Case Studies Conquering Global Financial Management with IQMS ERP Software

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	Conquering Global Financial Management with IQMS ERP Software

Conquering Global Financial Management with IQMS ERP Software

Technology Category	Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries	Electronics
Applicable Functions	Discrete Manufacturing
Use Cases	Manufacturing System Automation
Services	System Integration Training
Challenge	Poly-Cast Plastics (Suzhou) Co., Ltd. was established in 2006 to support a United States customer that was simultaneously setting up a plant in Suzhou, China. In addition, Poly- Cast recognized a large business opportunity in the emerging Chinese market. Since it opened, the China facility has grown rapidly, from a modest two machine and three employee start to a current 10 machine spread. Additionally, the Suzhou facility has a full and independent team on the ground to run the daily operations and offer Poly-Cast’s customers a very competitive solution that eliminates the risks associated with doing business in China with unknown suppliers. In response to two challenges—the complexity of the People’s Republic of China (PRC) tax system and Poly- Cast’s lack of resources at the company’s start-up— Poly-Cast decided to sub-contract all of its financials for the first several years of operation. Unfortunately, the outsourced China CPA only managed the financials for PRC tax law (tax accounting), rather than providing accounting for manufacturing. This financial report structure, in addition to being expensive to outsource, made it very difficult to pull any data that would help Poly-Cast better run its business. The lead time alone to process a monthly financial was often 30 to 60 days, and Poly-Cast felt it was always looking backward. Read More
About Customer	Poly-Cast Plastics (Suzhou) Co., Ltd. specializes in providing tight tolerance, custom-molded components from engineered resins. The company services a wide range of markets, including the automotive, medical, consumer electronics, industrial and recreational industries. Poly-Cast Plastics (Suzhou) was established in 2006 to support a United States customer that was simultaneously setting up a plant in Suzhou, China. In addition, Poly- Cast recognized a large business opportunity in the emerging Chinese market. Since it opened, the China facility has grown rapidly, from a modest two machine and three employee start to a current 10 machine spread. Additionally, the Suzhou facility has a full and independent team on the ground to run the daily operations and offer Poly-Cast’s customers a very competitive solution that eliminates the risks associated with doing business in China with unknown suppliers. Read More
Solution	Poly-Cast brought its financials in-house through the use of its manufacturing ERP and MES software solution, EnterpriseIQ from IQMS. EnterpriseIQ is an extended, comprehensive ERP and MES system, meaning that every module (from human resources to accounting and the shop floor to quality, sales and inventory) is completely connected, so all the data Poly-Cast desired was already being collected. The overall goal was to drive accurate and timely financial reports internally out of EnterpriseIQ for better awareness and management of the Suzhou, China plant. This was approached in five steps: Separate out the Poly-Cast data into two locations: The headquarters in Oregon and locally at the China location by setting up a separate enterprise plant (EPlant) in EnterpriseIQ. Drive 100 percent of Poly-Cast Suzhou’s financials from EnterpriseIQ within three months. Create system-driven reports that management can use to track progress and identify risks. Eliminate the outsourced financial support of the China CPA within six months. Stay 100 percent compliant to rigorous PRC GAP and tax laws with the new internal financial reports. EnterpriseIQ was designed with a robust core of tools for financial management. Included in the base software solution are modules for accounts payable, accounts receivable, business intelligence, costing (standard and actual), general ledger, invoices, purchasing and financial reporting. Because the IQMS system is comprehensive and extended, the data from the core can cross seamlessly into other extended EnterpriseIQ modules, such as expenses, payroll, fixed assets, forecasting and more. Read More Log in to view content
Contents

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Electronics

Applicable Functions

Discrete Manufacturing

Use Cases

Manufacturing System Automation

Services

System Integration

Training

Challenge

Poly-Cast Plastics (Suzhou) Co., Ltd. was established in 2006 to support a United States customer that was simultaneously setting up a plant in Suzhou, China. In addition, Poly- Cast recognized a large business opportunity in the emerging Chinese market. Since it opened, the China facility has grown rapidly, from a modest two machine and three employee start to a current 10 machine spread. Additionally, the Suzhou facility has a full and independent team on the ground to run the daily operations and offer Poly-Cast’s customers a very competitive solution that eliminates the risks associated with doing business in China with unknown suppliers. In response to two challenges—the complexity of the People’s Republic of China (PRC) tax system and Poly- Cast’s lack of resources at the company’s start-up— Poly-Cast decided to sub-contract all of its financials for the first several years of operation. Unfortunately, the outsourced China CPA only managed the financials for PRC tax law (tax accounting), rather than providing accounting for manufacturing. This financial report structure, in addition to being expensive to outsource, made it very difficult to pull any data that would help Poly-Cast better run its business. The lead time alone to process a monthly financial was often 30 to 60 days, and Poly-Cast felt it was always looking backward.

About Customer

Poly-Cast Plastics (Suzhou) Co., Ltd. specializes in providing tight tolerance, custom-molded components from engineered resins. The company services a wide range of markets, including the automotive, medical, consumer electronics, industrial and recreational industries. Poly-Cast Plastics (Suzhou) was established in 2006 to support a United States customer that was simultaneously setting up a plant in Suzhou, China. In addition, Poly- Cast recognized a large business opportunity in the emerging Chinese market. Since it opened, the China facility has grown rapidly, from a modest two machine and three employee start to a current 10 machine spread. Additionally, the Suzhou facility has a full and independent team on the ground to run the daily operations and offer Poly-Cast’s customers a very competitive solution that eliminates the risks associated with doing business in China with unknown suppliers.

Solution

Poly-Cast brought its financials in-house through the use of its manufacturing ERP and MES software solution, EnterpriseIQ from IQMS. EnterpriseIQ is an extended, comprehensive ERP and MES system, meaning that every module (from human resources to accounting and the shop floor to quality, sales and inventory) is completely connected, so all the data Poly-Cast desired was already being collected. The overall goal was to drive accurate and timely financial reports internally out of EnterpriseIQ for better awareness and management of the Suzhou, China plant. This was approached in five steps: Separate out the Poly-Cast data into two locations: The headquarters in Oregon and locally at the China location by setting up a separate enterprise plant (EPlant) in EnterpriseIQ. Drive 100 percent of Poly-Cast Suzhou’s financials from EnterpriseIQ within three months. Create system-driven reports that management can use to track progress and identify risks. Eliminate the outsourced financial support of the China CPA within six months. Stay 100 percent compliant to rigorous PRC GAP and tax laws with the new internal financial reports. EnterpriseIQ was designed with a robust core of tools for financial management. Included in the base software solution are modules for accounts payable, accounts receivable, business intelligence, costing (standard and actual), general ledger, invoices, purchasing and financial reporting. Because the IQMS system is comprehensive and extended, the data from the core can cross seamlessly into other extended EnterpriseIQ modules, such as expenses, payroll, fixed assets, forecasting and more.

Impact #1	Poly-Cast was able to set up a real time view of its business, with daily financial results, rather than waiting until the month end or later to see how the company fared.
Impact #2	Poly-Cast now takes advantage of more system-driven data to project month end results and manages risks to make sure that financial goals are met.
Impact #3	Poly-Cast now knows critical decision-making details about its business, including product break-even points, where costs are on the production floor and how to better manage to get the desired results.

Impact #1

Poly-Cast was able to set up a real time view of its business, with daily financial results, rather than waiting until the month end or later to see how the company fared.

Impact #2

Poly-Cast now takes advantage of more system-driven data to project month end results and manages risks to make sure that financial goals are met.

Impact #3

Poly-Cast now knows critical decision-making details about its business, including product break-even points, where costs are on the production floor and how to better manage to get the desired results.

Benefit #1	By internalizing the financial process, Poly-Cast saved RMB 15,000 or approximately $2,460 per month in outside fees.
Benefit #2	When you factor in the costs of training and implementing this new project, Poly-Cast realized an ROI of roughly four months.

Benefit #1

By internalizing the financial process, Poly-Cast saved RMB 15,000 or approximately $2,460 per month in outside fees.

Benefit #2

When you factor in the costs of training and implementing this new project, Poly-Cast realized an ROI of roughly four months.

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Overview

Conquering Global Financial Management with IQMS ERP Software

Operational Impact

Quantitative Benefit