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Case Study: Integrating stock management and accounting systems at food importing company

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Japanese food importer and distributor Daiwa chose the MYOB EXO Business solution to meet their need for an integrated stock management and general accounting system that would provide genuine business intelligence and speed up the sales order process.

Daiwa Food Corporation (which translates literally as Japan Food Corporation) is now recognised as one of the major importers and distributors of Japanese food for the retail, catering and hospitality industries across Victoria. Having experienced fast growth in recent years, Daiwa opened a second office in Wingfield, South Australia in 2006.

With a huge range of customers and an extensive warehouse, managing the sales, stock and resupply of thousands of products was an enormous task. Daiwa had been using 2Clix for general stock management. However, the system was struggling to return timely and up-to-date information on warehouse stocks under the weight of their increasing stock list.

Daiwa’s System Administrator Vicky Li explained there were a number of other issues including the fact that 2Clix didn’t easily integrate with Daiwa’s existing accounting software, leading to unnecessary duplication and double data entry.

When Daiwa’s licence for 2Clix expired, it also ended their relationship. Daiwa needed to find an integrated stock management and general accounting system that would feed them genuine business intelligence and speed up the overall sales order process, in a matter of weeks.

Following discussions on MYOB EXO Business with Andy Ford at EXO Enterprise Partner Exoserv, Daiwa’s Director Charles Pai was convinced about the suitability of MYOB’s solution for their needs. User Acceptance Testing (UAT) was a critical part of the discussion process for both parties.

Using a trial database, Exoserv created an environment where users could familiarise themselves with the software and experience MYOB EXO’s functionality and usability first hand. Apart from being a valuable training tool, UAT gives staff an opportunity to verify that MYOB EXO has been configured to their requirements, and Exoserv the chance to gather feedback and modify the system accordingly.

Li observed that the trial version made a huge difference to them, as it ironed out most of the issues, and simplified implementation. Exoserv completed the basic installation in two days.

In the early weeks, some of the Daiwa staff not too familiar with computer systems faced a steep learning curve with MYOB EXO. Three months down the line, it’s a different story with everybody understanding it perfectly. Daiwa has gone ahead and invested in a number of additional licences. The search function is similar to running a Google-type action on all their stock, simplifying product search.

Li also mentions MYOB EXO’s reporting function as having really made a difference too because of the ability of reports to pinpoint almost any area of the business for closer scrutiny. In addition to helping them get a better understanding of the nuts and bolts of the organisation, the solution also highlights areas that need attention as well as areas that are performing really well.

MYOB EXO not only benefits Daiwa with its standalone capabilities but also with its compatibility with third party software. For instance, Daiwa’s Symphony is a sales and ordering system that plays a key role in upholding the company’s customer service commitments.

It works by building likely shopping lists for each of Daiwa’s customers based on their previous sales history. Nine times out of ten, customers order the same products, so all the telesales operators have to do once they’re on the phone is enter the required number of items alongside the list, saving both customers and the telesales operators countless hours on the phone.

Symphony gets its customers’ sales history from MYOB EXO’s database; additionally, it’s through MYOB EXO that stock is requested from the warehouse.

For Daiwa, the biggest improvement they’ve seen from MYOB EXO is in costing accuracy. Accounting and inventory were two disconnected processes when Daiwa was running 2Clix; however, with MYOB EXO, they can have both integrated into a single database, enabling them to track stock and costs as one workflow. Li explains that the information on costs is absolutely up to the minute and they don’t have to make adjustments based on inaccurate stock levels.

MYOB EXO has also improved Daiwa’s costing accuracy by allowing them to factor in exchange rate fluctuations, which can sometimes alter costs quite substantially. By knowing the true costs, the company is able to spread the impact a little more evenly.

Daiwa now has much better visibility on debtors too and, where necessary, the ability to put a stop on credit at the touch of a button.

Li concludes that the MYOB EXO solution is all about control by providing visibility into the business and giving the intelligence to make informed decisions. 

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