internal controls, less mistakes and improved on time deliveries to customers.

Results and Outcome

  • Sales, purchase and inventory are integrated with financials. Profit margin can be checked instantaneously during transactions.

  • Stocks are better controlled and tracked across various locations. Stock discrepancies are minimised via cycle count in SAP.

  • History price for any item and customers or suppliers can be called up with a click of button. Price list and volume discounts can be installed for specific items and for specific customers.

  • Blanket orders balance quantities can be tracked easily.

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