Mardec Berhad - IFS

I F S C u s t o m e r s t o r y
Agile Business Processes with
IFS Applications
For Mardec Berhad, one of the leading integrated rubber and polymer companies
worldwide, the implementation of IFS Applications has increased visibility into its
business processes coupled with faster, more accurate access to information.
As a result, decision-making has improved, processes are smoother, and the
company can offer its customers a higher level of service.
LEGACY SYSTEM LIMITED GROWTH POTENTIAL
As the company grew and new business processes were introduced, Mardec began
to recognize the limitations of the existing setup. The company wanted greater
visibility into its operations and faster access to information to improve decision
making. But too many processes were being done manually and Mardec required
more functionality than ever to support the business. “We were working in an
environment that involved many disparate databases which had a lot of customizations.
It was a complex environment where mistakes and duplication was
often made. Furthermore, it took a lot of effort to produce reports so we could
make decisions that impacted the business,” says Eric Gan, General Manager
Finance & IT, Mardec Berhad.
Mardec didn’t have full insight into business processes such as contract management
and stock management. “It was always a challenge managing customer contracts
from first point of contact through to planning, scheduling to execution of
operations. Staff didn’t have visibility between departments to provide one version
of the truth,” says Gan. Furthermore, stock management was always a little hazy
for Mardec. “We knew we had stock in reserve because at the end of the month
our reports told us, but we didn’t know our daily stock usage, forecasting or when
to purchase more stock at the right time. We needed readily available information
to make the decision right,” says Gan.
Mardec was very reactive to managing their spare parts and maintenance of
equipment. “Maintenance was managed via a spreadsheet to be fixed only when
something needed fixing. We didn’t have proper records for history and analysis
purposes,” says Rohaizan Binti Mohamad, IT Manager, Mardec Berhad.
The final tipping point for Mardec was trying to support staff. “Support was
time-consuming and we couldn’t solve all of the issues. We were continuously firefighting
and it felt like a losing battle,” says Rohaizan.
To meet Mardec’s forecasted growth and continue to support customers, it needed
to address its internal issues and provide visibility across the whole organization to
gain efficiencies in the supply chain.
About Mardec Berhad
Based in Malaysia, Mardec has more
than 40 years experience in the rubber
industry. Mardec is involved in the
processing and trading of rubber, and
manufacturing value-added rubber and
polymer products. The company has
evolved into a conglomerate with global
operations and strong international
partnerships. MS ISO 9001:2000 certified,
Mardec prides itself on being eco-friendly
and dedicated to environmental preservation.
©Photo Mardec Berhad

I F S C u s t o m e r s t o r y
En1189-2 Production: IFS Corporate Marketing, August 2012.
MET REQUIREMENTS, UNDERSTOOD THE BUSINESS
After doing a feasibility study and listing their requirements, Gan says, “IFS’ global
solution with local support was the winning combination.” Mardec was also
attracted by the agility inherent in the component architecture of IFS Applications,
which enabled the software to be implemented step by step, keeping disruptions to
a minimum. “IFS treated us like a partner, sharing knowledge and working with
us to get the right solution,” says Rohaizan.
IMMEDIATE IMPROVEMENTS AFTER IMPLEMENTATION
Implementation was carried out according to schedule, on time and on budget.
Mardec began to see improvements from the first day the solution went live. One
of the most tangible benefits was the reduction in the number of manual processes.
The higher level of automation enabled by IFS Applications means that work
processes are more efficient as many of the errors inherent to manual transactions
are greatly reduced or completely eliminated. Information is in real time and
enhanced reporting gives the management team vital business intelligence to
make informed decisions that impact the business.
Now Mardec has a solution that is better mapped to its business processes.
“IFS Applications has given us greater scope in functionality to operate as a
mixed mode manufacturer to support our business requirements,” says Gan.
Reporting is now accurate and can measure and track each process of the manufacturing
supply chain. The company has greater control over inventory including
better calculation of raw material, when to purchase more stock, forecasting and
insight into daily usage rates. “We never previously had that full visibility where
employees could access all the information stored in a single database,” says Gan.
Moreover, internal information flows have improved. The various departments
in Mardec can more easily communicate with each other and have increased the
quality and accuracy of the data exchanged. “The software is so intuitive and easy
to use. For example, users in the finance department are pleased with the laborsaving
functionality, such as cash flow, invoicing, and managing different currencies,
all of which had to be done manually in the past,” says Rohaizan.
Another initiative is that preventative maintenance is now a part of the daily
routine. “Since implementing measures to combat equipment maintenance, we
have a process in place that routinely checks equipment, with a supply of spare
parts in stock to limit our downtime. We have noticed huge improvements in the
supply chain,” says Rohaizan.
IFS Applications has also helped to alleviate the buildup and reliance on the IT
Support Team. “We are no longer firefighting support issues. We can all get on
with our jobs, which has ultimately had an impact on the business for the better,”
says Rohaizan.
Just as important as the internal benefits Mardec has achieved, the greater level
of automation of its business processes and access to more accurate information has
had another effect. Gan concludes, “The greater visibility and improved decisionmaking
capabilities have enabled us to improve the levels of service we offer to
our customers.”
Benefits
• Industry-specific solution that is
mapped to business processes
• Improved visibility
• Enhanced ability to serve customers
• Easy-to-use interfaces
• Faster access to information in real
time
Software
IFS Supply Chain Management
IFS Maintenance
IFS Document Management
IFS Financials
“IFS Applications is so intuitive,
flexible, value for money and rich in
industry functionality, it allows us to
do what we do best—processing and
trading of natural rubber. IFS is vital
to us going forward.”
Eric Gan, General Manager Finance & IT,
Mardec Berhad
©Photo Mardec Berhad
If you need further information, e-mail to info@ifsworld.com, contact your local IFS office or visit our web site, www.ifsworld.com