Electrifying IT solution for Lim Kim Hai

Customer Story

A good working relationship with customers and suppliers is a key competitive advantage for Singapore-based electrical equipment distributor, Lim Kim Hai. The company turned to IBS to improve competitiveness and ensure value-added services to its business partners.

Company background

Lim Kim Hai Electric was established in 1958 as a stocker and supplier of electrical equipment and accessories in Singapore. Over the past decades, Lim Kim Hai expanded its operations and consolidated its leading position in the distribution of industrial electrics covering control, instrumentation, safety and data products through the Lim Kim Hai group of companies.

Lim Kim Hai brings together world-renowned industrial product brands and solutions. With the help of field sales and support engineers, the company is well positioned to help industrial customers optimize their requirements for electrical and control products.

Lim Kim Hai employs 145 people and had a turnover of EUR 34 million in 2002. 

Business issues

Lim Kim Hai’s success as a distributor is based on a commitment to deliver value to its customers. The company emphasises its technical support, consultancy and training services. Stock is held for customers and goods are consigned to them on a pay-as-you-use basis. Lim Kim Hai’s broad product range and attention to customers make it a favourite for many clients. If Lim Kim Hai receives a request for a product that it does not stock, it will go out and find it. As a result of this value-added method of operation, firmly rooted in the company’s traditions, the logistical challenge of managing some 3,800 orders a month is considerable.

Since its inception, Lim Kim Hai has had a good working relationship with its customers and suppliers. The company wanted to ensure that the installation of any new business system would help to continue this collaboration and, where possible, make the relationships even stronger.

As logistics costs continue to rise, competition gets even tighter due to consolidation and increasingly intricate business partnerships. It was imperative that the new electrical distribution system could help retain a competitive position even as new customers were being established.

Solution and capabilities

Lim Kim Hai took advantage of an economic slowdown in Singapore to re-examine its processes and install new software.

After evaluating various software suppliers, Lim Kim Hai decided to adopt IBS integrated supply chain management software. This investment formed part of the company’s commitment to improve competitiveness and added service value. 

IBS electrical software consists of components for supply chain automation, warehouse software, inventory management software, logistics planning, sales-call planning, customer relationship management, finance management, business intelligence software and e-business software. It speeds up sales and purchase processing, optimizes stock levels, minimizes errors and out-of-stock scenarios, and enhances logistics planning.

Lim Kim Hai benefits from the way IBS electrical software has been designed with a focus on distribution. This is particularly useful for electronic components distribution, where there is a need for an optimal flow of goods, balanced against costs, while keeping an eye on profits and business value.  

Successful electrical equipment and accessories distribution relies on meeting short delivery schedules in the right order. Flexibility is vital for fulfilling a vast array of customer service requirements within the sector.

The status tracking functionality available in IBS electrical distribution softtware is extremely beneficial for Lim Kim Hai. When a sales order is created and as the order progresses through its life cycle, different status codes are adjusted on the order and order line. These codes provide Lim Kim Hai with full traceability and control throughout the whole process. The same control and efficiency are also available with purchase orders and shipment tracking.

Implementation

IBS electrical software was installed during a relatively quiet economic period. This meant that Lim Kim Hai had more time to think carefully about its in-house requirements before mapping and integrating them with the new software.

The implementation went through a number of phases. Phase one has been successfully completed at the head office. The next phase was the implementation of IBS electrical distribution software at a subsidiary company, which was also successful and completed in a shorter time frame and within budget. Subsequent phases will be carried out at other companies within the group.

Benefits and value

As soon as IBS electrical software went live, Lim Kim Hai started seeing the real benefits of reduced order-processing times and improved efficiency. Calculations show that using IBS electrical distribution software has trimmed more than 20 percent of the time it takes to process each order until payment.

Using the new electrical software system, the company is not only working faster, but also has an enviably low error count. IBS has helped Lim Kim Hai to run a smoother operation with better control and increased productivity.

The information flow resulting from the successful implementation of IBS software has enhanced Lim Kim Hai’s already close relationship with customers and suppliers.

The IBS electrical solution has provided extensive functionality all round to support the company’s business needs. Lim Kim Hai expects a Return on Investment within three years.

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