Accelerating Business Transformation With Efficiency-Finding, Process-Automating Cloud-Based Manufacturing ERP
One of the fastest growing mid-sized paint and coating manufacturers in Indonesia, PT Bintang Chemical Indonesia (BCI) is recognized for innovative, high-quality products designed specifically for the automotive and wood furniture industries. Along with this fast growth came the need for advanced technology solutions—and the right person to make it happen. Tio Kay Hok was hired as Managing Director at BCI, to transform the company from a manual-based business into a digital manufacturing operation.
In the world of paint, not all shades are created equal. Unlike those for housing and building paint, the chemical formulas for automotive paint demand higher technological expertise. Manufacturers such as Mercedes, Toyota, and Honda each have unique specifications. Finding an ERP that could effectively support multiple products was crucial. Additionally, a cloud solution was non-negotiable. “We do not invest in any unnecessary resources for non-core business tasks.,” Tio acknowledges. “With Epicor Kinetic deployed in the cloud, Epicor handles things like uptime, upgrades and maintenance, and security.”
Tio evaluated alternative ERP platforms, ultimately selecting Epicor Kinetic, deployed in the cloud, for its out-of-the-box manufacturing capabilities. Working with Epicor partner PT Bima Maju Teknologi (BMT), Tio was impressed with the speed and ease of deployment. “Implementation was incredibly fast, especially given our data backlog. Because the previous ERP failed to go live for so long, we had a huge data log jam. Epicor was able to configure the solution, populate the data, and effect a seamless go-live in just six months.” He adds, “Strong communication and excellent collaboration between BCI, Epicor, and BMT was the key to success.”
Felix Niode, Sales Director at BMT, agrees. “As an Epicor partner, we are not simply selling an ERP; our goal in every implementation is to bring value to the business and deliver greater efficiency, visibility, and control to face fierce competition in the market.”
It quickly became apparent that Epicor Kinetic was the right choice to advance BCI’s digital transformation. For example, the company has multiple master formulas for each customer. Before Epicor, BCI maintained those formulas in spreadsheets, which required a human to identify the right one for each product. Tio states, “Epicor Kinetic allowed us to automate the management of formula masters, eliminating accidental production errors.”
Now, we can produce 1,000 kg of paint in a single batch and automatically fill the various sizes without creating a new job entry. Epicor has created significant time savings.
Furthermore, Epicor empowered BCI to help reduce production costs. Each formula uses different raw materials with varying costs; Epicor solutions help the company select the most cost-effective formulas based on raw materials deals, trimming their expenses.
Epicor also improved packaging efficiency by enabling BCI to use a single production batch for various packaging sizes, reducing the need for repeated production processes. Tio shared that BCI sells paint in 20 kg, 5 kg, and 1 kg containers. In the past, BCI ran each package size as a separate production line. “Now, we can produce 1,000 kg of paint in a single batch and automatically fill the various sizes without creating a new job entry,” he explains. “Epicor has created significant time savings.”
With the data in Epicor, Tio is working to define metrics, including formulas for cost savings, increased productivity, and help reduce idle time and production failure rate. He observes, “If we don’t have the right data and a sufficient amount of it, it’s difficult to delineate clear objectives.”
A significant benefit of Epicor Kinetic is the quality and accessibility of data for tracking and reviewing procurement, planning, production, warehouse, and sales processes. Tio recalls, “Our goal with ERP was to develop a robust end-to-end process that aligned to company objectives. In the past, many decisions were made subjectively, based on gut feelings, because Excel-based information meant we had to compare one report to another manually. Epicor allows us to easily track the entire manufacturing process, from procurement to help deliver, and have immediate visibility into that data to make decisions.”
Epicor reports accelerate routine tasks, too. Tio cited the Accounts Receivable (AR) reports that helped enable accounting to easily identify which customers pay on time versus those who do not for proactive follow-up. Similarly, Accounts Payable (AP) automatically tracks when supplier invoices are due, and Tio expects to initiate automatic payments soon. Month-end closing now happens in minutes.
Another example is in sales. In the Indonesian archipelago, preferences can vary dramatically from island to island, with one product selling well on Java, for instance, but not on Sumatra. Epicor analytics give BCI the power to isolate which products sell best in each territory and ascertain their profitability. Tio notes, “Epicor helps us make prudent decisions regarding sales and finance.”
Most importantly, Epicor Kinetic has alleviated supply chain concerns. Tio emphasised that the ability to get raw materials in the chemical industry is critical, especially in light of recent challenges, including the COVID-19 pandemic and upheaval in Ukraine, Russia, and the Middle East. He remarks, “Epicor alerts us when the stock reaches a certain level and automatically issues a requisition, eliminating disruptions due to lack of stock and ensuring BCI meets delivery commitments.”
Tio is eagerly awaiting AI enhancements to Epicor Kinetic; these will improve BCI’s warehouse management system while further advancing efficiency and control over the supply chain.
Although the Indonesian government has not been as fast as some other nations in adopting environmental standards, BCI is working to meet the growing customer demand for a commitment to sustainability, citing: “From eco-friendly formulations to responsible sourcing, we strive to minimize our environmental impact without compromising on performance.”
Tio elaborates on this position: “Green manufacturing is critical in our wood furniture products, as Indonesian furniture makers export a lot to the U.S., which has stringent regulations.”
Epicor facilitates fulfilling those requirements by classifying product groups based on the raw materials used in each formulation, as well as by tracking the costs of those materials and gross profit.
Tio is not the only one who appreciates working with Epicor Kinetic; BCI employees reported that the system is intuitive, customisable, and easy to use. Even better, productivity is up. In just one example, with the old system, production would have to release ingredients one at a time during job entry. Today, Epicor discharges all necessary materials with a single click. The Epicor release materials system helps the team to shorten the preparation time up to 10 times faster than the former system used.
The BCI team is anticipating further efficiencies, thanks to additional machine optimisation improvements made possible with Epicor Kinetic.
We are delighted with Epicor Kinetic. It has helped us streamline our manufacturing operations, and we have noticed a significant productivity improvement. We believe that the substantial benefits we are already achieving are because Epicor Kinetic is designed for manufacturing and tailored to our unique needs. It’s been a game-changer.
Tio believes Epicor Kinetic is enabling BCI’s continued growth through more enlightened and efficient manufacturing operations that better inform business decisions. He highlights “When customers and prospective customers visit our facilities and see our innovative, built-for-manufacturing Epicor Kinetic deployed to manage our operations, they have more confidence in BCI. They see that we have higher quality, on-time products.”
“We are delighted with Epicor Kinetic,” Tio emphasizes. “It has helped us streamline our manufacturing operations, and we have noticed a significant productivity improvement. We believe that the substantial benefits we are already achieving are because Epicor Kinetic is designed for manufacturing and tailored to our unique needs. It’s been a game-changer.”
