Shanghai Fortune Technology Accelerates Rebate Sales Accounting by 500%, Improves Business Reporting Time by 67%, and Strengthens Corporate Profit Control
 
 

Shanghai Fortune Technology Accelerates Rebate Sales Accounting by 500%, Improves Business Reporting Time by 67%, and Strengthens Corporate Profit Control

Shanghai Fortune Technology Co. Ltd. entered the Chinese electrical component distribution market more than 10 years ago. From a component-based product distributor, it has developed into an integrated-solutions provider in the field of information electronics and personal communication.

Working with the world’s top semiconductor suppliers, such as Qualcomm, Freescale, and Samsung Electro-Mechanics, Shanghai Fortune Technology provides solutions to major domestic manufacturers in the areas of mobile internet, broadband access, and tri-network integration. The company has more than a 70% market share in China’s wireless network and hotspot market, 40% market share in triple-play services, and 20% market share in mobile internet and smart phone WiFi solutions.

 
 

 
 

Challenges

A word from Shanghai Fortune Technology Co., Ltd.

  • "Oracle’s JD Edwards EnterpriseOne applications enable us to manage increasing complexity and competition in the high technology distribution sector and support future growth. We accelerated rebate sales accounting by more than 500%, reduced business reporting time by 67%, and strengthened corporate profit control.” – Lu Wei, CIO, Shanghai Fortune Technology Co., Ltd.

  • Build an integrated management platform for procurement, marketing, inventory, and financial management to enable rapid response to complex requirements in the volatile high-technology distribution market and increase competitiveness
  • Enhance company profit control and improve efficiency across the entire distribution management business cycle—from inquiry to order, demand to allocation, procurement to acceptance, and shipment to logistics
  • Provide business reports faster, such as for component inventory status and profitability analysis, to enhance management decision-making
  • Ensure accuracy of company profit calculations, including rebate sales from original manufacturers, by eliminating delays and errors due to multiple supplier settlement forms and frequent intracompany transactions

Solutions

  • Accelerated rebate sales accounting by more than 500% by integrating and automating financial processes with sales and procurement, thanks to JD Edwards EnterpriseOne Financials
  • Strengthened corporate profit control by accelerating completion of rebate sales accounting and accrual from up to two months to within same month
  • Increased sales and inventory status reporting efficiency by 67%, thanks to Oracle JD Edwards EnterpriseOne Sales Order Management and Oracle JD Edwards EnterpriseOne Inventory Management enabling one department to generate the report in less than a day, rather than three departments taking three days, previously
  • Improved competitiveness in volatile high technology distribution industry with on-demand profitability analysis reports generated in seconds instead of days
  • Reduced staff costs by automating distribution and logistics operations, saving 20% in component materials control headcount 
  • Enhanced inventory management by automating supply chain events, such as release of allocated, configured material resources after 14 days, avoiding contract breaches and possible litigation, thanks to Oracle JD Edwards EnterpriseOne Procurement and Subcontract Management
  • Established an integrated management platform for business information sharing and interaction across procurement, marketing, logistics, and financial operations, enabling operational efficiency and supporting future growth

Why Oracle

To meet the demands of rapid business expansion and intense market competition, Shanghai Fortune Technology decided to build an integrated management platform to improve business efficiency in procurement, marketing, inventory, and financial management. The company also wanted to manage the extremely complex and variable business forms for rebate sales from original manufacturers in the electronic component distribution industry, where speed to market is critical as product life cycles continue to shrink.

“We chose Oracle JD Edwards EnterpriseOne applications because of their capacity to collect, manage, and apply the business data required to effectively manage a distribution business, such as ours,” said Lu Wei, CIO, Shanghai Fortune Technology Co., Ltd. “In addition, since we are planning to implement other enterprise applications in the future, such as business intelligence solutions, Oracle is the natural choice for us. It offers a comprehensive range of management software, enabling us to eliminate the complexity of future system integration.”

Implementation Process

In June 2011, Shanghai Fortune Technology began its JD Edwards EnterpriseOne implementation, including procurement, marketing, inventory, and financial management applications. In June 2012, the company launched the new integrated management platform in parallel with the legacy enterprise resource planning (ERP) system. The new JD Edwards ERP system officially went live in January 2013, replacing the legacy system.

Partner

Shanghai Fortune Technology engaged MBP Shanghai Software Co. Ltd., an Oracle Platinum Partner, to map the implementation and deploy the JD Edwards EnterpriseOne applications. The project spanned multiple business processes, including sales quotations and pricing, as well as order management, procurement management, inventory, and financial management. It also completed partial customization and development work, as requested by Shanghai Fortune Technology.

“Shanghai Fortune Technology’s ERP project features complex business forms, multiple service nodes, strong industry specificity, and several integrations. MBP Shanghai examined our business processes and provided the most relevant ERP solutions to meet our complex business requirements,” Lu said. “During this process, MBP Shanghai’s implementation team showcased its dedication and professional project implementation skills.”