E-business connectivity for Optimal

THE Optimal Group of Companies has successfully implemented its first e- business connectivity in the region with the Dow Chemical Company, leveraging on Elemica Network, a global industry transaction network. With the connection, the company is able to achieve a fully automated order fulfilment process which allows purchase orders from Dow's Diamond System to be transmitted electronically through Elemica's hub, and processed as sales orders in Optimal's SAP R/3 system. Through a single connection, Optimal is able to initiate e-transmission of an order response, advance shipping notice and invoice to Dow to complete automation of the business process. With the process for contractual buying and selling activities securely streamlined over the Internet, the company is expecting to see reduction in costs and errors in its order management process, and an accelerated real-time order process. The global petrochemical marketplace is rapidly changing and the use of electronic applications via the Internet is precipitating the change, prompting suppliers and manufactures to move towards more efficient supply chain systems and real-time shipment information, says James Fitterling, chief executive officer of Optimal, an affiliate of Petroliam Nasional Bhd (Petronas). He says by leveraging on Elemica Network, Optimal will be able to eliminate uncertainties and inaccuracies in the supply chain process and improve the company's speed and efficiency in responding to customers' needs. The integration, he adds, will also provide the company an edge to position itself more competitively against other suppliers in the region. "With Elemica Network implementation, we are poised for additional interface programs, enhancing our e-business capabilities and market reach in the Asia-Pacific region," Fitterling says. Additionally, the e-business implementation is set to bring tangible benefits for both Optimal and Dow, which include savings in operating expenses via automation, reduction in manual work and errors and business opportunities via the Internet. According to Marianne Rehn, vice president of Asia-Pacific Elemica, the Elemica Network has been adopted by more than half of the top 50 chemical companies in the world, making it the leading enabler of inter-company commerce offering buyers and sellers the opportunity to leverage their enterprise resource planning system investments. She claims that chemical companies which have adopted the network have enjoyed significant process efficiency optimisation and savings through 50 to 60 per cent reduction in the order management time.

Reference

Chandra, D. (2004, September 9). E-business connectivity for optimal. New Straits Times.