Case Studies

P.G. Logistics Group Chose Infor SCM Solution

Infor's SCM system helped P.G. logistics create a standardized, client oriented operational process, effectively adapting to current situations and the demands of domestic third-party logistics development.

About the company.
Founded in 1994 and headquartered in Guangzhou, China, P.G. Logistics Group Co., Ltd. (P.G.) is the first domestic enterprise approved by the State Administration for Industry and Commerce to register itself as a logistics company. It was the first company in China to adopt modern logistics concepts to provide integrated logistic services to customers. Now, with 7 branches, 8 subsidiaries, and more than 50 offices in 65 cities in China, P.G. has formed international logistics operations and information networks that cover Mainland China. In addition, the company is starting to expand to the US, Australia, Thailand, and Hong Kong, and other countries. It has entered into strategic alliances with nearly one hundred well-known large industrial and commercial enterprises both at home and abroad. P.G now has more than 2,000 employees, and its business encompasses a range of professional logistics services, including logistics planning, goods transport, distribution and delivery, warehousing, information processing, circulation and processing, international freight forwarding, and other value-added services. In 2006, P.G. Group’s main logistics service revenue exceeded RMB 1.5 billion. It is now the largest and most sophisticated third-party logistics company in China.

Setting the strategy.
The construction and operation of P.G.'s Suzhou logistics base has played a decisive role in its logistic strategy. Since the Suzhou logistics base was put into operation at the end of 2002, P.G. has attracted the business of several extremely well-known foreign enterprises, including Phillips and Kraft Foods. In order to provide firstrate service to customers and to manage customers' shipping requirements, the accomplished team at P.G. has given top priority to giving the base a best-in-class warehousing management system from the start.

When planning the construction of a rack warehouse in the Suzhou base, P.G developed a customized warehousing management system. Unfortunately, the system was designed for the management of a flat warehouse and unsuitable for managing a stereoscopic warehouse, so P.G. decided to request bids. After the bidding process, the responsibility was trusted to Infor.

Getting business specific.
P.G. plans its projects in response to business requirements and customers' needs. Those customers now include many international corporations, such as Phillips Electronics, Unilever, Kraft Foods, and Samsung Electronics. The breadth of the company’s customer base means that its information systems must be compatible with those of its customers in order to help P.G. respond rapidly to the needs of those customers. Most important, P.G. customers deal in a wide variety of goods, often in small batches, which require efficient distribution and delivery. That kind of logistic complexity can be extraordinarily difficult to handle. The stereoscopic warehouse also added a range of requirements and challenges to the task of designing of the ideal warehouse management software.

Infor's warehousing management solution (WMS), a component of Infor's comprehensive suite of supply chain solutions, makes a supply chain more efficient and responsive to customers’ needs. Globally, Infor supports over 200 third-party logistics service providers, and has developed deep experience in that field. In addition, Infor was the first to introduce advanced international warehousing concepts into China. Infor SCM Warehouse Management system, previously known as EXE, began to serve many well-known domestic third-party logistics service providers as early as 2001. Currently, Infor's SCM Warehouse Management system has been implemented several hundred times in over 40 countries around the world and has become a proven, client-driven solution, fully capable of helping P.G. deliver a first-class response to customers' requirements. Functionally, Infor's WMS can help an enterprise optimize its resource utilization, reduce labor and supply chain costs and improve inventory visibility and accuracy even as it cuts operating costs. By improving customer service, increasing overall revenue, and enhancing supply chain integration, it will help P.G. maintain its leading position in domestic third-party logistics services.

Seeing results.
P.G. began to implement Infor's SCM system in 2003 in its Suzhou base, mainly to manage Phillips Electronics' CDC logistics business. The smooth implementation and development of this project raised the level of P.G.'s stereoscopic warehouse operations to a new height, winning praise from both internal and external customers, and improving customers' satisfaction. As a result, P.G. rolled out Infor's warehouse management system to its other logistic bases, which serve customers from many different industries.

By 2006, P.G had also launched Infor WMS in its logistics warehousing locations in Suzhou, Hefei and Guangzhou. Those facilities served many international customers including Phillips Electronics, Unilever, Kraft Foods, and Samsung Electronics, expanding P.G.'s logistics-basingstrategy and substantially improving the operational efficiency of its modern stereoscopic warehouse. What's more, the adoption of the RF technology features in Infor SCM solution has replaced a paper-driven system with RF management, increasing the bases' daily distribution capacity from approximately 200 tons to 500 tons and eventually to 700 tons by means of system optimization. It also improved picking area utilization from 58% to 95%. According to Gu Xiaoyu, vice-director of P.G.'s IT department, "We are very grateful to Infor's expert team for their professionalism and enterprising spirit, reflected in the successful implementation of Infor SCM for P.G. logistics bases. The system has been stable and reliable and has helped us create a standardized, client-oriented operational process, effectively adapting to current situations and the demands of domestic third-party logistics development."

Doing business better.
P.G. continues to expand its work with Infor in building a comprehensive information system. Its WMS system has been transplanted from Suzhou, its first stop, to P.G.'s other logistics bases in Hefei, Guangzhou, Shanghai and Shenyang. P.G.'s dedication to the development and advancement of China's modern logistics since its establishment has made it the industry standard for the development of China's modern logistics system. In fact, P.G. has literally become a textbook case; its system is now a required course for logistics majors. In the future, with a continuous expansion of P.G.'s business and gradual enhancement of its corporate information systems, P.G. will undoubtedly deliver everincreasing capacity and will achieve even more in China's logistics industry.

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