Overview
H.O.T.Ree, established in 1994 in Perak, Malaysia, is a leading manufacturer of high-quality coconut products. With over 26 years of industry experience, the company successfully processes 1000 mt of coconut milk powder annually at its state-of-the-art facilities, supplying both domestic and international markets across Southeast Asia, Europe, and South America.
H.O.T.Ree’s commitment to excellence is evident in every stage of production, from meticulous selection of coconuts to the integration of advanced manufacturing technologies. Every step in their production process is closely monitored to maintain product consistency and ensure high hygiene standards.
Meanwhile, A1 Consulting, a trusted Odoo partner based in Malaysia, is dedicated to empowering small and medium-sized enterprises (SMEs) with tailored Odoo ERP solutions. We work closely with our clients to streamline operations, increase efficiency, and cut costs. A1 Consulting’s expertise is evident in providing end-to-end Odoo implementation services, allowing businesses to optimize their processes while ensuring smooth integration across different departments.
Challenges
Before implementing Odoo ERP, H.O.T.Ree faced significant challenges that hindered their operational efficiency and growth potential:
- Manual Order Processing: H.O.T.Ree’s orders were tracked using spreadsheets and shared folders. This led to frequent data duplication and missing information, making it difficult to manage orders and meet customer expectations in terms of both progress and processing time.
- Repetitive Data Entry: H.O.T.Ree’s employees were required to manually enter the same data across multiple systems for each order and transaction. This repetitive work consumed a significant amount of time and personnel costs, slowing down the growth of the business.
- Inefficient Production Scheduling and Inventory Management: The company’s production schedules were also managed manually, often resulting in delays in meeting deadlines. They had difficulty in ensuring inventory availability, which caused production interruptions and missed delivery dates.
- Difficulty in Cost Tracking: Calculating material costs, including shipping costs, taxes, and other overhead costs, was a cumbersome task for H.O.T.Ree. The lack of real-time data on production costs made it difficult for them to accurately assess factors related to profitability.
- Maintenance and Quality Records: Managing maintenance and quality records manually was prone to errors, increasing the risk of production issues.
H.O.T.Ree needed a solution that could help them eliminate manual processes, reduce errors, and better manage their growing production needs.
Solutions
A1 Consulting conducted a thorough analysis of H.O.T.Ree’s operations and implemented a customized Odoo ERP system to address these challenges. Key components of the solution included:
- Purchase and Inventory Management Apps: By automating the procurement process, H.O.T.Ree could better manage inventory levels and avoid production delays. The Odoo inventory app provided real-time inventory updates, allowing the team to track materials and plan production schedules more efficiently.
- Sales and Finance Apps Integration: This integration allowed H.O.T.Ree to streamline sales order management and financial reporting. Orders could have been processed seamlessly from start to finish, and the finance app automatically tracked all associated costs, including shipping and taxes. This gave the company a clear understanding of profit margins.
- Manufacturing App: With this app, H.O.T.Ree could automate production schedules and monitor the process in real-time. It enabled better coordination between departments, ensuring production runs smoothly and without delays.
- Maintenance and Quality Records in Odoo: Odoo ERP enabled H.O.T Ree to manage maintenance schedules and quality records digitally, improving tracking and reducing paperwork.
- Data Synchronization: The Odoo system implemented by A1 Consulting ensured that data was entered once and transmitted across all relevant departments. This reduced errors and eliminated the need for multiple data entries, saving valuable time and improving data accuracy.
- Employee Training and Reallocation: It was reasonable to automate many complex tasks in H.O.T.Ree's operational process, however, the responsible personnel needed a certain amount of time initially to get familiar with and use the entire system effectively. A1 Consulting understood this and provided thorough support to the company's personnel when embarking on a new operational flow like Odoo.
Results
The implementation of Odoo by A1 Consulting brought impressive results for H.O.T.Ree. In a relatively short time, they recorded radical improvements:
- Cost Savings: The automation of material costing and inventory management helped the company reduce production time and costs by approximately 10%. This savings was mainly due to the elimination of manual errors and more efficient allocation of resources.
- Operational Efficiency: Automated order management, inventory control, and production processes reduced manual intervention and improved overall efficiency. Tasks that used to take hours were then completed in minutes.
- Improved Resource Utilization: Thanks to Odoo, H.O.T.Ree reallocated 2 employees from data entry roles to sales, contributing to business growth without increasing headcount.
- Better Records and Paperless Operations: The digital management of maintenance and quality records led to better documentation and a fully paperless system, increasing efficiency.
- Improved Sales Reporting: H.O.T.Ree's sales team was able to generate real-time reports, providing management with up-to-date insights into sales performance and helping to inform strategic decisions.
Benefits
The implementation of Odoo ERP by A1 Consulting brought many long-term benefits to H.O.T.Ree:
- More Time for Product Innovation: By automating and optimizing core operations with Odoo instead of spending a lot of time on manual tasks, the company could then devote more resources to product research and market development. The ability to innovate also maintained competitiveness and explored new revenue streams.
- Efficient Internal Communication and Collaboration: Real-time data sharing across departments - a feature of the centralized Odoo system, enabled H.O.T.Ree employees from procurement, sales, manufacturing, and finance to collaborate seamlessly. Improved communication reduced errors and ensured all departments were aligned towards common business goals.
- Traceability for Manufacturing Orders: Odoo ERP offers H.O.T.Ree enhanced traceability for manufacturing orders, ensuring better visibility and control throughout the production process.
- Continuous Support and Improvement: Working with A1 Consulting, H.O.T.Ree received comprehensive support for all aspects of Odoo implementation, as well as regular updates, and ensuring the system stayed relevant to the company’s evolving needs.
With these results, H.O.T.Ree's Board of Directors believed that they had the tools and information to save operating costs. The company also planned to expand the Odoo system implementation to 2 other companies in the same group. This has also highlighted A1 Consulting's exceptional expertise in implementing this system for New to Odoo.
