Hartalega invests RM14m to upgrade ERP system

Hartalega gears up for Industry 4.0 with a RM14mil investment in its Enterprise Resource Planning (ERP) system. From left are

KUALA LUMPUR: Hartalega Holdings Bhd is investing over RM14mil to upgrade its enterprise resource planning (ERP) system in its move to achieve Industry 4.0 as this would enable it to reduce costs and wastage in its production process. 

The world’s largest synthetic glove manufacturer said on Wednesday it was partnering with 9 Dots Consulting, to implement the complete suite of Microsoft Dynamics 365 to consolidate and streamline processes across all its business functions.

Hartalega managing director Kuan Mun Leong said the implementation of ERP would enablethe company “to strengthen our operations and integrate automation across our supply chain, further enhancing productivity, improving efficiencies, reducing costs and boosting profitability for the group over the long-term”.

Kuan said Hartalega’s prowess in production technology and innovation was a key factor in maintaining its competitive advantage. 

“Capitalising on advanced technologies such as Industry 4.0 and the Internet of Things (IoT) will enable us take the next step, bridging automation and data connectivity to develop sophisticated integrated manufacturing and business systems. 

“Investing in this is all the more crucial as the industry becomes more globalised and competition with other countries intensifies,” Kuan added.

Hartalega had completed a comprehensive business process review (BPR) of in 2017 ahead of the plan to improve its ERP system.

The BPR was the blueprint of Hartalega's group-wide ERP implementation.  The project is targeted to launch by end-2018 with Hartalega’s next generation integrated glove manufacturing complex in Sepang taking the lead.  It will then be rolled out at the group’s Bestari Jaya plants in 2019. 

The managing director of 9 Dots Consulting, Su Sing King said companies embarking on an ERP implementation or upgrade should incorporate BPR as a requisite activity. 

In order to respond to competitive pressures, management demands that information is not only available in real time but with a high level of accuracy. 

“An integrated and well implemented ERP system that caters to the core business operations provides just that,”  he said.

Founder and owner of 9 Dots Consulting Yap Sim Chin said the company was tasked to undertake the BPR exercise while also importantly, Hartalega understood the importance of a BRP to determine and define which core business processes to systemise. 

Hartalega’s general manager of IT Leang Wah Choon pointed out ERP application was a major component of its many IT projects, which includes IoT, to meet the increasing demand for gloves globally. 

“Once we have completed this, we will be able to rapidly deploy the same model of best practices for manufacturing facilities overseas,” said Leang.