ERP System for Manufacturing: A Case Study of Histotech

• Name of Company: Histotech Engineering SDN. BHD.
• Location: Malaysia
• Industry: Manufacturing
• Company size: Middle
• Number of users: 51-200 employees

• Specialties: manufacturing, mechanical engineering, precision tooling, CNC machining, stamping, sheet metal fabrication, semiconductor industry, medical industry, automation industry
• Time of implementation: The project was divided into 2 phases. Phase 1 lasted 5-6 months and went live in April 2021. Phase 2 lasted almost a year and went live in September 2022.
• Systems implemented: Sales, Purchase, Inventory, Accounting, Manufacturing, PLM, Quality, Barcode, and Purchase
• Version of Odoo: Odoo 14

Even the most prominent manufacturers struggle with inefficiencies and outdated processes. Histotech Engineering Sdn Bhd faced the daily challenges of fragmented operations and cumbersome data management, which drained productivity.

However, Histotech found a way to break free. By partnering with Portcities, they transitioned from manual processes to a cloud-based Odoo ERP system, enhancing efficiency by 50% in some of the critical operations. 

This transformation improved workflow, enabled faster decision-making, and facilitated remote management.

Curious about how an ERP system can revolutionize your business? Dive into Histotech's transformation story to discover practical insights that could unlock your manufacturing potential.

Business Challenges

Before implementing Odoo, Histotech Engineering, a leading metal parts producer founded in 1992, encountered several critical challenges that hindered its growth and operational efficiency. 

Their core operations, which involved producing metal parts and machining components for a global clientele, heavily depended on manual processes, such as paper documents, Excel sheets, and spreadsheets. This reliance on outdated methods led to several inefficiencies across the organization.

1. Lack of Integration and Data Consistency: Due to the absence of an integrated system, different departments at Histotech worked in isolation, which caused data inconsistencies and errors. The lack of a unified approach led to communication gaps, delays in decision-making, and inefficient workflows.
2. Inadequate Operational Management: With no ERP system, all departments operated using fragmented and manual processes. This disjointed approach made it difficult to coordinate production, manage resources efficiently, and meet customer expectations, particularly concerning on-time shipments.
3. Counterproductive Project Management: Project management was also inefficient, as teams struggled to coordinate tasks and projects effectively. With every department working separately, staying on schedule and within budget was challenging, particularly during complex initiatives like tenant retention, sustainability, and marketing projects.
4. Manual Customer Relationship Management: Another challenge was managing customer relationships due to inefficient manual processes. These outdated methods often resulted in subpar customer service, lower retention rates, and difficulties in building and maintaining long-term customer connections.

The lack of a streamlined system created significant difficulties for Histotech's management team. Without a centralized platform, tracking operations across multiple departments was particularly challenging, leading to inaccurate reporting and analysis. This situation limited the company's ability to make informed decisions and adapt to market changes efficiently.

Odoo Implementation

Recognizing the need for a robust solution to streamline their operations, Histotech turned to Odoo, a versatile ERP system that could address their unique challenges.

Addressing the Challenges

Portcities implemented a comprehensive Odoo-based ERP solution tailored to Histotech's unique requirements to address these needs. The project included:

1. Integrated Management System: Portcities replaced the outdated manual methods with a single, cloud-based platform that covers all core aspects of Histotech's operations. This integrated system handles production management, inventory tracking, and order processing, eliminating isolated workflows and fostering seamless communication across all departments.
2. Custom Dashboard and Real-Time Analytics: A key feature developed by Histotech's in-house software developer, with Portcities' support, includes a custom dashboard that provides real-time feedback on sales trends, enabling management to make faster, more informed decisions. This feature supports daily, weekly, monthly, and yearly sales performance monitoring, which was previously not possible with the old systems.
3. Remote Work Flexibility: Odoo's cloud-based nature allowed employees to manage their work not only from the factory or office but also remotely from home or abroad. This flexibility significantly improved operational efficiency and employee satisfaction by reducing errors, preventing data loss, and ensuring smoother workflows.
4. Modernized Accounting Processes: Portcities integrated Odoo's Accounting app and automation tools to optimize Histotech's financial operations. This upgrades standardized accounting procedures across the organization, enhancing accuracy and saving time.
5. Enhanced Reporting and Decision-Making: With improved reporting and analysis capabilities, Odoo provided comprehensive financial reports, production tracking, and customer order status, allowing for better strategic planning and operational management.

Implementation Challenges

The implementation process began in 2021 during the COVID-19 pandemic, which posed significant challenges due to travel restrictions. 

The project had to be managed remotely, creating initial hurdles related to cultural differences among team members from Indonesia, Singapore, and Malaysia. 

Despite these early challenges, Portcities demonstrated effective project management, with their team leader, Stan, playing a crucial role in bridging gaps and guiding the project to successful completion.

Specific Improvements

The impact of Odoo on Histotech's operations was significant, bringing measurable improvements across several key performance areas.

• Improved Customer Shipping: Since implementing Odoo, Histotech has achieved at least a 50% improvement in meeting customer shipping requirements. The integration and automation of processes within Odoo have enabled more reliable and timely deliveries, enhancing customer satisfaction.
• Enhanced Decision-Making: Real-time data provided by Odoo and custom applications developed in-house have enabled Histotech to make faster and more informed decisions. What used to take weeks can now be accomplished in just a few hours, greatly enhancing the company's agility and responsiveness.
• Increased Productivity and Efficiency: Overall, the implementation of Odoo has had a positive impact on Histotech's productivity and efficiency. The company has eliminated redundant processes, reduced errors, and improved workflow across all departments by centralizing all operations within a single system.

Reasons to Choose and Recommend Portcities

When Histotech decided to adopt Odoo, they partnered with Portcities, a company highly recommended by Odoo Hong Kong for its proven track record in implementing Odoo solutions across Southeast Asia.

Several key factors influenced Histotech's decision to choose Portcities:

• Strong Odoo Expertise: Portcities' demonstrated experience in implementing Odoo solutions, particularly for small to medium-sized enterprises (SMEs), made them a compelling partner.
• Suitability for SMEs: Odoo's modular and scalable nature aligns well with the needs of smaller companies, providing the right balance of functionality and flexibility.

Positive Experience: Histotech's collaboration with Portcities was marked by professionalism and expertise, with the team, particularly Bambang, the business analyst, receiving high praise for their capabilities and versatility. Additionally, the post-implementation support provided by Portcities was responsive and effective, addressing most issues to Histotech's satisfaction.

Conclusion

Histotech's evolution from manual, disjointed processes to a seamless, integrated ERP system is a testament to the transformative power of digital technology in the manufacturing industry. 

By embracing Odoo, Histotech has streamlined its operations and significantly improved its ability to meet customer demands, make informed decisions, and enhance overall productivity. 

This shift highlights how even established manufacturers can adapt to new technologies, achieving remarkable results through strategic implementation and expert guidance.

With Portcities as a trusted partner, Histotech has navigated these changes with professionalism and expertise, setting a new standard for efficiency and growth in the sector. 

Now is the time for your business to explore similar opportunities. Reach out to our experts and learn how you can replicate Histotech's success in your manufacturing operations!