Shun Sang (H.K.) Co. Ltd.: Streamlining Logistical Flow
Founded by Mr. Tsui Kwok-choi and his wife, Shun Sang (H.K.) Co. Ltd., an authorized distributor of Procter & Gamble (P&G) in Hong Kong, embarked on a major IT-enabled supply chain management initiative in 1998 to streamline its sales and order fulfillment-related operations. Then in 2002, Shun Sang upgraded its supply chain management systems to enhance its operations further. The benefits that Shun Sang gained included a reduction in manpower and duplicated work, greater accuracy in order processing and inventory records, more efficient inventory operations, shorter order lead time, improved customer satisfaction, and business growth. Although between 1998 and 2002 Shun Sang failed once to upgrade its ordering system, it was not discouraged. It successfully rolled out the new systems in 2002. Illustrates how an SME can turn logistic efficiencies into competitive advantage as well as the importance of data quality in doing so. Allows for a discussion on the critical success factors of IT-enabled supply chain management systems, typical SME responses to economic downturn, and approaches that SMEs can take to improve competitiveness and profitability.