Blog Post

Kong Brothers Shoes City Improves Order and Stock Efficiencies from Digitalization with Goldsoft Cloud ERP

Goldsoft Marketing • May 28, 2021
Goldsoft success stories- Kong Brothers
Company Facts

Kong Brothers Shoes City established in 1980 and was certified as Malaysia’s “The Largest Shoe Showroom” by the Malaysia Book of Records, with a total built-up area of 21,600 sq. ft. displays over 30,000 different shoe designs. Kong Brothers currently works with over 100 wholesale customers while manag­ing their own network of over 100 consignment counters across departmental stores in Malaysia.

Business Challenge

Kong Brothers unable to effectively manage its growing business operations due to traditional server-based system which meant employees outside of the office required a remote connection to access the system. 

Getting key information such as stock price and stock level was slow causing delays in the sales order processing and fulfillments. 

Solution

"With MDEC Smart Automation Grant (SAG) initiative, Kong Brothers managed to implement a cloud ERP system- Goldsoft JERP that enables us to manage business anytime anywhere, improve orders and stock efficiencies, and achieve a better relationships with our suppliers and customers." Ms. Ice Kong, COO of Kong Brothers Enterprise Sdn. Bhd.

Outcome 1:

Reduction of Purchase Order Process Time Cycle from 1 day to 10 minutes
Kong Brothers Shoes City Improves Sales Order Processing
Kong Brothers Shoes City Improves Sales Order Processing

Before digitization, Kong Brothers took 1 day to process a purchase order from creation to approval.


The steps involved:


  1. Create a purchase order in system
  2. Print out purchase order hardcopy
  3. Submit the purchase order to manager for approval
  4. Manager approves the purchase order
  5. Return the purchase order to purchasing department
  6. Email/ fax purchase order to supplier


After digitization, Kong Brothers uses 10-minute to process multiple purchase orders from creation to approval.


The digitalized purchase order process:


  1. Create purchase orders in system
  2. Manager approve purchase orders via mobile device
  3. Email purchase order to supplier


After receiving stocks at warehouse, Kong Brothers can use 3-way matching to confirm that the purchase order details match up to Supplier Delivery Order and Supplier Invoice.


The digitalized purchase order process helps Kong Brothers gain total control of company spending, quicken the process of stock ordering and delivering to all consignment counters.


Outcome 2:


Reduced Manhour for Stock Take from 4 Days to 1 Day

Kong Brothers Shoes City Improves Sales Order Processing
Kong Brothers Shoes City Improves Sales Order Processing

The most frequent challenge of an inventory issue was time-consuming manual process and human error.


The traditional stock take process:


  1. Consignment staffs manually count stock by stock color and size then noted down on a promoter report.
  2. Post the filled-up promoter report to headquarters.
  3. Headquarters' admin staff manually key in data into the system.


After digitize the stock take process with mobile device:


  1. Staffs able to use mobile device to count stock simultaneously by assigned stock categories/ zone.
  2. After scanning all stock barcode, click a post button send to headquarters.


Headquarters will identify the stock variance then generate quantity adjustment to update the system inventory to match physical stocks.


In the case of high variance, counter staff can use mobile device to recount the items required and post it to headquarters immediately.


Using mobile stock take reduces the risk of inaccuracy due to human error and better control stock shelf life especially for leather shoes.


The JERP inventory-rich functionality also allowed Kong Brothers to quickly analyze the inventory level and refine the strategies and plans to increase stock turnover efficiency and margins.

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