Being a jewelry producer, Matahari Terbit has a very unique business model with all of its transactions and most of the payments received are done in gold. Even the company's financial report use gold grams as currency. The uniqueness is a distinctive factors for the family business established in 1958 in Bandung. Started as a small gold store with just 20 employees, the business transformed to become Matahari Terbit, one of the major jewelry makers in the country with international market reach. Now, the company has over 500 employees and exports its products to Dubai, Malaysia, Singapore, USA and Hong Kong. Gold exports contribute 15% to 20% of the company revenue. While in the domestic market, the company’s products are absorbed by many gold stores in major cities like Jakarta, Semarang, and Surabaya.
Growing business demands a reliable IT solution. Matahari Terbit was experiencing problems to its business growth during the period of 2000-2009 due to the incapability of the company homemade software to support growing business process.
“It was hard to integrate the system and data because it did not linked to each other. This leads to all the hassle when we had to publish reports like profit and loss, costing per product, and others. It was hard to get quick and accurate data’s,” says Hengky Setiawan, IT Manager Matahari Terbit.
Matahari Terbit needed an integrated Enterprise Resource Planning (ERP) to automate its entire business process as well a fast system implementation with a minimum risk. After a tight selection process, the company decided to use ERP Oracle e-Business Suite Release 12. The ERP Oracle offers proven solution, especially in the manufacturing industry, globally.
“It is not the cheapest, but Oracle is the most flexible solution and able to accommodate Matahari Terbit’s unique business that booked its transaction and financial reports in grams,” says Hengky.
The company’s problem in integrating its system and data was solved by implementing Financials and Accounting, Inventory Management, Order Management (Sales), Purchasing, and Discrete Manufacturing. PT Mitra Integrasi Informatika (MII) — a subsidiary of METRODATA – helped with all of the implementation process.
“We picked MII because of its experience and capability. With over eight years of experience, MII had successfully help the implementation of Oracle e-Business Suite in various industries and with a reliable and certified consultants,” Hengky adds.
MII also offers OBA packages to make ERP Oracle e-Business Suite implementation 30% faster. Thus, the time and resources efficiency led to cost efficiency.
With OBA packages, Matahari Terbit took only five months to implement ERP Oracle e-Business Suite. “Thanks to a good partnership between Oracle and MII, we were on schedule all the way from business data capture, blue print and go live, as well as going through an intensive trainings. We can say this solution is 99%-100% accurate in solving our previous problems,” explains Hengky.
Now the process is already fruitful. Daily or monthly reports related with purchase order or procurement is a single click away. It doesn't take long as well to create Balance sheet and profit and loss, which previously took at least three days and with a questionable accuracy. Request order also improved from paper based form that often gets missing.
From the sales side, things are improving with a more detailed data’s. Previously, product’s items and model often missed because the old software only group products based on the gold percentage. Now, all data can very break down to its details using the new system.
“With the data’s we are able to know the most selling type and item in the market, and which is not selling well. The factory can then use the data to decide production so we can meet the market demands,” Hengky says.
Matahari Terbit tries to continue optimize its ERP application. Now, the company is also capable in creating new strategies based on the ERP data analytics. “What was impossible to do is now doable,” says Hengky.