Malaysia’s PXL Marketing joins the roster of innovative enterprises in Asia, including Singapore’s Love Bonito and Pasture Pharma, that have leveraged the SAP Business One ERP to accelerate the company’s digital transformation strategy.
According to Asian Development Bank (ADB) data, there are at least 71 million micro, small and medium-sized enterprises (MSMEs) formally operating in Southeast Asia, accounting for 97% of all businesses in the region and employing 67% of the working population in 2020. With MSME’s 40.5% contribution to each country’s average gross domestic product and 19.2% of total export value, the sector’s development and digitalization have become front and center of many nation’s growth strategies. Specifically, Southeast Asian businesses are rapidly adopting digital technologies and platforms to streamline business processing, widen their market reach, and strengthen local logistics networks.
In Malaysia, one of the innovative SMEs that have embarked on a digital transformation to make headway for post-pandemic operations is PXL Marketing Sdn Bhd, one of the country’s fastest-growing companies in the food packaging distribution industry. The disposable food packaging supplier selected SAP Business One– a software solution designed for SMEs to give them total control to scale growth leveraging a complete set of tools to help them efficiently manage processes, from accounting and financials to purchasing and inventory management.
“SAP Business One was our technology of choice in preparation for PXL’s Industrial Revolution 4.0 (4IR) readiness along with the transition to intelligent technologies on the cloud to realize our business aspirations,” stated PXL Marketing Managing Director Keith Tan. “It has been instrumental in helping PXL connect and streamline processes, while also serving as a catalyst of growth.”
Leveraging SAP Business One ERP to Become a Sustainable, Intelligent Enterprise
Keith emphasized that sustainability is at the core of the company’s operations as a manufacturer of disposable food packaging. Demonstrating PXL’s corporate culture, which is to always ‘do the right thing’, the company’s products are eco-friendly to ensure a minimal negative impact on the environment. Along with its sustainability initiatives, PXL is forging ahead in the post-pandemic era with robust business growth and enhanced customer experience as top priorities.
The PXL CEO shared that the company had a fair share of pandemic challenges like many others, from which they learned the significant role of technology. Keith detailed that the company was impacted by the global supply chain problem brought by the Suez Canal blockage in March 2021and the closure of several of China’s main ports due to Covid-19 outbreaks. These two major incidents affected the availability of raw materials, further disrupting the supply chain industry.
“From the observation and learnings, we gathered since the early days of the pandemic, PXL has taken pre-emptive measures to increase stock capacity,” he explained. “We started the process in Q4 2021 to relocate into a bigger warehouse facility in Malaysia’s Bukit Jalil Integrated Business Park.”
“Thanks to SAP Business One which provided better alignment between the sales and supply chain teams, PXL benefited from better inventory monitoring and stock projection to ensure better stock management for PXL’s consumers,” Keith added.
Realising Digital Transformation
Leveraging SAP B1, PXL witnessed:
- 30% increase in productivity brought by an improved inventory and warehouse management system
- Enabled integration between Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) with the PXL integrated portal, providing enhanced data insights for delivery while also improving versatility and access
- Supported remote collaboration, including internal sales training and customer consultations, in compliance with Movement Control Order (MCO), the Malaysian Government’s initiative in response to Covid-19.
Highlighting how SAP Business One ERP has streamlined management and connectivity across PXL’s different departments, Keith commented:
“SAP’s CRM and Opportunity Module was timely implemented for us to digitize our processes and maximize our work-from-home resources. The data extraction and integration capabilities have helped empower our Supply Chain Department to conduct forecasts for our exclusive customers to accomplish the company’s achievement beyond the industry standard.”
Kenneth dela Cerna, SAP Business One Business Leader said:
“SAP Business One is SAP’s solution for small and midsize businesses, such as PXL, to grow in its digital transformation. It offers an affordable way to manage an entire business by helping companies streamline processes, act on timely information, and drive profitable growth.”
PXL was awarded The Small but Mighty – Emerging Enterprise Award for Small and Midsize Enterprises (SMEs) in the inaugural SAP Best Run Awards 2021.