Leasing arrangement facilitates move to electronic ... · PDF fileIBM Global Financing...
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® Leasing arrangement facilitates move to electronic purchasing system for greatly improved profits. Customer Reference for IBM Global Financing Overview “With IBM Global Financing, we were able to stretch our IT budget and move easily to the new electronic purchasing solution which resulted in a significant profit increase .” Malik Bin Murad Ali, IT Manager, Mydin Mohamed Holdings. ■ Mydin is a major discount retailer and relies on being able to take advantage of short term promotional offers from its suppliers. In order to improve on this ability, Mydin wanted to implement a major hardware and software solution for electronic purchasing, but were looking for a solution to their upfront capital outlay. ■ A fast purchasing system with electronic processes and internal communications based on IBM hardware infrastructure and Microsoft software. Workflows were created using Microsoft® Windows® Sharepoint® Services to document all stock items, manage inventory levels and handle new product requests from stores. IBM Global Financing proposed a leasing solution which not only allowed Mydin to treat the implementation as an expense rather than an asset on their books, but also provided them with a three yearly technology refresh. ■ • Ready solution to the issue of significant upfront capital outlay • Funds are available to invest and for stock procurement • Technology refresh every three years ensures highest level of efficiency • Easy asset tracking, management and control • Electronic processes have reduced cycle time and enabled access to promotional offers which have generated additional sales leading to an increase of US$300,000 in annual profits Background The largest discount retailer in Malaysia, Mydin Mohamed Hold ings has 17 stores throughout the country and employs over 3000 staff. In order to consistently bring products at the lowest prices to its customers, the company works assiduously to take advan tage of promotional offers from its suppliers. This approach requires the ability to react quickly and to have detailed and accurate information on stock holdings in each store, something which had become a major challenge as the company grew and still relied heavily on paper-based systems. An average Mydin Wholesale Emporium carries more than 170,000 items and Mydin works with around 3000 suppliers in China, India and Malaysia to pro vide their customers with the products they want. The large number of new products and promotions going in to the stores at any one time presented the head office marketers with the challenge of how to effectively communicate this information to store employees.Mydin decided to put in place electronic pro cesses to replace their paper- based systems and implement a proper information technology infrastructure for the company. “We chose IBM because their hardware is very good, they are price competitive and they have an excellent partnership with the maintenance company,” said Malik Bin Murad Ali. A Total Solution Having agreed a solution to address their operational challenges, Mydin faced the issue of upfront capital outlay and how to take on a major upgrade commitment without placing undue financial strain on the business. “IBM were very proactive and came to us with a leasing proposal,” said Malik Bin Murad Ali. “It covered all the hardware and allowed us to expense it and not have to treat it as a capital item.” TM
Transcript of Leasing arrangement facilitates move to electronic ... · PDF fileIBM Global Financing...
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Leasing arrangement facilitates move to electronic purchasing system for greatly improved profi ts.
Customer Reference for IBM Global Financing
Overview
“With IBM Global Financing, we were able to stretch our IT budget and move easily to the new electronic purchasing solution
which resulted in a signifi cant profi t increase .”
Malik Bin Murad Ali, IT Manager, Mydin Mohamed Holdings.
■ ������������ Mydin is a major discount retailer and relies on being able to take advantage of short term promotional offers from its suppliers. In order to improve on this ability, Mydin wanted to implement a major hardware and software solution for electronic purchasing, but were looking for a solution to their upfront capital outlay.
■ ������� ��� A fast purchasing system with electronic processes and internal communications based on IBM hardware infrastructure and Microsoft software. Workfl ows were created using Microsoft® Windows® Sharepoint® Services to document all stock items, manage inventory levels and handle new product requests from stores. IBM Global Financing proposed a leasing solution which not only allowed Mydin to treat the implementation as an expense rather than an asset on their books, but also provided them with a three yearly technology refresh.
■ ���������� � • Ready solution to the issue of signifi cant upfront capital outlay • Funds are available to invest and for stock procurement • Technology refresh every three years ensures highest level of effi ciency • Easy asset tracking, management and control • Electronic processes have reduced cycle time and enabled access to promotional offers which have generated additional sales leading to an increase of US$300,000 in annual profi ts
BackgroundThe largest discount retailer in Malaysia, Mydin Mohamed Hold ings has 17 stores throughout the country and employs over 3000 staff. In order to consistently bring products at the lowest prices to its customers, the company works assiduously to take advan tage of promotional offers from its suppliers. This approach requires the ability to react quickly and to have detailed and accurate information on stock holdings in each store, something which had become a major challenge as the company grew and still relied heavily on paper-based systems.An average Mydin Wholesale Emporium carries more than 170,000 items and Mydin works with around 3000 suppliers in China, India and Malaysia to provide their customers with the products they want. The large number of new products and promotions going in to the stores at any one time presented the head offi ce marketers with the challenge of how to effectively communicate this information to store employees.Mydin decided to put in place electronic processes to replace their paper-based systems and implement a proper information technology infrastructure for the company.
“We chose IBM because their hardware is very good, they are price competitive and they have an excellent partnership with the maintenance company,” said Malik Bin Murad Ali.
A Total Solution Having agreed a solution to address their operational challenges, Mydin faced the issue of upfront capital outlay and how to take on a major upgrade commitment without placing undue fi nancial strain on the business. “IBM were very proactive and came to us with a leasing proposal,” said Malik Bin Murad Ali. “It covered all the hardware and allowed us to expense it and not have to treat it as a capital item.”
TM
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IBM Global Financing structured an agreement for Mydin which met their budget requirements and helped protect against technology obsolescence by offering a technology refresh every three years. One of the advantages of the three year refresh, is that IBM hardware is covered by a three year warranty.
The solution preserved Mydin’s ability to make fl exible equipment decisions and provided easy asset tracking, management and control. As for any additional purchases from now on, they are simply added to the leasing agreement.
Leasing turns large upfront costs into affordable monthly payments. For Mydin, stretching their payments out over three years means they have a great deal of fl exibility and more money available for procurement and to invest.
“IBM Global Financing’s proposal was a straight forward process which made the whole go/no go decision very easy for us,” said Malik Bin Murad Ali.
From paper to electronic processesWorking with IBM and Microsoft, Mydin implemented the solution which has given them a quick procurement process and the ability to make accurate assessments of store inventory, both of which were required in order to take advantage of the short-term promotions offered by their suppliers. For improved communications between head offi ce and stores, workfl ows based on Microsoft Windows SharePoint Services were created to document all products and manage inventory levels.
As a result of the new system and processes, the cycle time for purchasing decisions has been signifi cantly reduced and the company has seen an increase in annual profi ts of nearly US$300,000.
IBM Global Financing IBM Global Financing provides one-stop fi nancing which allowed Mydin to acquire a total solution, including hardware, software and services. As an expert in IT fi nancing, IBM Global Financing helped Mydin to design a funding strategy to meet their business needs and fi nancial objectives.
“The combination of IBM hardware and IBM Global Financing has worked very well for us. We have an excellent relationship with IBM and our Account Manager and can always call them with any problem,” said Malik Bin Murad Ali.
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