Listed company Yitoa Intelligent Control is growing rapidly, and it now makes intelligent-control products for numerous international, electrical product manufacturers, such as Black & Decker, Conair, Delonghi, Huaqi Information, Midea, Philips, Skyworth, and Tefal.

To support this growth, Yitoa Intelligent Control wanted to strengthen and standardize its financial accounting and auditing processes at its headquarters and subsidiaries, enable management to make faster and more informed business decisions, and reduce operational costs. The company also wanted to better coordinate its supply chain management to ensure it could quickly and efficiently produce and deliver its high-performing electrical products.

“We needed to increase the speed and accuracy of cost accounting for work orders and finished products,” said Gu Yuandong, vice-general manager, Shenzhen Yitoa Intelligent Control Co., Ltd. “We also needed a system that would track work orders through the supply chain and better monitor ordering, purchasing, inventory, production, and customer delivery processes to improve turnaround times and avoid human error.”

Yitoa Intelligent Control is using Oracle Financials Release 12.1 to standardize and automate financial and purchasing processes at its head office, subsidiaries, and manufacturing facilities.

The company can now view and analyze the company’s profitability by gross profit, profit margin, and customer order response time. This has accelerated the purchasing and accounts payable processes and enhanced corporate cash flow.

“We have reduced our financial settlement cycle from six days to one day and improved the efficiency of our accounts receivable and accounts payable checking processes by 30%,” said Gu.

The automated processes also creates an audit trail for the company’s business data, helping Yitoa Intelligent Control meet the stringent disclosure requirements for listed companies and further improve its financial management.

Oracle Financials Release 12.1 has also enabled Yitoa Intelligent Control to automatically consolidate and attribute production costs to various complex manufacturing processes, and provide accounting information in real time. This automation has increased the speed of cost accounting by 60% to 100% for work orders and finished products.

“The automatic process allows the company to calculate separate production costs for materials, labor, manufacturing, and outsourcing, and identify the cause of any differences between standard and actual production costs,” said Gu.

By seamlessly integrating the Oracle ERP system with third-party office automation and other business systems, Yitoa Intelligent Control has improved the accuracy and timeliness of its business and financial data.

Managers now have faster access to accurate, up-to-date information, helping them make more informed decisions, supporting the rapid company growth. The availability of better quality data also enabled the company to more efficiently control operational costs, reducing departmental expenses by an average 7% to 8%, and increasing the efficiency of nonproduction employees by an average of 20%.

Yitoa Intelligent Control has developed an Oracle-based material requirement planning platform to align its production and purchasing plans, improve warehousing times, and ensure it delivers orders to its customers on time.

Employees at each factory can now see production and purchasing plans together with the company’s inventory status in real time, to determine the appropriate amount of raw materials for electrical components that need to be purchased.

“Greater visibility of production, purchasing, and inventory status has helped us maximize inventory turnover and minimize dead inventory,” said Gu. “We have also reduced unnecessary holding costs on raw materials needed to manufacture our electrical, intelligent-control components.”

Oracle Order Management has helped Yitoa Intelligent Control improve the efficiency of its order and production processes.

The company has automated previously manual processes required to record and process information about optional components that have been ordered, such as color choices. For example, information about specific memory capacity or housing color for digital products, such as MP3 and MP4 players are automatically included in the standard work order throughout the production and warehousing process. This has significantly minimized human error caused by recording these processes manually, as well as reducing the number of bills of materials in the digital business department, and the number of items on each bill of materials.