A-Kraft Tools Sharpens Operations With One-stop All Services

As any entrepreneur can attest that information technology or computerization helps sharpen management and operations of Taiwanese hand tool manufacturers to better compete globally, Louis Chen, chairman of A-Kraft Tools Manufacturing Co., Ltd., has been relying on the One-stop All Services, his company’s industry-leading management information system, to do just that.

Founded in 1988 in Taichung County, central Taiwan, A-Kraft specializes in production and marketing of auto repair tools, 30% of which is exported on an OBM (original brand manufacturing) basis and the remainder on the OEM (original equipment manufacturing) basis. Most of the company’s output is shipped to the European market. To better promote its sales in the market, the company will attend the International Hardware Fair Cologne 2012 to be held March 4-7, and will exhibit its latest products at Booth: Hall 4.1, D-12.

The company supplies a wide range of auto repair tools, including sockets, socket accessories and sets, socket wrenches, ratchet handles and combination wrenches for cars, heavy-duty vehicles and machinery, as well as a variety of hand tools as screwdrivers, bit sets, pliers, tool cabinets and tool sets, 80% of which are recognized by professionals in Europe.

Cutting-edge E-management
Few in the line can compare with A-Kraft in fully computerized organization and production management; while Chen sees such competitive advantage as a key to his company’s sustainable development.

“We have been adopting computerized management for some years, with 95% of routine paperwork done through ERP (enterprise resource planning) system and related MIS. To make sure all systems and application software are compatible with our organization from the ground up, A-Kraft also runs a computer engineering department, in which 4-5 software engineers work out practical computerized solutions to continuously better operational efficiency,” says Chen.

The company effectively takes advantage of various MIS to handle inventory monitoring, sales logging, customer relationship management, labor and production scheduling, performance auditing, personnel management etc., with such technologies having helped to keep the maker ahead of Taiwanese peers. “Information technology is ubiquitous nowadays and Taiwanese makers should make better use of such technologies to improve enterprise management. In short, they should focus on R&D and marketing and let MIS handle paperwork and follow-ups,” says Chen.

CARS
Among the company’s proudest MIS is CARS (Computer Automated Reminding System), which Chen says was officially recognized in 2010 as an ideal solution to sharply raise management efficiency by handling routine paperwork, production and inventory control.

Independently developed by the company’s software engineers and mated to a huge database constructed in-house, CARS provides each worker and director with updated information related to their respective tasks, helping with worker performance evaluation.

The system automatically notifies purchasing agents, stock keepers and delivery workers, for example, reminding them daily until they report to the system of jobs done, while simultaneously relaying feedback from workers to directors at every stage of work. Workers’ performance is recorded in the number of days ahead or behind deadlines, with such records stored in the database to enable directors to evaluate subordinates’ performance at yearend.

Also effectively applied to production management, CARS enables each production line operator to immediately learn production conditions via real-time information reported from the previous station and shown on an LCD monitor, which minimizes manufacturing errors caused by miscommunication between work stations. For instance, a packager will only handle finished products from the previous work station after seeing the green light the CARS given to a batch number.

One-stop All Services
Motivated by a Czech buyer who spent considerable time, money sourcing hand tool suppliers in Taiwan years ago, and knowing the practicality of MIS, Chen hence decided to tap his company’s e-management capability to jointly set up the One-stop All Services in 2011 with subcontractors. Offering such service makes sourcing easier for foreign buyers in Taiwan who have little knowledge of hand-tool supply chains on the island.

Taiwan’s hand tool industry, despite being globally known, is quite difficult to access for foreign buyers, mainly because single traders and manufacturers lack capabilities to provide all-around supplying services, says Chen. In other words, traders can’t offer problem solving related to manufacturing and quality guarantees, while most manufacturers can’t supply wide enough product range nor market information.

“One-stop All Services is committed to offering fast delivery, quality assurance, satisfaction, shipment consolidation, information online, competitive prices, R&D and innovative products,” stresses Chen, adding that the service differs from those provided by typical traders or manufacturers, and instead assures customers of reliable manufacturing and exchange of real-time, real-world information at once, which calls for a combination of consummate production and MIS capabilities.

A-Kraft supplies foreign buyers a wide spectrum of hand tools made in-house and outsourced, as well as purchasing services to source other product categories. With time-tested know-how in manufacturing and a full line of inspection instruments, the company also assures customers of quality consistency.

The company’s CARS can better maintain business links with foreign customers by offering online access to the latest information on new products, delivery and available inventory. “Since records on material stock, manufacturing, pre-delivery inspections, packaging and shipments are all computerized, we allow foreign customers to track orders online from every corner of the world anytime,” says Chen.

The MIS used by A-Kraft also handles assembly and packaging lines at the factory to allow the company to be a logistics center for customers who operate outlets in different places. Chen says that his company employs conveyor belts coupled with the CARS to help customers with pre-delivery shipment organization. Such logistics service facilitates shipment of products to enhance value-added efficiency that is also part of Chen’s One-stop All Services.

“We have five foreign clients from Turkey, Sweden, and Ireland using the service. Meanwhile more Taiwanese makers recognize its practicality and have joined the business. We are increasingly confident of the success of the service, for it will build the hand tool business between Taiwan and foreign buyers,” says Chen.

MIS Dept. Spun-off

Tapping the success of its MIS division and proven efficiency, A-Kraft spun off the computer engineering department as A-Kraft Applied Information Co., Ltd., with Chen aiming to market such achievements in e-management to peers, after four years of trial runs and debugging having proven the system to be effective to raise operating efficiency by 60%.

Improved management efficiency realized by MIS can also reduce overtime work, which not only cuts labor cost considerably but also allows employees to have more time for personal lives, all of which enhances quality of work environment and worker’s lives to ultimately attract more young, creative workers to the industry, says Chen.

“We have aggressively promoted our MIS to the industry for two years and have already earned insider’s trust, and yet are undaunted by potential challenges from peers who have learned our core competence. I believe efficient, effective management can help the industry to evolve, which is the good news to all,” says Chen altruistically.