ERP (Trading) Case

Customer Introduction

Welltec Machinery Ltd. was founded in 1982, and headquartered in Hong Kong. It is the core plastic processing machine making enterprise of Cosmos Machinery Ltd. (Cosmos Machinery Ltd. is an affiliate solely invested by Cosmos Machinery Enterprise Limited and publicly listed in Hong Kong). For more than 20 years, Welltec Machinery is exclusively engaged in the research, development, production, distribution, after sale services and import/export of plastic injection moulding machine.

Background of the Project

The Purchasing Department of Hong Kong Welltec Machinery Ltd. is the Group’s Purchasing Department of Cosmos Machinery Ltd., keeping independent accounts and having independent bank accounts (using the unified accounting item codes of Cosmos Machinery Ltd., and adopting Hong Kong Dollar as the standard currency for accounting). It mainly purchases materials for the affiliates of the Group in a centralized way. More than 80% of the materials purchased are for Donghua Machinery Ltd. and Dongguan Welltec Machinery Ltd. In addition, it also provide procurement services to the companies like Dongguan Cosmos Machinery Ltd., Dekuma, Cosmos Plastic Products, Shunde karmay Plastic Products, Wuxi Grand Tech Machinery Group Ltd., etc.

According to the purchase orders (in the form of electronic file or printed document) from every company, Hong Kong Welltec Machinery Limited transfers the data into the existing OnLine2000 system through upload or manual input, generates a material shortage report then arranges for purchasing. After the materials purchased arrive in Hong Kong, they are transported to the corresponding companies via straight through trucks, custom clearance or outsourced transport; and the settlement for the materials is made at fixed selling prices. By the end of month, via an interface program, the data for accounts payable and accounts receivable are transferred to the FlexAccount accounting system for accounting calculation.


Based on the business demands of Hong Kong Welltec Machinery Ltd. it is recommended to set up an independent account form, a corporate organization, an operation unit and an inventory organization in the ORACLE ERP system.

The inventory organization shares with the main inventory organization of Donghua. That is, it uses the material codes of Donghua Machinery Ltd. and Dongguan Welltec Machinery Ltd.. The inventory organization maintains the basic information of the attributes of specific materials in the inventory organization of Hong Kong Welltec, such as description in Chinese and English, weight, commodity code and commodity name used by the customs office, import tariff rate, etc. It develops the interface program for customers’ orders to convert the customers’ orders into SOs of Hong Kong Welltec (the POs of Wuxi Grand Tech have to be converted into PRs of Hong Kong Welltec), starts to use the Master Scheduling/MRP plan to load the Sales MDS and Forecast and then employs MDS to drive MRP, so as to generate corresponding purchase orders already planned. The inventory organization starts to use the PO, INV and OM distribution modules to carry out the operations for purchasing, selling and stocking.

Develop the interface program to transfer the accounts payable for purchase and the accounts recievalbe for selling in ORACLE system into FlexAccount. At the same time, collect the information on selling and shipment and the data needed for customs clearance.

Results Accomplished

By use of ORACLE ERP system, a tool is provided to the logistics system. Under the prerequisite that the data for basic data management and purchase strategy are rational, by use of such a tool, the control systems such as purchase plan preparation and downward plan issuing etc. are systemized, the wanted documents are lessened, the information can be shared with the member companies, and the delivery is timely.